Japan Market Update - April 2003 Edition

Aloha ,

This past week I returned from a 12-day trip to Japan during which I met with business contacts and had an opportunity to get a "pulse" on the business environment and recovery potential for the travel market.

Now the SARS situation is affecting some of Japan's most popular and largest growth markets--China, Hong Kong, and other Asia. As "The Tropical Resort Destination" of choice, Hawaii is now in a very unique position with clean, healthy, relaxed, and stress free environment. With the Iraq war almost resolved, the good news is that Hawaii may be well positioned for a positive recovery.

Just after the conflict in Iraq began, PacRim developed an on-line survey of Japanese attitudes ("J-Pulse" Iraq and SARS Survey). We've uploaded complete survey details and articles in the Honolulu Star Bulletin and PBN On-line news related to "J-Pulse"survey to the PacRim Web site:

--J-Pulse News Release - Read our Press Release
http://www.pacrimmarketing.com/news/current/376.html

--J-Pulse User Comments - See what the visitors said
http://pacrimmarketing.com/newsdocs/survey376.html

A quick review of comments indicates that Japanese find Hawaii "peaceful", "relaxing", "calm", "refreshing", and "rejuvenating--or healing". The idea seems to be that people are stressed-out over the situation in the world, from terrorism and SARS, violent events in Japan, recession, and threat of North Korea missiles. Hawaii offers the escape from this reality. The users of the web site who just visited commented that they could turn all of that off and enjoy Hawaii, their families and special events, such as weddings and honeymoons here.

Words used to describe their opinions of Hawaii include, "Hawaii that I love"(daisuki na Hawaii), and "Hawaii is OK!" (Hawaii wa daijoubu yo!) (i.e. no fears of terrorism etc.).

This is the magic of Hawaii! I believe in recovery we will be successful with the Japanese market. Your potential customers are looking at web sites and publications now to plan for travel in the next 30-90 days. Now is the time to help them in their travel decision making and activity planning.

Let us assist you with the efficiency of your marketing and positive recovery efforts.

Best Regards,

*Special Reports!
*Japan Market News
-----Hawaii continues to outperform other destinations
-----More than 50% of Japanese use the internet to shop
-----Broadband and mobile phones continue to dominate market
-----Well traveled women prefer recreational and relaxing trips
-----OZ magazine ranks Hawaii as top wedding destination
-----Mature/Senior market continues to grow
-----Seniors looking for study abroad programs
-----Shiseido cosmetics expect record profit for 2002
-----Most favored food list of 2002 released
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates
*Inside PacRim

OPERATION IRAQI FREEDOM

Soon after the start of the war, we began to compile current statistics regarding Japanese traveler trends, which are collected from our Japanese web site called Hawaii-Arukikata. The site welcomes 8,000 unique visitors per day and 3,000,000 page views per month. The first set of data and responses will provide businesses with information about the feelings of Japanese tourists and their travel plans to Hawaii. Here are a few samples:

"Actually, I meant to be travel to Beijing and Shanghai next week (from April 15 onwards.) However, I thought this wasn't a good idea because of the Chinese government's response to the disease, so I cancelled and changed my trip to Hawaii. I was charged a cancellation fee, but since looking at this website, I have been very glad that I decided to go to Hawaii as it seems like a great place, and I'm really looking forward to it!" -(Min 31, Osaka)

"I will enjoy my vacation over Golden Week as planned. I'm also planning another trip for summer as well. We are going because we and our children are really looking forward to it, and there isn't the problem of SARS because we're not going to China or Asia. " -(Dai 39, Osaka)

"My company put out an order that all travel had to be postponed, but I decided just to go anyway as my reservation had already been settled. I was doubtful, as this was my first time to plan the trip by myself and not go on a tour, but this 4 night and 6 day trip meant a lot to me. I hate war but I think if tourists stop coming, it will be very hard on the people of Hawaii. If you take the plunge and go, their smiling faces will take away any anxiety you have." -(Paychi 46, Hokkaido)

"At the moment, it seems like whichever country you go to there is danger from terrorism or SARS. I thought wherever I go it would be the same, so I decided to go to Hawaii " -(Kai 29, Hokkaido)

"I'm going now because I am alive. Once I'm not mobile anymore, I won't be able to go anywhere. I'm going with my wife as planned." -(Shige 69, Miyazaki)

The survey also inquires about future travel plans to Hawaii, i.e., if their plans remain as scheduled, cancelled, postponed or undecided. For up-to-date comments see (http://pacrimmarketing.com/newsdocs/survey376.html) or (http://www.hawaii-arukikata.com/survey/index.asp) for comments in Japanese.

