Tenorio 1

Tourism Approaches and the Japanese Experience

------------------------------

A Bibliographical Essay
Presented to
Dr. Tetsuhiko Takai
Associate Professor
Graduate School of Economics and Business Administration
Hokkaido University

---------------

In Partial Fulfillment
For the Requirements of this Course:
Takai Semniar

---------------

By
Andrew Tenorio
September 20, 2005
 Tenorio 2

Bibliographical Essay Outline/Table of Contents Page

Introduction…………………………………………………………………………….2

Part I: Clarifying Concepts: From Definitions, Approaches, to Marketing

A. Concepts Defined
1. Definition………………………………………………………..3
2. Growth and Trends……………………………………………...4
B. Theory and Approaches
1. Quantifying……………………………………………………….6
2. Economic Models in Evaluating Tourism: The Struggle………...8
C. Relating Theory and Practice in Tourism Development
1. Tourism in Peripheral Areas…………………………………….9
2. Sustainable Tourism Development……………………………...12
3. Impacts Caused by Tourism Development……………………...14
a. Negative Impacts
b. Positive Impacts
D. Marketing of Tourism: Competition in Environmentally Sustainable
Tourism
1. Image as Key……………………………………………………19
2. Marketing Aborigine Culture…………………………………...21
3. The Role of a Country’s National Tourist Organization………...22

Part II: Tourism Development in Japan

A. Tourism Policy and Development……>…………………………………..23
B. Tourism Development and motivation in Japan:
A Search for the Furusato………………………………………………..25
C. Impact of Domestic Tourism in Japan………………………………….…29
D. The State of Japanese Tourism Today: OECD Report……………………30
E. Tourism Development in Hokkaido………………………………………34

Part III: Case studies in other peripheral areas: America/Guam

A. Issues in Decision Making……………………………………………….35
B. Labor Issues……………………………………………………………...36

Part IV: Discussion and Conclusions………………………………………………….37

List of Works Cited……………………………………………………………………40

 Tenorio 3

Introduction

Contrary to many beliefs, the idea of tourism is multifaceted and that the nature of the

product as Davies (2003) confirms is more than just the travel and stay to the destination,

rather it is the total experience of both the pre-consumption of the good as well as the

post consumption. The consumer also, in general, consumes not only private goods

generated by the industry but also public goods.

However, areas in rural areas can become vulnerable to the mass influx of people and

when not regulated, can make individual residents or the communities feel violated as

there is no clear distinction of what is proper to observe and what is considered private

for the actual community. Thus the actual observation of a community can be changed to

create an artificial venue where the local culture can be observed.

The role of tourism also has been seen as a source of economic development for those

countries which have little to no resources to further speed their economic development.

However, for some countries that fit this characteristic, tourism has not been a positive

experience to continue with the development process.

The purpose of this research is to describe and evaluate the historical development of

the tourism in Hokkaido from post WWII to the twentieth century. While cultural places

for example, Kyoto, are usually the main attraction of the Japanese tourism industry,

understanding how the prefecture of Hokkaido fits into the tourism policy of Japan

allows an excellent case of tourism development and as a model for other areas in

peripheral regions around the world. This essay is divided into three parts, Part I reviews

several approaches in understanding tourism, Part II, the Japanese tourism policy, as well

as several cases of peripheral area tourism in Part III can the understanding of
 Tenorio 4

Hokkaido’s tourism policy be ascertained. Part IV draws from these scholastic literatures

and makes several remarks on how may explain the future growth of the Hokkaido

tourism industry.

PART I: Clarifying Concepts: Definitions, Approaches, Marketing

A. Concepts Defined

1. Definition

Pigram and Jenkins (1999), noting that terms in the tourism industry are related make

the distinguishing characteristics between leisure, recreation, and tourism. Leisure

normally implies the opposite of doing labor or work. However these two scholars note

that this is not necessarily the case. For example, being unemployed does not necessarily

mean that that person is enjoying leisure. This is due because some of the unemployed

are actually looking for employment which actually can be frustrating, not usually a

quality of leisure and in addition, “Leisure requires that people have money to purchase

‘time’, recreation access and supporting resources” (p. 3). Thus leisure can be seen as a

function of disposable income.

Leisure also is a subjective defined by Kaplan (1975) that:

Leisure consists of relatively self-determined activity-experience that falls into one’s economically free

time roles, that is seen as leisure by participants, that is psychologically pleasant in anticipation and

recollection, that potentially covers the whole range of commitment and intensity, that contains

characteristics norms and constraints, and that provides opportunities for recreation, personal growth and

service to others (as cited in Pigram and Jenkins, 1999, p.5).

Because this definition uses “recreation”, further classification and explanation is

necessary. Thus in order to provide clarity to this issue, one can associate leisure with

time and process and recreation with activity, response, and end resulted experience.
 Tenorio 5

Tourism is one of the worlds largest growing and fastest growing industries taking

place during leisure time and most is recreation which is taken outdoors. What separates

tourism from recreation further is that the fact that many people place much emphasis of

the economic benefits and business related functions to tourism while the idea of

recreation is rather non-commercialized. It appears that this definition is rather simple,

proper research into what exactly tourism aids the development of a more theoretical

working definition. In addition, it is noted that the two do mention that the study of

tourism “has only recently received academic and wider social credibility. One of the

reasons for the turnaround in tourism’s acceptance, as a critical aspect of people’s way of

life, is its economic significance” (Pigram and Jenkins, 1999, p. 227).

Weaver (2000) sums the tourism phenomena and relationship arising from the

interaction among tourists, business suppliers, host governments, host communities,

origin governments, universities, community colleges, and non governmental

organizations, in the process of attracting, hosting, and managing tourists and other

visitors. Insufficient for a research or working definition and reducing it to apply to the

study of economics, tourism functions as an industry to promote economic growth and

development as well as to raise substantial amounts of foreign currency to pay off debts

(in the cases of developing countries).

2. Growth Trends and Changes

The trend in world tourism since 1950 has had a geographic concentration in Europe

and Europe and the United States are the main players in visitor arrivals and receipts

(WTO 2000). However, areas outside Europe and America have risen as potential places
 Tenorio 6

for tourist development such as China, Japan, and Korea (Pigram and Jenkins 1999, p.

228).

Explanations in the growth of tourism are many, including industrialization, free trade,

globalization, others such as wide growth in leisure time and incomes, the rise in aged

populations, change in the employment structure (such as the decrease in agricultural

employment), and the decrease in transportation time and costs. Thus tourism can also be

seen as a phenomenon of globalization. These changes have generated many impacts in

four factors, socioeconomic, geographical, political, and technical which also has affected

the tourists’ behavior and tastes which also affect the nature of tourism demand and

supply (Pigram and Jenkins, 1999, p. 230). It is these forces which have influenced

tourism growth.

In reference to the socioeconomic impact the effects of globalization on tourism is

explained in three major points: 1) changes in the economic system; 2) higher per capita

income growth in wealthier countries followed with diminishing birth rates; 3) average

life expectancy increasing sine the early 1900s (Pigram and Jenkins, 1999, p. 232). Thus

understanding the changes in the socioeconomic impact is important in understanding

tourism planning and development.

Improvements in technology is also said to be a significant factor in travel decision

making. Faster travel lime and lower costs, accessibility, and the use of information

technology also has contributed to the supply and consumption of the tourist product

(Pigram and Jenkins, 1999:233). Thus should leisure time be limited, the use of quality

higher technology to reach a destination, concomitant with a wider range of information

technology to purchase and consume the product has contributed to the growth in tourism.
 Tenorio 7

Than before, the tourist has more options and opportunities to reach a destination as well

have more tools to help in the decision-making.

