Japan’s New Budget Proposal for FY 2021 by Tetsuhiro Nakagawa 1. Overview of the 2021 Budget Proposal Japan’s new budget proposal for FY2021 was decided by the cabinet in December of last year. In Japan, at the end of each year, the government decides its budget proposal for the next fiscal year, which starts from April. Budget proposals decided by the government are deliberated in regular Diet sessions convened in January of the new year, and are approved in due course by April if the process proceeds as normal. The total amount for the general account in the 2021 budget proposal is about $1 trillion[1] (106.61 trillion YEN), hitting a record high for the ninth consecutive year. It also exceeds over 100 trillion YEN for the 3rd year in a row. A demand for policy has been increasing in Japan, especially in the field of social security, such as public healthcare and pension systems, in light of the rapidly aging population. Social Security expenses account for about 54% of spending outside of debt payments and money transfers to local governments. Compared to the U.S., whose federal budget of FY2020 was $4.8 trillion, Japan’s budget is about one fifth that size, while Japan’s GDP ($5 trillion) is about one fourth of the U.S. GDP ($21.37 trillion. Nominal in 2019, World Bank data). [1] For the convenience of the reader, in this article, the dollar amount that has been converted from the original YEN amount, and is rounded based on the number of Japanese yen. Please note that it is not an exact number. Graphs by Tetsuhiro Nakagawa (JITTI USA) were made using data from Japan's Ministry of Finance The main features of this year’s budget proposal are as follows: The largest ever total number The largest amount ever of Social Security spending Stated above, the rapidly growing number of elderly populations has led the expansion of Social Security costs. The largest amount ever of National Defense spending It is up 0.5% from FY 2020 and has hit a record high for the seventh consecutive year as tensions within the region rise due to China’s growing maritime assertiveness and North Korea’s missile threat. The budget also includes the cost of strengthening capabilities in new domains, including cyberspace, outer space, and the electromagnetic spectrum. Addition of $50 billion to the reserve fund The government has reserved $50 billion for future responses to the COVID-19 pandemic. The money, which can be spent without parliamentary approval, will allow the government to act swiftly when needed to contain the virus. Establishment of a “Digital Agency” The government will set up a new “Digital Agency” in September to expedite the digital transformation of government work and services. The Digital Agency will be established as a headquarters to strongly promote administrative digitalization in order to realize more efficient administrative management in the post-corona era. In addition to digitizing various administrative services, the agency will also advance online medical care and digital education. Furthermore, the mission of the agency includes popularizing the "My Number Card" to dramatically improve the efficiency of administrative services. The “My Number Card” can be used as an official identification card for verifying identity, and can make various administrative procedures more convenient, such as by allowing resident cards to be issued at convenience stores. It was introduced in 2015, but as many people have not felt the benefits, it has not yet become very popular. This image illustrating the "My Number Card" is from Japan's Ministry of Internal Affairs and Communication . Revenue In light of the deterioration in corporate performance due to the COVID-19 pandemic, revenue for the 2021 fiscal year lowered approximately 5% ($60 billion) compared to the previous fiscal year's initial budget. In order to respond to the dual shock from both lower tax revenue and higher spending, the amount of new government bonds issued, which is to say the national debt, increased by about 34% ($110 billion) from the previous fiscal year to $436 billion. For Japan, which has been working to rebuild its finances, the increase in national debt is a first in 11 years based on initial budget figures. Graph by Tetsuhiro Nakagawa (JITTI USA) via data from Japan's Ministry of Finance 2. Budget Items related to Transportation and Tourism In the 2021 government budget proposal, the transportation and tourism sectors are summarized as related to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The MLIT's budget for the 2021 fiscal year consists of the following three pillars. There have been no major changes in the theme in recent years. 1. Ensuring the safety and security of the public 2. Achieving sustainable economic growth 3. Forming rich and vibrant regions and creating a multi-regional country In addition to traditional policies of advancing transportation infrastructure to support Japan’s economic and social activities, several new measures have been developed in light of the effects of the recent pandemic. The followings are excerpts of the MLIT's budget statement. 2. Achieving sustainable economic growth (2) (a) Promote digital transformation, technology development, work-style reform, etc. in infrastructure and logistics fields ($84 million / 8.4 billion yen) In order to respond to the novel coronavirus infection that has brought about an unprecedented crisis, various measures have been introduced to efficiently transform social capital and public services based on the needs of the people by utilizing data and digital technology in the infrastructure field. (Examples of measures) Improve productivity by promoting the digitization of passenger transportation business using ICT. Convert to a sustainable railway system through labor saving and efficiency improvement through the use of ICT. Construct non-contact and non-face-to-face logistical systems through labor saving and automation of logistic sites, etc. Improve productivity and strengthen international competitiveness of port logistics by digitizing port logistic information and linked data. Image Source: Ministry of Land, Infrastructure, Transport, and Toursim of Japan (4)(a) Continue the “Go To Travel” campaign ($13 billion / 1,311 billion yen) Japan’s initiative to promote domestic travel, called the “Go To Travel” campaign, which was introduced in the supplementary budget for FY2020, will be extended through the FY2021 on the premise that both business operators and travelers should thoroughly implement measures to prevent the spread of infection. By responding flexibly depending on the state of the infection, a full-fledged recovery of domestic travel demand is attainable. Please also refer to our feature article, “ An Introduction of Japanese Tourism Initiatives During the Pandemic,” in the JITTI Journal’s November 2020 edition . 3. Forming rich and vibrant regions and creating a multi-regional country (2) (d) Promote the spread of next-generation mobility ($7 million / 700 million yen) In order to respond to structural changes in the movement of people and goods brought about by post-COVID lifestyles, Japan will promote the spread of next-generation mobility using new technologies, such as AI and IoT. (Examples of measures) Promote MaaS that responds to new needs, such as congestion avoidance, based on the spread of infectious diseases. Support efforts to establish technical requirements for the practical application of autonomous driving, develop standards for road spaces, and implementation. Promote measures to support the introduction of next-generation vehicles that contribute to the greening of regional transportation. Promote the development of an environment for the realization of visual flight of unmanned aerial vehicles. Promote the development of an environment for the social implementation of "flying cars" as a new business. Measures aim for a more green transportation network. Measures also aim for transportation modes to travel seamlessly in the future, as mobility options for goods and people advance 3. Supplementary Budget 2020 The expenses required for measures to address the COVID-19 pandemic, which is the most important issue for countries around the world, are mainly recorded in the supplementary budget for the 2020 fiscal year. The supplementary budget is constructed annually and, like the regular budget, is deliberated and approved by the Diet. In the 2020 fiscal year, three supplementary budgets have already been set to address the pandemic. These measures, some of which are in common with those passed in the U.S., such as personal benefits, loans for large corporations, assistance for small businesses, and subsidies to maintain employment, are implemented under the supplementary budget, as in the U.S. For reference, the total size of Japan's supplementary budget implemented in the 2020 fiscal year was about $730 billion (73 trillion yen). It was equivalent to 71.6% of the annual budget of about $1 trillion (102 trillion yen) and about 14% of its GDP. The U.S. has a total of just over $3.8 trillion from the first to the fourth round of economic measures, which amounts to 79.2% of annual budget expenditures and 18% of its GDP. It can be assessed that the US has taken measure to provide relatively larger financial aid to address the pandemic so far. Graph by Tetsuhiro Nakagawa (JITTI USA) Looking at the contents of the supplementary budgets of both countries, most of the expenditure items related to transportation are either measures to maintain the workforce in the transportation sector or measures to prevent the spread of the novel coronavirus in the sector. On the other hand, in Japan, the supplementary budget over the past three iterations have been characterized by not only the response to the current pandemic, but also measures for economic revitalization during a current or post-corona era, such as measures to make major changes by shifting into a digital society. It can be said that in this respect, these characteristics are a distinctive difference between the two nations. Society 5.0 is a national vision aimed at realizing a data-driven, human-centric society for future generations. It is a concept in which economic development, digitalization, and solutions for social issues are aligned. Image Source: The Government of Japan Back to All JITTI Journals January 2021 Feature Article

