Japan Market Update - July 2003 Edition

Aloha ,

The recent visit to Japan by Governor Lingle and the delegation of mayors and visitor industry leaders set the tone for Hawaii's visitor industry's desire to re-establish Hawaii as one of the preferred travel destinations in the world for Japanese leisure and business visitors. The important visit offered an opportunity for all members to learn about the trends in the industry, both pre and post SARS, and to establish dialog and begin to develop programs that will enhance the marketing and business relationships between Hawaii and Japan. We remain optimistic that the travel industry in Japan will respond, and we will all be working together to increase the business from Japan.

Last week the International Council of Shopping Centers held its Mid-Year Idea Exchange Conference on Maui. The theme of the three day conference was on the opportunities and developments in the Pacific Rim area and the changes in the habits and trends of Asian consumers. There was record turnout, along with a top-notch lineup of speakers who focused attention on the Asian consumer. In subsequent newsletters we plan to share some of the information, ideas, and tips that came from the sessions, and will post some selected presentations on our web site.

Best Regards,

!!SPECIAL REPORT!!
*Japan Market News
-----Honolulu is #1 U.S. city for Japanese overseas travel
-----Hawaii and Guam rank as safest destinations
-----Hawaii, Australia and Europe will be top destinations this summer
-----Governor Lingle's Japan Promotional Tour leaves on schedule
-----Experience Hawaii packages gain popularity
-----Summer travel tour fares are the lowest in years
-----Nippon Travel Agency releases "Dream Hotel" programs
-----United Vacations to resume package tour sales
-----Japan net usage to pass 60 million this year
-----More than 1/2 of mobile cell phones are equipped with cameras
-----Ginza continues to attract flagship brand stores
-----Specialty store operators thrive in today's economy
-----Starbucks Coffee hits sales record in Nagano
-----Aloha Friday campaign aims to conserve energy
-----2 out of every 3 seniors have no worries about finances
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

HIT PRODUCTS FOR THE FIRST HALF OF 2003!

Sports heroes, comic relief, fantasy and health score high as Japanese seek much needed relief from everyday stress. These are the latest winners in The Nikkei Marketing Journal's list of hit products for the first six months of 2003.

US MAJOR LEAGUE BASEBALL

MLB easily led the pack as Japanese baseball fans were closely watching the success of Hideki Matsui of the New York Yankees and Ichiro Suzuki of the Seattle Mariners. Travel has been the main winner as the Japan Travel Bureau noted that about twice as many people as last year will travel to the US for a baseball game. MLB products have also performed well, as shops in Japan have experienced a 50% increase in sales in comparison to last year.

DVD RECORDERS

A survey by the Nippon Electric Big-Stores Association shows that DVD recorder sales surged 80-100% per month from January to April. One of the top models in the industry is Matsushita's Diga E60, which retails for about 60,000 yen ($500 US). The model can record images with digital cameras and reproduce them on a TV screen, eliminating the need to upload the digital pictures to a personal computer.

SMALL DIGITAL CAMERAS

Japan's fascination with these cameras shows no sign of slowing down. Sales from January to April of this year jumped 55% from a year ago, according to the Camera & Imaging Products Association.

CHIHUAHUAS

According to the Japan Kennel Club, the issuance of official pedigree certificates for Chihuahuas through March has risen by 34% over last year's levels. The dogs also cost around 500,000 yen ($4,000 US), roughly twice the price as last year. A popular Chihuahua character called Kuu-chan also strengthened the trend by appearing in TV commercials.

THE MATRIX RELOADED

The most popular movie during the first half of the year was "The Matrix Reloaded". The movie brought in an estimated 4.66 billion yen during its first nine days at the Japanese box office.

LOW ALCOHOL AND LOW CALORIE BEERS

Introduced to the public in November 2002, Suntory Ltd's Fine Brew has half the calories of ordinary beer and has been selling well.

SOY MILK

Many coffee shop chains have found soy milk to be a tasty alternative to cow's milk. New blends of the milk over the past year have improved the taste.

ELECTRIC MASSAGE CHAIRS

Luxury massage chairs has enjoyed great sales thanks to new space-saving, fashionable designs. The chairs have appealed to young female office workers who spend an average of 200,000 -- 300,000 yen ($1600 US - $2,500 US) on them.

