Model case 27

The “Outside Looking in” Challenge for the Global Market: Paving the Way for Japan’s Adventure Tourism

Transforming the everyday landscapes of Japan into something special for inbound tourists.

Tsuruga Adventure Base "SIRI"

Adventure Travel (AT) is gaining attention worldwide as a tourism sector with high added value and is defined as travel consisting of two or more of activities related to exploring nature or cultural experiences. This style of travel allows tourists to enjoy interactions with local people through these experiences while also learning more about the culture of the land. The market is expanding, especially among the wealthy in Europe, America, and Australia. According to the Japan Adventure Tourism Association, the estimated global expenditure for adventure tourism, excluding domestic markets in major regions such as North and South America, Europe, and Australia, is around $683 billion (approximately 76.5 trillion yen). Leading Japan's AT movement is the Tsuruga Group, which has been working on promoting the Japanese AT market to the world. In 2018, Tsuruga Group opened the "Tsuruga Adventure Base SIRI" in order to create AT experiences unique to Akan, continuing to attract customers with a high repeat visitor rate of 45% over the six years since its opening. The number of European, American, and Australian guests they target has steadily grown.

Chapter 01

Maximizing the charm of Lake Akan with AT

We are constantly searching for new targets and communication methods.

In 2023, ATWS (Adventure Travel World Summit) was held Hokkaido for the first time in Asia, with about 750 participants from 64 countries, including travel agencies, media, and government officials. This marked a turning point, globally recognizing Japan as a promising market for AT. The Tsuruga Group has been at the forefront of this movement in Japan. Founded in 1955 in Akan, the group now operates 15 hotels and inns within Hokkaido. Without relying on manuals, every individual, from the management to new employees, is encouraged to think and act on what they can do for their customers, providing highly satisfying accommodation services. Their corporate philosophy is to enhance the brand power of Hokkaido and contribute to regional revitalization.

The group’s serious efforts regarding inbound tourism began in 2010. The responsibility was entrusted to Mr. Takada, Director of the Adventure Division at Tsuruga Resort. “At the time, most of our guests were from Asia, especially Taiwan. We hosted familiarization trips and actively engaged with travel agents from various Asian countries, with some success.” However, in 2015, a pivotal event shifted their target audience. A heavy snowstorm trapped guests inside the hotel, leading to a crowded lobby filled with people. At that time, European and American tourists started enjoying wine in the lounge, saying, “It’s snowing, so we can’t do much about it.” This change in atmosphere struck Mr. Takada as a sign. “Customers who enjoy a relaxed itinerary and even embrace weather-related mishaps—this is the audience we should target. We decided to shift our focus towards actively accepting European and American tourists.”

However, Tsuruga Group had no experience with creating products or attracting customers in the European, American, and Australian market, and despite efforts like market research, they couldn’t quite figure out a solid strategy. Around this time, Mr. Takada received an invitation from the Hokkaido Transport Bureau to attend the 2015 ATWS and explore the market. Since the group had been offering fishing tours for some customers, Mr. Takada thought it would be a good opportunity to gather some information, so he traveled to Alaska.

Chapter 02

Tour guides who were once indifferent changed their attitudes.
Mr. Takada became certain that AT would succeed in Japan.

At the 2015 ATWS, Japanese AT was almost completely unknown. The prevailing attitude was, “Why are you here?” Japan’s image was associated with Tokyo, Kyoto, shrines and temples, Mount Fuji, and geishas—far from adventure. However, when Mr. Takada showed a picture of himself guiding on Lake Akan, an Alaskan guide was astonished, saying, “No way! Can you really catch fish like that in Japan?” Other guides also gathered, and the conversation grew lively. This was the moment when people began to recognize that Japan also had AT value.