Back to All JITTI Journals July 2019 Cultural Article What is Koshien? Japan’s Biggest Sporting Event in Summer by Daisuke Takagi If they heard the phrase “Summer Sports,” most Japanese people would think of the same word, "Koshien." One might ask “What kind of sport is Koshien?” However, Koshien is not the name of a sport, but the name of a baseball stadium. In Japan, the final tournament of the National High School Baseball Championships is held every August at Koshien, which is officially named the “Hanshin Koshien Stadium”. Typically, the Hanshin Tigers, one of Japan’s professional baseball teams, uses it as its home stadium, but during this term it is solely used by high school baseball teams. The tournament is a summer classic in Japan, and because it takes place during the time of year when the temperatures are at its most extreme hot, Japanese people have associated high school baseball in particular with summer. While the national high school baseball tournament at Koshien Stadium is also held in spring, summer Koshien is more popular and exciting for Japanese people. This tournament is a very historic tournament that had its 100 th anniversary last year. About 4,000 high schools are divided by prefecture to hold preliminary tournaments, and the winning high school from each prefecture can participate in the final tournament at Koshien (but in Tokyo and Hokkaido, two schools can be represented as there are so many high schools in these prefectures. In addition, there are some prefectures where two schools can participate in the tournament in a commemorative year like 80th, 90th or 100 th anniversaries). By the way, the prefecture which has the largest number of champion high schools is Osaka Prefecture. In addition, the high school that has won the most in the past is Chukyo University Senior High School in Aichi Prefecture, which has won seven times. Speaking of sports, “cheering” is an essential part of the sport. As it is a great honor to compete in the historic Koshien tournament and aim for the national championship, the family of players, other current students, and alumnae rush to root for and support their high school team. In addition, performances by each school’s brass band club is very common. There are various theories as to why, but it is said that it is easy to start playing various songs as baseball is divided into separate offenses and defenses. In Koshien, precise performances by dozens or hundreds of brass band club members cheers up players with standard numbers, popular numbers, and sometimes even original numbers during games. In addition to the cheering section, there are several scenes unique to the high school baseball tournament at Koshien. One is for the winning team to remain on the grounds after the game and sing the school song. The scene of the baseball players standing in a row and singing the school song is also a sight that reminds you of summer. While the winning team sings the school song, what does the defeated school do? Their tradition is to take the soil of Koshien home. There are many players who take the soil as a memorial of their experience and expression that they will miss Koshien in their hearts. However, it is said that some high schools do not dare take the soil home with them as they are determined to return to Koshien again. Koshien is also the gateway for professional baseball players, and many of the Japanese major leaguers have experience at Koshien. Famous past stars including Hideki Matsui and Ichiro, and those who are currently active like Masahiro Tanaka, Yu Darvish and Shohei Otani have played at Koshien. In these hot summer months, I hope that you have a moment to see Koshien whether you are physically at the stadium or view it through other means. Once you’ve experienced Koshien, with its youthful and earnest baseball players, the boisterous and hopeful fan sections, and bittersweet victories and defeats, I’m sure that you will be hooked. Outside of the Hanshin Koshien Stadium

A Significant First Step in Collaboration for Both Academies (Photo by USCGA, provided by JCGA) A Historic Moment: The Blossoming of Japan-US Coast Guard Academic Collaboration By Daisuke Komatsu On April 21st this year, under a crystal-clear sky in New London, Connecticut, a historic moment unfolded at the United States Coast Guard Academy. The Japan Coast Guard Academy and the US Coast Guard Academy, striving to further enhance their educational programs, signed a landmark agreement on academic cooperation - a first for both institutions with an overseas academy. The Japan-US Coast Guards have led coast guards worldwide and, based on the memoranda of cooperation signed in 2010 and the MOC’s ANNEX in 2022, have strengthened their trust by collaborating in various areas, including high-level meetings, joint exercises, and capacity building support for the Philippine Coast Guard. The signing of this document of cooperation between the two educational and training institutions, as part of the Japan-US joint initiative "SAPPHIRE" based on the 2022 ANNEX, reaffirms the significance of cadets’ cooperation including international student conferences and cadet exchanges through training vessel visits. It aims to further enhance academy education by focusing on academic exchange, joint research, and the establishment of mutual exchange programs. The Signing Took Place in a Solemn Atmosphere (Photo by USCGA, provided by JCGA) The signing ceremony took place in a serene atmosphere at the Hamilton Hall of the US Coast Guard Academy, attended by Rear Admiral William G. Kelly, Superintendent of the US Coast Guard Academy, and Rear Admiral Upper half Mitsuru Eguchi, Superintendent of the Japan Coast Guard Academy. Rear Admiral Kelly emphasized the significance of the agreement, which further strengthens the historic relationship between the two academies, and expressed his commitment to developing the long-standing friendship with the Japan Coast Guard Academy and enhancing their educational training. Rear Admiral Upper half Eguchi touched on the history of exchanges between the two academies and expressed his conviction that academic exchanges will strengthen their relationship even further through student interactions. Additionally, he proposed that the Japan-US educational institutions should become two range lights, cooperating to advance maritime law enforcement education and training in the Indo- Pacific region. Group Photo of the Representatives from Both Academies (Photo by USCGA, provided by JCGA) The Japan Coast Guard Academy was established over 70 years ago, and the US Coast Guard Academy nearly 150 years. This was the first time for each academy to sign an agreement on cooperation with an overseas academy. This historic document exchange highlights the need for collaboration between educational and training institutions, which are the foundation for human resource development, in addition to cooperation at Headquarter and operational levels amidst challenging maritime security environments. Furthermore, maritime security research spans a wide range of areas, including maritime security, international law, search and rescue techniques, and environmental conservation. The academic exchange between faculty members is expected to lead to more advanced research in coast guard operations, which is still in development. The signing of this cooperation document contributes to building a solid foundation for nurturing the next generation of leaders, as both countries' maritime security agencies work together to improve maritime security. Through the collaboration of both academies, research and education in the maritime security field will progress, and international cooperation between the two agencies will deepen, leading to enhanced maritime security in the Indo-Pacific region and beyond. The author hopes that the strengthened cooperation between Japan and the US maritime security agencies will pave the way to realize a free and open Indo-Pacific. A Regimental Review by USCGA Cadets for the Superintendent of JCGA Was Also Held in Conjunction with the Signing Ceremony (Photo by USCGA, provided by JCGA) Back to All JITTI Journals May 2023 Feature Article

