Japan Market Update - December 2003 Edition

Happy Holidays ,

2004 is just around the corner and it is hard to believe another year is nearly behind us. Many have asked us for a wrap-up of what has happened in the Japan travel market over the past year and what we can look forward to next year.

This issue will touch on last year's results for Hawaii travel from Japan, and we will continue to update this information at the beginning of January. In summary, the past five months have been positive and Hawaii has been trying to regain lost ground from the war and SARS. The travel climate has made good progress since, and response from key industry leaders indicate that there is increased confidence as we move into next year; advanced bookings in many categories of properties is beginning to look like a continuing positive trend.

We value your comments and suggestions, and have made some changes to our newsletter to reflect your feedback. The PacRim team hopes to continue enhancing the information we provide so that it is interesting, informative, and relevant to your business planning and cultural understanding. Each issue also offers suggestions for reaching Japanese consumers using media opportunities available through PacRim Marketing Group, Inc.

We hope you all have a great holiday season. We thank you for your continued support, business, and friendship.

Warmest Aloha,

*Japan Market News
-----Travel: Japan tourism gaps narrow, but falling short of 2002
-----Travel: Family travel recuperates in July
-----Travel: Most Honolulu marathoners participate from Japan
-----Travel: JTB's 12-million-yen tour draws applicants
-----Travel: Arukikata.com debuts as first-category travel agency
-----Hospitality: Ritz-Carlton reports increase in Japanese guests
-----Business: Japan ranks 11th in global competitiveness
-----Politics: Japan's Prime Minister reelected for second term
-----Beauty & Fashion: Day spas beckon working urbanites
-----Technology: You can leave your home without it
-----Retail: Victory sweet for Japanese baseball fans
-----Trends: New Yorkers have a ball with Japanese cheap-eats
-----Trends: Japanese cellphones ring out downloaded "Aloha"
-----Seasonal: PCers and PCSers prefer old-fashioned holiday cheer
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JAPAN TOURISM GAPS NARROW, BUT FALLING SHORT OF 2002

How did Japanese tourism in Hawaii do this year? At a glance, strong Japanese arrivals marked the beginning of 2003, giving hope that the trend would overturn lagging tourism from the previous year. The months following the Iraqi war and the SARS outbreak saw instant declines in arrivals, until they bottomed out early summer nearly 40 percent lower than 2002. Arrivals rebounded through October, narrowing the deficit to 4.7 percent. November arrivals ran above 2002 levels at 105 percent, raking in the first positive figures since February. December bookings are solid according to travel agencies, but industry experts don't expect the year-end surplus to compensate for this year's shortages. The Hawaii Tourism Authority (HTA) forecasts the year will end with 1.3 million Japanese arrivals, down 11.3 percent from the previous year.

The good news is, despite a slowly recuperating economy, Japanese visitors are still spending more money in Hawaii than any other traveling sector observed by the state. Average daily spending is $240 per person, 30 percent more than is spent by domestic travelers. A stronger yen over the last couple of months adds to their purchasing power, fueling an even healthier retail climate for the tourism industry. Another positive trend is the meetings and conventions market: more Japanese travelers visited Hawaii for corporate meetings and conventions than in previous years, an impressive 39 percent increase from last year alone.

Meanwhile the state tourism agency and private companies keep an outlook for the future, as they unveil plans to draw visitors for next year. Newly-appointed Dentsu Inc., Japan's largest advertising agency, will spearhead Hawaii marketing campaigns in Japan. Norwegian Cruise Line will also target Japanese travelers, anticipating 20 percent of its Hawaii cruise passengers to originate from Japan.
(Sources: DBEDT 11/25/03; The Honolulu Star Bulletin 11/26/03; The Honolulu Advertiser 11/26/03. For the complete DBEDT October news release and statistics, visit http://www.hawaii.gov/dbedt/news/2003/0352.html) Back to top

TRAVEL: FAMILY TRAVEL RECUPERATES IN JULY

Despite declines in outbound Japanese travel this year, family travel improved during the summer. Recent figures from the Japan National Tourist Organization show that children under the age of nine, and corresponding adults in the 30-40 age group traveled more in July than in preceding months. The improvement can be attributed to students' summer holidays during July and August, in addition to a healthier travel climate after the containment of the SARS outbreak. (Source: Travel Journal International 11/10/03) Back to top