While promoting Japan’s AT abroad, Mr. Takada gained significant insights. “When you think of ‘adventure,’ you often associate it with strenuous activities like rock climbing. I thought Japan’s resources wouldn’t work for AT. But, in reality, the AT market is divided into soft and hard categories, and the soft activities—like camping and hiking—represent the largest market segment, and they are well-suited for Japan. This was a groundbreaking discovery, and I became confident that AT would succeed in Japan.” This sentiment, of not doing it for personal gain, but to share Japan’s wonderful nature, culture, and activities with the world, was conveyed to key people at ATTA (Adventure Travel Trade Association), leading to the Hokkaido familiarization trip in 2017 and the ATWS being held in Japan in 2021 and 2023. Participating in ATWS in 2016 became a significant step forward in the promotion of AT in Japan.

After returning to Japan, Mr. Takada reported to the Tsuruga Group’s president, Mr. Onishi, that AT, which could leverage the appeal of Lake Akan, would be a major strength when targeting European, American, and Australian markets. They quickly decided to fully enter the AT business. The president’s strong words—”I want you to create added value that will make customers feel glad they visited Akan. We want to invest when the company is financially stable. Sales are secondary”—expressed high expectations for AT. In 2018, they opened the “Adventure Base SIRI” (meaning land, mountain, or peak in Ainu) as the base for AT. “Sales didn’t grow in the first year, but during that time, it was gratifying to see our staff eagerly exploring the field to discover the charm of Akan,” said Mr. Takada. Without being swayed by short-term sales, the management and staff united to continually pursue and offer new value in Akan, leading to the results they see today.

Chapter 03

"It was fun," or, "I’ll come back to Akan again," these sentiments from customers are our driving force.

SIRI will celebrate its 6th anniversary in 2024. Through agents, fam trips, social media, the website, and word of mouth, the sales channels have steadily expanded, and currently, 90% of bookings come from the official website. The repeat customer rate is 45%, with 23% coming from Europe and America. Even when they explain that fishing is not suitable during certain seasons, some visitors still come simply because they want to experience the pristine beauty of Akan. The group captures the hearts of tourists with authenticity. What they emphasize most is “showing the real thing.” Rather than presenting nature that is artificially staged, they aim to let customers enjoy the landscape and the state of the land as it is, accompanied by a knowledgeable and experienced guide. “Even if an animal is not visible and only its footprints are left behind, we still satisfy intellectual curiosity by providing a story and experience that imagines the size and lifestyle of that animal,” says Mr. Takada.

For Tsuruga Group, delivering high-quality AT for domestic and international customers involves prioritizing risk management and training guides who can convey captivating stories. The criteria for selecting guides are “those who can be considerate of others and engage in dialogue.” Rather than having a top guide, they adopt a system where each guide can leverage their various specialties and perspectives, such as fishing or hunting. Regarding the challenge of English proficiency for inbound tourism, Mr. Takada explains, “The English skills of Japanese guides is highly regarded abroad. The real challenge is communication skills. It’s not about perfect English; it’s about actively engaging with customers and not hesitating to speak.” Even if they are not fluent, their earnest effort to convey their message with the English words they know resonates with customers.

“When creating AT products, it’s easy to think that something special is required, but by simply conveying the stories of things we enjoy in our daily lives, we can create value. For example, a pine tree is not just a pine tree; it’s the Mother Tree for the Ainu people. When they’re injured or lost, they pray under this tree for help. Sharing this story leaves an impression on people. Especially for inbound customers, things that are ordinary for Japanese people can become something extraordinary.”

Today, Japan is highly regarded around the world as a “treasure trove of adventure,” with nature and cultural experiences that are completely different from other countries. AT allows travelers to experience the nature and culture of the region. Mr. Takada believes that for AT to succeed, not only tourism operators, but all local residents must create an environment where travelers feel welcome. In the future, they will continue to share Akan’s charm with the world, as Japan has many beautiful natural landscapes and inherited cultures that have not yet been shared with the world. AT will be one of the keys to uncovering and promoting these attractions to a global stage.

Text by Mari Kanematsu
Interview Date: October 23, 2024

The content of this article is as of the interview date.
Official Website: https://tsuruga-adventure.com/en/