Source: The Nikkei Weekly 6/30/03Back to top

HONOLULU RANKS AS THE #1 CITY IN AMERICA FOR JAPANESE OVERSEAS TRAVEL

Based on research by the US Department of Commerce's Office of Travel and Tourism Industries, Honolulu increased its share of the Japanese overseas market to 34.4% of the travelers to America in 2002. Following Hawaii was Los Angeles with an 11% share, and New York with an 8% share. Las Vegas followed with a 5.3% share. In terms of states and territories, Hawaii ranked at the top with a 40.81% share, while Guam followed with a 21.5% share. Together, Hawaii and Guam account for 62.31% of all Japanese visitors to the US. (Travel Journal International 6/12/03)Back to top

HAWAII AND GUAM RANK AS THE SAFEST DESTINATIONS IN THE WORLD FOR JAPANESE OVERSEAS TRAVEL

According to the Japan Travel Bureau, Hawaii and Guam are the safest destinations to travel for the Japanese. 3% of their travelers felt that Hawaii was unsafe, while only 2% felt Guam was unsafe. On the other hand, 43% of their travelers felt that China and Hong Kong were hazardous destinations. The Mainland US is also perceived as risky with 21% of travelers avoiding travel. (Travel Vision 6/6/03) Back to top

HAWAII, AUSTRALIA, AND EUROPE WILL BE THE TOP DESTINATIONS THIS SUMMER

The Wing Travel Aviation Press survey finds that package tours for Hawaii, Australia, and Europe have been the preferred choice amid the severe travel environment. Hawaii's strength will be in the family market as reservations have been steadily growing, particularly in the Tokyo metropolitan area. Demand to Europe has been preferred by the mature ages. (J-Wing Travel 7/6/03)Back to top

GOVERNOR LINGLE'S JAPAN PROMOTIONAL TOUR LEAVES ON SCHEDULE

Along with top tourism officials, representatives from each island, beauty queens, and famous retired sumo wrestler Konishiki, the Governor of Hawaii campaigned earlier this month to help promote tourism to Hawaii. The governor attended a press conference with the Japanese media, a Tourism Focus Session that included top business leaders from Japan and Hawaii to discuss in a round-table format ways to improve tourism from Japan, a Mahalo Reception to thank the Japanese travel industry and a business luncheon with major leaders from other industries in Japan. (Travel Journal International)Back to top

EXPERIENCE HAWAII PACKAGES GAIN POPULARITY

Japanese travel agencies will continue to focus on marketing their "experience Hawaii" packages that concentrate on the culture and nature of Hawaii. With the influence of SARS, many agencies are looking at Hawaii as a major key to survival this summer. Family travel will be the main target market for most agencies selling these types of packages. (Nikkei Ryutsu Shimbun 6/19/03)Back to top

SUMMER TRAVEL TOUR FARES ARE THE LOWEST IN YEARS

Since agencies are working to attract more consumers to travel overseas, discounted tour prices can be found at almost every tour agency. For example, Kinki Nippon Tourist is offering a Hawaii tour where the child's price could be as cheap as 1/10 the adult fee. Most of the discounts at various tour agencies are aimed at families and children. (Nikkei Ryutsu Shimbun 6/19/03)Back to top

NIPPON TRAVEL AGENCY RELEASES "STAY IN YOUR DREAM HOTEL" PROGRAM

The Nippon Travel Agency released a series of reasonably priced package tours named "stay in your dream hotel". These tours were created to stimulate demand in three destinations -- Hawaii, Bali, and Bangkok. The Hawaii tour includes the Halekulani with a five day stay price starting at 108,000 yen. Extra services include an exclusive lunch and a custom leather baggage tag. (The Travel Vision 6/30/03) Back to top

UNITED VACATIONS TO RESUME PACKAGE TOUR SALES

United Vacations, which temporary suspended its operations in March, resumed their sales of tour packages to Hawaii on June 20. The operations will be taken over by an HIS affiliate, Ark World. (Wing Travel Daily 6/13/03)Back to top

JAPAN NET USAGE TO PASS 60 MILLION THIS YEAR

According to the Internet White Paper 2003, the number of Internet users in Japan has increased by 22.2% from last year to total 56,453,000. By the end of the year, Internet usage is expected to surpass 60,000,000, which would mean that more than one out of every two Japanese citizens use the Internet on a regular basis. (Nikkei Net 7/1/03)Back to top

MORE THAN HALF OF MOBILE CELL PHONES ARE EQUIPPED WITH CAMERAS

More than half of the mobile handsets shipped to Japan in March were equipped with cameras. The popularity of these phones has become so overwhelming, that bookstores are feeling the new wave with "digital shoplifting". This type of shoplifting is made by people visiting one of Japan's 20,000 bookstores to photograph magazine pages with their cell phones rather than make the purchase. J-Phone Co. Ltd launched the first picture taking handsets in November 2000. (Yahoo Business 6/30/03)Back to top

