Current information about Japanese tourism

Updated May 2024

Finland's position in the market

“Finland grows on you.” While the designs and Moomins continue to attract consumers, symbolic Finnish cultures “sauna” and “mölkky” are spreading across the nation.

International Mölkky Association will organize this year’s world championship in Japan for the 1st time outside Europe. 3000 players including Finnish and European players will be traveling to the host city Hakodate which is a symbolistic place for the dawn of the diplomacy between Finland and Japan. Adam Laxman, son of Savonlinna born Erik Laxman, came to Hakodate on the Russian Empire mission in 1793. We are expecting Japanese celebrities and leading TV medias over the tournament weekend in August. According to Japan Mölkky Association, there are currently 1.6M enthusiasts in Japan.

Sauna is trendy and phenomenal especially among the young generation. Some corporations have started to consider linking it to HR recruitment and wellbeing policies for attracting good talents. Tokachi region in Hokkaido is actively promoting avanto to boost economy during its slow winter season. This is just one of the many other cases where we are playing important roles in helping revitalize local communities.

We are reaching out to a wider audience who are keen on an authentic experience in Finland. Our ways of stimulating market demands are such an unorthodox style compared to the standard practices of national tourism organizations. It has taken a few years to convince our B2B partners. Many travel agents, tour operators and airline partners have now convinced of the business opportunities. Combining existing USPs to the culture and wellbeing lifestyle raises attractiveness of their products. We believe that this platform is applicable to the multiple distribution channels from the tour packages and FIT, corporate travel, and to group sales such MICE, incentives and student groups.

Consumer trends and behavior

Japanese are traveling overseas. Interestingly, choice of destination has drastically changed compared to the pre-pandemic time. Hawaii used to attract over 1.5M visitors annually. Japanese travel industry believed that Hawaii would lead the ramp-up phase. Unfortunately, its recovery was surprisingly slower than expected. 2023 result was only 570000. On the contrary, Cairns, a popular longhaul destination in Australia recorded 92%. Currency advantage certainly has impact on the consumer decision making. However, what is more important is airlines and suppliers’ strategy. Hawaii has shifted its target more towards mainland markets as it has grown to become a hub airport connecting US and Asia. Japanese travel agents no longer enjoy favorable booking conditions and fares/room rates.

Emerging trend is a longer booking lead time for pent-up demands for those who are highly motivated with specific interests. For Finland, USP such as Moomins, Finnish designs, aurora and sauna are driving bookings. FIT markets are becoming more active. Generation-Z segments are traveling thanks to more flexible working environment. Remote work and workation are becoming more accepted business practice. Partnership among the travel trade, airlines, suppliers and tourism organizations is very critical in stimulating pent-up demands and market interests.

Nikkei Stock Average reached JPY40815 on 22 February, highest since the last time recorded back in 1989. Major companies have raised the salary by 5%, which is also the highest level in 32 years. Japan’s national net worth reached $27 trillion. About 1.3 million Japanese households have assets over $1M. Despite these positive economic signals, consumer sentiment remains pessimistic due to the price increase trend. Japan’s average core consumer prices rose 3.1% marking their fastest increase in 41years due mainly to higher food prices. Another concern is a possible interest rate increase after Bank of Japan ended 8 year-period of negative interest rates in March.   

Industry update and distribution channels

It has been one year since the border restrictions were completely lifted in May 2023. Inbound traffic is prominent. Its monthly visitor reached 3.0M in March. Japanese travel agents are much more interested in sustainability.

This year also marks 60th anniversary since the liberalization of the overseas traveling back in 1964. The number of the Japanese travelers in 2019 reached the highest record at 20million before the Covid-19. Travel agents and tour operators have finally resumed their ordinary business practices. They are recruiting new employees and allocating resources back to the sales and tour planning.

Hankyu Travel, H.I.S, Clubtourism are driving consumer promotions. JTB, NTA and KNT are strengthening their group sales and corporate travel bookings. Mid-size companies such as Finntour, World Air-Sea services and Mistukoshiisetannikko Travel are performing very well. Booking intakes are very promising despite the emerging challenges such as the weaker JPY currency and geopolitical situation in the middle east. Many companies are targeting for the 2019 revenue level. European countries remain as the most important destinations in their outbound business.

Airline's strategies have such significant impact on the market and distribution channel. Some international carriers are not offering favorable booking conditions for the B2B partners. As for Finnair, the strategic importance of the Japan routes and the Japanese trade partners has been reinforced under the leadership of the new Regional General Manager, Mr. Sakari Romu appointed in January. Finnair Japan highly values partnership with the travel agents, Visit Finland and Finnish tourism partners. Our joint promotions and collaboration in organizing workshops and fam trips are highly appreciated by the market partners. Finland has been successful in gaining competitive advantage.

Sustainability also enhances Finland’s positioning in the market. More and more travel agents are introducing STF programs.   

Finland travel USP's

Perception of Finland's overall country image continues to be very positive in the market. More and more people are aware of its SDGs ranking and Happiest nation in the world status thanks to the continued media exposures. Sauna and Mölkky continue to attract various age groups including university students across Japan. Linking these emerging USP of iconic Finnish lifestyle to the original USP is the key. People are looking for inspiration on well-being lifestyle. Combination of Northern lights and Santa as well as Finnish lifestyle such as designs, authentic sauna experience and cafe/gourmet are strong motivating factors for driving travel bookings.

Products in summer:
Moomin World/Museum, City holiday, "Connecting with nature" products, heritage, café hopping, public sauna, authentic sauna experience in nature at a resort/cottage, gourmet, Finnish design and fashion

Products in fall:
Northern Light viewing, Ruska viewing, City holiday, café hopping, public sauna hopping, authentic sauna experience in nature at a resort/cottage, dining experience, Finnish design and fashion, Moomin Museum

Products in winter:
Northern Lights viewing, Santa, Christmas, City holiday, café hopping, public sauna hopping, Northern Light viewing, Authentic sauna experience in nature at a resort/cottage, dining experience, Finnish design and fashion, Moomin Museum

Future outlook and upcoming season

We organized Moi Finland Workshop 2024 in April. 19 companies and organizations joined us in Tokyo and 18 in Osaka. We have received very positive feedback from both buyers and sellers. According to the tour operators, the quality of the buyers was very impressive this year. It was reaffirming that there were strong interests to Finnish products and destinations. According to the key trade partners, booking forecasts in September and October are very promising. There are more Finland mono itinerary products available in the market.

Finnair currently operates 17 direct flights, Narita 6, Haneda 7 and Osaka 5. Nagoya’s 2 weekly flights will be relaunched on 31.5. Finnair will be the only carries connecting the central Japan to Europe.  Japan Airlines also operate 4 weekly direct flights to Helsinki. It means that the frequency/capacity will be around 58% level of 2019 in the summer period. The recovery pace is correlated with the air capacity. Our forecast between the summer and fall will be around 60%. There is a good possibility to exceed this forecast as the travel agents are shifting more towards Finland and Northen Europe thanks to Finnair Japan’s new strategy to promote Nordic and Baltic destinations. Paris Summer Olympic and UEFA EURO2024 will present a major challenge to the tour package markets. For these reasons, outlook for the upcoming season is very promising.

Nagoya routes will be suspended for the winter schedule from 27.10 until March 2025. However, it will return in the 2025 summer schedule with more frequency. We are expecting 26 weekly direct flights on the Japan routes, growth to 65.0% level of 2019 operations. We are gaining momentum thanks to the continued commitments by our valued Finnish suppliers. Our trade partners appreciate Finland’s support to the Japanese market