Please describe your proposed solution
[Problem]
While advancing Japan's tourism industry, the issue of over tourism has emerged. This problem primarily manifests in the following ways:
Based on the data from Japan National Tourism Organization, in the past 20 years, the inbound travelers has increased rapidly. Although Japan's tourism industry suffered a huge impact during the COVID-19, after the COVID-19 ended, the number of travelers to Japan rebounded significantly. In 2023, the number of travelers to Japan will reach 25 million, and it has the trend to continue to grow. The total consumption by foreign travelers visiting Japan in the calendar year 2023 reached a record high of 5.2923 trillion yen (approximately 35.46 billion USD), an increase of 9.9% compared to 2019. In 2024, it will reach an all-time high. However, due to the problems like language barriers, cultural differences, and lack of understanding between each other. The stakeholders have difficulty and face challenges to benefit from the advancing Japan’s tourism industry.
A significant challenge for <u>travelers</u> to Japan is the limited access to accommodations, food, and services that locals enjoy. This issue stems partly from language barriers, as many local Japanese do not speak the travelers' language. Additionally, cultural misunderstandings on the part of travelers and the absence of a community that bridges the gap between locals and visitors further exacerbate the problem. This disconnect prevents travelers from fully experiencing authentic Japanese life and hinders meaningful interactions between locals and visitors, resulting in a less immersive and enriched travel experience.
For <u>service providers</u>, despite the abundance of attractive regions throughout Japan, the concentration of tourists in a few select areas creates challenges. Providers in other regions struggle to attract customers, and there is a tendency to standardize and simplify services when catering to anonymous tourists, which can compromise service quality. Members of JAPANGO can obtain their own unique identity through Decentralized ID （DID）. Through this identity, service providers can provide more differentiated services, which also allows JAPANGO members to experience more authentic Japanese travel services.
For <u>local residents</u>, particularly those living in tourist destinations, the influx of inbound tourists benefits mainly the businesses, while local residents see little to no improvement in their quality of life. This disconnect highlights a significant issue where the economic benefits of tourism are not adequately distributed to the local community.
[Prototype]
Here is an overview of the current prototype.
JAPANGO DAO, composed of Japanese travel enthusiasts, allows members to benefit from more favorable terms through peer-to-peer business transactions. Additionally, it facilitates the discovery and utilization of a wider range of travel resources across Japan.
In more detail, before traveling to Japan, travelers can become members of JAPANGO and book services they are interested in through the platform. JAPANGO members will be able to enjoy high-quality travel services in Japan at very affordable prices. After the trip, they can share their travel experiences in the community, participate in community building, and earn rewards.For service providers, they can quickly match suitable guests through the user's DID and recommend their services to these guests. This will greatly improve service utilization and reduce customer acquisition costs.
Travelers can use JAPANGO by following explanations below, they can visit JAPANGO's homepage before their trip and register to become a member of JAPANGO. After becoming a member, they will receive their own DID (Decentralized Identifier). Then, they can enjoy highly cost-effective services. As their travel experience deepens, the DID will reflect the traveler's experience and preferences in Japan, providing a reference for offering more tailored services in the future.
<u>Value of prototypes</u>:
JAPANGO brings three values to the participants.
First, it improves the experience of the travelers.
JAPANGO aims to become a DAO that shares Japanese travel experiences and uncovers new travel resources in Japan. JAPANGO will work collaboratively to provide participants with an enhanced travel experience. Additionally, members of JAPANGO will have the opportunity to participate directly in community development through voting, which will directly improve the overall user experience.
Second, travel service providers will benefit from high-quality guests and increased revenue.
For JAPANGO's partner hotels, member utilization will significantly reduce vacancy rates and increase revenue for the hotels. Besides, by selecting experienced Japanese members within the DAO, businesses can attract customers directly without relying on intermediaries such as OTAs (Online Travel Agencies). This approach not only enables a more direct and personalized connection with travelers but also facilitates the acquisition of repeat customers, fostering long-term relationships and loyalty within the community. In the future, JAPANGO will expand its services beyond accommodation to include a variety of experiences. Some lesser-known, high-quality local experiences will be uncovered by community members and formally integrated into JAPANGO’s offerings through a voting process. This will enable more efficient utilization of these tourism resources.
Third, tourism resources across different regions of Japan will be discovered and fully utilized.
For local residents, they can use the tokens they earn to receive benefits from local services. Additionally, since they have the opportunity to conduct business and earn income locally, it can help reduce the outflow of talent to large metropolitan areas. This fosters local economic growth and creates more sustainable opportunities for residents within their communities.
By utilizing the LLC DAO structure, JAPANGO members can book accommodations and other travel services in Japan without going through travel intermediaries, greatly reducing fees associated with intermediaries. At the same time, the LLC DAO structure organizes members as a limited liability company, allowing the DAO to directly collaborate with service providers, such as hotels. These service providers will offer services to DAO members at more favorable prices. Additionally, JAPANGO members can participate in decision-making regarding the direction of community development, propose services they are interested in, and after passing through community votes, have these services added to JAPANGO’s offerings. This allows members to highly customize their travel experiences.
DID enables service providers to quickly understand their customers and offer more personalized services, allowing them to acquire users at a very low cost. For JAPANGO members, their preferences will be effectively reflected through DID, giving them more opportunities to experience unique and in-depth travel experiences in Japan.
<u>Our approach</u>
In 2024, Japanese law officially recognized the legality of LLC DAOs, making innovative organizational and operational models like JAPANGO both possible and legitimate. The JAPANGO project leverages an LLC DAO to own and distribute unique Japanese travel services. Since an LLC DAO can operate as a corporate entity, JAPANGO is well-positioned to attract numerous corporate partners. Travelers can become members of JAPANGO, enjoy member benefits.
Besides, the JAPANGO members will get an ID based on the DID and Verifiable Credentials (VC). This will indicate their experience of traveling to Japan and allow service providers to quickly identify their customer types and provide corresponding differentiated services.
<u>Engagement</u>
JAPANGO’s DAO members, utilizing DIDs, actively participate in project management and service provision. This direct involvement of users, service providers, and local communities fosters trust, enhances cultural exchange, and ensures the project’s sustainable operation and growth.
<u>Specificity</u>
This project is the first to use an LLC DAO model to revitalize various travel resources and offer high-quality travel experiences to those who love traveling in Japan. It aims to provide significant benefits to hotels, experience providers, and travelers alike, creating a mutually beneficial ecosystem for all participants. The travelers will get a DID and can enjoy more differentiated and authentic Japan travel services based on their DID.
<u>Importance to Cardano</u>
If this project succeeds, Cardano's influence will expand into multiple sectors of the Japanese travel industry, with the most prominent example being the traditional inn (ryokan) industry, representing a fusion of Web 3.0 and traditional hospitality. Additionally, other Japanese tourism service providers, such as ski resorts and diving operators, will also become new users of the Cardano platform. Furthermore, local governments in Japan, recognizing the positive regional revitalization brought about by JAPANGO, are expected to participate in Cardano’s development and contribute to its growth.
By rediscovering and integrating Japan's tourism resources through the Cardano platform, a new paradigm for tourism will emerge—one that could have a transformative impact on the entire Japanese tourism industry. This new model is projected to bring potentially 10 million new users to the Cardano platform.