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News Release

The New Lifestyle Trend Led by the Dankai Baby-Boomers:
Promoting Private-Sector Business Development of "Dual Residence"
- JRI to implement Ministry of Land, Infrastructure and Transport "Surveys and Studies on the Promotion of 'Dual Residence' Led by Private Enterprise" -¹

July 4, 2008

The Japan Research Institute, Limited (President: Yasuyuki Kimoto; Headquarters: Chiyoda-ku, Tokyo; "JRI") has been commissioned by the Ministry of Land, Infrastructure and Transport (MLIT) to conduct this fiscal year's "Studies and Surveys for the Establishment of an Integrated Information Platform to Support Dual Residence", and, with the support of MLIT, will be establishing a public-private consortium, to be known as the "Council for the Promotion of Dual Residence" (hereafter "the Council"), whose mission will be to realize specific business opportunities generated by the "dual residence" lifestyle that has become popular chiefly with the dankai baby-boomer generation in recent years and to implement model projects geared to future business development.

The Council will work with private enterprises and local governments with an interest in "dual residence" around the country², and, under the leadership of MLIT, JRI will support the construction of business models and the commercial development of related services through collaboration between public and private sector organizations, and will support companies and local governments participating in the Council in the establishment of local strategies that harness local resources and the commercialization of related services.

1. Background — The Growing Popularity of the New "Dual Residence" Lifestyle

In recent years, central and local government in Japan have been pursuing initiatives aimed at encouraging the dankai baby-boomer generation to relocate to or live in the country. If relocation and permanent residence are included, MILT estimates that, in 5 years' time, some 4 million households, or approximately 9% of all households in Japan, will be "dual residents".

For dual residence to be possible, Japan must establish a new service infrastructure made up not only of services that support conventional tourism, but also related services to support "living" (in the form of weekend stays, seasonal migration, etc.), as well as concierge-type services to aggregate, coordinate and publicize these services. These are not conventional, standardized city-driven services but rural area-driven services that can be tailored to customer needs and are closely linked to the local community.

MLIT estimates that, in 5 years' time, this dual residence-related market will be worth around ¥8 trillion, but for communities that are in decline due to population shrinkage, reduced public works expenditure, the transfer of manufacturing production to overseas bases, etc., the promotion of dual residence, which provides the catalyst for the development of many different service industries can truly be described as the key to revival and regeneration.

2. Purpose — The Identification of New Business Opportunities and the Construction and Practical Application of Business Models

Over the past few years, JRI has been involved in a wide range of dual residence-related projects³, and has accumulated a body of "wisdom" drawn from central and local governments and of private enterprises pursuing specific measures relating to the promotion of dual residence, relocation /permanent immigration and community activities, the development of tourism, employment and purpose-in-life measures, impact assessment, etc.

The Council's membership will include local governments and enterprises aiming to implement new policies and projects. Through the establishment of a shared awareness of the issues at stake and the exchange of information with model areas around Japan, the Council will seek solutions to common problems that are difficult for a single region to resolve alone, and promote initiatives aimed at their realization.

Specifically, together with the participating local governments and enterprises, the Council will implement model projects relating to the various products and services that make up the service infrastructure intended to support dual residence (validation trials), construct business models in which the implementing organization may even be a public-private consortium and, by sharing and networking the results, will aim to promote the establishment of an infrastructure that will allow these projects to be applied over a wider area, and will actively seek to promote the local commercial application of these models.

3. The 3 Activities of the Council

(1) Seminars and Symposiums

In addition to discussions by its member local governments and enterprises, the Council will organize seminars and symposiums with speakers drawn from among experts currently active in their field.

To mark its inauguration, the Council will host a seminar on the dual residence-related market, under the title "The New Business Opportunities Presented by Dual Residence", in which MLIT officials responsible for the Council will also be invited to participate. The program of the seminar is as follows.

Date and time: Friday, July 25, 2008; 1:30-3:00 p.m.
Place: Offices of The Japan Research Institute, Limited (Ichiban-cho, Tokyo) Content:
Part 1
1. Opening Address; Introduction to MLIT'spolicy
Jiro Ishiwada, Regional Development Policy Department,
MLIT National and Regional Planning Bureau
2. Establishment of an Integrated Information Platform to Support Dual Residence, etc.
(1) Outline of Model Projects
Katsuhiko Yano, Senior Consultant
The Japan Research Institute, Limited Research Business Headquarters
(2) Outline of Portal Site
Takushi Kishida, Executive Senior Consultant
The Japan Research Institute, Limited Research Business Headquarters
Part 2
1. The Prospects for Dual Residence-Related Markets
Katsuhiko Yano, Senior Consultant
The Japan Research Institute, Limited Research Business Headquarters
2.Development of Businesses in the Dual Residence-Related Markets
Seiichi Yamamoto, Executive Senior Consultant
The Japan Research Institute, Limited Research Business Headquarters
3. Questions

*To apply or to request more information, please contact the "Inquiries" address below. (Participation is free of charge.)