Back to All JITTI Journals March 2020 Cultural Article Hanami: Cherry Blossom Viewing by Tomomi Dodd Hanami, meaning ‘flower viewing’, refers to picnicking in the vicinity of sakura (cherry blossoms) in Japan. While the blooming period of cherry blossoms varies every year, it is usually between the end of March to beginning of April in Tokyo. During Hanami season in Japan, people gather with friends, family, coworkers, classmates, and club-mates to enjoy food, drinks and the company of others. There are several different species of sakura, but the Yoshino cherry is most common. The earliest flowers bloom around January in Okinawa, and the latest around May in Hokkaido. ( Hanami at Shinjuku Gyoen 2012 by Dick Thomas Johnson is licensed under CC BY 2.0 ) It is said that hanami’s origins are from the Nara period (710–794), and initially centered around plum blossoms, which bloom earlier than sakura. The focus switched to cherry blossoms during the Heian period (794–1185) as aristocrats held flower-viewing parties under the cherry blossom trees of the imperial court in Kyoto. At these early celebrations, aristocrats wrote poems about the blossoms. Hanami gradually spread from the elites to the samurai, and eventually to the common people. People head out to parks that have cherry trees and set up tarps to sit on to have a picnic. People bring prepared bento boxes or buy food from supermarkets and convenience stores. Sometimes they are quiet family affairs, while other times they are loud and drunken gatherings with coworkers and friends. Also, sweets popular during this time are a pink, white, and green dango (dumplings) made from mochiko (rice flour), to be eaten during hanami. In this typical color combination, the pink, white, and green represent the blossoms of springs, the snow of winter, and the leaves and grass of summer. Sanshoku Dango -three colored dumpling ( Dango by Joey is licensed under C C By 2.0 ) The special attention paid to cherry blossoms is due to their fragility and short lifespan, which is an idea of “wabi-sabi,” a traditional Japanese aesthetic. They represent life, reminding us of our vulnerability and encouraging us to make the most of our short lives. People feel this sentiment when they see the petals fall like snow at the end of the season. Then again, their popularity could be more to do with aesthetics – whether seen close up as a single flower, or from a distance as a pink and white cloud, cherry blossoms are exquisitely beautiful. Some recommended places for hanami in Tokyo are; Shinjuku Gyoen National Garden , Chidorigafuchi, and Yoyogi park. My recommendation is Chidorigafuchi, an area around the moat of the Imperial Palace, where the trees get lit up at night. There is also a spot in Chidorigafuchi where you can ride a boat and view sakura. The view is surrealistically beautiful, and it almost feels like you are in heaven! (Granted, you may need patience to wait in a long line for the ride.) People riding on boats at Chidorigafuchi, Tokyo ( Lunchtime stroll: Chidorigafuchi and Tokyo Tower with Cherry Blossoms by Big Ben in Japan is licensed under CC BY-SA 2.0 ) At this time, with fears of COVID-19 and recommendations for social distancing, hanami viewing is not advisable. In fact, some parks will likely not be open for this reason in Japan. However, during this period of quiet and solitude, my hope is that we will gain an even greater appreciation for the cherry blossoms and our chances to meet with friends and loved ones under them. Then, when life has returned to normal, and if you have not yet been to Japan during hanami season, I highly recommend for you to visit the cherry blossoms for an exquisite experience!

Back to All JITTI Journals July 2020 Feature Article MaaS in Urban Tokyo by Daisuke Miyamoto 1. What is MaaS? (1) "Mobility as a Service (MaaS) is the integration of various forms of transport services into a single mobility service accessible on demand. To meet a customer’s request, a MaaS operator facilitates a diverse menu of transport options, be they public transport, ride-, car- or bike-sharing, taxi or car rental/lease, or a combination thereof. For the user, MaaS can offer added value through use of a single application to provide access to mobility , with a single payment channel instead of multiple ticketing and payment operations. For its users, MaaS should be the best value proposition , by helping them meet their mobility needs and solve the inconvenient parts of individual journeys as well as the entire system of mobility services.” 2. What has the concept of MaaS done? While the MaaS concept has affected every transportation industry throughout the world, at the same time, Daimler, who is the one of car leading companies in the world, revealed their “CASE” concept at the 2016 Paris Motor Show. CASE stands for the fields of networking (Connected), autonomous driving (Autonomous), flexible use (Shared & Services) and electric drive systems (Electric) (2) , and will impact the car industry as well. It is said that both innovations will cause a great mobility revolution that is only seen once every 100 years since cars were first developed. Because both concepts help reduce the ownership of cars, curtail carbon dioxide emissions, encourage the use of public transportation and minimize congestion, many countries and companies have been studying MaaS and CASE in order to enlist these concepts. 3. MaaS in Japan (3) The Japanese government has studied MaaS as well to ride the wave of its increasing popularity, and found that when MaaS is simulated in their future investment strategies, it helps the surrounding communities to achieve a high quality of life and mobilizes society by driving up the potential demand for going out. However, because there are many types of cities in Japan, and each one has several types of transportation options, it has been difficult to directly apply a single concept to every city. They have had to consider and develop a way for MaaS to be suitable for Japan, or one might say that they created a Japanese MaaS. Finally, the Japanese government has found that there are 5 suitable types of MaaS in Japan, as follows: a. Metropolis b. Suburb c. Regional city d. Rural area e. Tourism These MaaS types have different goals, but the Japanese government believes that MaaS will be one of the better solutions for an aging society and expanding urbanization. 4. One MaaS Case Study in Tokyo Tokyo Metro, one of the leading subway operators in the world, has recently launched their MaaS project (4) . They called their Metropolis MaaS project “My! Tokyo MaaS." Tokyo Metro has 179 stations, 7.55 million passengers, and a 195.0 km rail network in Tokyo, so they have earned the position to be able to develop a Metropolis type of MaaS. They emphasize 3 concepts in order to add value to their rail network and service, as follows: a. Personalized trip planning and added value Passengers can get easier access to information for their destination, like routes to elevators in stations and paths to take to avoid getting wet when it’s raining. b. Real-time train operation information Passengers can, of course, get real-time transit operation information and train location information, but can also moreover get suggestions of detours in the case of an accident. c. A more precise network Tokyo Metro will work together with other mobility operators to enable passengers to easily access various mobility modes. I believe that this project will assist not only commuters around urban Tokyo, but also foreign visitors. We are in severe times with COVID-19, but I believe that we can overcome it and enjoy travel again someday, of course with “My! Tokyo MaaS.” Fig. Concept image of my! Tokyo MaaS References: https://maas-alliance.eu/homepage/what-is-maas/ https://media.daimler.com/marsMediaSite/en/instance/ko/CASE-Networked-strategy.xhtml?oid=29182599#:~:text=CASE%20%E2%80%93%20these%20letters%20are%20shaping,corporate%20strategy%20of%20Daimler%20AG . https://www.mlit.go.jp/common/001287842.pdf https://www.tokyometro.jp/news/images_h/metroNews20200325_34.pdf

