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Business Traveller

Traveling Cheaply in Osaka, Japan; Benefits of Moving Businesses to Japan

Aired December 09, 2006 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

RICHARD QUEST, CNN BUSINESS TRAVELER ANCHOR (voice-over): It's BUSINESS TRAVELER's 50th show. For the past four years we have traveled the globe, investigating the stories and reporting the issues that concern you. We've been to every continent and major city, from Kazakstan to Paris, Argentina to Estonia. We've covered a lot of miles, but as you tell us, there's still a whole lot more to do. So, happy 50th. Sit back and enjoy the ride, this month, to Japan.
(on camera): Hello and welcome to CNN's BUSINESS TRAVELER. I'm Richard Quest, this month, reporting from Japan. And this is the famous Dorten Bori (ph) District, the hub of night life in Osaka. If there is one country that sends a shiver down the spine of the financial executives, it's the thought of sending business travelers to Japan.

The popular perception is costs go through the roof. Well, as we are going to prove on this month's show, sending your staff here needn't break the bank. In fact, you can be a BUSINESS TRAVELER in Japan on a budget.

(BEGIN VIDEO CLIP)

QUEST: (voice-over): Coming up on this months' show --

UNIDENTIFIED MALE: Twenty two thousand Yen per day.

QUEST (on camera): You're not serious.

(voice-over): -- Japan on a budget, and not a backpacker in sight. Keeping corporate expenses down, the rent incentive scheme to bring business to Osaka. And I try my hand at the ancient craft of making Sushi, and make a hash of it.

(END VIDEO CLIP)

QUEST: Hotel bills, taxes, entertaining, receipts, the bane of the travelers life, even more so in Japan, where you can't read the writing and the numbers seem frighteningly high. We're here to show you how you can, of course, do it far more reasonably. And my expert is Steve Crane. He's been bringing BUSINESS TRAVELERs to Japan for 15 years. He'll make sense of this lot.

(BEGIN VIDEOTAPE)

QUEST (voice-over): I think he'll have his work cut out. This his the Japan most of us imagine, A-list shops, with price tags and rent to match. I can't see many bargains here, but I can see plenty of cyclists on the pavement, wickedly dangerous.

(on camera): What about the perception that Japan is an expensive place to do business here, as a BUSINESS TRAVELER?

STEVE CRANE, JAPAN BUSINESS TRAVELER EXPERT: Well, that perception is definitely there, and I come across that, but I would argue that that perception is not exactly accurate. It doesn't have to be such an expensive place to do business at all.

QUEST: So how much should I allow myself as a per diem, traveling here? What are you going to give me?

CRANE: Well, to do it on a budget?

QUEST: On a budget. It's very crucial that we do it on a budget.

CRANE: OK, 22,000 Yen per day.

QUEST: Twenty two thousand?

CRANE: Yes.

QUEST: How convenient. That works out at just about 200 dollars a day, hand it over. Does this include my hotel?

CRANE: Oh yes, sure, of course.

QUEST: You're not serious??

CRANE: Totally serious. Shall we go?

QUEST: Ten, twenty, and I'm not sleeping on the street?

CRANE: You won't need to sleep on the street.

QUEST: For 22,000?

CRANE: You bet.

QUEST: Time to start some business now. I'll call us a taxi. I should be able to get one on the street.

CRANE: Richard, no, no, no. It's the subway for us. We're doing it on a budget, remember?

QUEST: The subway?

CRANE: Yes, the subway.

QUEST: I'll never be able to navigate that.

CRANE: You will, come on, I'll show you.

QUEST: Your --

CRANE: (INAUDIBLE). That's it. Let's go.

QUEST: I've lost all that.

(voice-over): But not for long. I've spotted something that's going to make life much easier, the English button.

(on camera): English?

CRANE: Correct.

QUEST: An all day cargo ticket?

CRANE: No, we don't need an all day cargo -- just get a ticket. That's fine.

(INAUDIBLE)

QUEST: There's my ticket. Remember, the machine says it will do it in English.

(voice-over): The trains are regular, and there's enough English to get me by. The truth is, it's not that daunting on the Japanese subway.

Back in the air, and it's time again to get down to business.

(on camera): All this saving of money has a purpose. It means I've now got cash to spare for when it really matters. For instance, entertaining at lunch. These are my guests. Hello, Richard Quest, nice to meet you. How nice to meet you. Shall we have lunch? I'm buying.

This is more than just a business lunch. These are the experts and I'm about to get a lesson on etiquette of entertaining in Japan. Would you agree with my premise that there is a difference between the way westerners view a business lunch and the way Japanese view a business lunch? Would you agree?

UNIDENTIFIED FEMALE: In Japan, a lunch is a way of negotiating, to understand the other party, to understand what their needs are and how they want to do business, understanding their culture. More emphasis is put on that, rather than the actual contract negotiations.

QUEST: What would you recommend -- I don't mean in terms of food -- I mean, what would you recommend being the rule of thumb, because people can be terrified when faced with Japanese food that they're not familiar with.

