Japan Market Update - May 2004 Edition

Hi,

Golden Week holiday for the Japanese (April 29 - May 5) brought some high peak arrival days and some healthy spending. We all just wish that pattern would continue!

The good news: the market is on a steady re-bound for Hawaii, as well as for many other US destinations. Hawaii's business from Japan increased in March by about 10% over last year, with April coming in at about 49% ahead. May is on track for an estimated 50% increase in business from Japan. The direction of the market is very positive. The yen, however, has weakened in the last month and is now trading between 108 and 114 yen to the dollar. Earlier in the year, the yen ranged between 104-108, a level which tends to increase Japanese spending in US destinations.

According to the Wall Street Journal and other business sources, the Japanese stock markets were the place to have had money this past year, as stock prices rose an average of 60% from last year. Japanese firms are reporting positive earnings, and it appears that consumer confidence and spending are increasing.

We remain optimistic that the Japanese economy will continue to strengthen and that outbound travel will rebound for the summer and balance of the year. The challenge, as well as the key for a substantial boost to Hawaii's tourism industry is lift(air seat) capacity for Japanese carriers and demand for Hawaii room inventory from international, as well as domestic travelers. We are excited about this month's announcement by American Airlines of their new service to Hawaii from Narita and the impact it will have on Japanese tourism to our Islands.

This year, the Japanese traveler will need to learn to plan much further in advance, like the "old days," to get hotel space and secure airline reservations, both international, as well as inter-island. We will help promote this concept. Our next Japan Market Update Report will feature new trends and forecasts for the remainder of the year as well as an analysis of increases in airline passenger capacity.

On-line marketing is the best way at this point in the Spring season to get in front of the Japanese traveler for summer travel with timely information and your marketing message. Below we have noted some opportunities for marketing on-line using the strength of our Hawaii information web site called "GlobeTrotter Hawaii, or Hawaii-Arukikata.com. Unique users to the site on a daily basis are on average around 14,000 per day.

Also, check out the bottom of this page for this summer's Japanese holiday schedule.

Warmest Aloha,
Dave Erdman

*Japan Market News
-----Travel: Hawaii tourism on an upswing
-----Travel: March 3rd is Matsui Day in New York City
-----Travel: Student travelers are an untapped market
-----Travel: American Airlines plans Honolulu-Tokyo service
-----Hospitality: Kids eat for free, and more, at Prince Resorts Hawaii
-----Business: Marathon good for Hawaii business
-----Business: Japan's trade surplus soars
-----Business: Wal-Mart builds Japan's first Supercenter
-----Business: Shiseido plans bold expansion in China
-----Retail: Mitsukoshi aloha shirts to sell for $2300
-----Retail: Uniqlo introduces swimwear for the whole family
-----Technology: It's official: Japan's broadband is fastest and cheapest
-----Society: Moms push English lessons for kids
-----Politics: Poll results tip in favor of Koizumi
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: HAWAII TOURISM ON AN UPSWING

Outlook for Japan travel is still positive, as Hawaii arrivals rise for every sector
"The best March on record," according to the Department of Business, Economic Development, and Tourism, marked a 6.5 percent increase since last year for all air visitors combined, and an 11.2 percent increase in Japan arrivals. The rise in Japanese arrivals largely indicates that Hawaii-bound travel has recovered from last year's slump following the SARS outbreak and the onset of the Iraqi war. For the second quarter, travel agencies in Japan remain optimistic as Hawaii bookings hold solid for the summer. A periodic, short-term study released by the Japan Association of Travel Agents also indicates Hawaii a leading destination of choice, second to Europe and tied with Micronesia. According to DBEDT's latest report, repeat visitors from Japan increased slightly from last year to 53.5 percent, and they continue to be the biggest spenders at $252 per day, about $100 more than other foreign and domestic visitors. (Sources: DBEDT; Pacific Business News 4/26/04)
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TRAVEL: MARCH 3RD IS MATSUI DAY IN NEW YORK CITY

