Japan Market Update - March 2003 Edition

Aloha ,

Here is your update for March 2003--there is positive news to report for the Japanese market despite the grey clouds over the worldwide travel industry. We will keep you posted as to developments in the visitor trends related to anticipation of war, and in the event of actual conflict.

The Japanese visitor market has been vibrant from the end of 2002. Last month the Hawaii Convention Center hosted three Japanese incentive groups(!)... with over 8000 participants. This weekend Oahu welcomes the Honolulu Festival with 3000+ Japanese participants from Japan.

Other good news includes the growth in the Japanese mature and wedding/honeymoon markets. Hawaii Business Magazine On-line edition wrote a nice piece about two magazines that PacRim and Sony Magazines recently released: Click HERE for PacRim and Sony news.

Both are great markets for Hawaii!

Best Regards,

P.S. Let me know if you would like information about advertising to the wedding/honeymoon and the mature market, or would like to brainstorm ways to target these important segments.

*Hot Topic
*Japan Market News
-----2002 arrivals by destination
-----Japanese arrivals outperform domestic arrivals
-----Wholesaler's customer targets for 2003 higher than 2002
-----Wholesaler's promote early reservations
-----Hawaii is in the top five for overseas trips
-----JTB introduces tours for baby boomer, jr.
-----High-end overseas tours find takers
-----Tour agencies promote "Matsuri in Hawaii"
-----Women in 30's market continues to grow
-----Japanese continue their passion for luxury brands
-----ADSL Price war hits new low
-----Ito-Yakoda to spend 70 billion yen on store expansion
-----Hollywood style movie set ot open in Tokyo
-----Convenience stores expand to reach women & elderly
-----Pentax to release world's smallest digital camera
-----Negative ions fluff up hair dryer sales
-----Levi's back in saddle with new strategy
-----Old Japan designs, traditional brands back in fashion
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

PacRim Launches Japanese-English Reservations System for Hotel Industry

PacRim has tailored their successful on-line Japanese language reservations system--JpRES--to the hotel industry. Turtle Bay Resort became the first resort in Hawaii to install the system, which was originally developed over an eight-month period for Mandara Spa at Hilton Hawaiian Village Beach Resort and Spa at Kalia Tower.
JpRES, which works as a secure booking engine attached to a company's web site, uses Japanese prompts for the consumer in Japan, but delivers reservation information directly to the property in English. The response from the on-property English-speaking reservations agent is automatically translated and delivered on-line back to the consumer in Japanese. (click here for more)

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SPECIAL REPORT : 2002 ARRIVALS BY DESTINATION

Do you wonder how well Hawaii fares against the rest of the world for their share of Japanese visitors? Here is the latest data from JNTO (Japan National Tourist Organization) for the total amount of arrivals in the top five destinations last year:

1- China (2,986,800)
2- South Korea (2,320,820)
3- HAWAII (1,484,770)
4- Hong Kong (1,395,020)
5- Thailand (1,128,284)

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JAPANESE ARRIVALS OUTPERFORM DOMESTIC ARRIVALS IN JANUARY 2003

The latest figures from the Department of Business, Economic Development, and Tourism (DBEDT) released their figures for passenger arrivals in the month of January 2003. These figures show that passengers arriving on nonstop flights from Japan increased by 114% over 2002 levels, while the domestic market remained stable at 102% of 2002 levels. (HVCB Tourism Update 2/21/03) Back to top

WHOLESALERS' CUSTOMER TARGETS FOR 2003 HIGHER THAN 2002

Japan's major tour wholesalers have set high goals as they expect the number of tour participants to climb between 5% and 47%. JTB Corporation sees a 8% rise this year for their Look JTB brand, while Jalpak's I'll and AVA will increase by about 6%. Kinki Nippon Tourist has stated a 21% increase for its Holiday brand, while the Best Tour brand from the Nippon Travel Agency will increase by 15% over last year's number of participants. (Travel Journal International 2/24/03) Back to top

WHOLESALERS PROMOTE EARLY RESERVATIONS

Tour wholesalers in Japan have begun to promote the benefits of early reservations to ensure stronger business in the first half of the business year. For example, participants who are traveling to Hawaii using the Kinki Nippon Tourist Holiday brand with 45 days of advanced bookings will be given breakfast and dinner coupons. Jalpak also will guarantee at no charge (normally 8,000 yen) side-by-side seats for honeymoon couples who make their bookings to Hawaii at least a month and half advance of departure. (Travel Journal International 2/24/03) Back to top

HAWAII IS IN THE TOP FIVE FOR OVERSEAS SCHOOL TRIPS

The Japan School Trip Association in its annual report stated that overseas school trips in 2002 rebounded by 99.38% to 176,377 participants. South Korea was the most popular destination, while Hawaii placed a respectable fifth with 12,251 students visiting last year. (Travel Journal International 2/24/03) Back to top

JTB INTRODUCES TOURS FOR BABY BOOMER JRS.