UNIDENTIFIED MALE: They should be very open-minded and if that means eating things that you don't like, then so be it. I mean, I think that's what sets up -- I mean, that sets successful business people from not successful business people, in a way. Successful business people can really eat anything, right?

QUEST (voice-over): Sooner or later, I had got to ask it, every westerners favorite, the chop sticks question.

UNIDENTIFIED MALE: There's nothing more endearing than when you come to Japan, when you try everything, you make a valid attempt at eating all of this. It certainly gains you respect in the eyes of your business partners, and that includes right down to the chop sticks.

QUEST: What will offend? What will really offend? How can I put my big foot in it, without necessarily even realizing it?

UNIDENTIFIED MALE: One is to give an ultimatum, particularly in this environment.

QUEST: Give me an example.

UNIDENTIFIED: If you can't do something about that price than I'm afraid we're not going to be able to do business with you. I mean, that's, sort of, the ultimate no-no. Any relationship you had built up to that point is probably washed.

QUEST: What's the one thing, physically, if I can -- that would just be --

UNIDENTIFIED MALE: I mean, many things physically that --

QUEST: Well, go on.

UNIDENTIFIED MALE: One, and I'm almost loathe to actually do it. May I do it. But I really don't -- but, if you -- if you did something, well, you want to check the watch. So maybe you do one of these things. And again, I'm really -- it's quite offensive. I shouldn't be doing it.

UNIDENTIFIED FEMALE: Doing this is no good because it's related to death.

QUEST (voice-over): Lunch set me back 4,000 Yen. When you're not entertaining, this is a much cheaper option for the mid-day snack.

(on camera): Noodles, rice.

(voice-over): Steve took to me to one of the many local noodle bars. You can pick up a delicious, freshly cooked and simple bowl of noodles for just a couple of dollars.

Let's take a look at how my day's spending has stacked up so far. The hotel, a business style hotel, was 12,000 Yen. Subways and the odd taxi about 500 Yen. My expensive business lunch, that was dear, it cost 4,000. My late afternoon noodles were almost nothing at all, a couple of hundred. My local telephone calls, and the call charges on my rented mobile, could be up to another 1,000 Yen. I have also allowed 1,000 Yen or so for incidentals. So my total is around 18,000 Yen, or 150 dollars. I've done it with cash to spare, and you know, I don't feel I've skimped on anything.

(on camera)So Steve was right. I was able to do Osaka on 200 dollars a day, including accommodations. However, if things had gone wrong, there was an alternative. It's called the Media Cafe. Come, I'll show you.

(voice-over): It's the place to stay that's not a hotel.

(INAUDIBLE)

(on camera): It's all in Japanese, but I think I can probably work this out.

(voice-over): A bed for the nights that's strictly the last resort for the weary BUSINESS TRAVELER.

(on camera): I can't move.

(voice-over): Cozy, isn't it? But it does come with all nod (INAUDIBLE).

(on camera): I've even managed to splash out and get a double room, ten hours, including computers and DVD player, for just 4,600 Yen. If everything had gone wrong, this would have been the perfect solution. Coming up after the break, how to keep your corporate expenses on budget in Osaka.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

QUEST: Welcome back to BUSINESS TRAVELER in Osaka. As we have now shown, it is possible to come to this city, sleep comfortably, and eat well, and do it all for less than 200 dollars a day, another myth, that Japan is expensive, suitably dispelled.

If you're coming to open a business, it's also possible to do that on a budget. Both the federal government and the city offer a range of incentives, some of which include giving you free office accommodation for up to six months. I discussed these issues with the mayor of Osaka.

(voice-over): Dr. Junichi Secki spent most of his professional life as a family doctor. And now, as the mayor of Osaka, he's responsible for checking the pulse of the entire city.

(on camera): The perception is that Japan is an extremely expensive place to do business. Companies are worried when they -- small, medium sized companies are worried when they come here. Is that true?

MAYOR JUNICHI SECKI, OSAKA (through translator): What Osaka, as a city, is aiming for is for lots of small to medium sized business to come here. This is a major target for us. At the same time, we are also targeting new companies that are seeking to set up their business in Osaka, companies that will start up a new business here, and set off from Osaka to go on to expand into the rest of Asia, especially China. We are hoping for such companies to come to Osaka.

QUEST: But you clearly have to -- you have to introduce incentive programs to attract companies, and that means cheaper rents, helping getting accommodation, helping dealing with famous Japanese bureaucracy.

SECKI: We're thinking of various solutions to such concerns. We offer different levels of financial incentives, of up to 300 million Yen.

QUEST: Thank you Mr. mayor.

(voice-over): I wanted to see how well the scheme worked in practice. So, I'm off to see Josh Flannery (ph), one such hopeful business man to benefit from the incentive program.

(on camera): How difficult was it setting up here? What help did you get from the authorities?

JOSH FLANNERY, BUSINESSMAN: I received a lot of help, the most important would have been the free rent, ten months free rent, shared between the federal government and the Osaka City Government, which really allowed us to put what we would have spent on rent into the other hidden costs.