NYC travel bureau names Yankees Hideki Matsui spokesmodel for Japan tourism campaign
Helping the Yankees out of a losing streak is not enough for baseball star Hideki Matsui, who recently added tourism duties to his job roster. Matsui was recently named NYC Tourism Ambassador by the city's official tourism marketing organization, NYC & Company, attending press conferences with bureau chiefs and starring in promotional videos for the city. Mayor Bloomberg will proclaim March 3rd of every year as "Hideki Matsui Day," in honor of his contribution to the tourism effort. "There's absolutely no better ambassador I can think of to rebuild the Japanese market," said NYC & Co. President Cristyne Nicholas. In 1999, 425,000 Japanese visitors pumped $466 million into the NYC economy; those numbers dropped to about half in 2002, and tourism officials are hoping for a recovery. On the upside, Matsui's presence in NYC is definitely felt in the travel industry, as package tours to the city -- many of which feature MLB games -- have doubled in capacity since 2002. "They make such an investment in New York City. We've really felt their absence," Nicholas said, adding that Japanese tourists are the third-largest group of foreign travelers to NYC behind the British and Canadian. (Sources: NYC & Co. Press Release; J-Wing Travel 4/19/04; Slam! Sports 3/03/04; Sankei Sports 3/09/04)
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TRAVEL: STUDENT TRAVELERS ARE AN UNTAPPED MARKET

Japanese students who travel abroad on school trips may be a lucrative market for Hawaii tourism
In 2002, an estimated 173,000 students traveled abroad on school excursions, with Australia, China, and South Korea as top destinations. Expensive lodging and the image as a vacation destination has made Hawaii a hard sell to parents and school boards in the past; Hawaii merely marked a 3.5 percent share of school trips from Japan. But low airfares and independent efforts by Japan Airlines, Japan Travel Bureau, DBEDT, and the Japanese Cultural Center of Hawaii are helping to buck that trend. This year, Hawaii-bound students from Japan are expected to reach 10,000 between October and December, and that number is slated to rise in coming years. "The numbers are good," said industry expert and school liaison Chieko Watanabe, "Some schools cancelled [trips to Asian countries] and came to Hawaii." Watanabe hopes more Japanese schools will recognize Hawaii as a unique demonstration of ethnic harmony, and a valuable part of Japan's history "not written in text books." Individual businesses such as the Polynesian Cultural Center also markets directly to prefectures and school boards in Japan. "We want them to think of us as a preferred destination instead of China or Korea," said Alan Walker, regional vice president of Japan sales for the Polynesian Cultural Center. (Source: Pacific Business News 4/23/04; Japanese Cultural Center of Hawaii
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TRAVEL: AMERICAN AIRLINES PLANS HONOLULU-TOKYO SERVICE

World's largest carrier seeks seven weekly nonstop services between U.S. and Japan
American Airlines has asked the U.S. Department of Transportation for seven weekly frequencies between the U.S. and Japan in order to begin nonstop Honolulu-Tokyo service. The airline anticipates a quick response from the DOT, after which it will request slots at Tokyo's Narita airport. If awarded, American Airlines will join four international carriers offering nine nonstop flights to Honolulu from Narita -- Japan Airlines, All Nippon Airways (ANA), United Airlines, and Northwest Airlines. The four airlines transport 3,000 to 5,000 Japanese passengers to Honolulu daily. (Sources: AMR Corp. Press Release 4/29/04; Pacific Business News 4/30/04; DBEDT)
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HOSPITALITY: KIDS EAT FOR FREE, AND MORE, AT PRINCE RESORTS HAWAII

Japanese hotel chain offers family-friendly programs during busy family travel season
Three of Hawaii's Prince Hotels will take a load off of traveling families this summer by offering a series of kid-friendly services. Children under the age of 12 will be able to choose from kids' menus and eat for free at most of the hotels' restaurant outlets until October. They will also get goodie bags at check-in, filled with beach toys for babies and toddlers, and a sports bottle and drawing kit for tweenies up to age 12. Offered until the end of the year is the Family Package which, in addition to kids' meals and amenities, features two adjacent oceanview rooms for as little as $340. (Sources: Travel Vision News 4/19/04; Prince Hotels)
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BUSINESS: MARATHON GOOD FOR HAWAII BUSINESS

