Japan Market Update - August 2003 Edition

Aloha ,

The summer of 2003 is in full swing and with this week Hawaii will see the peak of Japanese arrivals that coincide with Obon season in Japan. In this newsletter we've noted some background on this special August holiday season, as well as highlighted some of the other important holidays in the Japanese calendar.

Visitor arrivals to Hawaii have bounced up and down in July and August, and on many occasions have met the levels achieved last year. This is an important step toward recovery in the post-SARS market.

Hawaii continues to be one of the preferred destinations for Japanese travel and we remain positive in our outlook for the business and recovery. Some interesting highlights in our trends research indicate the growing importance of the Internet in Japan for reservations and information gathering.

Looks like in Japan, as well as the US, many consumer travel decisions include touching the keyboard at some stage of the decision making process. The power of Japanese online presence is becoming more evident--and is giving the consumer more freedom to plan and purchase their trips independently. Consumers are becoming more sophisticated in the travel decision making process, and are also making more last minute bookings.

Broadband in Japan is growing at a staggering monthly amount, and this has lead to more home usage of the Internet, as well as longer time spent online. This is exciting news and more on these developments are noted in our updates below.

Best Regards,

!!SPECIAL REPORT!!
*Japan Market News
-----Hawaii's Japan visitor traffic rises in August
-----Summer travel to Hawaii, Australia, and South Pacific is the strongest
-----Japan overseas travel to accelerate in the Fall
-----Repeat visitors play a vital role in recovery
-----HTA selects Dentsu to market Hawaii
-----Internet sales at JTB increase by 78%
-----JTB consolidates nine operations into one
-----JTB World Vacation to target F.I.T. market
-----Travel tops the to-do list for retirement spending
-----Nike starts to promote Honolulu Marathon in Japan
-----Luxury brands continue to bolster Japan operations
-----Natural ingredients for skin care gain popularity
-----Wrist cell phones are hot in Japan
-----Turbans take stage as a new trend for head wear
-----Hat stores continue to remain popular with young
-----Online game market grows 300% annually
-----Change in U.S. VISA policy may affect travel demand for studying abroad
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

KEY THEMES FOR 2003!

MEN'S FASHION

Key words: Details, details, details
Men are looking for items that are focused on details

WOMEN'S FASHION

Key word: Subtlety
Subtle casualness to project individuality by adding small accessories to their wardrobe

LIFESTYLE

Key words: Interior Design
As with men's fashion, the focus in on the details

INFO/DIGITAL

Key word: Broadband
High-speed Internet connection are growing at record levels

HEALTH

Key word: Supplements
The increased number of stressed individuals has boosted the demand of supplements

FOOD

Key word: Organic
The growing health conscious trend makes organic food popular

Source: Asahi Back to top

HAWAII'S JAPAN VISITOR TRAFFIC RISES IN AUGUST

Hawaii's tourist areas have been extremely busy this month. The main reason for this increase is that international arrivals for the week of 8/2-8/8 hit 41,468 arrivals, compared to only 39,727 for the same period last year. Japanese arrivals which have averaged 3,000 to 4,000 arrivals per day this year have topped 5,000 from 8/6-8/8. The outlook for the rest of the summer remains promising. (Pacific Business News 8/11/03)Back to top

SUMMER TRAVEL TO HAWAII, AUSTRALIA, AND SOUTH PACIFIC IS THE STRONGEST

Described as "safer" destinations for overseas travel, these three destinations will lead the summer travel season, according to the latest survey results released by JTB Corp. JTB points out that these three destinations have showed the most resilience in terms of changes in volume of travelers they have attracted this summer. The results show that Hawaii will host 193,000 travelers, 10.23% down from last year. The South Pacific will attract 11,000 visitors, down 8.33%, while Australia will see 88,000 Japanese visitors, down by 9.28%. As for spending levels, Japanese heading abroad will average about 222,893 yen, up 4.6% from a year ago. (Travel Journal International 7/14/03) Back to top

JAPAN OVERSEAS TRAVEL TO ACCELERATE IN THE FALL

That's the word from Mr. Hiroshi Kurosu, chief researcher at the 8th Overseas Travel Trend Symposium sponsored by the Japan Travel Bureau Foundation. "As was the case of the Gulf War in 1991 and the 9/11 terror attacks in 2001, it took seven to eight months from the outbreak of crisis until full-scale recovery. It is expected that the recovery trend to accelerate early Fall and into high gear toward the year-end period". He also expects the total number of overseas travelers during 2003 to be between 13 and 13.5 million, which was the same level as 1994. (Travel Vision News 8/4/03)Back to top