Because of the rapid changes in the world’s political, economic, and social spheres,

economic tourism planning must take these forces into consideration to create sound

economic planning. Pigram and Jenkins(1999) argue that this is rightfully so and an

absence or lack of planning allows a “development of types of tourism incompatible with

natural and other (e.g. economic) systems, and which permits the expansion of tourism at

a rate inconsistent with the capacity of the infrastructure and society to cope with the

pressure (p. 248).

In other economic terms, tourism is a growth industry in terms of employment,

However, the term tourist industry is rather a generic term as the industry is rather broad

and is multifaceted with industries ranging from the primary fields of travel arrangement,

accommodation, and transport to other areas such as the food and beverage industry as

well as the entertainment and recreation industry.

B. Theory and Approaches

1. Quantifying

In the efforts to understand why tourism is growing and why is the development of

tourism is being encouraged on many levels by global organizations, national

governments, and local communities, it is said that there are three approaches which can

lead to understanding tourism development. Dann (1999) argues that there is a need to go

beyond case-confined research and seek a more theoretical means which can provide for

understanding. As tourism research is rather new in the social sciences, a method to go

 Tenorio 8

beyond description was deemed necessary. He thus offers three approaches, the Toffler or

Futures Approach, the Simmelian Perspective, and lastly, the Open-Ended Work.

The Toffer Approach describes the growth of tourism as a product of changes in the

lifestyles of people, especially in the nature of work, the reduction in the hours of the

work week, people living longer, and discretionary income rising. Thus understanding the

linkages associated with tourism first has to be well understood which can be then be

applied to make a possible plan for tourism development. This approach is rather

multifaceted in that it involves collaboration between international, national, cultural,

multidisciplinary, cross-cultural, and a multi-methodological research.

The second approach is the Simmelian approach, based on the works of Georg Simmel,

which in short relates to the idea to “abstract out the essences of phenomena, those

recurring and immutable forms of reality which, through combined with, stand in sharp

contrast to, changing content” (Dann, 1999, p. 16). This basically allows seeing ideas that

were meant for some areas which can be translated and also be done in other areas

assuming that there are a priori conditions already existing.

The last approach, Open-Ended Work, is characterized as a method of reviewing

scholarly work that has been written, therefore the process is to first conduct a review of

literature, followed by an analysis of the researcher’s original conclusions on how it

carried the scholarship forward and also looking for areas for further investigation that is

left warranted. This process then continues, ad infinitum. Thus once a problematic area in

tourism development arises, these three suggested approaches can provide guidance as to

how to conduct further research.

 Tenorio 9

Reid (1999) claims that tourism planning draws from theories created for other things

other than tourism development. Thus tourism planning is said to be an eclectic approach

drawing from Friedman’s Macro Planning Theories, Rothman’s Theories of

Implementation, and Arstein’s Theories of Citizen Participation (124) which, when

analyzed together describes two focuses, managing change and stimulating change.

2. Economic Models in Evaluating Tourism: The Struggle

Using empirical analysis has also been a great focus in the development of a sound

theory to explain international tourism, Huybers (2003) uses an estimated logit model

which is used simulate the effects on a destinations market share arising from changes in

the attributes and tourists characteristics. Davies (2003) on the other hand reinvestigates

the research method that uses both qualitative and quantitative research. There is a

difference between the two in which Jamal and Hollinshead claim that “‘objective’

research is a requirement for the validity in the natural science and those social science

domains that pursue the positivistic model, interpretative approaches tend to be banished

as ‘merely subjective’”(cited in Davies, 2003, p. 99). Yet Davies (2003) counters as there

is a danger of just using a quantitative method in that qualitative data may produce a

positivism evaluation and that the trade off between qualitative and quantitative research

is still debatable, yet both methods still provide and generate both knowledge and

understanding. In regards to the tourism industry, it does seem plausible that due to the

complexity of the industry that a multifaceted approach is deemed necessary, how the

industry incorporate these two appears to be difficult yet Davis (2003) advocates an

integrating framework which incorporates both the alternative logic of inference as well

as the context of the business environment.

 Tenorio 10

C. Relating Theory and Practice in Tourism Development

While research is present in the field of tourism, there are cases where those who have

well researched tourism are not active members or rather not given access in the tourism

formulation policy. Thus in understanding how theory meets policy creation, Jenkins

(1999) makes a distinction between two groups which play a major role in tourism

development: tourism academics and tourism practitioners (those in business and

government). While the two have different motivations in how they wish to perform

development both have much knowledge which Jenkins (1999) argues needs to have

more “cross-over” to maximize the synergy effects.

1. Tourism Development in Peripheral Areas

Tourism in peripheral areas faces many challenges Wanhill and Buhallis (1999). These

include:

1) limited market opportunities or markets have declined

2) lack of tourist infrastructure or obsolete product

3) access problems and the distance from the marketplace and limited ability to appreciate demand trends

and requirements

4) weather restrictions on the length of season

5) limited organizational structures, lack of planning and direction and little statistical information

6) migration of population, especially the young;

7) the tourism providing community often lacks the education, training, and capital, entrepreneurship,

which mitigates against business formation

8) Communities may be inward looking and fail to appreciate and take advantage of global developments

and opportunities

Thus what can be attributed as a plausible cause to resort to tourism as a development

strategy? While areas where the primary economy such as agriculture and fisheries

(Wanhill and Buhallis, 1999), or the health of the regional economy (Prideaux, 2002)
 Tenorio 11

may be in decline, it may be natural for the community to resort to tourism. However,

should tourism be used as the alternative growth industry, it in itself is vulnerable to

changes in the fashion, economic fluctuation and political changes in policy. Therefore,

areas in the core have more markets to access to help mitigate these effects via other

channels such as conferences and trade exhibitions while the periphery is more limited in

its range of products. Another problem regarding the development of tourism is the issue

of seasonality.

Baum and Hagen (1999) make reference to the issue of seasonality as major

obstacles that local policy makers in peripheral areas must address. Their research

expands the understanding of the form, strategy, and response that countries are able to

make. Peripheral areas face a multitude of obstacles which Wanhill (cited in Baum and

Hagen, 1999) identifies:

1) traditional agriculture that is in decline with an industrial base dependent on the agricultural output.

2) dependence on the sea.

3) a tourist economy that has failed to adapt to changing circumstances or is low-value added.

4) lack of technological transfer.

5) firms that are small and medium sized enterprises that are uncompetitive within other central regions.

(p.392)

In responding to the issue of seasonality, tourist places in peripheral areas can resort to

four strategies to defray the impact of seasonality by promoting

1) events and festivals

2) market diversification with different seasons offering different products

3) product diversification that can accommodate the different seasons

4) structural and environmental response which include making the tourism industry itself more flexible to the

changes of the market response for example alteration of labor. (p.392)