Outlook of the Tourism, Transportation, and Economic Sectors in Japan in 2022 by Tetsuhiro Hagiwara Happy New Year to you all. Although the re-expansion of COVID-19 by the Omicron variant has brought an uncertain start to the year 2022, I wish you all a wonderful year ahead. In my first article for 2022, I would like to share the direction of the tourism, transportation, and economic sectors in Japan this year, based on the New Year's resolutions of the Japanese government, the Minister of Land, Infrastructure, Transport and Tourism, the Chairman of the Nippon Keidanren (Japan Business Federation), and the President of the Japan Chamber of Commerce and Industry. Please find the translation of their published statements below. 1. Minister Tetsuo Saito, Ministry of Land, Infrastructure, Transport and Tourism Tourism is a pillar of growth strategy. Achieve both infection prevention and economic recovery, and strategically implement inbound recovery. Tourism is a pillar of Japan's growth strategy and a trump card for regional development, and we believe that it is necessary to achieve both prevention of the spread of the coronavirus and economic recovery. In order to inhibit the spread of disease and achieve economic recovery, the government will provide support for maintaining employment and continuing business in tourism-related industries, which are severely affected by the new coronavirus infection and employ approximately 9 million people nationwide, as well as stimulate tourism demand through the "New Go to Travel Project" and other measures. In addition, with an eye on life post-Corona, the government will strategically promote the gradual recovery of inbound tourism, while monitoring the infection situation in Japan and abroad, as well as the renewal of tourist sites, mainly accommodation facilities, and the creation of new tourist content and high value-added tourist sites, which will be implemented in cooperation with local stakeholders. First, since it is necessary to maintain and recover tourist attractions and the local economy, we will continue to promote measures to stimulate tourism demand, and will expand the scope of travel eligible for support in stages while carefully checking the infection situation. To start, the prefectural government's so-called "prefectural residents' discount" has so far only supported travel within the prefecture, but since November last year, travel from neighboring prefectures has been added to the scope of support. In the future, based on the status of infection and other factors, we will expand the prefectural residents' discount support to neighboring areas, or regional blocks, at an appropriate time, and then, after reconfirming the status of infection during the year-end and New Year holidays, implement the "New Go to Travel Campaign" on a nationwide scale. Furthermore, it is necessary to uncover new demand for domestic tourism before the full-scale recovery of inbound tourism. Based on new trends such as the change in people's awareness of work styles and lifestyles caused by the Coronavirus pandemic, we will promote the spread of "new travel styles" such as work vacations, as well as the promotion and establishment of a style of "travel to and from the region again and again" as a "second home," so to speak. Second, in order for local economies to recover strongly from the pandemic, it is essential to revitalize tourist areas that will serve as the driving force for local development, and to promote the strengthening of the tourism industry that supports this. By doing so local economies can realize a positive cycle of growth and distribution in regions where people can experience affluence. Therefore, with an eye on post-pandemic life, we will continue to study the revitalization of regions and the strengthening of the tourism industry, by improving productivity in the accommodation industry, creating a safe and secure travel environment, and upgrading the management of tourist attractions through the active use of digital technology. Third, in order to revitalize and add value to tourist attractions in the region as a whole, we will strongly support efforts to renovate accommodation facilities, which are the face of tourist attractions, and remove abandoned buildings. We will also provide consistent support for these revitalization efforts, from the creation of content to the development of sales channels, by utilizing the unique tourism resources of the region such as nature, food, history, culture, art, livelihood, and transportation. Fourth, while foreign tourists continue to be unable to enter Japan, we will improve the environment for receiving foreign visitors to Japan in preparation for the recovery of inbound tourism. At the same time, from the perspective of contributing to the economy and employment in local areas and raising incomes, we will provide support for the development of accommodation facilities and human resources to create high value-added inbound tourism destinations. In addition, the government will implement strategic promotion for visiting Japan and of hybrid MICE events that combine face-to-face and online activities, in order to increase travel spending and attract more visitors to regional areas by providing information on Japan's safety and security efforts as well as regional attractions. While continuing to adhere to the targets of 60 million tourists and 15 trillion yen in 2030, the government will make concerted efforts to realize a tourism-oriented nation. ■Promotion of Tourism in Okinawa including Restoration of Shuri Castle Shuri Castle, which was destroyed by fire in October 2019, is not only the pride of the people of Okinawa, but also an extremely important building as a national historical and cultural heritage site. In order to restore the castle, technical studies are being conducted, including the strengthening of fire prevention measures. This year is an important year for us to start construction of the main building of Shuri Castle, and as the responsible party of the national park project, we will continue to make every effort to restore the castle by 2026 in cooperation with Okinawa Prefecture and related ministries and agencies. I also believe that tourism in Okinawa has tremendous potential. At Naha Airport, the second runway was put into service the year before last, and by continuing to promote the enhancement of the functions of the international terminal area, I believe that this will contribute to the further promotion of tourism in Okinawa by increasing the number of tourists and improving convenience. As Minister of State for Tourism, I will focus more on the promotion of tourism in Okinawa, with an eye on the full-scale recovery of domestic tourism and inbound tourism. ■Tourism policies in each sector In terms of domestic cruises, we have resumed operations by implementing thorough countermeasures against infectious diseases on board and at the passenger terminals. As for international cruises, we will take the necessary measures based on the safety and security of the local community, while taking into account the infection situation in Japan and overseas and trends in waterfront safety measures. Regarding Upopoi, which is a center for the revival and creation of Ainu culture, we will enhance the center’s content and conduct public relations activities to attract more visitors so that they can experience the splendor of Ainu culture and share in the philosophy of ethnic coexistence. With regard to landscape and historical city planning, we will promote the formulation of plans for maintaining and improving historical townscapes to create favorable landscapes, and continue to provide support to local governments in their efforts to create cities that make use of the unique history, culture, and climate of the region. We have designated the period from 2020 to 2025 as the third stage of "Michi-no-Eki (Roadside Station)." With the aim of making "Michi-no-Eki" a base for accelerating regional development and tourism, we will promote initiatives such as adapting to new lifestyles in the post-Corona era and strengthening the preventative functions of "Disaster Prevention Michi-no-Eki" to be base during wide-area disaster. We will continue to promote these efforts. In addition, based on the Second Bicycle Utilization Promotion Plan, which was approved by the Cabinet in May last year, the government, led by the Bicycle Utilization Promotion Headquarters headed by myself, will work together to systematically improve bicycle traffic space, promote the spread of shared bicycles, and encourage the use of the National Cycle Route. In the railroad field, in order for inbound travelers to enjoy a more comfortable trip on Japan's railroads, we will enhance multilingual information displays and announcements, provide free Wi-Fi service at stations and aboard trains, westernize restrooms, improve the environment for using credit card-compatible ticket vending machines and transportation system IC cards, install large luggage storage areas, and introduce sightseeing trains and cycle trains. In the field of aviation, we will take the necessary measures to achieve an annual arrival and departure capacity of approximately one million flights at airports in the Tokyo metropolitan area. Specifically, with regard to the development of a third runway at Narita Airport, we will make maximum efforts to enhance the functions of the airport in cooperation with the local government and other related parties. As for Haneda Airport, the new flight paths began operating in March 2020, and we will continue to take measures for noise and safety, work to avoid fixing the new flight paths, and provide detailed information. In terms of regional airports, we will promote the Fukuoka Airport runway expansion project and the New Chitose Airport taxiway double track project to strengthen the gateway function. In addition, to ensure safe and efficient aircraft operations, we will continue our efforts to reorganize domestic air traffic control areas. ２．