REPEAT VISITORS PLAY A VITAL ROLE IN RECOVERY

Another trend described by Mr. Kurosu at the symposium was that "repeaters, more than ever, play an important role of the growth engine that will support a full-scale recovery". Mr. Masahiro Isogai, chief researcher at the Japan Tourism Marketing Company, said that in a market situation where repeaters play an important role of influencing overseas travel trends, what is demanded by consumers of the supply side is not cut-rate competition on travel products, but the development of intriguing products. (Travel Vision News 8/4/03)Back to top

HTA SELECTS DENTSU TO MARKET HAWAII

The Hawaii Tourism Authority has chosen Dentsu Inc to market Hawaii in Japan. Dentsu is Japan's largest ad agency and is based in Tokyo. This will be the first time that the HVCB (Hawaii Visitors Convention Bureau) will not be marketing Hawaii in Japan. With the selection, the HVCB is also planning to close both of its branches in Japan. Dentsu will take over the Hawaii marketing promotions on Jan. 1, 2004. (Pacific Business News 7/25/03)Back to top

INTERNET SALES AT JTB INCREASE BY 78%

Thanks to the rising popularity of broadband access to the Internet, online sales helped JTB Corp. report a 78% jump in e-commerce sales in the fiscal year of 2002. JTB, which has also established a web travel business division this past April, set a sales target of 100 billion yen in online sales in the fiscal 2005 year. In 2002, sales reached 33.7 billion yen. (Travel Journal International 7/22/03)Back to top

JTB CONSOLIDATES NINE OPERATIONS INTO ONE COMPANY

The new company will be called "JTB World Vacations" and is currently scheduled to start on April 1, 2004. The companies to be consolidated are JTB World, JTB World Chubu, JTB World Western Japan, JTB World Kyushu, JTB Hawaii, Pacific Micronesia Tours, JTB China Tours, LOOK JTB division of STC, and JTB Discover World. (Travel Vision News 8/4/03)Back to top

JTB WORLD VACATIONS TO TARGET F.I.T. MARKET

Mr. Masato Ito, who is currently the president of JTB World and will become president of the new company JTB World Vacations, expressed his commitment to the new company by saying "Winners in the overseas travel market are not determined by the sales of package tours alone; they are the ones who could dominate others in major sectors of the market, including FIT business". The objectives of the new company are to direct resources to the four major airports (Narita, Kansai, Nagoya, and Fukuoka) to create more versatile package tours and to seek and enhance professionalism vigorously. (Travel Vision News 8/4/03)Back to top

TRAVEL TOPS THE TO-DO LIST FOR RETIREMENT SPENDING

With the market for targeting senior citizens continuing to grow, companies in tourism and housing needs are bolstering their efforts to offer goods and services to people in older age brackets. A recent survey done by the Nihon Keizai Shimbun has found that over 50% of retirees will spend money on domestic travel, while 30% will spend money on overseas travel. Home renovations was also a popular choice for seniors. (Nikkei Weekly 7/7/03)Back to top

NIKE STARTS TO PROMOTE HONOLULU MARATHON IN JAPAN

Nike, the world's largest shoe company and supporting sponsor of the Honolulu Marathon is promoting the annual marathon in Japan's most popular running magazine. The July edition of Runners magazine will include an Nike insert book with photos of the marathon. Nike plans to also advertise in the September and November issues as well. (Pacific Business News 8/4/03)Back to top

LUXURY BRANDS CONTINUE TO BOLSTER JAPAN OPERATIONS

Overseas retailers of high-end jewelry and fashion brand names are continuing to open new boutiques and expand existing stores. Retailers consider Japan a key market as it accounts for 20-30% of their total global sales. Cartier's new store in Japan is an amazing 1,030 square meters of sales space in the Ginza shopping district. Tiffany & Co. bought the building that houses its Ginza boutique last month and plans to conduct a large-scale renovation shortly. Coach has also been one of the most aggressive brands in Japan, as they opened its largest outlet in April and plans to open two more shops by the end of the year. (The Nikkei Weekly 7/21/03)Back to top

NATURAL INGREDIENTS FOR SKIN CARE GAIN POPULARITY

Cosmetics made from unusual natural ingredients such as rice bran, soy milk, and collagen extracted from fish scales, are lining up on store shelves throughout Japan as more health-conscious women who are wary of chemicals found in conventional make-up look for an alternative. Sales officials note that many young women only buy a product after checking the ingredients. (Nikkei Weekly 7/14/03)Back to top

