New Deal Europe Weekly Update on Tourism to the Balkan Region, Week 50
News from the markets: Miki Travel, Japan
When news broke last week that industry giant, Adam Lotinga, was retiring after 39 years with Miki Travel we came knocking on his door for that first post-retirement interview. Adam was Managing Director of Miki Travel, which was the leading operator from Japan to Europe thoughout his tenure. He has served on the Advisory Council of the European Tourism Association (ETOA) for the last decade, so he is a well known and highly respected figure in the world of incoming tourism. No-one has more knowledge of the inbound Japanese market than Adam, so it was our great honour to have him as our guest this week, and get his insight into this fascinating market.
NDE: Hi Adam. Thanks for joining us today. You’ve just retired after 39 years at Miki. One week in, how does that feel?
AL: Hi Robert. A mixture of great sadness at the current circumstances, pride in what we have collectively achieved at Miki over the years, and anticipation for what lies ahead for me personally really. But I have to say that lockdown and working from home for the past 16 months has probably made the transition a little easier than I feared, as the absence of a commute and not being able to meet physically with colleagues every day has softened the usual cliff-edge of retirement !
NDE: Can you tell us how your career took you from England to Japan?
AL: Well, it wasn’t my career as such that initially drove me to Japan, but rather an innate love of travel and a sudden change of direction when I reached Singapore. I had planned a 6-month overland trip to Australia, but Singapore changed that, culminating in my unscheduled arrival in Japan almost penniless 2 years later — and incidentally I’ve still never made it to Oz! I then settled in Tokyo teaching English for 5 years before returning to the UK in 1982, where I first joined Miki and soon realised I had found my niche. I later spent another 4 years working for them in Japan, learning the trade and forging great contacts within both the sales offices and the industry at large, both of which were to serve me well later.
NDE: The Tokyo Olympics of 1964 is credited with opening up Japan to the World, and encouraging tourism. In last few weeks though, we have been watching images from the Olympics of empty arenas and stadia. What are your thoughts on this, and do you have feedback from your friends in Japan about the Covid situation there?
AL: The Japanese are inherently cautious, hence the delays in approving the vaccines and the initial understandable lack of enthusiasm for the Games amongst the local population. But I believe that the potential for ‘loss of face’ as much as ‘loss of money’ spurred the country to press ahead regardless, and the stringent measures imposed have ensured that the inevitable spread of the virus has been contained within reasonable limits, with levels still below those experienced in many other countries. Ultimately I believe that the decision to proceed with the Games has been largely vindicated by heroic performances by the competitors themselves in the most difficult of circumstances, and it seems that the success of the Japan team has at least partially softened the initial opposition of the Japanese people.
NDE: Miki Travel are market leaders for outbound travel in Japan so you have a great overview of the situation. When do you think outbound travel will resume from Japan?
AL: It’s a good question and one that everyone is asking, but of course nobody can answer with certainty. Whilst we hope for the best, honestly speaking I do not foresee group travel starting again before next spring, and even then only reaching perhaps 20–30% of pre-covid levels throughout next summer. If all goes well further recovery should then follow rapidly, with significant pick-up in 2023 and hopefully a full return by 2024. Of course, I anticipate individual and short-haul travel to nearby countries to recover more quickly and this will be the focus of the Miki team for the next 12 months or so until groups return.
Whilst we hope for the best, honestly speaking I do not foresee group travel starting again before next spring, and even then only reaching perhaps 20–30% of pre-covid levels throughout next summer.
NDE: What will that resumption look like — which destinations will benefit first?
AL: With the Japanese safety is always a priority, so I would expect destinations offering open spaces and natural beauty to benefit first, such as the Nordics, the Alps and of course the Balkans. But as vaccination levels continue to rise and confidence returns, I would anticipate that the pent-up desire for travel will overcome any residual fears and the traditionally popular hot-spots in Europe will become popular once again, starting next summer. Personally, we’ve already spent four previous family holidays in different parts of the Balkans, and we’ve just booked again to visit next month, so I’m doing my bit to lead the way !
NDE: You have been a long standing member of ETOA’s Advisory Council. How do you think Europe has handled the Covid crisis?
AL: You’re putting me on the spot with this one, with the EU generally struggling for a unified approach and Brexit having simply accentuated this further. The situation has certainly not been ideal but the different approaches to inbound travel were always likely to depend on differing vaccination and covid levels within each country — not to mention internal politics. So I think ‘as well as could be expected’ is the best response to your question, although there are hopeful signs now of a more unified approach to the recovery stage.
NDE: What are travellers from Japan looking for from a European holiday? Is it different to their expectations from other parts of the world?
AL: Absolutely. For beaches they travel more regionally to Hawaii & Micronesia etc, whilst traditionally they have come to Europe for the sights, the history, the nature and the variety of different cuisines. But what we have seen more recently is a trend towards staying longer in each country, to explore more fully what each has to offer, and to actively partake in local experiences. This is the next big thing in my view, and we’re seeing similar trends in other parts of Asia and the Far East also.
