MRO & Aviation Industry Cluster

Okinawa Pref. Government

OKINAWA

Okinawa Pref. Government

2

Okinawa. Trends in number of tourists and tourism revenues

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

200

400

600

800

1,000

1,200

S47

年度

('72)

S49

('74)

S51

('76)

S53

('78)

S55

('80)

S57

('82)

S59

('84)

S61

('86)

S63

('88)

H2

('90)

H4

('92)

H6

('94)

H8

('96)

H10

('98)

H12

('00)

H14

('02)

H16

('04)

H18

('06)

H20

('08)

H22

('10)

H24

('12)

H26

('14)

H28

('16)

国内客

外国客

観光収入

Num

ber

of

tourist

s to

Okin

aw

a

(Ten t

housand p

eople

) Tourism

incom

e

(Billio

n y

en)

Domestic passenger

International passenger

Tourism revenues

S47

(‘72)

Okinawa Pref. Government

3

Okinawa. International Passenger Flights at Naha Airport

*Concept of completion

Expansion of network after the opening of the second runway

*End of the fiscal year, for 2009-2017

Unit: Number of scheduled international passenger flights in service

Okinawa Pref. Government

4

Okinawa. Economic Outline

Okinawa’s economy is booming

Employment situation in Okinawa has improved

Okinawa’s economy is growing steadily

Bank of Japan’s Tankan Survey Diffusion Index (D.I.)

GDP in Okinawa and Per Capita income

Change in total unemployment rate

In the 4% range for the first time

in 23 years!

(% points) (Unit:100 million yen) (Unit:10,000 yen) (%)

4

Okinawa Pref. Government

5

The center of a vast market with a

population of 2 billion people

The range within 4 hours of Okinawa

CHINA

ASEAN

JAPAN

4 hours

Okinawa Prefecture Asian Economic Strategy Initiative

Okinawa aims to be a business center connecting Asia and Japan. That meets the needs of a sophisticated and diversified Asia.

Okinawa Pref. Government

6

Ⅰ

Ⅱ

Ⅲ

Ⅳ

Ⅴ

Five key strategies

Okinawa Prefecture Asian Economic Strategy Initiative

Forming an internationally competitive logistics center inking Asia

Realizing world-class tourist resorts

Forming a Cluster of aviation-related industries

Forming a “smart hub” as one of Asia’s Leading international telecommunications centers

Promoting new manufacturing industries that connect Okinawa to Asia

Growth strategies for the industries that will drive the Okinawan economy in the future

Okinawa Pref. Government

7

Okinawa. Merit

Abundant aviation demand at Naha Airport

14 International Flight

5 Airlines

25 Domestic Flight (3rd in Japan)

10 Airlines

Okinawa Pref. Government

8

Excellent international logistics network for business expansion in Asia

Okinawa. Merit

Okinawa Pref. Government

9

Excellent location conditions for freight and access

International Logistics Hub

Industry Development

Zone

Naha District Overview

Okinawa. Merit

Okinawa Pref. Government

10

Ease of securing young people

Ranking Prefecture Population growth rate（％）

1 Okinawa 2.9 2 Tokyo 2.7 3 Saitama 1.0 4 Aichi 1.0 5 Kanagawa 0.9 - Average ▲0.8

Population change rate by prefecture

*Ministry of Public Management “Japanese statistics 2017”

Youth population by prefecture

Ranking Prefecture Youth population proportion (%)

1 Okinawa 17.5 2 Shiga 14.6 3 Saga 14.2 4 Aichi 14.0 5 Miyazaki 13.8 - Average 12.8

*Ministry of Public Management “Demographics 2014”

Industrial education institution in Okinawa Prefecture

Okinawa Institute of Science and Technology Graduate University

University of the Ryukyu National Institute of Technology,

Okinawa College

Okinawa. Merit

Okinawa Pref. Government

11

Outlook for MRO demand in Asia

1.9 times in 10 years

Unit: US $ 1 billion

* OLIVER WYMAN 2015-2025 GLOBAL FLEET & MRO MARKET FORECAST

Demand for MRO in the Asian region is expected to expand in the future.

Okinawa Pref. Government

12

Okinawa. Aircraft maintenance Hangar

Okinawa Pref. Government

13

Okinawa. Aircraft maintenance Hangar Capacity

Dock for Narrow body

Dock for Wide body

Office building

Dock

Dock for wide body : 1 Wide body / Capability of painting Dock for narrow body : 3 Narrow body

Okinawa Pref. Government

14

Okinawa. Collaboration with Existing Industry

We can expect cooperation with international logistics network, IT industry and tourism industry.

Okinawa Pref. Government

15

Okinawa. Aviation Industry Cluster - An Image

Okinawa Pref. Government

16

Okinawa. Future Developments