QUEST: You had to take on a Japanese native speaker, almost as a (INAUDIBLE). You speak Japanese, why? Would you say that was important?

FLANNERY: I would say having a native Japanese on staff is vital. I did come full guns blazing, had in the back of my mind that I could speak Japanese. I had a few friends. I had even spent a few years here before. But really we found the difference in the initial reaction, that important point of first impression, when they're being approached by a Japanese native, in their own language. It's just -- many more doors open and much quicker.

QUEST (voice-over): Some good advice there. Let's hope his venture is successful.

(on camera): We're not the only ones who have been in Asia this month. The A-380 has begun its route proving flights, and has been doing a tour of major airports in the region. For the last time this year, let's countdown to the Super Jumbo.

The A-380 has been busy, visiting Singapore, Seoul, Tokyo, Hong Kong, Beijing, Guanju, and Shanghai. The plane then went around the world, crossing both the north and south pole. It's part of the route proving operations. Route proving is a key element of the certification process. It demonstrates that the A-380 can work with Airport infrastructure, from taxiing to docking, cleaning to refueling. Route proving also involves 150 flight hours of continuous, airline style flight operations. Airbus hopes the A-380 will get its certificate from the authorities by mid-December.

Coming up after the break, I learn how to make Sushi in a real Japanese restaurant.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

QUEST: My time in Osaka is at an end, and it's time to get myself up to Tokyo. If you're in Japan, there really is only one way to travel, the Shinkasa (ph), or bullet train. I'm looking forward to this. It really does look like an airplane without the wings. And the windows are bigger.

The first bullet train ran in 1964. Now, modern versions whisk you along at 300 kilometers an hour. This really is the best way to see the country. Just don't blink, or you'll miss it.

(on camera): We've made it to the capital. This is Tokyo Bay. And that is Burijji, known as the Rainbow Bridge. Time to answer your questions; Andy Mickeljohn has written with an interesting question about why airlines have different baggage allowances, the inconsistencies which annoy us when we're checking in for flights. A good question.

(voice-over): So, how could it be that a group of people standing in the check-in que could all get different baggage allowances? Well, it all depends where you're going and how you're getting there. If your journey involves travel to, from or through the United States or Canada, you'll be on the peace rate. That means you get to check in two bags of up to 32 kilos each.

If your flight doesn't go via North America, things aren't so generous. You're given a flat weight restriction for all your hold baggage. The major airlines BUSINESS TRAVELER contacted all had pretty similar allowances, based on your class of travel, 20 kilos in economy, 30 kilos for business, and 40 kilos for first. It seems to be the standard.

For the smart traveler, this is just the starting point. Being a member of a frequent flier program is the cheapest and easiest way to give your luggage allowance a boost. Typically one of the perks as you progress up the tiers is more weight allowed. For example, One World Quantus and Star Alliance's Singapore Crisp Flier will both give you at least 10 extra kilos, or one piece of luggage, as you hit the middle tiers.

(on camera): Five o'clock in the morning, and the only people who are awake in Tokyo are the BUSINESS TRAVELERs who can't sleep because they're jet lagged and the traders here at the Sukiji (ph) market. This is the largest fish market of its kind anywhere in the world. And the fish being sold here now will be on the tables across Tokyo over the next 24 hours. Visiting this market is the perfect place to begin my escape.

(voice-over): The fish started arriving from three in the morning. Then for three hours this is a constant bustle of activity, as buyers and sellers prepare for the auction of today's catch. There's fish everywhere. Nearly five million pounds of fish are sold here every morning. It's worth 23 million dollars. Inspecting the Tuna before the auction is essential. Not too much fat, the color has to be just right. It's only then that the buyer can know the fish is really fresh. You can look, but not touch. Nothing must be allowed to endanger these valuable fish.

I met Chef Ayoki. He's the owner of one of Tokyo's finest Sushi restaurants. It's in the Ginza District, and I'll be going there to get a guided tour.

(on camera): How much Tuna will he be looking for today?

(voice-over): The auction starts bang on time. Each auctioneer has his own, original style.

No wonder tourists get up early to see this. Most of the fish is being sold to wholesalers, who then sell it on to Tokyo's restaurants. Ten minutes later, and the Tuna has all been sold. And our fish was the finest in the market that morning. Even Tuna royalty still heads for the chopping board.

(on camera): This is no cheap piece of Tuna. It finally sold for three million Yen, about 30,000 dollars. It will be cut up, and probably about 75 percent of the fish can be used.

(voice-over): This fish has to be cut exactly in half, without spoiling the beauty of the meat. After all, it's that beauty which gave the fish its value, at nearly 30,000 dollars. I never thought it would take four people to cut a fish in half, with over a meter long blade.

Choosing the right fish for Sushi is one thing. Making the Sushi itself, well that's more of an art than a science.

Marks out of ten.

And that's the 50th edition of CNN's BUSINESS TRAVELER. I'm Richard Quest, this month reporting from Japan. Wherever your travels may take you, I hope it's tasty, and profitable. And I will see you next month.

END

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