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Messages from Keidanren Executives December, 2019 Revitalizing regions thorough tourism!

Tetsuro TOMITA Vice Chair, Keidanren
Chairman and Director, East Japan Railway Company

According to demographic data published by Japan's Ministry of Health, Labor, and Welfare for 2019, the number of newly born will be under 900,000. This would be merely one-third in comparison with the post-war "dankai" or baby boom years. While decline in population cannot be avoided, it is particularly a pressing reality for outlying regions. It will be necessary to revitalize regional economies that make up 70% of the nation's GDP, if we are to sustain Japan's economic growth.

The JR East Group covers a large area in northeastern Japan, from the Shinetsu to Tohoku regions, where we are undertaking projects in regional revitalization with a due sense of urgency. Important points in regional revitalization are focusing on realistic sustainable targets for visible change and results. Especially, I believe that tourism, agriculture, and community development are the key areas of focus.

Among these, tourism particularly appeals to a large demographic, touching the lives of local citizens from the elderly to younger generations, and acting as a stimulant for economic growth. However, in tourism, most hotels, shops, restaurants and other businesses are small- to medium-scale enterprises, lacking the efficiency to apply IoT, and could hold back the productivity of the industry as a whole.

MaaS (Mobility as a Service) for tourism, which incorporates information of transportation, lodging, and souvenir options, etc., could be one solution. A common MaaS platform would enable local companies to take advantage of services that would enable potential consumers to make computer searches, reservations, and cashless payment. While providing greater convenience for travelers, the tourism industry would also benefit from increased productivity. We can cultivate tourism as a key industry in regional communities by bringing local players together towards success under the concept of Society 5.0.

The most important point is how to nurture and establish a playing field for members of local communities, enterprises, and educational institutions who are passionate to open up potential for the future. The training of future leaders in local communities will be important in supporting Japan implementing Society 5.0 to motivate society and find innovative solutions to the issues that we face.

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