IATA urges Japan: Get competitive
The International Air Transport Association (IATA) has called on Japan to capitalise on the economic benefits of air transport by improving the sector’s competitiveness.
"I am a Japan optimist. And in the case of aviation, these last few years have seen some of the most promising changes in Japanese air transport," said Tony Tyler, IATA’s director general and CEO.
Focussing on two findings from the World Economic Forum’s (WEF) Travel and Tourism Competitiveness Report, Tyler said more work needed to be done to strengthen Japan’s competitiveness:
Visa Requirements: When analysing the number of countries granted visa-free entry, Japan ranked in 76th place while Korea ranked at sixth place alongside Malaysia, Singapore and Hong Kong.
"This is a big handicap if Japan is to make its ambitious target to increase inbound tourism to some nine million visitors this year with an emphasis on attracting international meetings," said Tyler.
Cost Competitiveness: Of the 139 countries in the WEF rankings, Japan ranked at 106 on airport charges and ticket taxes while Korea was 33rd.
This corresponds to a Leigh and Fisher benchmarking survey of airport charges which found Kansai International Airport to be the second most expensive airport in the world and Narita to be the sixth most expensive.
Tyler said the leakage of domestic transit traffic to hubs outside of Japan illustrated the impact of Japan’s high cost environment.
While approximately 1.4 million travellers make domestic/international connections at Narita annually, about 500,000 use Seoul’s Incheon airport as their transit point.
"This is just one illustration that the negative impact of high costs on the aviation business in Japan is real and measurable. At a time when Narita is struggling to utilise capacity, it can ill-afford the lost business," said Tyler.
Commenting on Japan Airlines re-listing ‘¨this week, Tyler said JAL’s rehabilitation was a reminder of the resilience of the aviation industry
"The challenge now is ensure a fair and equal opportunity for all Japanese carriers to be successful," he added.
Ian Jarrett
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