 Tenorio 12

While these development problems do exist, areas of tourism that are characterized as

core-periphery relations can have a positive relationship as these areas can exhibit a

relation where the tourism flow is from a more developed core to a less developed

periphery (Prideaux, 2002). This flow is caused by the tourist motivation in the core to

search out for new experiences not found in the core. Hence to cause this flow is for the

periphery areas to create a pull-demand to their attraction and also to support this pull

with its associated tourism infrastructure. In this research, Prideaux (2002) identifies the

transformation of the twentieth century where country-side rural dwellers have migrated

to urban populations in search for employment and services which are not attainable in

rural areas. As a result, this has caused many problems in the rural area where primary

industries were also in jeopardy. As a result, these communities searched for other

alternatives to help revitalize their rural economy. Prideaux (2002) identifies that success

in these areas “lies beyond preservation of the past and construction of the new to

celebrate the old and the decidedly un-nostalgic issues of marketing, pulling power,

viability, and informed management” (p. 382). While core areas have more markets to

many visitor attractions, naturally, in peripheral areas, the problem of first establishing an

attraction and successfully sustaining that attraction remains apparent. Thus Prideaux

provides some factors that affect the success of attractions in peripheral areas: location

factors, community support, operating economies and management of the attraction, and

supporting tourism infrastructure in the surrounding areas (382).While this may seem

difficult, however support especially from the local community can make the industry

viable.
 Tenorio 13

2. Sustainable Tourism Development

Sustainable tourism development is the catch phrase in the tourism industry

Hassen (2000) defines this idea as planning an attraction in such a way that creates

minimal impact to the environment and culture of the host community and this can

happen only when the quality of the environment and community life can be preserved

indefinitely (p. 243). In a response to prior ideas of sustainable development that focused

on public policy enforcement, she suggests a new relationship-based paradigm of

sustainable tourism. Her approach is to involve the private sector already involved in the

tourism industry, the public sector, and non-governmental agencies to build partnerships

to promote environmental initiatives. Thus for example, should a new development or

project be suggested, it should get clearance and input from all necessary authorities who

would ensure that environmental assessments and feasibility studies are carried out

before granting approvals. Conducting in this way ensures that development is

environmentally friendly and protects the image of the host community. In a ever

changing industry, Hassen (2000) finally argues that by focusing on products that range

from cultural to environmental wildlife facilities, it can appeal to a global travel segment

who are increasingly becoming more educated, environmentally aware, experienced

oriented, and ready to accept local culture (p. 244).

Sustainability in tourism is also covered by Richards and Hall (2001). In their research

regarding sustainable tourism development both argue that local communities make a

difference and are important to sustainability of the tourist destination, especially in terms

of the environment. They state that “ local communities become not only important in

terms of actions taken to preserve their own immediate environment, but also form part
 Tenorio 14

of wider alliances to preserve the environment (act local, think global)” (p. 5).

Sustainability is important in today’s tourism development should the natural resources

begin to decline in a population where tourism is the dominant source of economy, any

the decrease of tourists can cause a loss of tourist revenues, which in turn may cause

destinations unable to compete and therefore cease to exist. Thus sustainable tourism

development also has linkages to other fields of sustainability, especially economic,

politic, and social.

As to how to develop sustainable tourism, Caffyn (2000) researches the case study of

Trossachs, Scotland where a management program was put into effect. The three

elements of successful tourism partnerships per her research are 1) community

participation in tourism partnerships, 2) the monitoring of tourism development and the

partnership’s impact, and 3) the progress towards achieving sustainable forms of tourism

development. Of interest is the monitoring as this provides a basis to conduct an

evaluation of the program and to see if the control system sustainable however Caffyn

also states that establishing effective monitoring mechanisms are problematic however

are still important for developing and managing sustainable tourism. The program in this

region in Scotland called for a 10 year period of visitor monitoring to assess the traffic

flows and economic impacts in the region. Monitoring is conducted by various

mechanisms such as visitor surveys, traffic counters, visitor counts at tourist attractions,

as well as interviews with local businesses. Monitoring the environment with these

figures however is rather difficult thus relevant sustainability indicators are sought.

3. Impacts Caused by Tourism Development

a. Negative Impacts
 Tenorio 15

The tourism industry encompasses many facets of actors who create, develop, and

maintain the industry. Reid (1999) argues that while both transnational corporations and

entrepreneurs benefit from the development process, it is rather the local people in the

region which bears the cost of the development without reward. Thus, he further

comments that to achieve positive results for the future development of tourism, the role

of the community is the foundation and the approach for a holistic development.

Furthermore, it was noted by Reid (1999) that tourism is a product of the hegemony of

the West and demonstrates both the rising difference in the conditions of material

subsistence between wealthy and poor nations, and the growing Third World conditions

found in many parts of the wealthy nations themselves. In regards to labor, he states that

it is often the poorest people who live in these underprivileged circumstances who

provide the labor to this industry.

In addition, while tourism can provide an industry to support economic development in

these developing as well as developed areas, the industry itself can be seen as unequal

development for some. Local workers or residents are said to be exploited or rather

resistant to further development.

In the area of keeping the tourist attraction a competitive attraction, Hassen (2000)

states that major world class destinations are diversifying to attract environmentally

oriented tourist segments which are growing at a very high rate. She claims that

“destination planning and development should focus on a systematic examination of the

resource-based attributes of the destination that present a unique comparative advantage

in areas for example, climate, location, natural resources, tourist awareness among locals,

and indigenous culture” (2000:240). However reliance on the environment requires that
 Tenorio 16

in order to remain competitive, the these resources must be protected in order to tourists

to continue to come (Hawkins and Roberts as referred in Hassen 2000:240).

While tourism is sought to make gains as a revitalization of a decreasing primary

industry, there are possible negative effects related to the distribution of the revenue

brought in by tourism. This occurs when foreign businesses or foreigners increase their

control over the tourism industry in the destination market. Thus a distinction between

origin and destination sectors needs to be understood and it is argued that for a given total

value of tourist spending, which might occur in a well developed stable tourist industry,

an increase in the participation in the tourism sector by origin countries and a

corresponding decrease in the revenue received by the destination area owing to

payments for imported goods and services, and factor payments abroad (Sinclair and

Sutcliffe, 1988, p. 117). Thus although a destinations tourism development may be

thriving, the maximal gains in terms of the revenue may actually be the benefit of the

company existing in the origin country. This control over the destination’s country’s

tourism is carried out in two ways as mentioned by Dunning and McQueen (as cited in

Sinclair and Sutcliff):

1) Direct foreign investment in tourism facilities thus creating a partial or

complete ownership.

2) Contracts between the foreign tour operators and the indigenous owners of

tourism facilities.

The main issue here is the possibility for tax evasion of the foreign company operating

outside of the domestic destination allowing revenues to be brought back to the home

country of a multinational company thus not reaching the destination country. For
 Tenorio 17

example, sales of products found in the destination place can be paid for before reaching

the destination country thus the revenues and a significant portion of the profits never

reach the destination country and is switched to the tourists’ country of origin, which has

been the case of Spain’s tourism in the 1980s (Sinclar and Sutcliff, 1988),

As the above points out, foreign companies can play a large role in the development of

a tourist area, however there is a risk that they will dominate the control over the

development and retain the most of the profits which do not reach the destination area.

Yet while this does not posit the idea to deny access of foreign companies to destination

countries, as there is a risk of not allowing them into the market for they have the

possibility to reroute passengers to other destinations, it does cause a developing area to

assess the possible risks and how to mitigate them.

Thus Sinclair and Sutcliff (1988) conclude their studies that the type of participation in

the development of the tourism region has an impact on the development of the

destination area. As their research provides the experience of Spain where a large amount

of the tourists who visit Spain pay for their vacations and holidays in their country,

revenues do not reach the destination country and it is these losses that are not reflected

in the balance of payments (129).

b. Positive Impacts

At the same time, tourism is being advanced by businesses and governments alike as a

development strategy which can lift people out of poverty and make them equal partners

in society. Reid (1999) also references that the tourism industry is tied to globalization.

The globalization of information and advancement of technology such as the use of

internet has revolutionized the industry allowing a greater access and information
 Tenorio 18

gathering. In addition, globalization has allowed many people to travel to many other

areas in the world.

In respect to developed countries, like Japan, tourism not only exports travelers and

tourists into the destination, but also helps cultivates domestic tourism. This is to provide

interesting destinations that are within reach for the local community. Especially this is

seen that the rural areas in the domestic sector also support the tourism industry. While

primary industry areas weakened, replaced, or even not successful to maintain growth,

tourism can allow these rural areas to survive economically.

