3. Building a foundation to support the growth of Tokyo

Economy and growth strategy

Supporting global business

We will steadily build the foundation for Tokyo, a mature city that continues to grow.

Dynamic economic activity is essential to enhance the lives of Tokyo residents. I hope to realize even greater economic growth beyond the passage point that is the Tokyo 2020 Games. Now that we are in a borderless era where the economy transcends national boundaries, accommodating global business is the key to success. There is a medieval German proverb that says “the city air makes you free.” I think it is important for Tokyo to be known as the city with “air that generates wealth.”

The Tokyo One-Stop Business Establishment Center, which we worked to set up with the central government, was established on April 1. On the previous day, I attended the opening ceremony with Prime Minister Abe and Minister of State for the National Strategic Special Zones, Shigeru Ishiba. The center unifies the procedures that foreign affiliates and start-ups need to complete to establish a business, greatly shortening the time required. I believe this is the first major step toward realizing an open business environment. We will continue to promote the center in collaboration with foreign embassies, financial institutions, and others, and will also work to enhance services based on the comments of users. In addition, located on the same floor, the Business Development Center Tokyo provides foreign affiliates with opportunities to network and be matched up with other businesses, such as Tokyo’s small and medium-sized enterprises that have excellent technologies. I hope that many people will take advantage of these services, and seize business opportunities.

We are also promoting initiatives for the realization of the Tokyo Global Financial Center. The TMG is issuing foreign-currency bonds to diversify funding methods and reduce funding costs. Recently, in addition to an overseas market, we dual listed the bonds on the TOKYO PRO-BOND Market. By invigorating this market, which is highly convenient for overseas financial professionals, we will raise the presence of the Tokyo market. In the public finance management plan for this fiscal year, we are adding overseas banks as investment options and engaging in other efforts, with the aim to efficiently manage public funds, while at the same time, vitalizing the global financial market.

In the area around Haneda Airport, we are working with the central government, and local and neighboring municipalities to build an international business center by 2020. This includes development of the land formerly used by the airport. With regard to the creation of centers to match up advanced industries, including the medical industry, to small and medium-sized enterprises, and to promote “Cool Japan” to the world, we will promote these initiatives by leveraging the special zones system. We will also steadily advance work to create a life sciences center in Nihombashi, and in such ways, will generate new business opportunities and bring talent and businesses to Tokyo from around the world.

As a mature city, I don’t think that we can expect to achieve growth unless we rethink the way we work—the culture of long working hours and low rate of paid vacation leave taken by workers that was ingrained during the period of high economic growth—and raise productivity. Specifically, we must prepare an environment that allows women to actively participate in society. At this fiscal year’s first meeting of the Council for the Growth of Tokyo held last month, we adopted a joint statement and agreed to work to foster an atmosphere conducive to rethinking working hours and building a system that can flexibly respond to parenting and other life events. The three groups represented on the council—the public sector, labor, and management—will work together to achieve work-life balance and realize a mature, advanced city where workers can fully follow their ambitions and demonstrate their talents.

Strategic development of the tourism business

In 2014, a record 8.87 million international tourists visited Tokyo for a large increase of 30 percent over the previous year. The number of foreign tourists who visited Japan exceeded 13 million. The tourism industry covers an extensive range of businesses, and can tap into high demand from abroad. Recognizing tourism as a major industry in Tokyo and working to strategically promote tourism will be indispensable for our future growth.

To strongly promote the attractions of Tokyo overseas, we are reinforcing our TMG public relations organization. In March, we also drew up a branding strategy to effectively promote the Tokyo brand, launched the Tokyo Brand Promotion Council, and built a website for the project. Next month, we will draw up the TMG’s strategy to market Tokyo as a MICE (Meetings, Incentive travel, Conventions, Exhibitions) destination, and accelerate efforts to attract events such as international conventions. I hope to advance efforts to bring more people to Tokyo from abroad by identifying the focus areas that we will target, and effectively marketing Tokyo to attract major conferences and events.

I believe that having overseas visitors experience the great aspects of Tokyo first hand will be a very effective way to promote our city. Taking advantage of opportunities presented by our city diplomacy activities, I also hope to introduce Tokyo as the City of Water and the attractiveness of its waterfront areas—facets of the city that are relatively unknown abroad. Furthermore, I hope to bring more tourists to other areas of Japan as well, including the Tohoku region, create more repeat visitors, and further boost the tourism industry.

