Japan Market Update - November 2003 Edition

Aloha ,

The holiday season is upon us and that means that 2004 is just around the corner. We have included some updates, ideas, information, and resources in this newsletter that may help you as you put the final touches on planning for next year.

The Japanese market continues to be Hawaii's number one overseas market. We hope that we can assist you with some new solutions for your planning in 2004--and help you to gain a larger share of the Japanese business.

Best Regards,

*Japan Market News
-----Japanese visitors climb to within 1.3% of 2002
-----Strong end-of-year booking forecast for Hawaii and Europe
-----Over 33,000 visit the Hawaii pavilion at the World Travel Fair
-----Cruise market in Hawaii expected to grow in 2004
-----Northwest considers resuming Osaka-Honolulu service
*Japan Market Trends
-----Lomi lomi massage and hula lesson tours gain popularity
-----"Comfort" is this year's catchword in fall/winter clothing
-----Handbag craze has makers scrambling
-----Luxury brands attract customers with innovative shopping experiences
*Japan Market: Special Report!!
-----Senior Travel Market - Are You Ready?
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

SEPTEMBER FINISHES OFF STRONG AS JAPANESE VISITORS CLIMB TO WITHIN 1.3% OF 2002

As Japanese continue to shy away from Asian destinations, Hawaii saw their count of Japanese visitors reach 129,678, which was 1.33% less than last year and making it the second-highest count this year. It also marks the biggest rebound for Hawaii since arrivals fell by double digits from March. (TJI International 11/3/03)Back to top

STRONG END-OF-YEAR BOOKING FORECAST FOR HAWAII AND EUROPE

According to the Japan Association of Travel Agents (JATA), bookings for the remainder of the year are on the rise, with Hawaii and Europe on pace to reach last year's level. The report is based on booking levels by five major tour wholesalers. (TJI International 10/27/03)Back to top

OVER 33,000 VISIT THE HAWAII PAVILION AT THE WORLD TRAVEL FAIR

The Hawaii Visitors and Convention Bureau reported that the interest in Hawaii was so high at the JATA/World Travel Fair that more than 60% of the 55,000 attendees visited the Hawaii Pavilion. Special performances by ukulele master Jake Shimabukuro and live radio broadcasts entertained visitors throughout the week. (Pacific Business News 10/17/03)Back to top

CRUISE MARKET IN HAWAII EXPECTED TO GROW IN 2004

The appeal of Hawaii as a visitor destination combined with the development of fly-and-cruise products for the Japanese market will boost the popularity of cruises in 2004. The cruise industry will be taking a huge step forward in Japan, as 450 travel industry professionals are seeking licenses to become cruise consultants and help with the popularity of cruises. Norwegian Cruises plans to sail its first US-flagged ship in Hawaii in July 2004. A second ship is planned for October 2004, and a third is planned to set sail in 2006. (TJI International 10/27/03)Back to top

NORTHWEST CONSIDERS RESUMING OSAKA-HONOLULU SERVICE

Philip C. Haan, Northwest's executive vice president in charge of International Sales and Information Services said that the airline is considering resuming service from Kansai Airport to Honolulu as early as next spring. Increased landing fees has been a major roadblock for the airline, as the Kansai International Airport charges a 9% landing fee until March 2004. (TJI International 11/3/03)Back to top

LOMI LOMI MASSAGE AND HULA LESSON TOURS GAIN POPULARITY

With the increasing interest in traditional Hawaiian massage and hula, the Nippon Travel Agency has introduced special tours featuring these activities beginning in December. Each tour will feature lessons taught by professional dancers and therapists. (TJI International 10/20/03)Back to top

"COMFORT" IS THIS YEAR'S CATCHWORD IN FALL/WINTER CLOTHING

The catchword for recently released autumn/winter clothing lines in Japan is comfort, something apparel makers say they have achieved by using new types of fabrics. For example, a new fabric called DiAPLEX, created by Mitsubishi Heavy Industries Ltd., has tiny openings between their fibers to contract or expand depending on the temperature. Other new fabric materials include Breath Thermo (absorbs perspiration) and Teflon HT (prevents static electricity). (Nikkei Weekly 10/13/03)Back to top

HANDBAG CRAZE HAS MAKERS SCRAMBLING

The handbag craze in Japan has continued to take luxury brand goods makers by surprise and women find bags and shoes as a cheaper and discrete way to display brands. The proportion of bags to total sales has been increasing so quickly that Italian brand Fendi shifted its focus from furs to bags and shoes when it revised their strategy last year in Japan. Even Yves Saint Laurent, primarily known for its clothes and cosmetics, introduced a new series of bags and shoes called the Cassandre Line this summer. The high demand for brand name bags is because Japanese enjoy showing off expensive foreign products and prefer bags and shoes because they are less conspicuous. Another reason is that bags show logos more prominently than clothes do. (Nikkei Weekly 10/13/03)Back to top

LUXURY BRANDS ATTRACT CUSTOMERS WITH INNOVATIVE SHOPPING EXPERIENCES

With the latest trend of brand retailers phasing out boutiques in department stores and opening their own stand-alone shops, many luxury brands have been creating innovative shopping experiences and make the shopping experience feel as exclusive as the products. For example, Louis Vuitton's newest shop in Roppongi Hills that opened on Sept. 5, has a design similar to a nightclub, which is fitting since the boutique is located in an active nighttime district. You will even find a "Bag Bar" equipped with a long counter and tall stools. Coach also adapted their store image in accordance to their shoppers. The Ginza store has a refined, sophisticated look, while the Shibuya store is open and bright, primarily to appeal to the area's young shoppers. (Nikkei Weekly 10/13/03)Back to top

SENIOR TRAVEL MARKET - ARE YOU READY?