Reid argues for a tourism development plan that is holistic with an emphasis on

community involvement in the planning and progression to sustain the industry. He

firmly argues that tourism, while other scholars address the negative impacts of tourism

on the environment and cultural grounds, tourism can play and important role, especially

in the rural and remote communities in danger of disappearing because of a downturn in

traditional economic activities. Furthermore, tourism can also help a traditional society

preserve cultural practices which might otherwise be lost to subsequent generations, as

well as urban tourism adding flavor and vitality to the setting which might otherwise be

would be mundane (Reid, 1999, p. 24). Therefore planning of tourism must take on new

priorities which are to serve the community.

Jefferson and Lickorish (1988) also agree that tourism plays a large role not just as a

development strategy but also as a way to rejuvenate decaying urban centers creating

growth of hotels, restaurants, museums, and other attractions in a once primary

manufacturing based city such London and Boston.

D. Marketing of Tourism: Competition in Environmentally Sustainable Tourism

 Tenorio 19

On the opposite side to the theoretical development strategies, on the marketing side,

marketing in tourism is an important function in understanding tourist behavior. The two

marketing strategies of product focus or customer focus in the tourism industry has also

been changing. Jefferson and Lickorish (1988) describe that resort tourist officers and

national tourist organizations are moving away from the destination product and more

focusing on the tourist needs which can be provided at the destination. Thus the product

is increasingly being renewed to meet the demands and needs of the tourist in an ever

changing market.

It is also noted that a country’s national tourist organization (NTO) is a main driver in

tourism development, having license in being the forerunner in developing new markets,

new segments, new techniques, to which the return of investment will follow once the

primary research work has been completed. Thus the development of a region is to be

more marketing oriented with while also understanding consumer behavior and the

existing condition of the region. However emphasis for communication and collaboration

by all groups and organizations that have relations to the tourism industry, both

commercial business and government is still necessary.

Jefferson and Lickorish (1988) note that all destinations have some tourist potential,

even if the purpose is only to visit family and friends and while the issue of seasonality

may be an obstacle in the success of a tourist destination, that this is no disadvantage as

many locations have become less dependent on good weather providing other tourist

products that can be consumed indoors (p. 237-8). From a marketers point of view, these

destination typologies can be classified into three categories: 1) where tourism is and

always is a by product or a minority interest; 2) places with substantial potential, however

 Tenorio 20

is not the main economy of the destination however the economy is very diversified

which can build up a powerful tourism and more revenues; and 3) which they identify as

the most challenging, are the resort destinations which are dependent on tourism as the

primary source of their economy (p. 238).

In understanding how tourism is marketed, Goodall (1988) use an analytical

framework which allows them to understand first what the motivation for tourists to

travel is and what tools are at their disposal to choose that decision. He describes that

making a purchase for a vacation or holiday is rather high-risk in that one must travel to

the destination to experience it. Thus before the travel, there is no way to directly observe

what can be experienced. While prior experiences by others travelers exist, Goodall

argues that this too is a poor predictor of future satisfaction as these prior experiences by

others are based on certain conditions of specific to that experience (1998, p. 2). Thus the

tourist faces constraints in how to choose a destination. However, the tourist motivations

are easier to identify. Mathieson & Wall (1982) and Murphy (1985) (as cited in Goodall,

1988, p. 3) provide a list in the motivations of tourists which are:

1) physical (for example for relaxation, health, sport, or challenges)

2) cultural (a desire to learn about a foreign place)

3) Social (to visit friends or family)

4) Fantasy (escape from the present reality)

1. Image as Key

While motivation is studied by Goodall, the economics as it relates to the idea of image

to determine demand and the concept of supply is studied by Stabler (1988). In his work,

Stabler provides theoretical and empirical approaches to understand the development of

tourist areas and argues that “the role of image in determining consumers’ tourism
 Tenorio 21

choices, particularly their destination, and the influence of suppliers’ promotional

operations, has not been widely studied by economists” (p. 133). The idea of a tourist

destinations image is used to understand a consumer behavior while the supply of a

tourist destination is used to understand a locations development.

Traditional economic theory considers the price of a commodity, its complements

and substitutes, tastes and preferences, and income as the main important determinants of

demand. In using this model in relation to tourist demand, Stabler (1988) argues that it is

price and income as the main significant variables in tourism demand; however, using

this basic framework cannot easily analyze tourism (137). He further argues that

“Price theory is unsuitable because it cannot encompass multiple commodities, the introduction of new

commodities, quality changes or generated demand. Trade theory is inadequate because it assumes factor

immobility, and, in a space less model, usually omits transport costs which are a significant proportion of

tourism travel. (137)

Though understanding tourism within this framework seems rather bleak, Stabler

(1988) proposes that “Landcaster’s” theory as a means of assessing tourist demand tied

with the idea of “hedonic pricing”, which is “ the implicit or shadow price of a

characteristic of a commodity. The quantity of a commodity may be resolved into a

number of constituent characteristics which determine its quality. Part of the price of that

commodity may be associated with each characteristic and variations in quality may thus

be valued” and is in wide use in housing research (p. 138). Thus what this framework

does is to reflect tourist demand more realistically which takes into account tourist

destination attributes such as climate, natural resources, and infrastructure and then

incorporate as many functions into the final demand equation and in turn may determine

the image of the tourist destination.

 Tenorio 22

Studies on the supply-side of tourism development are also researched by Stabler

(1988) and supply is defined “based on the resources of the destination region and that

formation of tourism capital combines with these resources to yield the tourism product”

(p. 143). The tourism industry on the supply side can also choose one or both ways to

develop. First it can differentiate itself from other destinations, or it can segment its

market. By doing so, it also affects the image of the destination.

Combining these two elements is the basis for Stabler’s (1988) work in that this

framework allows one to understand the demand side or the motivations that tourist have

in choosing a destination based on certain preferences. On the supply side, it provides the

information necessary for the consumer to make their decision. This information also

helps form the image of the destination area. Stabler finally argues that “successful

promotion of the destination’s image results in a higher level or tourist activity with

consequences for its economic socio-cultural and environmental structure” (146). While

Stabler (1988) stresses image as a major factor in the development of the tourism industry,

he does point out that image is just one of other factors that determine tourism

development (such as natural resources, access, and attitudes of the local community).

2. Marketing Aborigine Culture

In other countries the use of aboriginal culture is vastly used a marketing tool in

promoting the location as a tourist destination. In Hokkaido, where there is an aboriginal

culture present, how tourism impacts the culture is an area which also is necessary in

studying in the sustainable development of the destination. Reynolds (1992) studies the

impact of aboriginal culture in Australia. Aboriginal studies conducted indicate that it is

rather difficult for aboriginal cultures to be an active participant in the tourism industry as
 Tenorio 23

they are reluctant to appear in public. Thus to properly mediate the negative impacts that

tourism may have on the aboriginal people, the Australian government identified 5 areas

where aboriginal people participate in the tourism industry directly or indirectly. The

direct participation is in the areas of employment, investment, providing cultural tours

and joint ventures while indirect participation is in the commercial business of making

arts and crafts for sale in other markets, thus actual time spent with the tourist is limited.

However these options do have their problems as many aboriginal people lack the

knowledge and skills necessary to be active participants in the industry. The lesson

learned from the Australian case is that should the destination’s marketing incorporate

aboriginal image and participation with the aboriginal people is rather limited, it causes

tourists to become disappointed in the destination which overall affects the destination’s

image. While tourism can be an economic driver for communities to continue living the

culture which may be threatened by extinction, Reynolds concludes his research by

stating that “long term costs to the host community must be examined and a non-

exploitive relationship between host and guest be determined…for one of conventional

tourism’s saddest impacts in the developing world is the schism between leisured tourists

and the impoverished host culture” (117-118).

