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 November 2007

Japan National Tourist Organization announced that the total number of Japanese overseas travelers in November 2007 was 1,423,000, a 6.1% decrease over November 2006. In total for January till November numbers fell by 1.4% from the previous year.
Among major destinations, excluding Macao and Singapore, all destinations experienced a decrease in Japanese travelers. Hawaii (-6.6%) had a decrease into the 3rd consecutive month. Guam (-2.2%) showed a decrease after 4 months of continued increase. In Asia, Macao (+31.6%) and Singapore (+3.3%) showed a 3rd consecutive increase from the same period in the previous year. On the other hand, China (-3.5%), Korea (-4.7%), Hong Kong (-3.1%), Taiwan (-5.9%) showed a decline from the previous year same period. Destinations in Oceania, Australia (-15.5%) had a decrease and New Zealand (-9.4%) too showed a decreasing trend.
Narita International Airport reported that the number of Japanese departures in November 2007 was 783,539 down by 5.2% from the same month of the year before. Kansai International Airport recorded 298,390, (-7.5%), and Central Japan International Airport 165,400, (-2.0%).

Number of Japanese Overseas Travelers by Destinations August to October 2007

Country	Sep-07	Oct-07	Oct-06	Changes 07/06
All Japanese	1,550,601	1,474,000	1,502,108	98.1%
Korea	193,067	225,081	212,343	106.0%
China	329,574	352,084	350,293	100.5%
Taiwan	101,835	99,826	103,630	96.3%
Hong Kong	117,006	102,287	100,137	102.1%
Macau	29,501	25,645	18,184	141.0%
Thailand	123,506	*	94,822	*
Singapore	54,108	51,785	47,530	109.0%
Viet Nam	34,802	35,304	33,978	103.9%
Canada	46,601	38,252	45,694	83.7%
U.S. Mainland	140,473	*	121,644	*
Hawaii	114,252	103,526	113,231	91.4%
Guam	73,550	72,276	71,678	100.8%
Australia	46,442	46,546	54,955	84.7%
New Zealand	8,326	7,912	8,976	88.1%
North Mariana	12,794	12,513	21,330	58.7%

Country	Nov-07	Nov-06	Changes 07/06
All Japanese	1,423,000	1,516,066	93.9%
Korea	203,273	213,244	95.3%
China	339,359	351,681	96.5%
Taiwan	107,985	114,743	94.1%
Hong Kong	120,581	124,450	96.9%
Macau	33,154	25,187	131.6%
Thailand	*	114,071	*
Singapore	53,734	52,009	103.3%
Viet Nam	33,415	36,027	92.7%
Canada	*	19,632	*
U.S. Mainland	*	105,795	*
Hawaii	103,694	111,015	93.4%
Guam	76,311	78,031	97.8%
Australia	49,900	59,051	84.5%
New Zealand	15,096	16,654	90.6%
North Mariana	13,282	16,900	78.6%

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)	783,539	826,157	94.8
Kansai International Airport (Osaka)	298,390	322,699	92.5
Central Japan International Airport (Nagoya)	165,400	168,834	98.0

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

Gross sales in outbound travel of the top 50 travel companies were approximately 225 billion JPY in November 2007. It has increased by 1.6% from the same month of the previous year. Gross sales of outbound package tours were 59.7 billion JPY in November 2007, decreased by 0.6% from November 2006, while total number of tourists on package tours decreased by 5.2%. Per person sales in November 2007 were up by some 7,000 yen from the same months of 2006 respectively, largely due to recent depreciation of Japanese yen against major foreign currencies and increase in costs for land operators.

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

	JTB	KNT	NTA
International	42,686	16,146	13,604
Domestic	76,141	27,834	28,262

	HEI	HIS	TOP
International	20,920	21,627	4,864
Domestic	14,030	977	10,910

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 (Nov. 2007)(million JPY)

	（2007）	（2006）	（％）
Outbound	224,541	220,979	101.6
Inbound	7,637	5,441	140.4
Domestic	369,642	358,872	103.0
Total	601,820	585,292	102.8

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

	Sales (million JPY)			PAX
	2007	2006	（％）	2007	2006	（％）
Outbound	59,715	60,091	99.4	375,645	396,243	94.8
Inbound	277	239	115.9	16,924	11,445	147.9
Domestic	90,166	87,200	103.4	3,846,865	3,740,271	102.3

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

2007	2006
158,966	151,651

Chart 5: Per Person Sale