Travelers who are 50 years and older, sometimes referred to as Baby Boomer Juniors are the focus of attention for JTB's latest specialty tours. The tours are called "tabi saisai" and notify the participants about the required amount of walking to insure the comfort and pleasure while on their tours. Minimum number of participants in a tour is one. (Travel Journal International 2/17/03) Back to top

HIGH-END OVERSEAS TOURS FIND TAKERS

JTB Corp. attracted a total of 5,000 customers for an eight-day luxury package tour to Venice and three other Italian cities last year, a 40% increase from 2001. This was also done with no ad blitz or sales campaigns. JTB is not alone. Tours offering higher-class hotels and novel destinations are growing said an official at Hankyu Express International. The growth is being fueled by the expanding number of people aged 50 and older. (Travel Journal International 2/24/03) Back to top

TOUR AGENCIES BEGIN TO PROMOTE "MATSURI IN HAWAII"

Tour agencies such as Kinki Nippon Tourist are now accepting requests for the popular annual festival held in Hawaii each June. This will be the 24th festival and is expected to bring in thousands of Japanese visitors and participants. The Matsuri fair will be from June 6 to 8. (Travel Vision News 2/10/03) Back to top

WOMEN IN 30'S MARKET WILL CONTINUE TO GROW

According to Masato Takamatsu of the Japan Tourism Marketing Co., women in their 30's now account for 8.7% of all Japanese overseas travelers and its share has increased by 250% in ten years. He also sees further market growth with the generation Y (born in the latter 70's) approaching the 30's age bracket and the decline of marriage rates in Japan. (Travel Vision News 2/24/03) Back to top

JAPANESE CONTINUE THEIR PASSION FOR LUXURY BRANDS

Last fall, the Saison Research Institute conducted a survey of 1,200 men and women about luxury brands. The survey found that 94.3% of women in their 20's own an item from Louis Vuitton (of which 49.1% owned a handbag), 62.1% of men own an item from Burberry, and 78.6% of women own scarves or cosmetics by Christian Dior. The survey also found that women ages 40~50 purchase luxury items because they trust the high quality of the product, women in their 30's purchase them because they "like it and are satisfied with it", and women in their 20's consider luxury items as a reward to themselves. (Asahi Shimbun 2/14/03) Back to top

ADSL PRICE WAR HITS NEW LOW: FREE

With the growing demand of high speed Internet connections, NTT Communications is offering three free months of ADSL connections for various subscribers who sign up for the ADSL service by April. NTT East is also offering two free months to selected customers as well. Monthly connection fees are also targeted to drop between 200 and 300 yen in March. (Japan Inc. 2/13/03) Back to top

ITO-YOKADO TO SPEND 70 BILLION YEN ON STORE EXPANSIONS

Ito-Yokado, Japan's largest retailer, will spend 70 billion yen ($583 million) to open five new stores and renovate 30 outlets as they prepare for the entry of new rival Wal-Mart. Their objectives include placing their stores in a more competitive position and to win market share. (Bloomberg 2/3/03) Back to top

HOLLYWOOD STYLE MOVIE SET TO OPEN IN TOKYO

Major figures in the Japanese movie industry and a number of prominent Hollywood directors will jointly establish an international movie facility in Tokyo's waterfront area by 2008. The plan is to build 32 large studios equipped with digital screening and other technologies. (Nikkei Weekly 1/27/03) Back to top

CONVENIENCE STORES EXPAND SERVICES TO REACH WOMEN AND ELDERLY

Convenience store chains play a large role in Japanese consumer buying habits. Traditionally, young men have made up the bulk of their business, but these days, major convenience stores are targeting the elderly and women. In some stores you will find new concierge services such as manicures and foot massages. On New Years Day, Lawson, one of Japanese largest convenience stores, installed mailboxes at all 7,700 of its outlets. There were 36,900 convenience stores in Japan in 2002. (Nikkei Weekly 2/3/03) Back to top

PENTAX TO RELEASE THE WORLD'S SMALLEST DIGITAL CAMERA

On March 15, Pentax will release a camera that weighs just 98 grams (about 3 ounces), is smaller than a business card, and employs a 3.2 megapixel charge-coupled device. It will be 83mm wide, 52mm high, and 20mm thick. The price for the camera will cost 65,000 yen ($540 US). (Nikkei Weekly 2/17/03) Back to top

