Supported Tourism Business in Hiroshima (2012)

PROJECT

We assisted a Japanese local manufacture in Hiroshima in new business development. We targeted tourism as a growth market and complied a tourism promotion strategy in Bingo area and built new business plan.


Background

Our client, a domestic manufacture, located in Setouchi region in Japan was faced with fierce competition with overseas competitors. They were also challenged with declining population in the area. Given these circumstances we assisted them in locally-rooted new business development that contributes to local industry.

What we did to support Tourism in Hiroshima

We decided to target tourism given that it is a growth market, that it is Hiroshima’s focus area, and that it matches the strength of our client.

Setouchi — Hiroshima prefecture, Yamaguchi prefecture, Okayama prefecture, Ehime prefecture, Kagawa prefecture – is a combination of “natural landscape” woven by Japanese gardens, ocean and the island, and “cultural landscape” that embraces history, culture, shrines and temples and historical sites. It was said to be the only one tourist destination that boasts such beautiful combination.

Example as of 2012

Tourist spending: 723,6 billion yen / year( v.s. prefecture average at 143 billion yen / year)

# of visitors: 81,34 million people / year (v.s. prefecture average at 15,5 million people / year)

80% of the visitors in the area prefer to plan and select their own itinerary instead of taking a packaged group tour. However, in Setouchi area there was only a few places that was appealing to visit.

We conducted an analysis on the area that was taking a lead in tourist business. We highlighted success factors based on needs analysis and competition analysis against them.  Then we cross checked with the challenges that Bingo, Hiroshima had and complied a tourism promotion strategy. Based on such strategy we proposed the following new business ideas:

  1. Athlete food using Setouchi local food
  2. Experience being a “Setono Hanayome,” which means being a bride in Seto (which is a famous song in Japan)
  3. Visual information service regarding Bingo
  4. Setouchi method Amphibious bus
  5. Payment service for Bingo tourists
  6. Experience Rejuvenation at Dragon’s Palace

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