3. The Role of the a Country’s National Tourist Organization

The Organization for Economic Co-Operation and Development (OECD) with a

function to examine policy coordination across member states, reported that, they have

concluded that governments are in many cases ill-equipped to deal with tourism as a

major economic force. While decentralization of decision making is warranted, the

OECD has observed that “such steps need to be accompanied by regional planning and
 Tenorio 24

integration, albeit broadly, into national policies …the state cannot avoid the duties of

the public sector” (Jefferson and Lickorish, 1988, p. 306). Thus government still must

play some role in the development especially through the roles of their national tourist

organization (NTO). It is the NTO’s mission to carry out five major roles which are 1)

Guardian of the Image; 2) Scene Setter; 3) Trail Blazer; 4) Marketing Coordinator; and 5)

Monitor of Visitor Satisfaction (312).

To clarify what these roles are, as Guardian of the Image, the NTO keeps the

destination appealing to the tourist enticing them to visit the destination. The Scene Setter

role means that the NTO is to analyze the market and develop the right product mix for

the right market. Third, as Trail Blazer, it has a role to develop new markets, new

segments, and new techniques. Fourth, playing the Marketing Coordination role, the

NTO acts as a liaison between the government and industry players providing a

coordinated approach in the development and presentation of the market. Lastly, by

monitoring visitor satisfaction, the NTO ensures the quality of the destination as well to

identify certain defects in the product which can then lead for better product presentation

or improvement. Thus the NTO has a great responsibility as being the face of the local

tourist industry to the visiting tourist. The NTO plays such a great role in the tourist

industry by acting as being the focal organization of coordination between government

and business, providing guidance in tourism development and the destination’s marketing

strategy.

PART II: Tourism Development in Japan

A. Tourism Policy: Sustainable Orgins?

 Tenorio 25

In understanding the tourism policy in Japan, Funck (1999) identifies that Japan’s

tourism industry is little influenced by foreign investment and foreign visitors. Thus

during the collapse of the bubble economy and as many Japanese reduced their

consumption, the tourism industry in Japan continued to suffer. Projects that were being

considered in the 1987 Resort law were put to a stop or cancelled altogether. Funck’s

research concentrates on how the elements of this Resort Law and the connection

between tourism and regional policy created problems in the development of the tourism

industry in Japan.

Funck (1999) describes how when governments who encounter decreasing public

funds and the influence of new-liberal economies shift the emphasis of regional policies

towards a more market oriented private sector involved industry. Japan’s main tourist

market is focused on domestic travelers thus the development strategies may appear to fit

the Japanese context. The Resort Law’s aim was to contribute a richer and relaxed

lifestyle. Resort developments in Florida, California, Hawaii, Languedoc-Roussillon and

Aspen all served as inspiration as to how Japan was to carry out its own development.

Most of the plans that were suggested were similar in nature. 37 prefectures suggested to

develop golf courses, 23 suggested ski resorts, 26 yacht harbors and 25 included hot

springs as their choice of resort, however these plans were not received well with the

general public who were left out of the planning process. Also there was no attention paid

to the effect on the natural environment (Rizoto Kankyo Mondai Kenkyukai as cited in

Funck, 1999, p. 399). Finally the planned facilities to be built were seen as similar to

which was to lead to an oversupply (Sato cited in Funck, 1999, p. 339). Funck (1999)

lists several problems with the resort development in Japan:

1) Interested companies had little experience in recreation and tourism enterprise.

 Tenorio 26

2) Local participation in golf clubs was limited as 80% were restricted to members only. (Unlike the US

which has more than 50% open to the public

3) Accommodation facilities often chose membership systems as the target customer were corporate

business travelers.

4) The Resort Law was a national development concept which contradicts the idea of peripheral areas

exhibiting a high participation for the sustainability of the industry. The one-plan one-prefecture

contradicts private sector principle and continues the Japanese traditions of regional policy planning in

that it tires to give each region a similar chance for development. In a centralized country like Japan, the

opportunity for local participation is viewed as extremely limited.

5) Supply of resort areas in Japan did not correspond to demand as many Japanese found better value in

resort areas in nearby Asia. This seems to be the main reason why many projects in resort development

had to be dropped.

6) Lack of specialist knowledge on the investors and planning authorities led to approval of projects that

were not economically viable.

7) Transport locations from airports, motorways are vital for development success and remains a problem

for peripheral areas.

8) Heavy debts caused by the collapse of the Bubble Economy

(p. 339-342, 351)

B. Tourism development and motivation in Japan: A Return to the Furusato?

Tourism development in Japan can be characterized as a contradiction between the

goals to open Japan more and internationalize with the fear about the loss of Japanese

cultural tradition (Creighton, 1997). Sustainable tourism development in Japan can also

be related to environmental protection of the area. As tourism development is a form of

economic development, the quality of the natural environment of the tourist developed

area can determine the success of sustainability. For an analysis of the environmental

policy on Japan, Hashimoto (1999) describes the Resort Law of Japan which although

lays the blueprint for tourism development, because parts of the law and guidelines are
 Tenorio 27

written by different governmental parties, the regulations and limitations lack consistency

(p. 213).

In order to establish a sustainable tourist attraction, it is natural to also understand what

the taste and preferences of the desired market. In Japan, where the onsen business is

rather a main player in the tourism industry, it is the search for the perfect onsen that is

more in a natural environment (Ellis, 2004). However, the image of the “furusato” or

“home” has been a key appeal strategy in Japan. The idea of furusato is nothing new in

the research of the local Japanese tourism industry, where this appeal to seek the furusato

is exploited in the domestic tourism industry in Japan (Creighton, 1997), or appealed as a

means for Japanese to leave Japan in search of other furusatos in different countries (Rea,

2000) or and more likely, tourism in Japan is a means to search and discover the good

and to reject outside influences, spending them in places that represent real but lost Japan

(Martinez, 1990).

In Creighton’s (1997) research, the renewed interest of a sense of nostalgia via the

furusato has seen an increase. It is this desire to retake a lost rural lifestyle as a reaction to

the industrialization boom and the consequences of industrialization. For Creighton

(1997), there has been a tradeoff of this loss of lifestyle in the modern Japan to which by

“a certain extent, there exists a fear that the community basis of “belongingness” has

been diminished in modern Japan, sacrificed to the desire to achieve Japan’s current level

of technological sophistication and economic development” (p. 3). Thus this return or

search for the furusato can be seen as a means for the Japanese to seek for their identity.

In addition, as a precursor to the modern Japanese tourism industry, in the 1970s and

1980s, there were two approaches to market the return to the furusato, Japan National
 Tenorio 28

Railways launched the campaign “Discover Japan” however, as Creighton (1997) notes,

because the slogans or logos were a direct copy of an American travel campaign

“Discover America” and uses English words rather than Japanese script, it raises

“questions of whether, despite the intellectual rhetoric or the nostalgia phenomenon, it is

truly a mass rejection of Western intrusion into Japanese life” (p. 5). In addition, the idea

of the tourist destination in Japan for the domestic traveler is possibly quite different from

that outside Japan. This is understood in how the destination is promoted. For example,

Creighton (1997) again notes that while tourist promotions may focus a famous location,

the Japanese advertising for domestic tourism, especially the Discover Japan campaign,

has focused on the idea of the encounter.

In the 1980s, a new tourist campaign was launched called “Ekizochikku Japan” (Exotic

Japan). According to Ivy (as cited in Creighton, 1997), this campaign was “as if ‘Japan’

had been interjected as the foreign, as something that entered from outside” and was

being presented for the Japanese consumer as another exotic foreign commodity import.