Masakazu Tokura, Chairman, Nippon Keidanren (Japan Business Federation) Corporations are the agents of growth and distribution. Promote GX and DX to establish "sustainable capitalism." Six months have passed since I took office as Chairman on June 1st last year. During this period, my top priority was overcoming the Coronavirus pandemic and revitalizing social and economic activities. At the same time, I have been working in great haste to further the efforts I have taken so far by introducing a social point of view into the market economy, while continuing the aims advocated by my predecessor, Mr. Nakanishi, such as Society 5.0 for SDGs and sustainable capitalism. We have been working with a sense of urgency. The Keidanren's vision of "sustainable capitalism" is in line with Prime Minister Kishida's conception of "new capitalism.” Since the inauguration of his administration in October last year, Prime Minister Kishida has announced that he would focus his efforts on "realizing a new capitalism." The key concepts are "a positive cycle of growth and distribution" and "the development of a new post-Corona society." At the meeting of the Council for the Realization of New Capitalism, chaired by the Prime Minister, I emphasized that distribution should be discussed together with growth, and that growth is the first priority. In order to achieve this, I pointed out that the issues that need to be addressed are the building of social common capital, such as the improvement of Japan's crisis management capacity, which was a problem during the pandemic, and that the role of the government will be important because these issues cannot be solved by the market economy alone. I also reiterated the need for the entire government to discuss Green Transformation (GX) alongside Digital Transformation (DX), as a sustainable global environment is essential for the realization of new capitalism. In addition to GX and DX, there is an urgent need to vigorously promote important policy issues at home and abroad, including the promotion of startups, regulatory reform, regional development, reform of work styles and the development of human resources, cooperation and coordination with the international community, and fiscal soundness and sustainable, all-generation social security reform. With the determination and spirit that corporations are the agents of growth and distribution, the Keidanren will continue to join forces with the Kishida Cabinet in 2022 and do its utmost to overcome the Coronavirus pandemic and establish a sustainable and prosperous future society based on sustainable capitalism. I would like to ask for your further support and cooperation. ３．Akio Mimura, Chairman, Japan Chamber of Commerce and Industry This is the year to achieve a higher level of compatibility between infection prevention and socioeconomic activities. Promote digitalization, value-adding, and regional development to make Japan a strong and prosperous country with resilience to crises. Since last fall, the number of new cases of Covid-19 infections in Japan has remained at a low level, and I am pleased to join you in welcoming the New Year as the pace of recovery in daily life accelerates. Although the outlook for the future remains unpredictable due to the reemergence of the disease overseas, the Chamber of Commerce and Industry has positioned this year as a year to achieve a higher level of compatibility between infection prevention and socioeconomic activities, and will continue to do its utmost for the development of the local economy and the businesses that support it. Now, the economy, which fell sharply due to the Coronavirus pandemic, has finally started to recover, but it still lacks strength, and there continues to be a "K-shaped recovery," with the degree of recovery varying depending on the industry and scale. In order to truly break through the sense of stagnation that pervades the entire nation, it is necessary not only to steadily implement the "new economic measures" that the government decided on last year, but also to clearly show the way to new growth and development so that the people can have bright hopes for the future of Japan. Since the inauguration of the second Kishida cabinet, the government has been advocating "new capitalism" and has been discussing "a positive cycle of growth and distribution" and "the development of a new society post-Corona." To make Japan a strong and prosperous country that is resilient to crises, we need to solve the social issues revealed by the pandemic and achieve economic growth at the same time. For Japan, which is facing a variety of structural issues such as demographic trends toward a declining birthrate and aging population, to solve social problems and achieve economic growth at the same time, it is necessary to raise GDP per capita, a comprehensive indicator of a country's wealth, as a national goal, and to improve productivity in all fields and raise the potential growth rate. In particular, raising the productivity of small and medium-sized enterprises (SMEs), which account for about 70% of employment, is an important issue that will eventually lead to higher productivity in Japan as a whole. Other essential issues include: economic and medical security, investment in human resource development and science and technology research as the foundation for supporting growth, promotion of digitalization, and balanced energy policy and technological innovation based on the principle of "S + 3E.” In the area of trade, Japan should continue to play a leading role in promoting the free trade system while deepening cooperation with like-minded countries based on the achievements of the TPP and RCEP. In light of these issues, we, the Japan Chamber of Commerce and Industry, will focus on the following three points this year. The first is "strengthening of SMEs through digitalization." Japanese small and medium-sized enterprises (SMEs), which have overcome many difficulties in the past, have the potential to respond flexibly and swiftly to various changes. The use of digital technology in the management of SMEs is a powerful means of self-transformation for survival, and the trend of digitalization accelerated by the Coronavirus pandemic will not be limited to improving operational efficiency, but will be expanded to include business transformation such as the expansion of sales channels through cross-border EC, etc., and even business transformation. We will provide strong support as a pillar for improving management capabilities. The second pillar is to "increase added value through business restructuring and the optimization of transactions." The Chamber of Commerce and Industry will support business succession, revitalization, and restructuring by strengthening the companion-style management consultation system, and will strongly support the improvement of management efficiency and the ability to create added value. In addition, it is essential to optimize business transactions to fairly share the added value and costs created throughout the supply chain, which consists of large companies and small and medium-sized enterprises. The "Declaration on Partnership Building" with more than 4,000 registered companies, is a powerful platform for realizing this through public-private cooperation. We will further enhance the effectiveness of the Declaration and contribute to raising the added value of SMEs and, by extension, the growth potential of Japan as a whole. The third is the "promotion of regional development." Although it is said that Tokyo is concentrated in one area, in reality, there are multiple regional areas that achieved higher economic growth rates than Tokyo. They’ve done so by promoting the growth of primary industries, the concentration of manufacturing industries through infrastructure development, and the capture of inbound demand. In the wake of the pandemic, there has been a trend toward further decentralization, and in light of the government's "Digital Rural City Nation Concept," it is essential to link this momentum to the acceleration of regional development in order to create a resilient Japan. As a comprehensive regional economic organization, the Japan Chamber of Commerce and Industry is committed to deepening cooperation with various local entities and further supporting the creation of local communities. Finally, the Japan Chamber of Commerce and Industry is celebrating its 100th anniversary this year. Under the slogan of "Creating the Future with the Community," we aim to realize sustainable growth of the Japanese economy by strengthening the vitality of small and medium-sized enterprises and revitalizing local communities for the next 100 years. In my New Year's address, I would like to ask for your continued support and cooperation. In his New Year's message, Mr. Tamura, President of Narita International Airport Corporation, stated that "2022 will be the first year of aviation revival." I hope that the global economy will recover and people will once again travel around the world. References: ■ New Year's resolutions of the Minister of Land, Infrastructure, Transport and Tourism http://www.ryoko-net.co.jp/?p=102116 ■Japan Business Federation https://www.keidanren.or.jp/speech/2022/0101.html ■The Japan Chamber of Commerce and Industry https://www.jcci.or.jp/news/jcci-news/2022/0101100000.html Back to All JITTI Journals January 2022 Feature Article