(2) Implementation of Model Projects

To aid in the realization of business opportunities relating to dual residence, model projects will be implemented in 4 regions.
(Please note that the content described below is the expected content at the time of writing and is subject to change.)

(i) Hokkaido Region Project implementers: Toptour Corporation, House Mate Co., Ltd., etc. Project area:
municipalities in Hokkaido (members of the Sunde Mitai Hokkaido Promotion Council) Project content: Information on life in Hokkaido and lifestyle experience programs will be offered to those staying in the region for an extended period. Information on real estate (rental accommodation) in each locality will also be made available.

(ii) Aizu area of Fukushima Prefecture
Project implementers: Gourmet Navigator Inc., All Japan Chefs Association Fukushima Prefecture Headquarters, etc. Project area: the municipalities of Aizu-Wakamatsu-shi, Kitakata-shi and Aizu-Bange-machi Project content: City dwellers spending working holidays on local farms, etc. will be offered information on local restaurants that will prepare vegetables they have helped to harvest, together with information on restaurants in the area where they are staying.

(iii) Yamanashi Prefecture
Project implementers: Yamanashi Prefectural Government, etc.
Project area: municipalities in Yamanashi Prefecture
Project content: The transportation costs, etc. of dual residents who move frequently between two areas will be subsidized. Lifetime learning and health promotion programs will be made available to dual residents locally. Information on unoccupied houses in the area will be made available to those who are considering taking up dual residence in the future.

(iv) Tateshina area of Nagano Prefecture
Project implementers: Tokyu Relocation, etc.
Project area: municipality of Chino-shi, Nagano Prefecture
Project content: Second-home condominiums will be leased during periods when they are not occupied by owners, and rented out to people who need easy access to a secondary residence, for long-stay use. Other programs offered will include invitations to long-stay residents to participate in community activities.

(3) Establishment and Operation of the Portal Site "The Dual Residents' Club— for the Masters of Romantic Living", (provisional name)

As a means of distributing information on dual residence and of providing a Web-based community forum for those with an interest in dual residence, the Council plans to set up a portal site with the provisional name of "The Dual Residents' Club— for the Masters of Romantic Living", by early August.

The portal site will carry detailed descriptions of the content of model projects. The latest industry and administrative news and advanced case studies will be circulated via an e-mail magazine.

*1. "Dual residence" is the practice whereby residents of urban areas, as a means of achieving greater lifestyle variety, for their own needs or those of their families, make regular and repeated medium-to-long term visits (of 1-3 months at a time) to the same farming, mountain or fishing village, etc., thereby maintaining a degree of connection with the local community and establishing a second home base in addition to their city dwelling.
*2.Council members will include Hokkaido Prefectural Government, House Mate Co., Ltd. Toptour Corporation, Fukuoka Prefectural Government, Gourmet Navigator Inc., Yamanashi Prefectural Government East Japan Railway Company (JR East) Hachioji Branch, Central Nippon Expressway Company Limited Hachioji Branch, Nagano Prefectural Government, and Tokyu Relocation.
*3.Major projects undertaken to date: Studies and Research Concerning an Integrated Information Platform to Support Dual Residence (MLIT, 2007), Establishment of Systems for the Measurement of Dual Residence (MLIT, 2007), Survey on Promoting Relocation and Exchange Between Urban and Rural Areas (Ministry of Internal Affairs and Communications (MIC), 2007), Study Group for the Attraction of New Residents and Promotion of Relocation to Rural Areas((MLIT, 2006), Survey on Promoting Relocation and Attracting Human Resources from Urban to Rural Areas (MIC, 2006), Research Relating to the Establishment of Reception Systems for the Promotion of Relocation to the "Northern Land" [Hokkaido] (Hokkaido Prefectural Government, 2006), Implementation of Promotional Campaign for Relocation to the "Northern Land" [Hokkaido], in Metropolitan Areas (Hokkaido Prefectural Government, 2006), etc.

For more information on the content of this report, please contact Katsuhiko Yano, the Japan Research Institute, Limited.

Tel: 03-3288-4070
E-mail:yano.katsuhiko@jri.co.jp

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