This may show that the Japanese at this period in time considered themselves as a

modern western-type country, seeking what truly is their cultural heritage with fresh eyes,

as a foreigner would. Creighton (1997) concludes her research noting that successful

marketing of rural tourism reveals the idea of nostalgia while Japan continues to

transform and live in the contemporary present. While industrialization, urbanization, and

internationalization continue to be a norm in Japanese society, the sense of nostalgia and

appreciation for the Japanese agrarian history will not perish.

Contrary to this Prideaux’s (2002) idea of un-nostalgic issue of marketing as a pull

power to concentrate on, the issue of Japanese tourism where nostalgic attributes appear
 Tenorio 29

to be the continuous pull factors for Japanese visitors to travel either domestically and

now presently, internationally. In the 1990s, Rea (2000) also adds more light on this

subject as the sense of furusato can also be seen in international destination. In light of

many Japanese traveling overseas compared to those inbound into Japan, Rea (2000)

argues that the Japanese traveler feels alienated at home and are becoming aware of their

state of alienation, and the meaninglessness and fatuity of their daily life, to which

tourism outside is seen as an alternative quest to seek meaning in other areas. Rea’s

(2000) research focuses on Japanese tourists traveling to explore areas of literary fantasy

which have actual locations overseas. Popular theories (cited in Rea(2000)) include

Baldwin and Gaudet help explain why Japanese are attracted to these areas which include

the a location with a preserved environment, a literature-induced nostalgia for childhood,

and lastly, these places serve as an ultimate fantasy (p.641). Series of events, from the

collapse of the Bubble Economy, the sarin gas attack in Tokyo, and the Great Hanshin

Earthquake have produced quite a shock in the Japanese society. Thus for these post-

World War II born urban Japanese, the idea of returning to the furusato of 70s and 80s

but rather the pre-modern countryside of the books they read when they were young,

especially that of Peter Rabbit and Anne of Green Gables (Rea, 2000, p. 642).

Thus Rea’s research has two major claims: 1) that demographics and a series of social

shocks have shaken a free entrenched notions of Japanese identity and tradition and 2)

that this state of homelessness has been accompanied by a new willingness to seek

existential meaning outside of Japan, evident in Peter Rabbit and Anne of Green Gables.

Should this reason be rightfully warranted, this change of attitude has a direct impact on

Japanese international tourism by helping explain outbound tourism in Japan.

 Tenorio 30

With this in mind, it questions to see the direct impact on the local tourism industry in

Japan where it now faces more competition from foreign areas. Also this shows the new

sense of taste as Rea (2000) describes it, growth in the culture of “kawaii” (cute) as a

response of a society repressed and consumed with work. Therefore this “kawaii” culture

provides a threat to traditional culture as well.

C. The Impact of Domestic Tourism in Japan

As tourism has its benefits and costs accentuated with development from a community

standpoint, impact can vary. Eadington and Smith (1992) as cited in Knight (1996)

mention that “tourism development creates ‘winners’ and ‘losers’ among the local

residents often without a common acceptance as to the equity of such redistribution” (p.

166). In Knight’s research, he records data on the host side of the tourism industry by

looking at tourism destinations in rural Japan. His findings show that tourism

development in Japan is an important industry in rural Japan. Beginning with the law of

sougou hoyou chiiki seibi hou in 1987 (General Recreation Area Establishments Law)

large resorts in Japan were intended to be built. Golf, ski, and theme-ed resorts were

planned which were accepted by the local population as a means to combat the

decreasing population in the rural areas. The problem of the resort development in Japan

was that it created a standardization of the regions where resorts often provided a similar

experience as other local locations. Some negative impacts of increased tourists in rural

areas are the destruction of natural resources. Knight’s research noted that tourists may

cause forest fires, cause road congestions, and make facilities inaccessible for local

populations. However a positive benefit is that Japanese travelers are more accustomed to

eat local foods and purchase local produced items. This localization helps those who
 Tenorio 31

supply items to the local tourism industry, yet even with this program, local guesthouses

in rural areas purchased most of their items out of their town.

In the 1990s, following GATT agreements, the Ministry of Agriculture promoted

“green tourism” as a potential alternative source of income. Knight (1996) further

explores the idea that tourism in Japan is moving from “miru kankou” to “suru kankou”

(p. 176). Thus what is seen from this type of tourism is more interaction between the

local population and the tourist community.

D. The State of Japanese Tourism Today: OECD Report

As international tourism helps foster mutual understanding between people of different

nations and cultures, it was deemed necessary for Japan to facilitate overseas visitors to

gain true understanding of the Japanese. This mutual relationship then fosters friendship

and trust among people as well as nations. In July 2002, the Organization for Economic

Co-operation and Development’s Directorate for Science, Technology, and Industry

released a report labeled “National Tourism Policy Review of Japan”. In this report, the

current condition of the tourism industry in Japan is laid out. The report is divided into

two parts:

1) Trends of Tourism in Japan

2) Framework of Tourism Policy in Japan.

The main emphasis of the report is that Japan now is at a turning point, where there are

structural changes in industrial, economic, and social systems. For example, in tourism,

on February 4, 2002, Prime Minister Kozumi opened the Diet with a speech which a push

that the Koizumi government is willing to push to see an increase in overseas travelers to

Japan to contribute to the vitalization of the regional economy. The OECD reports this as
 Tenorio 32

a symbolic shift of Japan from an exporting industrial economy to more of exporting

services (tourism).

In the first section of the report, it is noted that the economic impact of domestic

tourism in Japan in 2000 was 22.2 trillion yen which employed about 1.97 million people.

The contribution of the tourism industry to the overall Japanese economy is was 2.2% of

GDP. Comparatively, the automobile industry was 2.3% and telecommunications 2.0%

and agriculture at 1.5% of the Japanese GDP. The OECD expects that as the tourism

industry continues to increase, it will become the leading industry of Japan throughout

the 21 st century.

While the statistics do look encouraging, the contribution of the tourism industry to the

national economy, as compared to other countries is rather small. In 2000, tourism

contributed about 4.5% to Australia’s GDP, 2.4% for the US, and 2.2 for Japan.

Foreign consumption of Japanese tourism is also rather small as compared to other

countries with the rate of Japanese traveling abroad outpacing that of foreigners coming

into Japan. The deficit is tracked at about 3.6 trillion yen in 2001. With this imbalance,

the OECD writes that this is an unfavorable situation for the development of tourism in

Japan.

Explanations for the outbound tourism was mentioned earlier however there are other

historical events that also added to the increase in outward tourism from Japan. Since

overseas travel was liberalized in 1964, the numbers have risen. Following the

appreciation of the Yen, this also made it cheaper for Japanese to travel abroad.

From 1970, arriving visitors to Japan switched from passengers from Western

countries to those from Asia. This can be attributed to the rapid economic developments
 Tenorio 33

of certain Asian countries such as South Korea, Taiwan, Hong Kong, and Singapore.

Liberalizations of travel policies in Taiwan in 1979 and Korea in 1989 further increased

foreign visitors into Japan. As of 2001, the major tourist market for Japan was visitors

from Korea followed by Taiwan, United States, and China. The data suggests that 65%

of visitors to Japan were from Asian countries.

On the domestic tourist market, Japanese tourists’ traveling domestically in Japan was

reported to also be low in 2001 attributed to the prolonged economic condition and low

personal consumption. Japanese traveled about 2.26 overnight trips in 2001 and during

those trips, Japanese stayed out about 4.31 nights. Both these numbers were much lower

than their 2000 values (40% and 16% respectively).