Back to All JITTI Journals March 2021 Cultural Article Introduction of Japanese Anime and Manga by Tomomi Dodd A number of Japanese anime/manga have been produced in the past. They have been translated to many languages, and been popular all over the world. In this article, I would like to briefly describe the history of anime/manga in Japan, and introduce some of the most popular ones. The history of Japanese anime started from “Tetsuwan Atomu”(Astro Boy) in the 1930s. Since then, many anime were produced and introduced to the world. It is said that watching the anime “Captain Tsubasa” influenced Frenchman Zinedine Yazid Zidane’s aspirations to become a soccer player. Now Japanese anime is very important in serving as a soft power while promoting the “Cool Japan” image to the world, particularly with regards to popularizing Japanese culture and bolstering the economy. Kimetsu no Yaiba (Demon Slayer) has been very popular in Japan since last year. The pure and positive hero fights hard to return his sister, who has become a demon, back into a human. The story takes place in Japan’s Taishō-era (1912 – 1926). If you watch this show, you can see some parts of Japanese culture, such as scenery of downtown Tokyo during this historic time period and kimono. You can watch it now on Netflix-U.S.A. with English subtitles. Above is the official English dub trailer for Demon Slayer: Kimetsu no Yaiba from Anipliex USA . One Piece is another world famous anime/manga I would like to mention. A shared dream of all boys, it depicts the story of a boy who wants to become the pirate king, embarks out to sea, and goes through adventures with his friends. I like One Piece as it has dynamic and touching stories, which teach important ethics to readers, as well as giving viewers/readers moments to laugh. Watch the 20th opening theme, "Hope," from One Piece with English subs (published by Funimation ). Studio Ghibli Inc. is a Japanese animation film studio. It is known for the high quality of its filmmaking and its artistry. The Studio Ghibli films do not only have interesting stories with beautiful and attractive pictures and music, but also have moral values that appeal to viewers from children to adults. Each movie has some sort of background setting that raises social issues, such as human rights and environmental issues, to viewers. My most favorite film from Studio Ghibli is “Spirited Away” (2001). It shows a girl’s personal and mental growth at a bathhouse after she gets spirited away to a fantastical world. In my opinion, the charms of this film are the strange and humane story setting and interesting characters. Studio Ghibli films are now available on HBO Max with English subtitles. Japanese marketing image of Spirited Away by Studio Ghibli Inc. Japanese anime/manga is now loved by various people all over the world. This pandemic has been challenging for everyone, but is also a good opportunity to discover new things as you have more time to spend at home. I hope you can find a new Japanese anime/manga to enjoy. References: https://yumenavi.info/lecture.aspx?GNKCD=g007578 https://www.vogue.fr/fashion-culture/article/studio-ghibli-everything-to-know-japanese-animation

Back to All JITTI Journals March 2018 Cultural Article Do you take off your shoes inside of your house? by Tatsuya Izumi I take off my shoes at the entrance of my house. I even request that repair people and others take off their shoes when they enter my house. This is because I don't want to get germs or dirt that is clinging to the soles of people's shoes into my house. I think that this custom is fundamentally based in Japanese culture. Far back into Japanese history, Japanese people have believed that the outside ground is unclean or unhallowed, while the inside of house should be kept clean and separate. The entrance of a Japanese house is always a step up, in other words there is a small level between the ground and the floor of the house. The gap is recognized as a kind of sacred boundary to prevent unclean things from coming into the house. Putting your shoes neatly together is one of the important etiquette when you visit a Japanese house. This custom supposedly originated because of the humid and warm climate in Japan. In the ancient era, Japanese people lived in primitive pit houses before houses with an elevated floor were developed. They quickly became popular and widely used because people were able to stay relatively cool in the humid and warm weather thanks to the ventilating capability of such houses. Along with the spread of this type of house, Japanese people supposedly started the custom of taking off their shoes, and even washing their feet, before entering the house in order to keep the floor clean. These customs helped Japanese people maintain a hygienic house in the warm and humid atmosphere, which is rather germ-friendly. It also fostered the development of tatami culture. As a result, you can enjoy lying directly on tatami floors, without a couch or a mat, in a house in Japan. However, this strict separation of inside/outside facilitates Japanese culture in keeping things extremely clean these days. Also, there is a risk to badly hurt your pinky toe by hitting the leg of a table or a corner of a wall, and you can get cold very easily on hard floors such as marble, tile, and wood-all of which are very common in the U.S. You can enjoy a sense of release with your feet on Tatami floor, but you should take care not to hit your pinky toe at leg of table. It hurts very badly! Given the weather and what I have heard is the custom in the U.S. regarding shoes, I should maybe consider changing my mind and keeping my shoes on in my house. But I would have to ask my family before starting this new habit or I will definitely get in a serious trouble...

Legislation Amending the Japanese Civil Aeronautics Act to Implement Small UAS’s BVLOS Operations Over People by Yoshihiro Fujimaki 1. Background and Overview The bill to amend the Japanese Civil Aeronautics Act, which will allow for a small Unmanned Aircraft System (sUAS) to operate beyond visual line of sight (BVLOS) over people, was submitted to the National Diet of Japan on March 9th, 2021. At present, in cases when someone in Japan would like to operate sUAS beyond visual line of sight, he/she must get individual approval for that operation. In addition, operations flown over people (third parties) are prohibited. On the other hand, in 2017, Japanese industries and the government collaboratively developed the “Roadmap for the Aerial Industrial Revolution,” which was intended to develop technology and improve the overall environment for safe utilization of sUAS. This roadmap has been revised each year, and in the latest version, the target date of implementing BVLOS operations over people was set for FY 2022 (by March 2023). Based on this roadmap, the Japan Civil Aviation Bureau (JCAB) of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has been studying necessary regulatory changes for implementing such operations, and submitted the bill to amend the Japanese Civil Aeronautics Act to the Diet. This bill also aims to make the current regulatory framework more efficient. For these purposes, the bill includes two new regulatory content, a sUAS type certification / airworthiness certification and a sUAS pilot license. 