WRIST CELL PHONES ARE HOT IN JAPAN

Trend conscious youngsters and nostalgic baby boomers (who are mostly men) have been the main target for these cellular phones. The baby boomers are drawn by the angular metallic look, which was inspired by gadgets worn by the Japanese TV action heroes they grew up on. The handcuff-like Wristomo, released by NTT DoCoMo, Japan's leading mobile carrier, costs around $310 and sold 5,000 units in two months. (Mercury News 7/17/03) Back to top

TURBANS TAKE STAGE AS A NEW TREND FOR HEAD WEAR

Recent world events has fueled the trend as young Japanese trendsetters are putting a new twist on fashion this year by opting for turbans as an alternative for head wear. Many retailers have jumped on the trend as shops continue to sell out faster than they are able to produce them. The trend is mainly in Tokyo now, but according to an official with Shigematsu Co., a hatmaker in the Osaka area, it will begin to spread to the rest of the country this Autumn. (The Nikkei Weekly 7/21/03)Back to top

HAT STORES CONTINUE TO REMAIN POPULAR WITH THE YOUNG

Hat stores across Tokyo are scrambling to introduce the latest assortment of head wear that features unique designs and material such as bamboo, old shirt cloth, and "tenugui" Japanese towels. Shops are targeting young consumers in their 20's as their hat boutiques invite customers with stylish dŽcor and innovative ways of displaying their products. (The Nikkei Weekly 7/21/03) Back to top

ONLINE GAME MARKET GROWS 300% ANNUALLY

With the popularity of broadband Internet growing at record levels, another industry has begun to capitalize on its success. The online game market, which enables one or more players to pay each other through the Internet, has been growing at an explosive rate of 300% annually. According to the Digital Content Association of Japan, the size of the online game market was 1.4 billion yen ($12 US million) in 2001 but grew to 6 billion in 2002, and is expected to grow to 22.5 billion yen this year. Online game sites charge members about 1,500 yen ($12.50 US) per month for their services. (The Nikkei Weekly 7/21/03) Back to top

CHANGE IN US VISA POLICY MAY AFFECT TRAVEL DEMAND FOR STUDYING ABROAD

The US embassy has announced that they will be revising their non-immigrant Visa policies for visitors on business and educational purposes. The new policy, effective August 1, requires a personal interview with a US embassy or consulate official. The only cities that can conduct the interviews are Tokyo, Osaka, and Naha (Okinawa). Any Japanese planning to travel to the US for studying abroad will need to set an appointment and pay for all travel expenses. (Wing Travel Daily 7/4/03) Back to top

OBON SEASON

Obon is a Buddhist event to honor the spirits of the dead which are believed to return between the 13th and 16th of August. Typically, people often go to clean and pray at the graves of deceased loved ones, and lanterns are carried to "light their way" back home. Fires are often lit outside the entrances of homes to keep the ancestor's spirits from losing their way. These are set twice, once to welcome the spirits and once to send them off. In some parts of Japan, on the last day of Obon, people set paper lanterns afloat in rivers or the sea. Many people who are not Buddhist still take part in these kinds of customs as matter of tradition.
Source: jinjapan.org

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JJ HAWAII - BOOK 7

If your business caters to young female travelers to Hawaii, then the JJ Hawaii Book should top your advertising list. This is Hawaii's most popular guidebook for women aged 18-28. It also ranks extremely high in visitor publication market penetration surveys, ranking in the top 5 of the most popular guidebooks for Hawaii. What makes this feat more impressive is that the JJ Hawaii Book only targets young women.

This will mark the 7th consecutive successful year that JJ Hawaii will be launched. JJ Hawaii is a special issue about Oahu that is released by JJ Magazine, the #1 fashion magazine for women in Japan. 640,000 copies of JJ Magazine are distributed every month and JJ readers are loyal purchasers to any special issue that is released. The next issue of the JJ Hawaii Book will be released in February 2004.

Although we are not able to guarantee editorial for this publication, to be considered for editorial by advertising in JJ Hawaii Book, we need to have your ad commitment no later than September 12, 2003. 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:

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 29, 2003
Chikyu no Arukikata - Guam Guidebook - November issue - August 29, 2003
Chikyu no Arukikata - Family Guidebook - December issue - October 1, 2003

Material Deadlines:

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
Chikyu no Arukikata - Family Guidebook - December issue - October 15, 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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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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