SARS

Keep up to date on the latest news about the SARS (Severe Acute Respiratory Syndrome) that has been affecting thousands of people around the world. There will also be some direct and indirect results from this disease and how it affects Japanese travel. Remember, in 2002, China was the #1 overseas destination for the Japanese. The best news site to find out the latest information is the World Health Organization web page which has a special page dedicated to the deadly disease.

LINGLE: IT'S OK TO TRAVEL TO HAWAII

In response to the war and its ripple effect on travel to Hawaii from the Japanese, Governor Lingle sent a special message to the Japanese on April 2. Her message stated that Hawaii remained the same during this war period, it is well protected by America's safety measures, and that it is the perfect place to vacation during these anxious times. For complete story in Japanese see http://hawaii-arukikata.com/news/2003/situation2003_2.html.

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HAWAII CONTINUES TO OUTPERFORM OTHER DESTINATIONS DURING WAR

The Hawaii Visitors and Convention Bureau says that representatives of major Japanese wholesalers told them last week that Hawaii continues to outperform other major destinations in Asia, mainland U.S., and Europe. "Hawaii, along with Australia and New Zealand," HVCB said, "are seen as safe destinations amid present uncertainties." Ryokichi Tamaki, marketing VP for JALPAK International Hawaii, also told the HVCB that Gov. Linda Lingle's letter affirming that Hawaii remains a safe haven was widely published in Japan soon after the war began. Tamaki also adds that Hawaii is seen as a place where they can count on a pleasant vacation in good weather. (Pacific Business News 4/7/03) Back to top

MORE THAN 50% OF JAPANESE USE THE INTERNET TO SHOP ONLINE

A recent survey was done by Hakuhodo Inc. to find out about the online shopping habits of Japanese consumers. The survey revealed that of those Japanese who use the internet, 56.6% said they plan to shop online, 43.3% said they plan to do their booking for trains and airlines online, while 39.2% said they would buy package tours online. Many travel companies including JTB have already stated that they have started departments that are dedicated to online bookings. As the World Tourism Organization stated earlier, "If you are not online, you are not on sale". (Travel Journal International 3/10/03) Back to top

BROADBAND AND MOBILE PHONES CONTINUE TO DOMINATE MARKET

According to the January figures by the Ministry of Posts and Telecommunications, 8.34 million people or 29.6% of all internet subscribers in Japan are using broadband technology. Mobile phones are even more popular with 69.42 million people having internet-capable cellular phones, which is 54.5% of the Japanese population. (Travel Journal International 3/23/03) Back to top

WELL TRAVELED WOMEN PREFER RECREATIONAL AND RELAXING TRIPS

A recent survey conducted by the Nikkei Research Institute of Industry and Markets that targeted young women office workers living in Tokyo and Osaka have found out some significant developments in their travel behavior. 68.2% of the respondents have experienced an overseas trip within the last three years. Recreational or health seeking trips was cited as the main reason for the overseas trip (36.1%), while shopping (34.0%) was the next reason, and sightseeing (29.9%) followed. While shopping and sightseeing have always been the most popular choices for overseas travel, this new study is pointing out that the new trend in travel for young women are for recreational or health-seeking reasons. (Nikkei MJ 3/4/03) Back to top

OZ MAGAZINE RANKS HAWAII AS THE TOP WEDDING DESTINATION

According to a recent Oz Magazine survey, Hawaii ranks as the top destination for Japanese couples who had their wedding in a foreign country. Sightseeing, shopping, and parents who are more familiar with Hawaii (than Europe or the US Mainland) account for the popularity of Hawaii weddings. The special Oz edition also said that most couples get married overseas to avoid big weddings at home. (Oz Magazine 3/03) Back to top