NEGATIVE IONS FLUFF UP HAIR DRYER SALES

Hair dryers that emit negative ions, which are said to be good for hair, have been attracting many consumers, particularily women with dyed hair. Although they are more expensive than conventional hair dryers, they are gaining popularity because they preserve moisture levels and control static electricity. Domestic demand for hair dryers is projected to hit 4.7 million units in 2002, up 350,000 units from the previous year. Negative ion hair dryers are expected to account for 27% of the overall market in 2002, up from 11% in 2001. (Nikkei Weekly 2/3/03) Back to top

LEVI'S BACK IN SADDLE WITH NEW STRATEGY

Levi Strauss Japan KK, the Japanese subsidiary of the world's largest jeans maker, took a major gamble last year by raising prices while rivals such as Uniqlo discounted their jeans. They pursued a strategy of differentiating itself though unique products, branding and presentation at the retail level to promote an image of high added value. According to consumer conducted research, Levi's has the strongest brand value for jeans in Japan. (Nikkei Weekly 2/24/03) Back to top

OLD JAPAN DESIGNS, TRADITIONAL BRANDS BACK IN FASHION

The timeless creations of traditional Japanese designs or products decorated with Japanese and Chinese characters are enjoying a revival among fashion-conscious young people. Consumers in their 20's and 30's who have been purchasing traditional Japanese designs tend to wear them as an accent to Western-style dress. This creates a combination of old Japan styles and casual clothing, a growing fad for many young Tokyo shoppers. (Nikkei Weekly 2/17/03) Back to top

DOLL'S FESTIVAL DAY

"Hinamatsuri (Doll's Festival)" was held on March 3rd. This is a day to pray for young girl's growth and happiness. It is also called "Momo no sekku (Peach Festival)" because of the peach blossom season on the old lunar calendar. May 5th is "Kodomo no hi (Children's Day)," and this is so called "Boy's Festival." While Children's Day is a national holiday, Hinamatsuri is not.Ê

According to about.com, most families with girls display "hina-ningyo" (special dolls for Hinamatsuri, see the photo below) and dedicate peach blossoms to them. They are usually arranged on a five or seven-tiered stand covered with a red carpet. At the top are the Emperor and Empress. The next step contains three court ladies (sannin-kanjo), followed by five musicians (gonin-bayashi), two ministers (udaijin and sadaijin), and three servants ending the bottom row in a five-tiered display. There are also small pieces of furniture, small meal dishes, and other things.

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HAWAII-ARUKIKATA.COM

Did you know that over 50% of Japanese travelers use the Internet for travel information? They use it to find out the latest information about Hawaii, book hotel rooms, and find useful coupons to help them save money. The Internet is growing everyday, and so is our Japanese consumer web site, Hawaii-Arukikata.com, is now welcoming over 120,000 users each month.

It is not too late to join in the new way of marketing your company to the Japanese tourists. We have a variety of programs that will fit any budget. Some of the programs we have are editorial style pages or downloadable coupon offers. We even have the option of launching special sales campaigns and events! Click here for more information about our media of the month!

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Want to be a part of these books? Click here for our Media Request Form or us.

Space Deadlines:

Chikyu no Arukikata - USA Guidebook - March 28, 2003
Chikyu no Arukikata - Waikiki/Oahu June Mook - March 28, 2003
Chikyu no Arukikata - Guam Mook - March 28, 2003
Nouveau - Ala Moana Center Selection - Summer issue - April 10, 2003
Aloha Express - July Quarterly - May 1, 2003
Nouveau - Ala Moana Center Selection - Summer issue - May 10, 2003

Material Deadlines:

Chikyu no Arukikata - Hawaii Guidebook - March 28, 2003
Chikyu no Arukikata - USA Guidebook - April 18, 2003
Chikyu no Arukikata - Waikiki/Oahu June Mook - April 18, 2003
Chikyu no Arukikata - Guam Mook - April 18, 2003
Nouveau - Ala Moana Center Selection - Summer issue - May 10, 2003
Aloha Express - July Quarterly - May 15, 2003

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3/14 White Day
3/21 Vernal Equinox Day (Holiday)
4/29 -5/5 GOLDEN WEEK
4/29 Green Day (Holiday)
5/3 Constitution Memorial Day (Holiday)
5/4 Kokumin no Kyujitsu (Holiday)
5/5 Children's Day (Holiday)
5/11 Mother's Day

Click here to see entire year.

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