Banking deregulation to boost Japan’s economy

Monday, June 8, 1998 | 10:37 a.m.

TOKYO -- The Japanese government's efforts to deregulate its banking industry should spur a rebound in its economy, the U.S. ambassador to Japan told a contingent of Nevadans here on a mission to boost tourism in Las Vegas.

Ambassador Thomas Foley met with Gov. Bob Miller today on the first day of his five-day tour of Japan and Taiwan. Miller arrived in Tokyo on Sunday leading a 10-person contingent for meetings with airline executives and leaders of Japan's tourism industry in an effort to secure more air service between Las Vegas and the Pacific Rim.

Embassy staff briefed members of the contingent on the economic and political climate of Japan in conjunction with Foley's meeting with Miller; state Sen. William Raggio, R-Reno; and Thomas Tait, executive director of the Nevada Commission on Tourism.

Foley said he expects the Japanese economy to improve within six months as the government moves to deregulate the banking industry. Miller said Foley did not elaborate on details of the bank-deregulation plan in their meeting.

The ambassador's remarks came on another dark day for the Japanese economy. The value of the yen continued to weaken, hitting 140 to the U.S. dollar. The decline of the yen was front-page news in Tokyo's English-language newspapers today, and some analysts were predicting the value would sink to 150 to the dollar.

Foley noted that during Japan's recession, the value of the yen has fallen steadily from a level of about 84 to the dollar. While that has a positive effect on Americans' purchase of Japanese goods, it discourages many Japanese tourists from taking long trips to the United States.

Diane Kopperman, a representative of the economic section of the Embassy, said the United States isn't alone in that area; Japanese tourism numbers are down in many other countries as well. Asked by a member of the contingent whether Japanese gamblers would be more inclined to travel to Macau or Australia to play, she said visits to Australia also are off and Macau doesn't hold as much appeal because of safety issues.

Visits also are off to Hawaii and Guam, two of the leading destinations for Japanese travelers, Brian Mohler, counselor of Embassy economic affairs, said. He said many Japanese tourists aren't flocking to those favorite destinations because they have already seen what they offer. Nevada officials hope that plays to their advantage in marketing the city, with a campaign emphasizing the parade of new resorts set to open.

Mohler said Las Vegas has a good reputation as a safe destination, a factor that should help the city in its goal of doubling the number of Asian visitors it receives within 10 years. Last year, 792,000 visitors came to Las Vegas from Pacific Rim countries, an 18.6 percent increase over 1996 levels. Of that total, 403,000 were from Japan, making it the largest of the Asian group and a 29.6 percent increase over the number of Japanese who visited Las Vegas the previous year.

Larry Greenwood, economic minister of the Embassy staff, also briefed the governor's group on some of the political activities within the nation that could ultimately affect tourism. He said relations between the United States and Japan remain good, despite the bumpy economic road and political fires that occasionally flare.

The U.S. military presence on Okinawa continues to be an issue for residents of that island, primarily because an anti-American governor is in power, Greenwood said. The military has been shuffling troops to different locations on the island in an effort to diffuse a controversy that erupted two years ago when an American G.I. was convicted of raping an Okinawan girl.

Greenwood also said he expects Japanese officials to be ruffled by President Clinton's upcoming visit to China. Clinton has decided not to stop in Japan, a move Greenwood said is being viewed by some as a snub. China and Japan have historically had icy relations.