TRAVEL: MOST HONOLULU MARATHONERS PARTICIPATE FROM JAPAN

For the 15th consecutive year, Japanese runners will dominate the starting line at the Honolulu Marathon on December 14th. Although overall turnout is about 20 percent lower than last year, 14,253 Japanese participants are currently registered, 60.2 percent of a total 23,657 entrants worldwide. Compared to over 30,000 participants last year, the 2003 marathon looks to be a smaller race. In its 20-year history, the marathon's greatest year was 1995, when 34,434 runners tread the 26-mile course through eastern Oahu. That race also accommodated the most Japanese runners in the marathon's history, 21,717 in all. Japanese participation has been so successful that the Honolulu Marathon hosts a Japanese web site, and also holds a field office in Tokyo. (Source: Pat Bigold, Honolulu Marathon; http://www.honolulumarathon.org. For more information on the Honolulu Marathon, visit http://www.honolulumarathon.org) Back to top

TRAVEL: JTB'S 12-MILLION-YEN TOUR DRAWS APPLICANTS

Royal Road Ginza, a JTB subdivision, reported receiving 60 applicants and over 100 inquiries for a luxury tour spanning North America, Africa, and parts of Eurasia. The tour is limited to 10 couples. Travel packages for this 36-day trip range from $60,000 to $100,000, for which the itinerary includes first- or business-class air travel, a cruise on the Queen Mary II, a luxury cabin on the Orient Express, a night at the Vienna Philharmonic Orchestra, among other activities carefully selected by a personal travel guide. JTB opened its latest high-end retail outlet this fall, catering to older and more discerning Japanese travelers. Their offerings -- available both online and at their office -- are wide and abundant, ranging from historical tours of Kyushu to private-jet travel through France. Royal Road Ginza's signature service, however, is the "order-made" tour, where budget-busting itineraries are specifically tailored to clients' needs and desires. (Sources: Travel Journal International 11/10/03; http://www.royalroad.jp 11/14/03) Back to top

TRAVEL: ARUKIKATA.COM DEBUTS AS FIRST-CATEGORY TRAVEL AGENCY

In contrast to the popularity of high-end travel among older and wealthier Japanese consumers, kakuyasu -- dirt cheap -- choices remain a high priority for most. Such demand for budget-conscious travel spawned the revamping of Arukikata.com, a full-service online travel agency that now offers deeply discounted air tickets, hotel and car rental deals, rail passes, tour packages, and travel insurance. Arukikata.com received its license as a wholesale agency, which will allow it to purchase directly from airlines in addition to other wholesale agencies. The company expects to attract 1 million customers over the next year, bringing in estimated revenues of 8 billion yen (approximately $72 million). (Source: Travel Journal International 11/16/03) Back to top

HOSPITALITY: RITZ-CARLTON REPORTS INCREASE IN JAPANESE GUESTS

The luxury hotel chain reported a 20 percent increase in reservations from the Japanese market over the last three months, a considerable recovery after dismal figures that followed the SARS scare earlier this year. The Ritz-Carlton Kapalua on Maui is among the chain's most popular properties with Japanese visitors, along with Cancun (Mexico), New York (USA), Bali (Indonesia), Hong Kong, Shanghai (China) and Singapore. Average occupancy levels at these properties have reached between 70 and 80 percent. (Source: Travel Journal International 11/10/03) Back to top

BUSINESS: JAPAN RANKS 11TH IN GLOBAL COMPETITIVENESS

Confidence in Japan's tech sector resulted in a surge from 16th to 11th this year in growth competitiveness, according to an annual report issued by the World Economics Forum. Asia's best performers were Taiwan (5) and Singapore (6), although Japan ranked slightly ahead of Taiwan in the business competitiveness category. Finland (1) and the U.S. (2) led the pack of 102 surveyed countries, in both growth and business categories. The WEF ranks industrialized and emerging countries based on factors that include quality of infrastructure, stability of institutions, and conditions for sustained growth. (Source: http://www.CNN.com 10/30/03; http://www.weforum.org. For complete rankings, click on "Global Competitiveness Report" at http://www.weforum.org) Back to top

POLITICS: JAPAN'S PRIME MINISTER REELECTED FOR SECOND TERM

Liberal Democratic Party (LDP) President Junichiro Koizumi was reelected as Japan's Prime Minister, after his three-party coalition won the majority of general election votes. Although the LDP lost votes in the Lower House to the emerging opposition party -- Democratic Party of Japan (DPJ) -- the LDP continues to dominate the House of Representatives. One of Koizumi's top agendas is to reevaluate the yen's recent surge, but at the same time sustain Japan's economical improvement. The Japanese economy grew by 3.9 percent in the April - June quarter, its fastest increase in over two years. (Sources: Japan Today 11/18/03; TBS News 11/19/03. For up-to-date Premier news, visit http://ikjeld.com/files/primeminister.html) Back to top

