Japan aviation: regional airport growth and privatisation needed to meet aggressive tourism targets

Under Abenomics the growth of inbound tourism to Japan has been spectacular - partly because so little effort was put into tourism before. Increasing numbers of inbound visitors has rightfully captured the attention of the central Japanese governments, with predictable results. Japan crossed the 10 million visitor mark in 2013, 20 million in 2016, and plans are for 40 million in 2020 and 60 million in 2030. Numerically, the growth is steady, but in practice Japan is finding it harder to locate and facilitate growth.

CAPA's LCCs in North Asia summit at Osaka Kansai in Jun-2017 surveyed the vast improvements that have occurred in Northeast Asian aviation. For Japan to meet its 2020 tourism goal, it will need to add the equivalent of 72 new narrowbody daily flights each year for the next four years.

The typical focus of Tokyo and Osaka does not have the capacity to accommodate this growth. Offering LCC terminals and further privatising Japanese airports could help regional centres grow. Ground supplier monopolies need to be ended to provide competition, while further visa liberalisation will unlock growth markets.