Part two of the OECD report describes what the tourism policy is and how it has been

developed and administered. Tourism is under the Ministry of Land, Infrastructure, and

Transport (MLIT) which is a new ministry merged from four governmental agencies.

While this Ministry is not solely focused on tourism policy, it is tourism promotion and

development that is expected to the major field where the synergies of the ministry’s

programs will be experienced.

The MILT, there are several bureaus such as the Policy Bureau where lies the

Department of Tourism which creates tourism policy and policy coordination within the

Government of Japan. Within this department lie three divisions (Planning, Regional

Development, and Travel Promotion).

With the framework of the Tourism department lies a non-profit organization, the

Japan National Travel Organization which received about 70% of the department’s

budget of 3.377 billion yen and is owned 100% by the government. The function of this
 Tenorio 34

organization is to promote Japan to inbound travelers and to deepen the understanding of

these travelers of Japan’s culture, traditions, and people. Reform to JNTO was expected

in 2003 to become a more transparent independent administrative corporation.

In regards to access to Japan,

In regards to access into Japan, while there are many ports of entry, Narita Airport

remains the main gateway into Japan. Thus the MILT will maximize the use of Narita

strategically to promoting foreign visitors.

There are other policies created or in formulation in promoting and developing tourism

in Japan developed by JNTO and the MILT. These include

1) International Tourism Themed areas

2) Promotion of more inexpensive tourism

3) Upgrading of visitor reception capabilities

4) Visit Japan Campaign, especially for the FIFA world cup in 2002.

5) EAST Plan of 2001 (East Asian Sphere for Tourism Plan) between Korea and Japan. Plan is to

consider Japan and Korea and one destination and increase visitors from other third countries

from 6 million to 10 million.

6) China-Japan Mutual Visit Year 2002-an exchange program

7) Bilateral expansion of tourism between the US, Korea, China, Canada, Australia, Germany

with Japan.

8) Efforts to increase consecutive holidays. (from 2000)

Locally, the government also conducted research in 2001 to create a framework for

tourism development called “Tourism Based Community Development” as there was

none prior. Without a framework there were inabilities to manage resources and tourism

destinations in an integrative format. Development was not conducted in sustainable

ways. Prior to this, emphasis was numbers based with increasing visitor flow and

advancing the industry. Thus the government created the vision for regional sustainable
 Tenorio 35

development using best practices and data collection. This ensures that tourism

development is both beneficial and meets the demands and needs for both the tourist as

well as residents.

While the government has made these policies and plans for the tourism industry, the

OECD recommends Japan to further:

1) Enhance their product

2) Undertake research and development of Japan’s tourism satellite account, development of sustainable

tourism indicators, a introduction of tourism forecasts.

3) Conduct an in-depth evaluation of the implementation of the tourism based community program.

4) Expand its actions towards the development of public-private partnerships.

E. Tourism Development in Hokkaido

Hokkaido is one prefecture that has invested much money and effort in the promotion

of tourism; it is ranked first among 40 prefectures in the prefectural tourism association’s

total revenues as well as in the amount of prefectural subsidies going into tourism

(Hiwasaki, 2000, p. 3). Research particularly to the Hokkaido prefecture region is rather

limited however; Hiwasaki (2000) explores the business of ethnic tourism in Hokkaido as

a means of shaping the Ainu identity. Like Reid (1999) who believes that what makes a

tourist destination attractive are the community’s culture and lifestyle, Hiwasaki

emphasizes that the importance of ethnic tourism has benefited the Ainu culture in itself

and also the place of the Ainu in Japanese culture. Considered an ethnic minority in Japan

since 1997, the Ainu is reported as not the true winners of tourism based of the revenues

produced is not the Ainu but rather it is the facilities that result from the tourist

experience with the Ainu such as the hotels. These facilities are mostly owned and

dominated by those other than the Ainu.

 Tenorio 36

However, tourism in Hokkaido also has more of a positive benefit for the Ainu in all

areas such as political, social, economical, and cultural. Economically, “tourism brings

food for the Ainu” where about 13% of Ainu are involved in tourist related industries

(Hiwasaki, 2000, p.5). This also has brought about a cultural development for the Ainu

people as well by helping preserve the culture as the Ainu were more involved in

traditional dance, celebrations and festivals at these tourist attractions. Furthermore, the

Ainu have become more active participants in Hokkaido tourism and are taking the

initiative in the creation of their performances and becoming more of a recognized

community in Japan with further research in Ainu ethnic tourism revealing more of

scholarship of the Ainu (Hiwasaki, 2000, p.9).

PART III: Case Studies in Other Peripheral Areas: America/Guam

A. Issues in Decision Making

The issue of tourism in peripheral areas has likewise been studied across the world. In

the US, Gartner (2004) provides an overview of tourism in the United States emphasizing

that the developments are mostly unplanned and that rural areas are most likely to cater to

domestic and a few international clienteles.

In the American unincorporated territory of Guam, tourism and development literature

is also present. Iverson (1997) research places emphasis on the market of Japanese and

Korean tourists in their decision making to travel to Guam. As many hotels in Guam are

owned by Japanese corporations and with Korea being the second largest market to

Guam, it was said that during high peaked travel, Koreans tended to be locked out.

Understanding how Koreans decide to make a travel abroad because useful for the local

industry in accommodating this particular market. The method was to use exit surveys
 Tenorio 37

which is undertaken by Guam’s national tourist organization, the Guam Visitors Bureau

(GVB). GVB conducts these surveys on a quarterly basis of departing tourist passengers

from Guam. Variable factors included the terms “Repeater” for if the passenger was a

repeat visitor, “Age”, “Income”, and dummy variables “Male”, “Married”, and “Korean”

which were all used to determine as to understand the dependent variable “DecTime” or

Decision Time. The results of this study showed that the “Married” variable was highly

significant showing that married people often take longer times to decide on a destination.

There was no gender effect as well. “Age” also was significant younger people often

taking shorter times to make a decision. The test variable “Korean” was inversely related

to decision time, indicating that Koreans usually take shorter periods of time in deciding

where to travel unlike the Japanese visitors to Guam. The significance of Iverson’s

research is that it allows the tourism industry, especially the hotel sector to make

necessary room inventory system changes as Japanese tended to lock out hotel rooms

excluding the Korean travelers. It also shows what Korean travel bureaus must do to

guarantee their customers proper accommodations in Guam.

B. Labor Issues

In regards to labor issues, Smith (2004) of the East-West Center’s Okinawa Research

Initiative, reports on certain island development issues facing groups of island societies in

Asia Pacific, including Okinawa and Guam. In the study, she quotes the former delegate

to the United States congress, Dr. Robert Underwood, who also participated in the

research. Dr. Underwood’s main point in these studies is to place labor issues at the

forefront of economic development planning. As employment in the tourism industry is

 Tenorio 38

rather vulnerable and unstable, Dr. Underwood suggest several points for the public to

consider for example:

1) balance of training of the local labor

2) a safety net, such as unemployment benefits and retraining to alleviate the negative impacts of the

industry.

3) Participation in tourism educational programs by the local community especially middle and elementary

schools.

As Guam successfully transitioned from an economy based on government and

military to that of tourism, the labor issues were not part of the economic planning, thus

little was done to educate the local population for the demands of the industry. Thus,

foreign workers, who worked for lower wages, were the forefront labor of Guam’s visitor

industry. For other island groups in the East-West Center’s study, the issue of human

resource development as a strategy to sustain the industry especially found critical for

Okinawa’s future success.

