Japan Market Update - September 2003 Edition

Aloha ,

The summer of 2003 has shown positive signs of recovery for the Japanese market. It is encouraging, as we move into September, to see arrival stats indicating that we are nearly back to 2002 levels. We hope the two Japanese holidays in September will offer opportunities to increase levels of Japanese travelers this September and really extend the summer season up to October. (See below or click here for the remaining 2003 holiday schedule). You can also find Japanese media selections on our website for the balance of 2003 and now for 2004 here.

I would like to encourage you to attend the Retail Merchants of Hawaii Annual Conference on Thursday, October 9, at the Hilton Hawaiian Village called "Ho'okela 2003, Striving for Excellence". The program will feature world renown speaker Murray Raphel, from Atlantic City, who's topic for the keynote presentation is "Tough Selling for Tough Times". Murray developed a shopping complex in Atlantic City and grew the business on direct marketing and unique sales programs--and now consults with retailers, supermarkets, hotels, and small businesses across the globe.

PacRim is sponsoring the speaker's airfare and the breakfast/snack tradeshow event. Sign up today--call RMH at (808) 592-4200. Event starts at 7:00AM, keynote address is 11:00 AM and followed by lunch and awards. See you there--come by our table in the tradeshow area and meet our staff--get some goodies and new 2004 calendar.

Thank you always for all of your support. Let us know how we can help with your 2004 marketing planning.

Warmest Regards,

P.S. Click here for hot news on PacRim's Japanese website traffic from last night's edition of PBN Online.

*Japan Market News
-----Japan arrivals in 2004 to increase by 25.6%
-----Wedding market arrivals and repeat visitors remain strong
-----Japanese MCI travelers increase by 43% in July
-----Visitor spending from Japanese on Oahu increases
-----Tour costs play an important factor in overseas travel
-----JTB to expand product line for "mature" travelers
-----Japanese account for more than 50% of timeshare ownership at the Hilton Grand Vacations Club
-----Watabe Wedding offers low priced packages to Hawaii
-----Wine is the recommended drink by tour guides
-----Department stores sales continue to decline
-----Demand for used goods continue to grow
-----Burger establishments are losing mass appeal
-----Japan unemployment numbers looking positive
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

JAPAN ARRIVALS IN 2004 TO INCREASE BY 25.6% IN COMPARISON TO 2003

According to a report released by Carl Bonham and Byron Gangnes at the University of Hawaii Economic Research Organization, Japanese arrivals are projected to increase by 25.6% in 2004. This would mean that the arrival level would be the same level as 2002. (Honolulu Advertiser 8/9/03)Back to top

WEDDING MARKET ARRIVALS AND REPEAT VISITORS REMAIN STRONG

The July figures for the Hawaii Department of Business, Economic, Development, and Tourism (DBEDT) show that 24,392 Japanese visited Hawaii in July for either weddings or honeymoons. This accounts for more than 26% of the leisure travelers to Hawaii. Repeat visitors have also shown a major market shift as 60% of the travelers in July have been to Hawaii before. (DBEDT 8/29/03)Back to top

JAPANESE MCI TRAVELERS INCREASE BY 43% IN JULY

Japanese visiting Hawaii for the purpose of Meeting, Conventions, Incentives (MCI) rose 43.2% to 3,519 from the same period a year ago. These numbers strengthen the fact that there will be a Japan business sector rebound. (Travel Journal International 9/1/03)Back to top

VISITOR SPENDING FROM JAPANESE ON OAHU INCREASES

Japanese visitors continue to spend the most out of all visitors to Hawaii, according to the first half of the year statistics released by DBEDT. The average daily spending by a Japanese visitor who stayed on Oahu increased from $219 to $236 per person. US West, which accounts for the largest number of arrivals to Oahu, spend just $132 per person. (Honolulu Advertiser 8/14/03)Back to top

TOUR COSTS PLAY AN IMPORTANT FACTOR IN OVERSEAS TRAVEL

Internet website Infoseek released its findings from a survey about overseas travel demand among Japanese men and women aged 20 to 59. According to the survey, 60% of those surveyed expressed a desire to travel abroad. When asked what influences their decision to travel, 90% of the respondents said travel costs are on the top of their list and a desire that the tour cost no more than 200,000 yen ($1,600US). (Wing Travel Daily 8/22/03)Back to top

JTB TO EXPAND PRODUCT LINE FOR "MATURE" TRAVELERS

Citing the increased demand in products for mature travelers, the JTB Mature Age Travel Center has launched products targeting travelers aged 50 and above in the second half of 2003. The package tours will focus on primarily three themes -- long stays, health and welfare, and culture and history. The long stay program will feature 2 to 3 nights at a hotel that targets seven cities, including Honolulu, New York, and France. (Wing Travel Daily 7/25/03)Back to top

JAPANESE ACCOUNT FOR MORE THAN 50% OF TIMESHARE OWNERSHIP AT THE HILTON GRAND VACATIONS COMPANY

The sale of timeshare ownership to the Japanese at the Hilton Hawaiian Village, which is marketed by Hilton Grand Vacations Club (HGVC), has exceeded their initial expectations. Owners of the "Lagoon Tower" timeshare location now report that over 50% of the owners are from Japan, surpassing their initial expectation by as much as 20%. In response to the growing demand, HGVC plans to open an office in Tokyo this fall. (Travel Vision News 8/18/03)Back to top

