Japan tourism rise seen key to recovery in regional economies

Kick-starting the Japanese economy and getting its tourists flying again are the keys to reviving Asia's troubled economies, according to Larry Dickenson, the Asia-Pacific vice-president of Boeing Commercial Airplane Group.

In Hong Kong yesterday, Mr Dickenson said he felt 'the worst is behind us' in terms of the Asian slump, but a recovery in Japan - which he said accounted for 70 per cent of the East Asian economy - was crucial to hopes for a regional upturn.

'By and large I feel that the Japanese have recognised the problem and I believe they are one of the best societies in executing plans in terms of discipline,' he said.

'The key to their recovery will be the confidence of the consumer. What needs to happen to Hong Kong and other tourist destinations is for Japanese to start travelling again.' If Japan's economy began to recover this year, he said: 'I think things will start to happen here too.' He added that he believed there was a direct correlation between economic prospects and growth in air traffic.

Asia has been a tough market for aircraft manufacturers and airlines since the regional crisis began in mid-1997 and Mr Dickenson admitted that generally, 'we were really happy to see 1998 end'.

Boeing, the world's largest commercial aircraft manufacturer, delivered a record 564 aircraft globally last year, of which 140 were to Asia, including 40 to the mainland. It expects the figure to rise to more than 600 this year.