Shin Nihonkai Ferry: Reviving Regional Japan Through Slow Travel by Sea

Last year was a record-breaking year for Japan’s tourism industry, with 37 million inbound tourists and recognition as one of the world’s top travel destinations. This momentum appears to be continuing into the first months of 2025. From your perspective, what makes Japan such an attractive destination for travelers?

Firstly, the upward trend in inbound tourism that began before the pandemic has not only recovered but continues to grow. While we have yet to conduct a detailed analysis, I believe the weakened JPY has been a significant factor in attracting more visitors.

Secondly, Japan’s reputation for safety and security plays a crucial role. With rising global tensions and conflicts in various regions, Japan remains relatively distant from these issues. Domestically, any security concerns are minor compared to those in many other countries.

Additionally, the Japanese government’s tourism promotion efforts have been highly effective in generating global interest. There has been particularly strong demand from travelers in the U.S. and Europe, further driving Japan’s appeal as a top destination.

You mentioned Japan’s high level of safety, and in terms of crime, the country is known for being exceptionally secure. For example, the Shinkansen is highly regarded as one of the safest rail networks in the world. Why is Japan’s transportation system so safe? What kind of mindset and systems have been put in place to maintain this level of safety for passengers using these networks?

I believe the foundation of Japan’s transportation safety lies in its culture of precision and accuracy. After World War II, Japan developed a strong manufacturing industry, reinforcing a national emphasis on quality and meticulousness. This commitment is reflected in the transportation sector, where maintaining schedules and punctuality is paramount. While service quality is important, Japanese customers have particularly high expectations for transportation—delays of even one minute can cause dissatisfaction, pushing companies to maintain exceptional reliability.

In addition, the Japanese government is focusing on promoting nationwide tourism to revitalize regional areas, extending beyond the "Golden Route" connecting Tokyo, Kyoto, and Osaka. This aligns with our mission, and we are particularly focused on connecting ports along the Sea of Japan. The Sea of Japan region is known for its stronger local characteristics compared to the Pacific side.

Our routes connect major markets, such as those between the Kansai area, including Maizuru and Tsuruga, and Hokkaido, as well as linking the Kanto area to Hokkaido via Niigata. Historically, our routes, which include the Seto Inland Sea route connecting Osaka and Kobe to Kyushu, followed by the Sea of Japan route, are a recreation of the Kitamae-bune. The Kitamae-bune served as a vital logistical network from the Edo to Meiji period. At that time, the Kansai region was the commercial hub of Japan, and marine products (such as various fish and seaweed) from Hokkaido were efficiently transported and traded throughout the country.

When establishing our routes, we kept the kitamaebune trade network in mind. In the past, regional exchange and distribution were more dynamic, but in recent decades, Japan’s economy has become centralized around major cities like Tokyo and Osaka. We believe it’s time to reverse this trend by strengthening regional connections and encouraging the movement of both people and goods across Japan.

Do you see sea travel as the primary means of connecting these regions, or do you believe other forms of transportation will play a larger role?

Unfortunately, times have changed, and while we have ports in Niigata, Akita, and Hokkaido, logistics have become more of a hub-and-spoke network, meaning there isn't much horizontal connectivity. However, short-distance routes are gradually gaining more usage. For example, among travelers, routes such as traveling from the Kanto area to Niigata, then via Tsuruga, enjoying sightseeing, and returning to the Kanto area, are becoming more commonly used.

The rise of low-cost air travel led many travelers to shift away from sea travel. However, with the growing emphasis on sustainable travel, more tourists are seeking ways to reduce their carbon footprint, leading to a renewed interest in ferries. Given this trend, what strategies and initiatives have you implemented to capture this emerging market?

I’m not sure how many of our customers prioritize carbon neutrality. Instead, I believe they are more interested in slow travel—taking more time to enjoy the journey itself.

In the early days of travel in Japan, the focus was entirely on the destination. People wanted to reach their endpoint as quickly as possible, with little regard for the travel experience itself. However, in recent years, there has been a shift in mindset. More travelers are paying attention to the journey, and the method of travel itself is gaining interest.

People now want to appreciate both the travel process and their time at the destination. This is particularly true for Western travelers, for whom valuing the experience of the journey is deeply embedded in their culture.