Personally, we’ve already spent four previous family holidays in different parts of the Balkans, and we’ve just booked again to visit next month, so I’m doing my bit to lead the way!
NDE: How would you describe the typical Japanese traveller coming to Europe? In fact is there a typical Japanese traveller these days?
AL: I think you’ve hit the nail on the head there Robert. Whilst there was definitely a typical stereotype in the past, that is changing rapidly. Yes, the older and wealthier generations with a poorer grasp of English may still prefer the security of an upmarket guided tour, but younger Japanese are becoming ever more adventurous and seek more flexible and dynamic schedules, including more inter-action with locals and authentic regional experiences. It’s also about sharing such experiences with friends and family back home — although of course they can now do that throughout the journey itself via social media.
NDE: If you mention ‘The Balkans’ in Japan, what reaction do you get? What would you say is the general perception of the region?
AL: Even 5–10 years ago the Balkans were relatively little known in Japan, but there has been a huge upsurge in interest recently as they have come to be seen as both somewhere new but also as a destination offering history, scenic beauty and much to see and do. We have contributed to this transformation alongside others by offering numerous fam trips to carefully selected travel agents and prioritising the Balkans as a key target for growth. And what we’re now witnessing is the second stage of development as itineraries no longer include mostly Croatia & Slovenia only, but increasingly Montenegro, Bosnia-Herzegovina and a selection of other destinations in the region as well. I foresee this boom continuing for some time.
NDE: As a market leader are you able to influence the decision making of the tour operators? If so, how do you go about this?
AL: As I just mentioned, we organise fam trips to new destinations and invite selected key decision makers from agents with the greatest potential for promoting the region, to which we then add popular travel writers and influential bloggers to achieve maximum exposure online. On top of this, long-standing relationships between our experienced sales teams and the agents allow us to influence their decisions, supplementing the daily promotional activities of the relevant tourist boards.
Itineraries no longer include mostly Croatia & Slovenia only, but increasingly Montenegro, Bosnia-Herzegovina and a selection of other destinations in the region as well.
NDE: How do you think the tourism providers in our region, the Balkans, can get more business from Japan? Does it help to visit Japan and do sales calls? Are there any tips you have from your experience of working with the Japanese?
AL: Personal relationships have always been critical in Japan, so making the effort to visit the country to promote your product in person is invaluable.
It also enables you to witness the culture and levels of service to which they are accustomed at home. However, ensuring you meet the key decision makers at the agencies with the most potential is fundamental to the success of your trip, so better seek the support of a local entity in setting this up on your first visit, such as the relevant tourist office or an influential wholesaler with the right contacts. Not only can they assist with making the right appointments, but they can also ensure you get to them on time as finding your way to business addresses in Tokyo and Osaka is not easy for the locals, let alone a first-time visitor from abroad !
NDE: Ha ha. I can testify to that — especially the ‘getting lost’ element in the big cities. The addresses are not so obvious. Anyway, let’s stick to our brief and look at sustainable and responsible tourism. At New Deal Europe we are focused on promoting this element of the Balkan region. How important are these aspects to Miki Travel and to Japanese travellers generally?
AL: To be honest Robert, sustainability has historically not been a major priority in Japan, with consumerism driving replacement purchases and service levels dictating huge waste in packaging for example. But you can sense a gradual change in recent years as heightened awareness of the risks starts to challenge traditional customs and ways of thinking, but I suspect it will still take time for Japan to catch up with Europe’s efforts in this respect.
Sustainability has historically not been a major priority in Japan…But you can sense a gradual change in recent years as heightened awareness of the risks starts to challenge traditional customs and ways of thinking.
NDE: Finally, how do you see the post pandemic future of travel out of Japan, and what makes you think this?
AL: A big question to finish on, and not an easy one to answer, but I suspect that the pandemic will accelerate already existant trends, such as smaller group sizes, more individual and family travel, and a desire to spend longer in each destination to really learn more about the local people and culture. Whether a shift towards a better work-life balance as we are perhaps witnessing in European countries will drive change in working patterns in Japan, and ultimately lead to fuller utilisation of holiday allowances and consequently more foreign travel, remains to be seen. But in my view the Japanese market will remain highly coveted, for their willingness to explore new destinations as much as for the courtesy and spending power of the guests, and I would therefore certainly encourage the Balkans to keep faith and invest for the longer term.
NDE: Adam it’s been great talking to you. Thanks for being our guest this week and giving us this insight into Japan, and all of us at New Deal Europe wish you a long, active and very happy retirement.
AL: Thank you, Robert. It’s been a pleasure, and best of luck with your ongoing efforts to promote the Balkan region.
New Deal Europe is the only travel market platform dedicated to generating business to the Balkan region of Europe, www.newdealeurope.com. Follow us on LinkedIn: https://www.linkedin.com/company/newdealeurope.