MATURE/SENIOR MARKET CONTINUES TO GROW

It is estimated that by 2015, 25% of all Japanese will be 65 years or older. This market continues to attract attention as a very important market segment to prepare for. An enormous amount of people over 65 yrs old in Japan are of good health and are looking for fun things to do, especially overseas travel. Seniors have a lot of time and money to travel as they have usually paid off their mortgages and no longer need to raise their children. (Trade Invest Monthly 3/03) Back to top

SENIORS LOOKING FOR STUDY ABROAD PROGRAMS

Many Japanese in their 60's have long wished to have an opportunity to study abroad when they were younger. Therefore, having the opportunity to study abroad is making a dream of their younger days come true. Unlike the typical 20 year old who comes to Hawaii to study, these are the things to consider when trying to attract this market: they are not intent on obtaining a degree, happier with classmates closer to their age, do not want to share a room, very concerned about emergency medical services, and are willing to pay premium prices for better value. (Trade Invest Monthly 3/03) Back to top

SHISEIDO COSMETICS EXPECTS RECORD PROFIT FOR 2002 FISCAL YEAR

Shiseido Co. expects a record 44 billion yen group pretax profit in the current fiscal year through the end of March, up 60% for a year earlier and 1 billion yen more than the initial estimate. A cut in inventories and strong overseas sales in South Korea and China have contributed to the record profit. (Nikkei Weekly 3/31/03) Back to top

MOST FAVORED FOOD LIST OF 2002 RELEASED

The Shokuhin Sangyo Shimbun announced its ranking on the "Most Favored Food Products in 2002". Health food and inexpensive items were most of the top choices. Included in the 2002 ranking were Kirin Breweries' "Tanrei Green Label", happonshu low-malt beer, Meiji Dairy's "Oishii Gyunyu" (delicious milk), Kirin Beverage's (Amino Suppli), Lawson's "Onigiri-ya" (rice balls) and Fancl's "Pre-washed rice". (Food Industry News 1/20/03)Back to top

HISTORY OF HANAMI - Cherry Blossom Viewing

The cherry blossoms are in full bloom in Japan. Originally a religious ritual, the hanami (cherry blossom viewing) was held on a particular day. With the coming of spring it was customary to perform ceremonies prior to the beginning of planting, forecasting the harvest for the year from the condition of the cherry blossoms. Then, likening the cherry trees in full bloom to a bumper harvest of rice, they would celebrate with food and drink under the trees. In those days it was a tradition observed only by the nobility and upper classes. Today, hanami is no more than a private, popular opportunity for spending time outdoors. Groups reserve spaces in popular parks with tarps and spend the day eating, drinking and having a good time.

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ALOHA EXPRESS MAGAZINES

In 2002, 54% of all Japanese visitors to Hawaii were repeaters, while 46% of the visitors were first-timers. If you notice that your business counts on repeat visitors from Japan as well as "Hawaii-lovers", then PacRim Marketing has the perfect magazine for you.

Aloha Express Magazine is the leading Hawaii travel publication that is targeted towards the repeat visitor market. Published five times a year by Sony Magazines, this magazine contains the latest information and updates about our Islands from restaurants to shops. Sold in bookstores in Japan, the publication is purchased before they arrive in Hawaii. The next issue will be released in July and will include a special Maui feature, so any business in Maui should not miss this issue! Prices range from as low as $1,800 for a 1/4 page to $5,000 for a full page advertisement. Please click here for more details.

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Japan War Recovery: Be a part of these publications for Summer and Fall!! Click here for our Media Request Form or us.

Space Deadlines:

Nouveau - Ala Moana Center Selection - Summer issue - May 1, 2003
Aloha Express - July Quarterly - May 1, 2003

Material Deadlines:

Chikyu no Arukikata - USA Guidebook - April 25, 2003
Chikyu no Arukikata - Waikiki/Oahu June Mook - April 25, 2003
Nouveau - Ala Moana Center Selection - Summer issue - May 10, 2003
Aloha Express - July Quarterly - May 15, 2003

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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
6/15 Father's Day
7/7 Tanabata (Star Festival)
7/21 Marine Day (Holiday)

Click here to see entire year.

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Joy and Lee are proud to announce the birth of their son Kaden Kai Ishiara born March 13, 2003! Best wishes to Joy and her newly extended family.

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