BEAUTY & FASHION: DAY SPAS BECKON WORKING URBANITES

The day spa is quickly emerging as the latest Japanese iyashi, or "healing" trend. More convenient than a trip to the hot spring, and more affordable than the traditional "esthetic salon" that provides series of facial treatments, urban day spas draw -- not surprisingly -- working women in their late 20s through 40s looking to cap the daily grind with casual relaxation. Singapore- and Indonesia-based spa companies have set up shop in trendy shopping malls and hotels, their services promoting tranquility, exotic ingredients, and east Asian hospitality. A 60-minute facial at the St. Gregory spa in Tokyo is 12,000 yen, approximately $109; a three-hour "detox" package costs 33,000 yen, or approximately $300. (Source: Nikkei Weekly 8/4/03; http://www.st.gregory-spa.jp) Back to top

TECHNOLOGY: YOU CAN LEAVE YOUR HOME WITHOUT IT

Cash registers in Japan may soon be accepting cell phones as a form of payment, thanks to a joint effort by Sony Corporation and telecom giant NTT Docomo, Inc. A new cell phone in the works will incorporate the technology of Sony's non-contact smart card, or "integrated circuit (IC) card," allowing the phone to be merely cast over an IC card-reader for making debit purchases. Sony's FeliCa IC cards can currently be used to purchase mass transit tickets, groceries, and to make utility payments at select convenience stores. (Sources: Japan Today 10/27/03; TBS News 10/27/03; http://www.sony.net. For more information on IC technology, visit Sony's Felica website at http://www.sony.net/Products/felica/ ) Back to top

RETAIL: VICTORY SWEET FOR JAPANESE BASEBALL FANS

What do baseball and shopping have in common? Fans. In Japan, where three of their twelve major league baseball teams are owned by corporations that operate department stores, victory is euphoric for sports fans and shoppers alike. When the Daiei Hawks (owned by Daiei Corp.) beat the Hanshin Tigers (owned by the Hanshin Electric Railway Co., Ltd.) in October, shoppers flocked to the Daiei stores for commemorative sale events and shopping sprees. It's not known whether the Hanshin department stores hosted sales after their loss, but the hype leading up to the championship games gave the chain ample opportunity to host numerous promotional sales. In other baseball news: Japanese export Hideki Matsui batted all games this season, leading the Giants to a triumphant league history in September. The series ended with decade-old Florida Marlins upsetting the century-old New York Yankees in a 4-2 sweep. Speculation that Matsui might become this year's Rookie of the Year splashed sports pages throughout Japan, but Matsui also lost that crown, to shortstop Angel Berroa of the Kansas City Royals. (Sources: http://www.cnn.com 10/20/03; http://www.mlb.com 10/25/03; Yomiuri Online 10/1/03 ) Back to top

TRENDS: NEW YORKERS HAVE A BALL WITH JAPANESE CHEAP-EATS

Amid post-9/11 downturns and a saturated Japanese restaurant market in New York City, a stylish cafe featuring "omusubi," or Japanese rice balls, made a grand opening early October near Midtown. Oms/b, as the restaurant is cleverly named, offers the bustling lunch-hour crowd a glass-cased menagerie of omusubi flavors ranging from the traditional sour plum ("ume") and grilled salmon ("sake"), to the surprising pastrami and prosciutto. Omusubi are priced at $1.20 to $2 a piece; two or three keeps you sustained until dinner. The cafe opens 8 to 7 on weekdays and 10 to 7 on Saturdays, although it is busiest during lunch hours. (Source: TBS News 10/17/03) Back to top

TRENDS: JAPANESE CELLPHONES RING OUT DOWNLOADED "ALOHA"

Japanese cellphone users have been download-savvy long before Napster became an icon on American PCs. For years they have been downloading "ringer" melodies to phones, their favorite J-pop tunes chiming at every incoming call. Now they can enjoy Hawaiian tunes by 25 Japanese and local artists, including ukulele maestro Bruce Shimabukuro (Jake's little brother), Kenneth Makuakane, and Allan Thomas just to name a few. The three music industry companies that host the ringer-melody download sites -- M-up.com, MLJ Corp., and Music Wave Corp. -- hope to follow up the music offerings with downloadable clips of hula videos and other Hawaiian graphics. As far as the tunes go, the samplings are completely copyrighted -- users can download three songs for about $3 a month -- so no billion-dollar lawsuits in the horizon here. (Source: http://www.japan.internet.com 10/22/03) Back to top