Part IV: Discussion and Conclusions

Hokkaido, as prefecture considered as a frontier land where nature is abundant, shall

this notion of kawaii be considered marketing strategy or a factor to be incorporated into

tourist policy? As Rea’s (2000) research documents, places like Peter Rabbit and Anne

of Green Gables represent fantasy-type scenery of a preservation of the natural

environment. Rea (2000) concludes his research by stating that “what has been proposed

is that to a new generation, Japan is not the home it was to their parents and that it often

fails as a source of their modern or traditional comfort…that young Japanese are

fulfilling their dreams by going to places where they can feel light and free and at home”

and “this is what many Japanese are doing by leaving their country in search of

authenticity” (658). With this statement, it does seem apparent that Hokkaido makes the
 Tenorio 39

perfect place for domestic tourist in Japan who look for an unspoiled environment. Also

as the scholarship above mention that it is environmental features that will continue to

attract people, foreigner participation in the market could grow. Therefore, if Hokkaido

continues to resort to tourism as a basis for its economy, the structure of how it grows and

deals with issues of sustainability.

The literature presented in this paper can be summarized into five focal issues. The

first issue is that tourism research, while relatively new seeks a new method of acquiring

quantitative figures which can be used in policy development as well as proper

qualitative data to understand the market. Only by understanding these two pieces of data

can sustainable tourism development be properly monitored.

The second issue is one of marketing. The issue of marketing and development appears

to be the relationship between the practitioners and academic researchers of tourism.

While both have different motivations and drives to understand the market, it is necessary

for both to be involved as well as with government officials along with their NTOs. Thus

looking at tourism from a holistic point of view appears also to be a focal point in tourism

development, especially in developing and maintaining the image of a destination.

Third, regions in peripheral areas are bound to face certain struggles especially with

the issue of seasonality or community involvement (as well as ethnic involvement) to

keep the destination appealing to visitors. However more research in how to develop

areas where leisure and recreation activities need not necessarily be dependent on

weather or ways to accommodate the local community is warranted and. Tourism

development does have negative as well as positive impacts, how to mitigate them plays

a great role in its sustainability.

 Tenorio 40

Fourth, Japan’s tourism industry has been noted to be dominated by the local Japanese

market where foreigners play a miniscule role. Because the tourism industry is subject to

certain external and internal shocks in the world economy, the lesson learned from

Japan’s experience, especially with resort building, is that there needs to be a balance in

the diversity or segmentation of tourists. Thus should the domestic tourist market see a

slowdown, it can be compensated with the flow of the foreign market. Tourism policy

and development in Japan also helps the local population live a richer life and should

more foreign participation increase, it could provide more internationalization in Japan.

However, as in the review of literature, it is the host population which should decide if

they wish to see this happen.

Fifth and final point, in relation to the development of Hokkaido tourism, the research

all point to the fact that Japanese people’s taste and preferences are for places filled with

nature and remind them of their past. In addition, places where they want to travel also

are places exotic for them yet at the same time provides some sort of fantasy. This can

help explain why Hokkaido developed certain attractions, such as Canadian World which

was to be a recreation of the location of Anne of Green Gables. Hokkaido has much

potential in developing its tourism industry and understanding in-depth what these

characteristics are can be beneficial for other locations in Japan or other countries that

have a similar core-periphery relationship.

In conclusion, as researched by Pigram and Jenkins (1999) travelers are becoming

increasingly sophisticated and discerning. Many such travelers are looking to high-

quality, authentic, natural, and cultural environments, where the likelihood of recreational

satisfaction is high. Hokkaido appears to have those elements to serve that purpose.
 Tenorio 41

List of Works Cited

Ashworth, Gregory and Brian Goodall (1988). Tourist Images: Marketing
Considerations. Marketing in the Tourist Industry. Beckenham, Kent: Croom
Helm, 213-233.

Baum, Tom and Laura Hagen (1999). Response to Seasonality: Experiences of Peripheral
Destinations. International Journal of Tourism Research. 1, 299-312.

Caffyn, Alison (2000). Developing Sustainable Tourism in the Trossachs, Scotland.

Tourism and Sustainable Community Development. London: Routledge, 83-100.

Creighton, Millie (1997). Consuming Rural Japan: The Marketing of Tradition and
nostalgia in the Japanese travel industry. Ethnology. 36(3): 239-255.
retrieved<2005/06/06>from<proquest>.

Dann, Graham (1999). Theoretical Issues in Tourism’s Future Development: Identifying

the Agenda. Contemporary Issues in Tourism Development. London: Routledge,
13-30.

Davies, Brian (2003). The Role of Quantitative and Qualitative Research in Industrial
Studies of Tourism. International Journal of Tourism Research. 5, 97-111.

Ellis, Jonathan (2004). Onsen Obsession, Far Eastern Economic Review. 167(35): 58-60.

Funck, Carolyn (1999). When the Bubble Burst: Planning and Reality in Japan’s Resort
Industry. Current Issues in Tourism, 2(4): 333-353.

Gartner, William (2004). Rural Tourism Development in the USA. International Journal
of Tourism Research. 6, 151-164.

Goodall, Brian (1988). How Tourists Choose Their Holidays: An Analytical Framework.
Marketing in the Tourist Industry. Beckenham, Kent: Croom Helm, 1-10.

Hashimoto, Atsuko (1999). Comparative Evolutionary Trends in Environmental Policy:

Reflections on Tourism Development. International Journal of Tourism Research.
1,195-216.

Hassen, Salah S. (2000). Determinants of Market Competitiveness in an Environmentally

Sustainable Tourism Industry. Journal of Travel Research, 38, 239-245.

Hiwasaki, Lisa (2000). Ethnic tourism in Hokkaido and the shaping of Ainu identity.
Pacific Affairs. 73(3): 393-412. retrieved<2005/06/06>, from<proquest>database.

Huybers, Twan (2003). Domestic Tourism Destination Choices- a Choice Modeling

Analysis. International Journal of Tourism Research. 5, 445-459.
 Tenorio 42

Inverson, Thomas J. (1997). Decision timing: a comparison of Korean and Japanese

Travelers. International Journal of Hospitality Management. 16(2):209-219.

Jefferson, Alan and Leonard Lickorish (1988). Marketing Tourism. Harlow, Essex:
Longman Group UK.

Knight, John (1996). Competing Hospitalities in Japanese Rural Tourism. Annals of

Tourism Research. 23(1): 165-180.

Martinez, D.P. (1990). Tourism and the Ama: the Search for a Real Japan. Unwrapping
Japan. Honolulu, HI: University of Hawaii Press, 97-116.

Pearce, Douglas (1999). Introduction: Issues and Approaches. Contemporary Issues in

Tourism Development. London: Routledge, 1-12.

Prideaux, Bruce (2002). Building Visitor Attraction in Peripheral Areas- Can Uniqueness
Overcome Isolation to Produce Vitality. International Journal of Tourism
Research. 4, 379-389.

Pigram, John J. and John M, Jenkins (2003). Outdoor Recreation Management.

London: Routledge.

Rea, Michael (2000). A Furusato Away From Home. Annals of Tourism Research. 27
(3): 638-660.

Reid, Donald G. (2003). Tourism, Globalization and Development. Sterling, VA: Pluto
Press.

Reynolds, P.C. (1992). Impacts of Tourism on Indigenous Communities-the Australian

Case. Progress in Tourism, Recreation and Hospitality Management. London:
Belhaven Press, 113-119.

Smith, Shelia A. (2004). The Okinawa Research Initiative: Human Resource

Development and Tourism in Island Societies. East-West Center.

Stabler, Michael (1988). The Image of Destination Regions: Theoretical and Empirical
Aspects. Marketing in the Tourist Industry. Beckenham, Kent: Croom Helm, 133-
159.

Wanhill, Stephen and Dimitrios Buhalis (1999). Introduction: Challenges for Tourism in
Peripheral Areas. International Journal of Tourism Research, 1, 295-297.