1-1. Japanese Economic Trend (released in December 2007)

In December, the Japanese government announced that Japan’s economy is recovering, while some weaknesses are seen. As for short-term prospects, the economic recovery is expected to continue supported by the continuing improvement of corporate profits. On the other hand, attention should be given to effects of the fluctuations in the financial and capital markets mainly caused by the subprime mortgage loan problem and developments of oil prices on the Japanese economy and overseas economies.　The consumer price index for October was 100.5, which rose by 0.2 from the previous month. The number of the people unemployed increased by 20,000, causing the unemployment rate to rise 4.0% up 0.2% from the previous month.

Monthly Economic Report (Released by Cabinet Office, Government of Japan)

	The latest	Previous
Growth Rate of Real GDP (Quarterly)	The third quarter 2007:0.4%	The second quarter 2007:-0.5%
Annualized basis GDP Growth Rate	1.5%	-1.8%
Unemployment Rate (Monthly, seasonally adjusted)	Oct. 2007 4.0% / 2,710,000 people	Sep. 2007 4.0% / 2,690,000 people
Consumer Price Index (Monthly)	Oct. 2007 100.5	Sep. 2007 100.3
Average Exchange Rate (Monthly)	Nov. 2007 1USD= 110.29JPY 1 EURO = 162.01JPY	Oct. 2007 1USD= 114.78JPY 1 EURO = 166.02JPY

Annualized GDP Changes by Quarters <2004 – 2007>　（Seasonally Adjusted

Glossary
Real GDP: The total market value of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year.
Consumer Price Index: The measure of change in consumer prices as determined by a monthly survey of the National Statistics Bureau. Among the Consumer Price Index components are the costs of housing, food, transportation, and electricity.

Unemployment Rate % and Unemployment Population

Consumer Price Index Monthly

Currency Exchange Rate (USD and EURO)

1-2. Number of Japanese Overseas Travelers in September 2007

Japan National Tourist Organization announced that the total number of Japanese overseas travelers in October 2007 was 1,474,000, a 1.9% decrease over October 2006. In total for January till October it fell by 1.2% from the previous year. Among major destinations, Hawaii (-8.6%) had a decrease into the 2nd consecutive month. Guam (+0.8%) showed a continued increase into its 3rd consecutive month. In Asia, Korea (+6.0%) showed an increase after 8 months of decline, Singapore (+9.0%), Hong Kong (+2.1), Macau (+41.0%) showed an increase from the previous year same period, while Taiwan (-3.7%) suffered from a decline from the previous year same period. Destinations in Oceania, Australia (-14.8%) had a decrease and New Zealand (-11.9%) too showed a return to its decreasing trend.
Narita International Airport reported that the number of Japanese departures in October 2007 was 811,064 down by 1.5% from the same month of the year before. Kansai International Airport recorded 303,310, (-6.6%), and Central Japan International Airport 171,000, (+4.3%).

Number of Japanese Overseas Travelers by Destinations August to October 2007

Country	Aug-07	Sep-07	Sep-06	Changes 07/06
All Japanese	1,687,050	1,550,601	1,570,567	98.7%
Korea	198,027	193,067	213,287	90.5%
China	355,514	329,574	329,796	99.9%
Taiwan	98,024	101,835	102,593	99.3%
Hong Kong	114,216	117,006	116,977	100.0%
Macau	26,007	29,501	20,151	146.4%
Thailand	123,185	*	111,480	*
Singapore	58,245	54,108	51,282	105.5%
Viet Nam	32,497	34,802	42,884	81.2%
Canada	38,440	46,601	49,408	94.3%
U.S. Mainland	133,360	*	139,161	*
Hawaii	142,988	114,252	117,411	97.3%
Guam	90,574	73,550	70,633	104.1%
Australia	54,741	46,700	52,097	89.6%
New Zealand	9,878	8,326	7,602	109.5%
North Mariana	20,691	12,794	22,550	56.7%

Country	Oct-07	Oct-06	Changes 07/06
All Japanese	1,474,000	1,502,108	98.1%
Korea	225,081	212,343	106.0%
China	*	350,293	*
Taiwan	99,826	103,630	96.3%
Hong Kong	102,287	100,137	102.1%
Macau	25,645	18,184	141.0%
Thailand	*	94,822	*
Singapore	51,785	47,530	109.0%
Viet Nam	*	33,978	*
Canada	*	45,694	*
U.S. Mainland	*	121,644	*
Hawaii	103,526	113,231	91.4%
Guam	72,276	71,678	100.8%
Australia	46,800	54,955	85.2%
New Zealand	7,912	8,976	88.1%
North Mariana	*	21,330	*

Changes % = vs. the same month of the year before 　　*Figures not available
Source: Japan Tourism Marketing Co, and JNT

Number of Japanese Overseas Travelers by Departure Airport (Sep. 2007）

	（2007）	（2006）	Changes (%)
Narita Airport (Tokyo)	811,064	823,190	98.5
Kansai International Airport (Osaka)	303,310	324,753	93.4
Central Japan International Airport (Nagoya)	171,000	163,965	104.3

1-3. Gross Sales of Major Companies (Outbound Travel Products)

Gross sales in outbound travel of the top 50 travel companies were approximately 234 billion JPY in October 2007. It has increased by 2.2% from the same month of the previous year. Gross sales of outbound package tours were 70.2 billion JPY in October 2007, increased by 1.9% from October 2006, while total number of tourists on package tours decreased by 1.8%. Per person sales in October 2007 were up by some 6,500 yen from the same months of 2006 respectively, largely due to recent depreciation of Japanese yen against major foreign currencies.

Chart 1: Major Wholesalers Sales(Oct. 2007) (million JPY）

	JTB	KNT	NTA
International	45,242	16,099	14,246
Domestic	79,379	29,037	28,394

	HEI	HIS	TOP
International	23,223	23,486	3,993
Domestic	14,092	1,052	10,747

KNT: Kinki Nippon Tourist, NTA: Nippon Travel Agency, HEI: Hankyu Express International,
TOP: Toptour Corporation (formerly Tokyu Tourist Corporation)

Chart 2: Gross Sales of the Top 50 Travel Companies　 (Oct. 2007) 　　(million JPY)

	（2007）	（2006）	（％）
Outbound	234,053	229,028	102.2
Inbound	9,126	6,128	148.9
Domestic	379,429	386,169	98.3
Total	622,607	621,324	100.2

Chart3: Gross Sales of Package Tours 　(Oct. 2007)  

	Sales (million JPY)			PAX
	（2007）	（2006）	（％）	（2007）	（2006）	(％）
Outbound	70,176	68,861	101.9	397,020	404,400	98.2
Inbound	362	256	140.5	21,830	16,707	130.7
Domestic	86,685	86,017	100.8	3,346,684	3,346,684	101.2

Chart4: Per Person Sales　 (Oct. 2007)                 (JPY)

2007	2006
176,758	170,279

Chart 5: Per Person Sale