2. sUAS Type Certification / Airworthiness Certification In the Japanese Aeronautics Act, manned aircraft and sUAS are clearly distinguished, and currently there is no regulation regarding type certification / airworthiness certification for sUAS. The bill will establish such certification. There will be two classes of the sUAS type certificate / airworthiness certificate: 1st class and 2nd class. For operations which will be flown over people (third parties), which are currently prohibited by the law, sUAS will be required to have a 1st class sUAS airworthiness certificate (and a 1st class sUAS pilot license). For operations which will not be flown over people, sUAS will still be able to be flown based on individual approval for each flight, and will not be required to have any class of airworthiness certificate. However, in the case that someone would like to perform a BVLOS operation that does not fly over people, he/she will not need to get individual approval IF the sUAS has either class of the sUAS airworthiness certificate AND the pilot has either class of the sUAS pilot license, which is described in next section. The relationship between sUAS type certification and sUAS airworthiness certification is the same as that for manned aircraft; a sUAS manufacturer will apply for a sUAS type certification for a type of sUAS, and once it is certified, sUAS airworthiness certification inspections that are typically needed for every sUAS will be partially or totally omitted for that type. The above figure is reprinted and translated from the interim report published by JCAB on March 8th, 2021 ( https://www.mlit.go.jp/policy/shingikai/kouku01_sg_000288.html ) 3. sUAS Pilot License In addition to sUAS type certification / airworthiness certification, currently there is no regulation regarding sUAS pilot licenses, and so the bill will establish two classes: 1st class and 2nd class. If a pilot plans to operate sUAS over people (third parties), a 1st class sUAS pilot license will be required. If he/she does not plan to operate sUAS over people, the sUAS pilot license will not be mandatory. However, as described in the previous section, in the case that someone would like to perform a BVLOS operation, but not over people, he/she will not need to get individual approval IF the sUAS has either class of the sUAS airworthiness certificate AND the pilot has either class of the sUAS pilot license. Also, the bill will approve private training organizations for sUAS pilots. Once a pilot has completed a course at an approved training organization, the test for the sUAS pilot license will be partially or totally omitted. In addition, he/she must take a course at an approved training organization every three years for license renewal. The above figure is reprinted and translated from the interim report published by JCAB on March 8th, 2021 ( https://www.mlit.go.jp/policy/shingikai/kouku01_sg_000288).html ) 4. Effects From Its Implementation In FY 2019 (from April 2019 to March 2020), the number of sUAS operation approval applications submitted was 48,364, and the breakdown of approvals is shown in the next figure. (Please note that one application may include several approval items.) Most approvals are related to night operations, BVLOS operations, operations near people or buildings, and operations in densely populated areas. For these operations, individual approval will not be necessary IF the sUAS has a sUAS airworthiness certificate AND the pilot has a sUAS pilot license. The above table details information from material that JCAB submitted to the council on Nov. 19, 2020 ( https://www.mlit.go.jp/policy/shingikai/kouku01_sg_000281.html ) On the other hand, some sUAS operations, such as those conducting around airports, flying above 150m altitude, transporting hazardous material, etc., will remain subject to individual approval. Operations by the sUAS which weigh over 25kg will also remain subject to individual approval. Back to All JITTI Journals March 2021 Feature Article

Foreign Cruise Passengers in Japan by Daisuke Takagi 1. INTRODUCTION In recent years, the number of foreign tourists visiting Japan has rapidly increased. While most of these foreign tourists come to Japan by air travel, the number of tourists visiting Japan by cruise is increasing. This article introduces the trends of foreign tourists enjoying cruise trips in Japan. 2. THE NUMBER OF FOREIGN CRUISE PASSENGERS VISITING JAPAN The number of foreign passengers entering Japan by cruise ship was 2.153 million in 2019 (down 12.2% from the previous year). This is because the number of cruise passengers from China, which account for about 80% of cruise passengers visiting Japan, decreased to 1.74 million (down 14.5%). The Chinese cruise market has entered a phase of adjustment after a huge expansion from 2018, and the number of cruise passengers visiting China from Japan is expected to decrease due to a decline in the number of cruise ships dispatched to the Chinese market in 2019. By origin, the number of cruise passengers visiting Japan from central China, mainly from Shanghai, dropped sharply to 904,000 (down 32.4%), while those from northern China such as Tianjin came to 441,000 (down 17.6%). 395 million passengers visited from Hong Kong and other southern Chinese cities (up 21.9%), and 288,000 cruise passengers came from Taiwan (up 4.7%), both up from 2018. In addition, the number of foreign cruise passengers that embarked on Japanese ships in Japan has increased to 89,000 (up 20.3%) due to “fly and cruise operations” and the progression of the diversification of foreign cruise passengers. Fly and Cruise initiatives, which package flight and cruise plans for easy booking, have increased in popularity and use by foreign passengers boarding Japanese cruise ships (image does not reflect actual spacing between aircraft and cruise ship) 3. THE NUMBER OF CRUISE SHIP CALLS The total number of cruise ship calls to Japanese ports in 2019 decreased 2.2% from the year before to 2,867 times (1,932 foreign shipping companies and 935 Japanese shipping companies). The most calls by port are: 1st place: Naha Port, 260 times (2nd place last year: 243 times); 2nd place: Hakata Port, 229 times (1st place last year: 279 times); 3rd place: Yokohama Port, 188 times (4th place last year: 168 times). The following paragraphs explain the number of cruise ship calls operated by foreign shipping companies and Japanese shipping companies respectively. (1) Cruise ships operated by foreign shipping companies The number of calls at Japan’s ports by cruise ships operated by foreign shipping companies increased last year by 1.0% from 2018 to 1,932 times. By origin, the number of cruises departing from China was 893 times, down 10.6%, and the number of cruises departing from Taiwan was 241 times, down 2.4% from the previous year. Meanwhile the number of cruises departing from Japan increased by 20.0% in 2019 to 707 times. In terms of landings, ports to call in Kyushu have decreased, while port calls at domestic areas other than Kyushu increased. The most active ports are: 1st place: Naha Port, 251 times (2nd place last year: 236 times); 2nd place: Hakata Port, 205 times (1st place last year: 263 times); 3rd place: Nagasaki Port, 178 times (3rd place last year: 215 times). As described above, the adjustment phase of the Chinese cruise market continued in 2019, and as a result of each shipping company decreasing the number of vessels dispatched to the Chinese market, the number of calls for cruise ships departing from China decreased mainly in Kyushu. On the other hand, the number of foreign cruise ships that carry out cruises to and from Japan, mainly for Japanese and Western customers (who fly into Japan to board a cruise) has increased. As a result, the number of port calls at Japan ports other than Kyushu has been increasing, and ports to call have been diversified. In addition, comparatively speaking, for cruise ships that called by price range, defined as (1) luxury ships (over US $ 400 per person per night), (2) premium ships (over US $ 200), and (3) standard ships (over US $ 70), calls by luxury ships, mainly wealthy customers from the United States and Europe, have particularly increased at ports throughout the country. (2) Cruise ships operated by Japanese shipping companies The number of calls at Japan’s ports by cruise ships operated by Japanese shipping companies decreased 8.1% in 2019 to 935 times. The calls by port are: 1st place: Yokohama Port, 101 times (2nd place last year: 98 times); 2nd place: Bella Vista Marina, 100 times (1st place last year: 122 times); 3rd place: Kobe Port, 68 times (3rd place last year: 70 times). This was due to a change in the frequency of calls for cruise ships traveling around the Seto Inland Sea, mainly at Bella Vista Marina. Luxury cruises, with wealthy passengers from the United States and Europe, have been increasingly called at ports in Japan 4. FUTURE PERSPECTIVE The number of foreign cruise passengers visiting Japan by month showed an increase in November 2019 for the first time in 17 months. Due to the rapidly changing nature of world events, it is hard to predict what the future holds. However, earlier this year each shipping company had plans to launch additional large cruise ships into the Chinese market after 2020. They hoped that the market would expand from 2020 onward, with increasing cruise travel to and from Japan. As the outbreak of novel coronavirus (COVID-19) is likely to affect the cruise market worldwide, including in Japan, the market must be monitored closely. Back to All JITTI Journals March 2020 Feature Article