WATABE WEDDING OFFERS LOW PRICED PACKAGES TO HAWAII

Watabe Wedding, the largest wedding company in Hawaii that caters to the Japanese, has offered special summer wedding packages that are 20-50% cheaper than their normal packages in order to regain their customer base. For as low as $750, a couple could have a wedding ceremony, rental wear, make-up, and photo shooting in Hawaii. (Nikkei Shinbun 8/28/03)Back to top

WINE IS THE RECOMMENDED DRINK BY TOUR GUIDES

Wine is the most popular drink according to seasoned tour guides at JTB. Wine is seen as part of each country's culture, and when experienced with local specialties in a local atmosphere creates a memorable experience. The most popular wine recommended is Italian wine, followed by Pisco Sour from Peru and Sangria from Spain. (Travel Journal International 7/28/03)Back to top

DEPARTMENT STORES SALES CONTINUE TO DECLINE

For the 20th consecutive month of year-on-year declines, department store operators saw declining sales of 4% in July. They blame the exceptionally long rainy season this summer as well as the budget conscience corporate customers who are refraining from summer gift giving. July is traditionally the peak month for summer gift shopping. (Nikkei Weekly 8/18/03)Back to top

DEMAND FOR USED GOODS CONTINUE TO GROW

Bargain hunters are flocking to used goods dealers as companies that sell used auto parts and computers have been experiencing record sales. Considering the state of the economy, it should be no surprise that this market, with annual sales to be estimated at 50 trillion yen ($420 billion), has been experiencing consistent year-on-year increases. The used car market totaled 5.36 million vehicles in the last fiscal year, 33% more than new car sales. Similar trends can be seen in many other major markets. (Nikkei Weekly 8/18/03)Back to top

IS MEDIASTICK THE NEXT BIG THING FOR CONSUMER SPENDING?

A new product called the Mediastick will soon enable shoppers to purchase items by simply snapping a picture of it by using their mobile phone. Participating retailers will display a special barcode next to their products, and Mediastick's technology extracts the barcode when the photo is taken and sends the customer's information to the retailer, who bills and ships the product to the consumer. (Springwise, 8/29/03)Back to top

BURGER ESTABLISHMENTS ARE LOSING MASS APPEAL

A recent survey by the Nikkei Marketing Journal has shown that almost 50% of Japanese eat at hamburger restaurants less often than before. The survey notes that boredom, health concerns, and prices are keeping customers away. McDonald's Japan, who was once the major star in Japan's restaurant business, has booked a pretax loss for the first half of 2003. McDonald's, who originally predicted a 3.1% gain during the first half of the year, had a loss of 5.6% instead. (Nikkei Weekly 8/18/03)Back to top

JAPAN UNEMPLOYMENT NUMBERS LOOKING POSITIVE

Japan's unemployment rate stood at a seasonally adjusted 5.3% in July according to the Ministry of Public Management, Home Affairs, Posts and Telecommunications. The number of employed increased for the third consecutive month to total 53.82 million, a gain of 300,000 from the same month last year. (Nikkei Weekly 9/1/03)Back to top

AUTUMNAL EQUINOX DAY

September 24 is Autumnal Equinox Day, a national holiday. It is a day not just to mark the changing of seasons but also to pay our respects to our deceased parents, grandparents, and other family members.

The Japanese have traditionally called the period around the autumnal and vernal (springtime) equinoxes higan. Bon in August (July in some regions) is a time when the souls of our ancestors come to visit us. On higan, it's our turn to visit them. Visiting the family grave usually means cleaning the tombstone, offering flowers and food, burning incense sticks, and praying. A popular offering is ohagi, made with glutinous rice covered with azuki-bean paste or soybean flour. As higan approaches, confectioners become very busy trying to meet the expected demand for ohagi.
Source: jinjapan.org

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ALOHA AIRLINES - SPIRIT OF ALOHA INFLIGHT MAGAZINE

While most first timers to Hawaii head straight to Waikiki, repeaters have a stronger interest in visiting the outer islands during their stay. With Japan repeat visitors accounting for more than 50% of arrivals to Hawaii, businesses on the Neighbor Islands should prepare now for an increase in travelers.

An effective way of reaching these visitors is by advertising in the Aloha Airlines In-flight Magazine. You will find this publication in the seat pockets of all Aloha Air inter-island flights. Readers can also take the magazine with them and use the handy maps and travel information during their stay.

The next available issue is the Winter edition, which is distributed from November 2003 - February 2004. It is not too late to promote your business on Hawaii's top inter-island air carrier for the Japanese. For more information, please click here.

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Create interest in your product/service now for 2004!! 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 30, 2003
Aloha Express - November Yearbook - September 30, 2003
Nouveau - Ala Moana Center Selection Winter - October 10, 2003
Aloha Express - February 2004 Quarterly - December 1, 2003
Chikyu no Arukikata - Las Vegas Resort February 2004 - November 3, 2003

Material Deadlines:

Aloha Airlines - Spirit of Aloha - November issue - October 3, 2003
Aloha Express - November Yearbook - October 17, 2003 (No color proof for checking guaranteed)
Nouveau - Ala Moana Center Selection Winter - November 10, 2003
Aloha Express - February 2004 Quarterly - December 15, 2003
Chikyu no Arukikata - Las Vegas Resort - December 5, 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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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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