It was the most popular topic of conversation at the JATA World Tourism Congress on October 2 in Yokohama. The theme of the congress was "Adapting to Japan's Emerging Mega Travel Market" as several industry experts spoke about the expected growth of the senior market and how it will affect all of our businesses in years to come. Here are a few highlights from some speeches given at the congress.

From "Fit and Survive" (Keynote Address)
Speaker, Isao Matsuhashi, Director, JTB Corporation
There are five major challenges in the future of Japanese travel:

1. Japan's aging society -- Whether you are ready or not, Japan's population is rapidly aging. 24 million people are 65 years or older, which is one out of every five people in the country. This is the highest percentage among all industrialized nations.

2. Price wars -- Since 9/11, price-cutting has been more of the norm than a promotion. However, quality should always be the most important goal, followed by price.

3. Maturing travel market -- Over the past decade, 200 million Japanese have visited an overseas destination. Each location must plan to redefine its identity.

4. Specific and more professional -- As information technology continues to move forward, consumers are becoming more experienced and educated. Therefore, you need to remain abreast of available information, technically and professionally, and well ahead of the customers at all times.

5. Internet's role -- The Internet has drastically changed the way business is done. For tour operators and suppliers, the change has affected their company as customers are now working directly with hotels and airlines. Cooperation between companies will be the key to success in the future.

From "Trends and Potential of the Japanese Outbound Market"
Speaker, Hidetoshi Kobayashi, Managing Director, JTB Foundation

Stock Consumers vs. Flow Consumers
There are two types of travelers: stock consumers and flow consumers. "Stock consumers" are a group that is not susceptible to economic influences and have enough time and resources to travel overseas. They are more concerned about safety issues than the economy. Stock consumers are usually found in the 50 and over age group.
"Flow consumers" travel only when economic conditions are strong and that they have enough time and money to travel overseas. Flow consumers are usually in their 20's and 40's. They are also very sensitive to product pricing.

Female Travelers in Their 30's
Why are women in their 30's increasing in travel while women in their 20's and 40's are decreasing? It has to do with women marrying later in their life. According to a recent survey, 70% of unmarried women in the Tokyo area live with their parents. One research study shows that half of female travelers in their 30's are unmarried.

Keywords -- "Sophisticated Experience" and "Hobby"
When targeting the stock consumers, keep in mind these two catchwords. They take trips as an extension of their interests or hobbies. The days of "mass market" tours will soon be over and the outbound market will be seeking more niche tours. In other words, look for a variety of tours offered with fewer participants than before. Products aimed at the mass market are no longer attractive.

From "A Perspective on Senior Travel Market"
Speaker, Kotaro Kogi, VP and Executive Director, Global Youth Bureau, Co. Ltd.

When attracting seniors, some suggested principles to follow are 1) limit the number of participants to no more than twenty, 2) select quality hotels, 3) train tour conductors, 4) carefully choose restaurants and places visited, 5) never force tour participants to shop at certain local shops.

From "Preferences for Nature Among Seniors"
Speaker, Tenshin Kobayashi, Secretary General, Japan Ecotourism Society

Seniors are different from the young travelers in many different ways. The most important concept to remember is safety. Safety in areas of public security and hygiene are regarded as highly important for Japan's middle-aged and elderly tourists. Nature is also important as a brief encounter with nature can dramatically increase the level of satisfaction among seniors.

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SHICHI-GO-SAN (Seven-Five-Four)

November 15 is Shichi-go-san, a day of prayer for the healthy growth of young children. Shichi-go-san literally means seven, five, three; in most regions around the country, boys and girls aged three, boys aged five, and girls aged seven visit a Shinto shrine with their parents. Most girls wear kimonos when making their Shichi-go-san visit, while boys don haori jackets and hakama trousers. In recent years, though, an increasing number of children are wearing Western-style dresses and suits.

November 15 was chosen for this celebration because it was considered the most auspicious day of the year, according to the traditional Japanese calendar. Because the date is not a national holiday, most families pay their Shichi-go-san respects on the weekend just prior to or after November 15.

Following the visit, parents generally buy chitose-ame (longevity candy) for the children. The candy is shaped like a stick and comes in a bag that carries illustrations of cranes and turtles--two animals that are symbols of long life. Chitose literally means a thousand years and is used to denote very long periods of time. The candy and the bag are both expressions of parents' wish that their children lead long, prosperous lives.

Source: jinjapan.org

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ALOHA EXPRESS: OTONA NO HAWAII MAGAZINE

The number of mature and senior Japanese traveling abroad will continue to grow in 2004. Overseas travel has changed from something seniors longed to do, to something they can actually experience. Whether you are ready or not, Japan is rapidly aging. Major tour agencies, airlines, and travel related businesses have already addressed this situation by creating products that target this growing market segment, as well as advertising in media that reaches this alluring market.

Sony Magazine's Aloha Express will be releasing the next edition of their popular Otona no Hawaii (Mature and Senior traveler) lifestyle magazine in March 2004. This remains the only publication that is solely dedicated to this market. Let us help you prepare your business for the next major travel market to Hawaii. For more information about the publication, please contact your PacRim representative, or 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 Express - February 2004 Quarterly - December 1, 2003
Chikyu no Arukikata - Las Vegas Resort March 2004 - December 25, 2003
Chikyu no Arukikata - Florida Resort March 2004 - December 25, 2003
Aloha Express - Otona no Hawaii (Luxurious Hawaii) - January 16, 2004

Material Deadlines:

Aloha Express - February 2004 Quarterly - December 15, 2003
Chikyu no Arukikata - Las Vegas Resort - January 23, 2004
Chikyu no Arukikata - Florida Resort March 2004 - January 23, 2004
Aloha Express - Otona no Hawaii (Luxurious Hawaii) - January 30, 2004

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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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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