GINZA CONTINUES TO ATTRACT FLAGSHIP BRAND STORES

The Ginza area of Tokyo will continue to be the largest collection of brand flagship stores for years to come. Barney's New York outlet is currently on schedule to open in summer of 2004, while Chanel is planning to open their eight-story flagship store in October 2004. In 2005, Gucci has announced plans to open a new store in the early part of the year. (Japan Today 6/19/03)Back to top

SPECIALTY STORE OPERATORS THRIVE IN TODAY'S ECONOMY

Out of the 36 companies that marked double-digit sales gains in 2002 for a second consecutive year, 26 companies (70% of them) were specialty store operators. While major department stores such as Seibu, Takashimaya, and Mitsukoshi saw a decline in their revenue, these stores have been performing well with unique items and low prices. (The Nikkei Weekly 6/30/03)Back to top

STARBUCKS COFFEE HITS SALES RECORD IN NAGANO

Starbucks Coffee Japan announced on June 27 that a Starbucks Coffee shop that opened near the Nagano train station hit a sales record of 3 million yen ($25,000 US) on opening day. The normal average amount of sales income on an opening day is 370,000 ($3,000 US) yen. (Sankei Shimbun 7/2/03)Back to top

ALOHA FRIDAY CAMPAIGN AIMS TO SAVE ELECTRICITY

The Chamber of Commerce and Industry at Kanagawa prefecture Chigasaki launched a new campaign called "Chigasaki Aloha Friday". Stores at the Chigasaki Shopping Center will be wearing aloha shirts as business wear every Friday. The message they plan to send is "refrain from using AC and feel the breeze of the Shounan beach". (Sankei Shimbun 7/4/03) Back to top

TWO OUT OF EVERY THREE SENIORS HAVE NO WORRIES ABOUT FINANCES

Two out of three elders (65.5%) reported not having trouble coming up with money for their everyday needs. When limited to those in their 60s, some 70.8% were living without financial worries. The results help the travel industry and destinations overseas better understand the senior market as in recent years they have stepped up efforts in targeting this particular sector known for having more free time and disposable income than their younger counterparts. (Travel Journal International 6/10/03) Back to top

UMI NO HI (MARINE DAY)

July 21 was Marine Day, Japan's newest holiday. It was observed for the first time in 1996, after being declared a national holiday a year earlier. Japan now has 14 annual holidays.

A number of ocean-related organizations got together in 1991 to seek a holiday for the sea. Thanks to strong public support for the idea, July 21 was finally declared a national holiday in 1995 after several years of debate in the National Diet. Until then there were no holidays in the months of June, July, and August. The Japanese public was happy to gain a day off in the summer months.
Source: jinjapan.org

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NOUVEAU - ALA MOANA CENTER SELECTION

Ala Moana Center is a definite must for any Japanese visitor to Oahu. In fact, more than 3,000 Japanese tourists visit the center each day! This makes Japanese tourists one of the largest consumers on any given day. If your business is in Ala Moana Center, we welcome you to take a closer look at Nouveau, a publication 100% devoted to Ala Moana Center.

We are happy to say that Nouveau is a publication that will satisfy each of these concerns: larger and guaranteed editorial, more coupon offers, concern over the creation of our guidebooks being too early in advance. Please call us for a free copy of the magazine, or click here for more information.

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

Space Deadlines:

Nouveau - Ala Moana Center Selection - September/Fall issue - August 1, 2003
Aloha Airlines - Spirit of Aloha - November issue - September 15, 2003
Aloha Express - November Yearbook - September 1, 2003
Chikyu no Arukikata - Hawaii Mook - November issue - August 15, 2003
Chikyu no Arukikata - Guam Guidebook - November issue - August 15, 2003

Material Deadlines:

Nouveau - Ala Moana Center Selection - September/Fall issue - August 10, 2003
Aloha Airlines - Spirit of Aloha - November issue - September 30, 2003
Aloha Express - November Yearbook - September 15, 2003
Chikyu no Arukikata - Hawaii Mook - November issue - September 2, 2003
Chikyu no Arukikata - Guam Guidebook - November issue - September 2, 2003

It is not too late to call us (808-949-4592 or Toll Free 1-800-338-4502) to find out more about these upcoming media releases as we strive to find the best media available for you.

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7/21 Marine Day (Holiday)
8/13-8/15 Obon Season
9/15 Respect for the Aged Day
9/23 Autumnal Equinox Day
10/13 Sports Day
11/3 Culture Day
11/24 Labor Thanksgiving Day
12/23 Emperor's Birthday
12/31 Ushering in the New Year *Most offices close December 28 - January 4, 2004

Click here to see entire year.

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