Measures for the environment will guide Tokyo’s growth

Fifty years ago, the Tokyo 1964 Games propelled Japan’s high economic growth. However, this economic growth also led to traffic congestion, air pollution, and other urban problems. Beyond the Tokyo 2020 Games, which will be held in a mature city, we must achieve sustainable growth in harmony with the environment. Taking a leading role in this pursuit will be the realization of a hydrogen society. We will reorganize the existing strategic council into the Tokyo Promotion Council for the Realization of a Hydrogen Society next month, newly welcoming members such as developers, and will advance specific measures through public-private collaboration. This summer, we hope to conduct field tests on fuel cell buses for greater use of these vehicles. We will continue to steadily proceed with efforts, including the construction of a hydrogen station on land owned by a metropolitan public service corporation.

We are making accomplishments in the area of renewable energy as well. In addition to solar power plants in Kanagawa and Saitama prefectures, we have decided to include a wind farm in Aomori prefecture as an investment item in the public-private renewable energy fund. By investing in energy projects that leverage the rich natural environment, including those in the Tohoku region, we will expand the use of renewable energies.

We have started our first review in seven years of the TMG Basic Environment Plan so that we can respond to recent major changes related to environmental policy such as changes in energy supply and demand and air quality. In November, we aim to issue the interim report, which will include new reduction goals for greenhouse gases, and the final report within this fiscal year.

Bringing out Tokyo’s potential

The agricultural land that provides us with fresh ingredients is also a part of the precious nature remaining in the city. By making the most of having a major consumer market close by, agriculture in Tokyo has hidden potential for further growth. This March, we proposed the establishment of a special zone for urban agriculture to the central government with the aim of promoting urban farming and preserving agricultural land. Having received statements of intent to participate from all 39 municipalities that have agricultural land within their built-up areas, we will strive for sustainable development through the creation of a new model for urban agriculture.

We will also propose that thirteen towns and villages in the western Tama area and Tokyo islands be covered by the National Strategic Special Zones system to enable deregulations that will develop each area’s unique characteristics. By expanding special zones to all areas of Tokyo, we will unlock the city’s potential.

With double the area of Tokyo’s wards and an abundance of rich nature, I am certain that the Tama area has great potential to contribute to Tokyo’s growth. Although this area is lumped together as the “Tama area,” each of its local areas or communities has its own strengths, attractions, and challenges. We will thus advance growth measures tailored to the characteristics of each from various angles including industry, welfare, tourism, and urban development. By continuing to support and integrate the initiatives taken by the municipalities and local residents and groups to bring out the potential of the Tama area, we aim to enhance the strength of the Tama area as a whole.

I would now like to speak about the deployment of Osprey aircraft to Yokota Air Base. While all matters related to national security fall under the exclusive jurisdiction of the central government, with respect to use of the Osprey by U.S. forces, we must work to have the utmost concern paid to the lives of local residents. We are calling on the central government to be fully accountable to the TMG and the other relevant local governments, and residents in surrounding areas. At the same time, we are also requesting that the central government urge the United States to take thorough safety measures and give proper consideration to the environment.

Fostering youth to lead the next generation

Education is a national endeavor that has far-reaching effects well into the future, and is an important foundation that determines the growth of Tokyo and Japan. As with the recent accreditation of Tokyo Metropolitan Kokusai High School as an International Baccalaureate (IB) school, we will enhance educational programs that cultivate individuality and ability, such as this IB program which fosters globally-proficient talent. Under the new Board of Education system launched this fiscal year, the governor will convene the Comprehensive Council on Education, and while discussing matters with the Board of Education, will establish the basic policy for measures to be taken. The first meeting will be held on the 25th of this month. By thoroughly discussing a range of issues, we will work out the specific details of the policy.

Maintaining a solid financial base

A solid financial base is essential to advance the steady growth of Tokyo. Because TMG tax revenues are destined to fluctuate significantly in reflection of economic conditions, we must duly bear this in mind and manage our metropolitan finances in a self-sustained manner.

The national government, however, is still maintaining its irrational measures—the interim measure for corporate business tax and the turning of a portion of the corporate inhabitant tax into a national tax—in the name of correcting uneven distribution of tax resources. And now there are even calls for more aggressive measures. As the national government prepares to formulate its fiscal consolidation plan, arguments for correcting the gap in tax revenues, in addition to cutting overall local government spending, have risen. As someone who is responsible for metropolitan services, I am deeply concerned about such moves. If the national government continues to take stopgap measures, however hard the TMG works, or whatever excellent ideas other local governments come up with, such efforts will not contribute to the development of Japan. We resolutely oppose the national government’s irrational measures and strongly demand that, rather than discussions that try to sound plausible, full discussions that get down to the crux of the matter be conducted.