A very Happy New Year to you all! My name is Takahiko Ohata, the Chairman of OTOA. Thank you all for taking time to join us for our New Year Party today. We are delighted to welcome business partners from various Embassies, the Japan Tourism Agency, JATA, ANTA & all sectors of our industry.

First, I’d like to note that in 1974, 10 years after overseas tourism from Japan was liberalized, the predecessor of our current organisation, the Overseas Tour Operators Association, was established as a voluntary body. And this year, on August 20, we’ll celebrate the 35th anniversary of our incorporation as an Association. To reach this point, our predecessors worked tirelessly to develop OTOA from a voluntary body into an incorporated Association, reacting to changes in the Travel Agency Law with initiatives such as the creation of our "Basic Contract for Overseas Ground Arrangements," re-examining insurance applicable to overseas transportation, reviewing accident countermeasures, and as a direct result introducing OTOA insurance. These achievements are the result of decades of dedication and a testament to the passion of those who came before us. With that spirit of our predecessors in our hearts, we have channeled the principle of "learning from the old to understand the new" to revamp the Association’s old committee system, bringing in young members to bolster the activities of the reimagined "Research and Investigation Committee," "Safety Measures Committee," and "Inbound Committee." We hope all member companies will actively participate as we seek to adapt to the changing business environment in which we now all operate.

Looking back at 2025, we finally saw signs of recovery in travel demand, notably in outbound, where traveler numbers increased every month compared to 2024. Unfortunately, we remain 20% below 2019 levels.

Against this backdrop, the Japan Tourism Agency has reiterated that to realise their stated goal of making Japan a Tourism-oriented Nation, it is vital to expand two-way exchange between inbound travelers to Japan and outbound travelers from Japan. And that not only from the perspective of tourism policy but also from the viewpoint of Japan's ongoing globalization efforts, it is vital to cultivate international awareness and promote mutual understanding among the country’s youth, who will be responsible to maintain these in the future. To this end, the Tourism Agency is implementing initiatives to activate youth outbound travel, such as overseas educational trips. As part of these efforts, on July 1 last year, the position of Travel Promotion Director was revived, with Director Negoro taking up the post. This marks the revival of the position for the first time since 2023. The Travel Promotion Director will strongly promote not only domestic travel activation and outbound demand stimulation, but also emphasise the development of human resources for the industry, which have been in chronic shortage. The Travel Promotion Director position was first established in 2018 by then Commissioner Tabata, initially focusing on outbound, youth and domestic travel promotion, as well as vacation reform. During the COVID-19 pandemic, it mainly served as the department leading initiatives like "Go To Travel" and "National Travel Support”, but in 2023, it was effectively absorbed into the Tourism Industry Division. I believe that stimulating outbound demand is essential to the generation of synergies with inbound travel, and that in addition to this need for stimulation, the chronic shortage of personnel in our industry is another serious challenge we must address. To realise and maintain a robust tourism sector, it is vital to hone our ability to secure and develop human resources. All Association Members have high expectations of Director Negoro as he tackles these challenges.

Moving to the Inbound Sector, overtourism, hotel shortages, and labour shortages in the accommodation industry have become serious issues. And, there were yet more incidents of foreign visitors violating japanese manners due to cultural differences. Inbound numbers can fluctuate significantly due to diplomatic relations and other external factors, so I call for continued promotion in the Sector, and avoidance of falling into the trap over over-optimism. We in the travel industry recognize that our business is in reality a combination of international cooperation and diplomacy. I have always said that inbound and outbound travel should ideally maintain a careful balance, like two wheels on a bicycle, and believe it vital to promote bilateral cultural exchange in both directions to enhance cross-cultural understanding between countries. Each traveler should value interaction with local people, gain deeper insights, and based on this experience, gain respect for and understanding of the countries they visit.

2026 marks exactly 100 years since the first year of the Showa era (1926). The Showa era was a time of unprecedented upheaval and transformation, hardship and reconstruction. After the war, Japan achieved remarkable reconstruction and economic growth, developing into one of the world's leading economic powers and realizing "prosperity." Through advances in science and technology, creation of new products, infrastructure development, and implementation of various policies, the living standards of citizens improved dramatically. Many people excelled in a variety of fields including culture, arts, and sports, with numerous achievements on the world stage. These achievements represent the crystallization of the wisdom and efforts of those who lived strongly through the Showa era. So, we who live in the Reiwa era must stand on the foundation of "prosperity" built by our Showa predecessors and, while learning from their wisdom and efforts, search for new positions and values for Japan in the great flow of history.

In closing, allow me to underscore that, this year, our members’ greatest wish is for a revival of Overseas travel. Grateful as always for your cooperation, and focusing on a spirit of “collaboration”, we look forward to working with everyone here to achieve significant growth & in 2026. I wish you all a very successful year!

Takahiko Ohata, Chairman

N.B. This is intended as a translation, conveying the spirit of the address, rather than a transliteration. Thank you for your understanding.