1. 1 Cruise Promotion Around Japan and North West APEC Region May 2006 TAKEMURA, Junichi The Overseas Coastal Area Development Institute of Japan （ OCDI)

2. 2 Why is the cruise industry in Japan still embryonic? 1. Social restrictions such as short period of 1. Social restrictions such as short period of holidays, casino issues holidays, casino issues 2. Insufficient efforts to expand cruise market 2. Insufficient efforts to expand cruise market 3. Lack of cooperation among related parties 3. Lack of cooperation among related parties 4. Negative image of cruising i.e. seasickness, 4. Negative image of cruising i.e. seasickness, expensive and dull expensive and dull 5. Travel agencies lack specialists for selling 5. Travel agencies lack specialists for selling cruises cruises

3. 3 1. Social Restrictions such as Short Period of Holidays Retirement of Baby Boomers will change the cruise market in Japan.

4. 4 Impact from the Retirement of Baby Boomers in Japan Employed persons born from 1947 to 1951 Employed persons born from 1947 to 1951 3.32million persons 3.32million persons Economic impact of their retirement Economic impact of their retirement Total impact on consumer spending Total impact on consumer spending 7,776 billion yen 7,776 billion yen Overseas Travel 980 billion yen Overseas Travel 980 billion yen Domestic Travel 136 billion yen Domestic Travel 136 billion yen (News Release: March 2006, Dentsu) (News Release: March 2006, Dentsu)

5. 5 Destination Sampling Cruising is a important vehicle for sampling destination areas to which passengers may return. Cruising is a important vehicle for sampling destination areas to which passengers may return. Agree: 85% Agree: 85% Fully expect to return to the same geographical area / destination for another type of vacation. Fully expect to return to the same geographical area / destination for another type of vacation. Agree: 49% Agree: 49% (The Overview Spring 2005, CLEA) (The Overview Spring 2005, CLEA)

6. 6 2. Insufficient Efforts 3. Lack of Cooperation (1) Between Central and Local Government ~ VJC (Visit Japan Campaign) (2) Between Economies ~ ASEAN-Japan Cruise Promotion ~ Joint Cruise Research with Korea & China Cruise Promotion by Collaboration

7. 7 Seatrade Cruise Shipping Convention (Miami, U.S.A) from 2004 Visit Japan Campaign

8. 8 Visit Japan Campaign 2 JAPAN Manual

9. 9 Collaboration Between Economies With ASEAN Cruise Promotion Program (2003 - ) With Korea & China Joint Cruise Research (2003 - )

10. 10 The Caribbean Sea The North West APEC Region 7 days cruise 12 days cruise 8 days cruise Spread of Cruising Area The Mediterranean Sea

11. 11 Other Solutions Implementation of Pilot Cruise Implementation of Pilot Cruise Introduction of a Cruise Adviser Recognition System Introduction of a Cruise Adviser Recognition System Establishment of local association to Promote Cruising Establishment of local association to Promote Cruising

12. 12 Foreign Cruise Ship Calls to Japan

13. 13

14. 14 Thank you very much