South Australian Aboriginal Tours: PESTEL Analysis for Japan Market

This report conducts a PESTEL analysis of Japan's business environment to evaluate the potential for expanding South Australian Aboriginal cultural tours. The analysis examines the political, economic, social, technological, environmental, and legal factors influencing the tourism industry in Japan. The political environment is assessed for stability and international relations, highlighting Japan's strong economic ties and political confidence. The economic analysis focuses on Japan's GDP, inflation, and economic growth, demonstrating favorable conditions for business opportunities. Social factors, including social equality and decreasing unemployment, are also considered. The report further explores technological advancements, environmental policies, and legal frameworks, providing a comprehensive overview of the market. The conclusion suggests that Japan presents a significant opportunity for Aboriginal cultural tourism expansion due to its stable political system, economic strength, and social factors.

Running head: ABORIGINAL CULTURAL TOURS IN JAPAN
Aboriginal Cultural Tours in Japan
Name of the Student:
Name of the University:
Author Note:

1ABORIGINAL CULTURAL TOURS IN JAPAN
EXECUTIVE SUMMARY
The primary objective of the particular report is to study the structure of Japan to estimate the
strengths and opportunities the South Australian aboriginal tourism department has to
promote its product and services internationally. In this connection, the report critically
studies the PESTEL factors of Japan that helps the report to understand the potentialities of
business in Japan. The report examines each element of the PESTEL analysis in detail and
therefore estimates whether the same is a strength and opportunity for the Australian
department or not.

2ABORIGINAL CULTURAL TOURS IN JAPAN
Table of Contents
Introduction................................................................................................................................3
PESTEL analysis - Japan’s business environment.....................................................................3
Political..................................................................................................................................4
Economic................................................................................................................................6
Social......................................................................................................................................8
Technological.........................................................................................................................9
Environmental......................................................................................................................11
Legal.....................................................................................................................................13
Recommendations....................................................................................................................16
Conclusion................................................................................................................................16
References................................................................................................................................17

3ABORIGINAL CULTURAL TOURS IN JAPAN
Introduction
As opined by Johnston (2014), aboriginal cultural tours are the ideology that defines
tourism activities in context with the indigenous people. The concept of the aboriginal tour
either involves direct involvement of the indigenous people or some entities control them and
also in the connection of serving the culture of those people to attract the essence of others.
The tourism concept of aboriginal culture defines those business part of tourism where the
people of First Nations control the same, Metis as well as the Inuit people who adhere to the
experience of aboriginal culture in them. At the present date, the travellers seem to be
attracted to several global places as they get an opportunity to interact with different people
and learn their way of lifestyle and culture. In this connection, aboriginal cultural tours
originated in South Australia Tourism Department has grown its wings at a higher pace in
Australia. However, the market opportunities for the same regarding expansion and
promotion of its products and services in Japan has a great future benefit, since Japan is open
to the tourism regarding the indigenous people and encourages the same in their part of the
business environment (Du Cros & McKercher, 2014). The same that would help the
marketing manager is analysed with the limitations of the study of PESTEL analysis tool.
PESTEL analysis - Japan’s business environment
As stated by Bocken et al., (2013), PESTEL analysis is a strategic business tool
analysis that measures the macro environmental factors influencing the potentialities of
opportunities and strengths in any business environment and its working plans and processes.
In this connection, the examination of the same regarding the international promotion of
products and services of South Australian Aboriginal Tourism in the business environment
Japan is determined as below.

4ABORIGINAL CULTURAL TOURS IN JAPAN
Political
As opined by Hook & Weiner (2013), the political environment of Japan plays a
significant role in the international community role. The local and internal political
environment is considered to be stable along with a strong relationship with its
neighbourhood countries concerning the business environment. In this regard, it was analysed
that the political stability in Japan is at an effective and efficient level. Although the emperor
is termed as the head of the nation, the power still lies in the hands of the supremacy of the
constitutional departments. The constitution of Japan's parliament is fairly elected through the
means of the general election, and the head of the parliament fairly elects the prime minister
of the country. Japan is considered to have a secure business connection as well as strong
corporate and trading relationships with small and big countries all across the globe.
Researches also show that Japan has a recognisable economic power and is also a significant
member of G8 as well as Asia Pacific Economic Co-operation companies (Ravenhill, 2017).
Japan is also termed to have a sustainable relationship with the ASEAN brand. However, the
same has few disputes with the nations of Taiwan and China, but this does not bring a
significant change in its political stability. Studies show that the political confidence of Japan
has increased at an effective range through 2007-2017. The same which was had gone down
to the rank below 1 in 2007 has raised to almost 1.12 grade in 2017. The same is proved with
the help of the given graph.

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Figure 1: Showing political stability of Japan
(Source: Based on Morley, 2015)
Researches also examined that the ideology of political rights provided to the whole
country has remained stable since last ten years from 2009 to 2019. The statistical data shows
that since these previous ten years the rights to political undergoing has continued to a steady
rate of ranking 1. The help of the graph determines the same.