Before the COVID-19 pandemic, there was a significant influx of Chinese tourists to Japan, but recently that trend has been recovering. Additionally, there has been an increase in travelers from Europe, the U.S., and Southeast Asia. In particular, European and American travelers, who are traveling long distances to reach Japan, seem eager to make the most of their stay. Given the concept of "enjoying the journey itself" that you mentioned earlier, do you think travelers from Europe and the U.S. are generally receptive to traveling by ferry?

We are seeing a growing number of European visitors staying in Japan for extended periods, and many of them are choosing to travel by ferry to explore different regions of the country.

Within your group structure, you operate three different hotels across Japan. How do you create synergies between your hotels and your transportation business?

Our customers primarily travel for sightseeing purposes and can be divided into two types: those who travel with their own cars on the ferry and those who travel without a car. In both cases, we offer travel plans that take them around various destinations. On our website and onboard the ferry, we provide brochures with information on various destinations, and currently, we are focusing particularly on small-group travel.

We propose high-value trips that combine stays at luxury hotels, including those operated by us, and this initiative has been very popular.

For example, we have organized exclusive small-group tours that visit luxury hotels in Hokkaido, offering premium experiences for affluent customers, typically in groups of about a dozen people. These tours, priced between 500,000 to 1 million yen, allow customers to enjoy a luxurious journey.

It seems that you are focusing on tourists with higher purchasing power. Is this a strategy you intend to expand further? What key demographics are you targeting with your services?

High volume remains incredibly important to us, so we are not disregarding budget-conscious travelers. However, we are not looking to enter the market for low-cost tours. Our goal is to maintain a certain level of pricing while attracting a sufficient volume of customers.

The travel experience itself is a core part of your service, with offerings such as outdoor baths, local cuisine, and karaoke as unique features onboard. Could you share more about the experiences customers can enjoy while traveling on your vessels?

We have a range of facilities designed to meet customer needs, from high-end accommodations to more economical rooms, all of which are secure and private. As you mentioned, we offer outdoor baths, but that's not all there is to experience on board. One key focus is our seasonal cuisine, with menus that highlight locally sourced ingredients and dishes that reflect the flavors of each season.

In addition, to ensure that our customers enjoy their journey without getting bored, we offer a variety of entertainment and cultural experience programs onboard. For example, on the Maizuru route, we have offered experiences such as traditional Japanese paper crafts, and on the Niigata route, we have held workshops for making medals and accessories.

Nature is also an essential part of our travel experience—something that resonates with travelers worldwide. From our vessels, passengers can enjoy breathtaking sunrises and sunsets over the Sea of Japan, a truly special experience. The sea is vast and quiet, with few other vessels in sight, making for a peaceful and immersive journey. If you’re lucky, you might even spot dolphins along the way.

Another unique aspect of our service is the opportunity to explore Japan’s regional ports. Unlike the major metropolitan areas, these locations have distinct customs, cultures, and histories. When passengers arrive at each port, they can fully immerse themselves in the local atmosphere, creating a sense of discovery that is highly valued by our travelers.

Your company has collaborated on the technical side with firms like Mitsubishi and on the tourism side with partners such as Marriott Hotels. Looking ahead, are you seeking new partnerships, particularly with international companies?

We don’t have any specific ideas or options at this moment, but at the shipbuilding level, we have partnerships in place to enhance vessel performance and improve energy efficiency. Whether a potential partner is international or not isn’t the key factor—what matters most is that their vision aligns with ours.

In addition to serving the domestic market, your company also operates international ferry routes connecting Japan to Korea. How do you see these international routes contributing to local revitalization? Do you have plans to expand these services in the future?

Our Korean route was established in 1970, giving us a long history in this industry. We are seeing increasing exchanges along this route, and looking ahead, we aim to strengthen and further develop it. However, at this time, we do not have plans to expand to additional international routes.

If we were to return for this interview on your last day as president, what goals or dreams would you hope to have achieved by that time?

I have to continue in this role until we have a strong successor in place, so it’s difficult for me to picture the day I step down. Of course, I would love to retire early, but that isn’t necessarily an option right now. I know I can’t lead forever, so for now, my focus is simply on doing my best until that day comes.

For more information, please visit their website at: https://www.snf.jp/english/

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