A study finds the Honolulu Marathon generated short-term business and long-term interest
Last year's Honolulu Marathon drew 24,303 out-of-state and international participants, contributing $86.8 million into Hawaii's economy. These results, released from a recent study performed by a team from Hawaii Pacific University's Travel Industry Management program, emphasize the positive economic effect that large sporting events have on Hawaii. The study also showed that marathon and Race Day Walk participants accounted for $53 million in direct spending. Of the 1,000 surveys collected by the team, a majority of first-time visitors noted that they would return to Hawaii for reasons other than the Honolulu Marathon. (Source: Pacific Business News 4/15/04; www.honolulumarathon.org).
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BUSINESS: JAPAN'S TRADE SURPLUS SOARS

Strong activity in exports, imports, and currency signal continued economic recovery
Japan's exports jumped 12 percent to 14 billion yen ($130.8 million) during the first quarter, a record high underlining an improving economy and rising external demand on Japanese goods. While Japan has long relied on exports to China, increased shipments to Taiwan, South Korea, and the U.S. are largely fueling the current surplus. An analyst at ING in Tokyo expects double-digit monthly export growth to continue for the rest of the year. The Japanese economy expanded at its fastest pace in 13 years during the fourth quarter of 2003, and the current trade surplus solidifies the upward trend. Economists in the private sector say Japan's overall economic health is already visible at home, as domestic spending is increasing, and non-manufacturing companies are growing more confident. (Sources: Financial Times 4/21/04)
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BUSINESS: WAL-MART BUILDS JAPAN'S FIRST SUPERCENTER

Megastore boasts 14,000 merchandise, opens to mixed reviews
The name is Seiyu -- Wal-Mart's partner company in Japan -- but the sheer size, volume, and atmosphere are all-American at the 86,000-sqft. shopping center in Numazu City, 60 miles southwest of Tokyo, and home of Mt. Fuji. While some shoppers were overwhelmed by the wide aisles stacked ceiling-high with products, many were overjoyed with Wal-Mart's price and selection. "This would cost 2,000 yen ($20) in other stores," said a satisfied female customer, studying a knit top selling for 997 yen ($10). The Numazu store serves as a pilot for future megastores, as well as a measure of success for Wal-Mart's plan to bail out Seiyu from bankruptcy. Analysts have warned, while Wal-Mart was timely in gaining a foothold in the world's second-largest economy, it will struggle to compete with other foreign chains such as Costco and France's Carrefour. Lukewarm reviews spread quickly over the Internet after the April 7th opening, many shoppers citing high prices and poor selection. "The grocery prices are not competitive at all," wrote one shopper; "Not enough [U.S.] imported products." wrote another. Wal-Mart's signature "Everyday Low Prices" does not take effect in this store for another couple of years, after which Wal-Mart should have a sharper edge against its competition. (Sources: www.news.goo.ne.jp 4/07/04; www.asahi.com 4/06/04)
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BUSINESS: SHISEIDO PLANS BOLD EXPANSION IN CHINA

Japanese cosmetic giant targets growth potential, aims to open 500 stores by 2008
Shiseido cosmetics have been steadily building popularity in the U.S., but perhaps nowhere else is the brand so highly recognized than it is in China. Japan's leading beauty company plans to capitalize on that loyalty by opening 500 Shiseido stores and grossing 1 billion yen ($9.3 million) in China by 2008. Five model stores are scheduled to open in Shanghai and Beijing within a year, after which the company plans to acquire privately owned cosmetic shops and reopen them as Shiseido Cosmetic specialty stores. While Shiseido's mid-priced products have surged in popularity, Shiseido's high-end "Aupres" and "ClŽ de Peau" product lines have been top-sellers at 90 percent of nearly 350 department stores in China that carry Shiseido merchandise.(Sources: Shiseido News Release; www.asia.news.yahoo.com 04/16/04)
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RETAIL: MITSUKOSHI ALOHA SHIRTS TO SELL FOR $2300

Limited-edition aloha shirts don hand-dyed Japanese art
The story goes that western missionaries introduced short-sleeved shirts to Hawaiian natives over 100 years ago as a means to cover their bare bodies. In the 1930s, a Chinese-born Honolulu merchant fabricated the flashy floral aloha shirts from left-over kimono fabric. Despite the steep price tag, it then seems oddly appropriate that Mitsukoshi is offering a line of exclusive aloha shirts printed with classic Japanese kimono designs. The delicate and traditional styles are known as yuzen, the effect of a special method of dyeing kimono fabric. The shirts will be sold while supplies last for two weeks, starting from 34,650 yen ($323) and up to 241,500 yen ($2,257) for exclusive, hand-dyed shirts with classic yuzen designs dating back to the early 1900s. Traditional kimono designs recreated into western styles have stirred Japan's fashion industry for years; Mitsukoshi' "ultimate aloha shirt" is sure to draw a crowd. (Sources: Tokyo Shimbun Shopper 4/12/04; www.mauishirts.com
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RETAIL: UNIQLO INTRODUCES SWIMWEAR FOR THE WHOLE FAMILY