6ABORIGINAL CULTURAL TOURS IN JAPAN
Figure 2: Showing Political Rights stability of Japan
(Source: Based on Pekkanen et al., 2018)
As examined by the above pieces of illustrations, the report tends to analyse that
Japan in the current period is a considerable country to expand the business proposition of
aboriginal cultural tours. This is because of the stability of its political system and less
corruption. This states of being a sufficient strength for the South Australian Tourism
Department to promote their business in Japan internationally.
Economic
As opined by Vernon (2017), Japan holds a strong financial base, standing at the
position of the third largest industrial country all over the globe. The GDP of Japan was
examined at a recognisable rate of $5.073 trillion in the fiscal year of 2009, and the annual
growth rate percentage of GDP is considered to be at 0.4%. The per capita GDP scale of
Japan is examined to be at $39,573, and the inflation rate is at the lowest of (-1.3%). This
illustration states that there is an excellent scope of business opportunities in Japan because of

7ABORIGINAL CULTURAL TOURS IN JAPAN
the effectiveness in its scale of economies and rate of trades which can prove beneficial to
other international countries. Researches show that the product standard that is sold in Japan
are of premium quality and also claims that no other country can even reach half of the
quality products Japan offers to the business market. Japan has considerably developed its
paradigm in the ideology of technical education, and therefore the focus on the education
level of Japan remains stronger. Altogether, the economic strength of Japan lies in the
ideology of higher range of living, better development of the human index, capable and
talented workforce, low level of corruption and homicide rate as well as an increase in the
price of urbanisation. Statistical data regarding Japan represents that the inflation rate of
Japan remains considerably low as compared to other countries (Sugimoto, 2014). The same
was recognised to be at a small percentage of 0.5 in 2017 till present.
Figure 3: Showing inflation rate in Japan
(Source: Based on Yoon, Kim & Lee, 2014)
As examined by the above diagram, it is clear that the inflation rate in Japan remains
at a lower level as compared to other international countries. However, the inflation rate had

8ABORIGINAL CULTURAL TOURS IN JAPAN
increased in 2014, but in the present scenario there is an excellent scope of opportunity for
the Australian aboriginal tourism department to invest its business promotion in Japan. It can
also be proved by the evidence that the economic growth in the connection of Japan has
significantly grown since 2014. The economic growth which was a mere 0.3% in 2014 rose
to a rough of 1.7% in 2017 till date.
Figure 4: Showing economic growth of Japan
(Source: Based on Maddison, 2013)
Social
As opined by Franzen & Vogl (2013), Japan ranks as the second largest country in the
social considerations and enhancing the conditions of the societal factors and determinants.
The strength of the stability of social factors lies in the development of its society as a whole
rather than just an individual consumer. Japan thoroughly adheres to prove its efficiency
towards social equality and committing to provide a decisive role in the activities of
demography that allows every single citizen of Japan to enjoy equal rights of participation.
Japan as a country is termed as a champion country of cosmopolitanism that fosters superior

9ABORIGINAL CULTURAL TOURS IN JAPAN
quality of life and equity to all its citizens (Hanquinet & Savage, 2013). This significant
improvements in the social factors have led to a decrease in the unemployment rate in Japan
which was at a high price since 2009. Statistical data shows that the rate of unemployment
which was at above 5% in 2009 has been recorded to decrease to around 2.4% in 2018, which
is more than 50% decrease on average.
Figure 5: Showing the decrease in the unemployment rate in Japan
(Source: Based on Kondo, 2015)
As illustrated from the above graph, it can be stated that the social factors turn out to
be a great context of strength and opportunity for the aboriginal tourism of Australia to
promote its products and services at an international basis in Japan.
Technological
As opined by Mulla (2013), with the growing time, the advancements in the
technology system of Japan has revolutionised at a variable rate. At present, an approximate
of 27.7 million people in Japan are known to use the broadband lines for connecting the

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internet and using the advantages of online communication for both commercial and personal
purposes. 78.2 % of people in Japan are known to use the wireless connections of technology
(Aldissi, 2013). The people in Japan enjoy the facilities for booking a travel ticket and buy
their desired products through the help of online technology. The individuals can also
leverage them to services at their doorstep with the help of booking the same through the
means of online technologies. The concerned country has been recorded to bring remarkable
changes and progress in the automation of several factors and processes in different business
areas of offices, hospitals, airports as well as factories. This provides the ease in work to the
employees and keeps better records of the events and transactions taking place in any
business entity. Not just this, Japan is well known for its robotic technologies that are found
in different industry and manufacturing units in Japan. The shreds of evidence for the
improvement in the manufacturing and industry units in Japan is shown below.
Figure 6: Showing improvement in the share of manufacturing units in Japan
(Source: Based on Otsuka, Goto & Sueyoshi, 2014)

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Figure 7: Showing share of improvement in industrial units in Japan
(Source: Based on Tanikawa et al., 2015)
As illustrated in the above diagrams, the study tends to state that both the share of
manufacturing and industry has increased at a constant rate in the past years. This proves that
the same is expected to grow at an effective rate in the upcoming years too and will prove to
be an excellent opportunity for the aboriginal tourism of Australia to promote its business in
Japan.
Environmental
As stated by Guha & Alier (2013), Japan compromises of more than three thousand
islands and the major of those are mountains and forest areas. The country was considered as
one of the most humid ones with a broader range of latitude and frequent climatic changes.
The highest number of earthquakes recorded in a year in Japan was 1500 (Satake, 2015).
However, with the difference in the environmental policies and orders, the balance between
the economic development of the country and the liability towards environmental condition is
maintained at an adequate level. Studies prove that the emission of the harmful CO2 gases