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After enduring 13 years of economic turbulence the Japanese recreational boating industry faces a new round of tenuous optimism.
The country’s economic outlook is the best it has been in over a decade, with a combination of market-stimulating deregulatory measures in place as well as Japan’s capacity for expansion. Recently, the Western financial press has indicated a resurgence of the Japanese economy, with Tokyo’s Nikkei 225 index rising to a four-year high.
However, after the 1997 consumer tax increase to 5 per cent, consumer confidence remains fragile. The marine leisure industry’s recovery is as yet unproven and issues remain over the cultural acceptance of boating for pleasure rather than for a living.
Japanese corporations also face plenty of wider economic challenges to their onward growth, including the strength of the yen, ongoing debate about Japan’s often restrictive import rules in relation to its export markets and, latterly, the rise of China as a manufacturing competitor.
On the domestic boating scene there are fears of a further increase in consumer tax beyond five per cent, as well as rises in income tax as the proportion of retired workers rises.
Despite this, growth is expected to continue in the craft under 3.3m (11ft) LOA and 2.2kW (3hp) sector. After recent hard times with sales half of what they were in 2001, the 4.6m-9.1m (15ft-30ft) sector predominantly occupied by open and sportsfishing boats, is believed to have reached the bottom of the fall and steady sales are predicted for 2006. The potential is much brighter above 10.7m (35ft), where a younger, more affluent customer is emerging in the power sector.
This growth is further stimulated by the simplification of the driver licence system. As a result importers are keeping a watchful eye, and domestic builders are also taking notice.
The used boat market is also offering encouragement for the future. After having been on sale for many months and even, in the case of large motor cruisers, years, the supply of crafts is now said to be drying up.
Conversely, hardly anything is happening in the sailing yacht side of business, with interest in personal watercraft disappearing even after steady growth through the difficult 1990s.
Recognising the potential for growth nonetheless, a local government and Japanese Boating Industry Association (JBIA) initiative is creating 44 ‘sea stations’ in some of the most popular cruising grounds in an attempt to create a favourable environment for leisure boat cruising.
Fishermen’s associations operate some of the stations, an interesting development since resistance by fishing villages to waterside access for leisure users has been cited as a major barrier.
Cultural resistance remains a concern but this engagement is seen as a significant step forward for Japan’s marine leisure industry.
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Summarised from the Japanese Business Report in IBI's December/January 2005/6
issue. The full report can be purchased from International Boat Industry
- Back Issues Department, PO Box 772, Peterborough PE2 6WJ, UK Tel: +44 (0)
1733 385 170. Fax: +44 (0) 1733 239 356 mailto:backissues@johndentonservices.com Copies are £15 each plus postage (£1 UK; £2 airmail Europe; £4 airmail elsewhere)
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