Back to All JITTI Journals March 2023 Feature Article The Latest Trends in Japan's Railroad Business: Management Strategies to Strengthen the "De-rail" Business By Akito Okabe Introduction Japan's railroad business is currently undergoing a major transition. Although the COVID-19 pandemic has calmed down and railroad operators are making steady progress in recovering their business performance, the trend of teleworking remains unchanged and ridership has not returned to pre-pandemic levels. The rail ridership in Japan is generally at 70-80% of its pre-pandemic level, with a particularly sharp decline in commuter pass users. In addition, the future outlook is that ridership is not expected to return to its pre-pandemic level, and an aging and declining population is also expected. Under these circumstances, many railroad companies are struggling to establish a new revenue base by strengthening their non-railway businesses, and this article will introduce some initiatives thatJapanese railroad companies are currently doing. Real Estate Business Japanese railroad companies and the real estate business have had a close relationship since before the pandemic. Many railroad companies have built hotels, apartments, office buildings, and shopping centers near their lines to generate revenue. By increasing the attractiveness of towns through development along their lines, they also aim to increase the population along their lines and increase their rail ridership in the future. Tokyu, a leading company in the real estate business, is further accelerating its efforts after the pandemic. It has identified "Shibuya," its development hub, as its biggest growth strategy, and plans to invest a cumulative 450 billion yen (about $3.2 billion USD) in real estate-related activities by 2030. (This amount is approximately three times this year's EBITDA.) JR East, Japan's largest railroad company, also plans to focus on redeveloping the area around Takanawa Gateway Station, which opened in 2020. It plans to build a luxury hotel, offices, and one of the largest halls in Tokyo on the former railcar depot site, and expects the total project cost to be approximately 58 billion yen (about $4.2 billion USD). Image of the station area after redevelopment (Image Source: https://tokyoyard.com/ ) New Business In addition to the real estate business, a number of unique new businesses are being considered, which we would like to introduce below. Tokyo Metro Tokyo Metro, which operates subways in the Tokyo area, has opened a training gym for "e-sports" video game competitions in 2021, utilizing vacant buildings near its lines. (Co-operated with startup Gecipe ※1 ). In addition to monthly memberships to use the gym store, the company offers an optional service that allows users to take lessons from professional e-sports players in the store or online. The concept of the gym is "a bright and healthy e-sports facility that is easy for anyone to enter," and the company aims to "create a world where anyone can seriously enjoy e-sports at any time.” Image of Interior view of training gym (Image Source: https://esportsgym.tokyo/register-lp ) Tokyo Metro is also developing other new businesses, such as yoga classes with bouldering and robot programming classes. Osaka Metro Osaka Metro, which operates subways mainly in Osaka Prefecture, plans to launch a matching service in the spring of 2023 to connect land owners with businesses that wish to open food trucks (mobile vending vehicles for food and beverages). Under this service, Osaka Metro will act as an intermediary, receiving a fee from food and beverage operators for opening stalls and paying rent to landowners. In addition to the brokerage service, Osaka Metro plans to open food trucks under its direct management. Food trucks (Image Source: https://subway.osakametro.co.jp/news/news_release/20210930_foodtruck_kakudai.php ) By the end of FY2023, the company aims to enter the healthcare service business, which supports the health improvement of railroad users through a proprietary app. Conclusion As JR East President Fukasawa stated, "We need to stand on the premise that the number of rail ridership will not return to pre-pandemic levels.", and the business environment is expected to remain severe for railway companies. Given this situation, Japanese railroad operators are aiming to diversify their revenue sources through real estate and unique new businesses, and this trend is expected to continue. We will monitor this trend closely, as the initiatives of railroad companies focusing on businesses other than the railroad itself are unique to Japan and could serve as a useful reference for other countries. References ※1 https://gecipe.co.jp/

Back to All JITTI Journals November 2018 Feature Article Measures Against Objects Falling Off Airplanes by Shinichi Yamada 1. INTRODUCTION As Japan is an island country, airports and ports are considered to be the key for sustained growth. In particular, Haneda Airport and Narita Airport in the metropolitan area are very important because they are the entrance points for many foreigners. Currently, Japan plans to increase the number of flight slots through a re-examination of runway capacity, revision of runway operations and flight routes at Haneda Airport, and construction of high-speed taxiways at Narita Airport. These measures will be implemented by the year 2020. In the new runway operations and flight paths at Haneda Airport, airplanes will be able to fly over the city center of Tokyo. Because it is very important for local municipalities and residents to gain an understanding of these changes, the Government of Japan has been offering careful explanations to them. During such explanatory meetings, many residents made various requests of thorough noise prevention measures and particularly thorough safety measures; one of the major concerns for them is the risk of the objects falling off airplanes. If objects fell off airplanes, damages of third parties may occur which may significantly impact safe operations. There are concerns by some Tokyo residents of airplanes flying directly over the city. ( 羽田空港Ｄ滑走路 Han eda Airport by nekotank is licensed under CC BY-ND 2.0 ) 2. BACKGROUND The Government of Japan has been requiring Japanese air carriers to report PDAs (Parts Departing Aircraft) since 2009. Although the number of reported PDAs decreased slightly after that, it increased in 2017. Japan has already implemented various measures against objects falling off airplanes. For example, completing drainage of water in the water supply pipes before take-off to prevent ice blocks from falling off, requesting air carriers to complete maintenance and safety inspections, and requesting aircraft manufacturers to improve designs and prevent incidences of falling parts. However, recent serious occurrences of objects falling off airplanes has raised huge public attention. In September 2017, a large panel fell from an airplane onto a car driving on a busy street in Osaka. In May 2018, an airplane that had just taken off at Kumamoto Airport experienced engine failure, and more than 100 metallic fragments, which are suspected to have been part of the engine, fell onto the ground, houses, and cars below. Fortunately, no one was injured, but the incident caused the damage of a window in a hospital, windows of cars, etc. These events were broadly reported to the public by the mass media. There have been other recent cases of damage caused by objects falling off airplanes in addition to those mentioned above. Moreover, not only airplane parts, but also ice blocks sometimes have fallen onto the ground. Therefore, anxiety and concern of residents toward objects falling off airplanes has been augmented. A view after take off from Haneda Airport ( 20150125_Haneda-TSA_3052 by Ray Swi-hymn is licensed under CC BY-SA 2.0 Enhanced for better picture quality ) 3. NEW MEASURES AGAINST OBJECTS FALLING OFF AIRPLANES In March 2018, a council of various stakeholders including air carriers, maintenance organizations, aircraft manufacturers, etc. in Japan penned “Enhanced Measures to Prevent Objects Falling off Airplanes”, and have decided to take action as follows: Utilize the newly created booklet “Implementation of Measures to Prevent Objects Falling off Airplanes,” which introduces actual examples of preventive measures. Hardware side: Aircraft modification, etc. Software side: Inspection/maintenance, education and training, systems to conduct root cause analysis, preventive measures of recurrence when parts departing from airplanes and falling ice blocks occur, etc. Utilize the newly created booklet “Implementation of Measures to Prevent Objects Falling off Airplanes,” which introduces actual examples of preventive measures. Strengthen the aircraft inspection. The number of ramp inspections is to increase and airport administrators are to introduce new inspections. Japan established the “Standard to Prevent Objects Falling off Airplanes” in August 2018. For foreign air carriers flying in/from Japan, Japan plans to enforce the “Standard to Prevent Objects Falling off Airplanes” from March 2019, and also plans to establish a relief system for damage caused by objects falling off airplanes.