SEASONAL: PCERS AND PCSERS PREFER OLD-FASHIONED HOLIDAY CHEER

'Tis the season, and in Japan, people are gearing up for sending and receiving bundles of nengajou, or New Year's greeting cards. The significance and creativity behind the nengajou is equivalent to Christmas cards and season's greetings cards mailed throughout the U.S. during the holiday season, yet these nifty little post cards are delivered in abundance beyond the scope of just your family and friends. Businesses send them to clients; clients send them to businesses; students send them to teachers, even to their mentors from decades ago. When was the last time you received a Christmas card from your dentist? Well, if you were in Japan, you just might receive a nengajou from his entire dental practice. The annual custom ultimately enables people to keep in touch (most nengajou have addresses, phone numbers, and -- these days -- email addresses pre-printed on them), if only once a year. High school students on winter break often become seasonal hires for the post office, delivering stacks of cards to each household during the first week of January. And as with holiday gift-giving anywhere around the world, preparing and sending hundreds of cards can become tedious. But despite the plethora of e-greetings available for cellphones and emails -- with all the fancy graphics, real-time delivery, and bells and whistles (literally) -- recent statistics show that Japanese both young and old still prefer to receive the classic nengajou. In fact, a remarkable 90 percent said they preferred receiving holiday postcards via snail mail, rather than by email or messaging. "I love seeing that rubber-banded bundle of cards in the mailbox," said a 51-year-old male. Another reason post office-issued nengajou are popular may be the instant lottery numbers that come pre-printed on each post card. The more cards you receive, obviously, the better your odds. The top prize this year is 200 million yen, approximately $1.8 million. What better way to spread the holiday cheer! (Source: http://www.japan.internet.com 11/28/03) Back to top

MOCHI-TSUKI (Mochi Rice Pounding)

Mochi-tsuki, or pounding rice to make mochi (rice cakes), is an important traditional event in preparation for the New Year. It's usually performed at the end of the year, from around December 25 to 28.

Making mochi is simple. A special type of sticky rice that has been soaked in water overnight and steamed is placed in an usu, a large bowl made of wood or stone. A heavy, hammer-like kine is used to pound the rice into paste. The kine is heavy, so when a family makes mochi together, the father usually does the pounding, while the mother regularly shifts the rice in the usu (with hands moistened to prevent the mochi from sticking) to ensure evenness. The mother then shapes the pounded rice into small portions with the help of the children.

After the mochi are completed, some are set aside as divine offerings. The decorative kagami mochi -- two flat, round mochi placed one on top of the other, with the lower mochi being slightly larger -- represents the seat of the New Year deities. Even at room temperature, mochi will keep for a fairly long time.

People start eating the homemade mochi with the dawning of the new year. They're usually cooked over a flame and flavored with soy sauce or are placed in a soup called zoni. The Japanese have traditionally believed that all material objects are imbued with spirits, and so by partaking of mochi--thought to symbolize the spirit of rice--they hoped themselves to gain the strength of these rice divinities.

Modernization has seriously weakened the mochi-tsuki tradition, however. Although some farming households still pound their own mochi, most urban residents usually order mochi from specialty shops or buy machine-made, plastic-wrapped rice cakes from the supermarket.

Source: http://www.jinjapan.org

Back to top

HAWAII-ARUKIKATA.COM

- GET VALUABLE WEB EXPOSURE!!! -

Did you know that over 50% of Japanese travelers use the Internet for travel information? Our Japanese travel internet site, hawaii-arukikata.com is constantly growing, now welcoming nearly 200,000 unique users per month! Visitors use hawaii-arukikata.com to find out the latest information about Hawaii, book hotel rooms, and print valuable coupons to help them save money.

It is not too late to join in the new way of marketing your company to the Japanese tourists. We have a variety of programs that will fit any budget. Programs we offer include editorial style pages or downloadable coupon offers. We also have the option of launching special sales campaigns and events! Call Toby Tamaye now at 949-4592 ext. 814 and ask for more information! Or click here for a summary or here for pricing.

Back to top

Plan 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 Quarterly 2004 - January 8, 2004
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 (with color proof), January 16, 2004 (Final deadline)
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 (with color proof for checking), February 20, 2004 (Final deadline)

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.

Back to top

12/23 Tennou Tanjoubi - Emperor's Birthday
12/31 Oomisoka - New Year's Eve
1/1 Gantan (Ganjitsu; Oshougatsu) - New Year's Day
1/12 Seijinshiki - Coming of Age Day
2/11 Kenkoku Kinenbi - National Foundation Day
2/14 Valentine's Day
3/3 Hina Matsuri (Momo no Sekku) - Girl's Day
3/14 White Day
*Most offices close December 28 - January 4, 2004

Click here to see entire 2004 year.

Back to top