Popular retailer keeps prices low without sacrificing quality or style
Casual retail giant Uniqlo is gearing up for the summer season, promoting 26 different styles of swimwear designed for men, women, and kids. Almost half of the designs are for women, encompassing popular bikini and tankini styles in solid colors and muted tones. "Simple and affordable" is the motto, and all women's styles are priced at 2990 yen (approx. $30). Cheap, however, is not synonymous with cheaply made; Uniqlo joined forces with synthetic fiber maker Toray Group to develop the new, top-quality line of swimwear. (Source: www.asahi.com 4/13/03)
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TECHNOLOGY: IT'S OFFICIAL: JAPAN'S BROADBAND IS FASTEST AND CHEAPEST

Global survey credits competition for Japan's broadband market growth
A report released by the Organisation for Economic Cooperation and Development concluded Japan offers "by far" the fastest and cheapest broadband service among companies operating in 30 surveyed countries. Japan's fiber-optic networks -- offered by KDDI Corp., NTT Corp., and Usen Corp. -- led the pack by providing unmatched throughput of up to 100-Mbps. Sweden's Bostream AB and South Korea's Hanaro Telecom Inc. provided DSL services with throughput between 20- and 26-Mbps, while Japan's eAccess Inc. offered copper phone line-based DSL featuring 40-Mbps. Verizon, which offered the fastest service in the U.S., delivers 7.1-Mbps. Three services offered by two Japanese companies made the list of the world's cheapest broadband service, with Yahoo Japan Corp.'s Yahoo BB ranking first with 12-Mbps service for $19.09. KDDI's 100-Mbps service cost as low as $20.07, while another Yahoo BB product offered 26-Mbps for $20.54. (Sources: Nikkei Net Interactive 4/21/04; OEDC News Release)
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SOCIETY: MOMS PUSH ENGLISH LESSONS FOR KIDS

Learning English tops the list for Japanese tots' extracurricular activities
Until recently, Japanese youth were typically not exposed to the English language until junior high school, when it is taught as a part of the school curriculum. But recent news have highlighted a rise in early English education among toddlers, and even infants. A survey conducted by Japanese online community ewoman.com shows 31 percent of four- to six-year-olds takes English lessons, making it the number one extracurricular activity before piano or swimming. Among the 0 to 3 age group, 13 percent take English lessons or take part in English-language playgroups. Educational materials such as English flashcards, storybooks, and workbooks have hit major storefronts, and have become widely available for toddlers and babies. (Source: www.asahi.com 4/14/04)
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POLITICS: POLL RESULTS TIP IN FAVOR OF KOIZUMI

Three years into governing an uncertain nation, Koizumi gets unprecedented approval rating
A public opinion survey shows that Prime Minister Junichiro Koizumi is still among the most popular premiers in Japan's history. His popularity has slipped considerably since his election in 2001, when "Koizumi Fever" ensued his charismatic and aggressive campaign; approval ratings skyrocketed to a record high of 84 percent. Three years later, economic struggles at home and supporting a war abroad have reduced the ratings to a more modest 62 percent. A majority gave Koizumi highest marks for reforming the formerly defective Public Roads Administration and Postal Service, but had less confidence in his foreign affairs; regarding U.S. relations, 56 percent felt Koizumi was not advocating Japan's position strongly enough. However, 65 percent felt that Koizumi and his ruling Liberal Democratic Party will win the Upper House elections this July. (Sources: www.asahi.com 4/19/04)
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Sushi originated centuries ago as a way of preserving fish. Cleaned, raw fish were pressed between layers of salt and weighted with a stone and then left to age on a bed of rice mixed with vinegar. The fish was then eaten and the rice discarded. It wasn't until the eighteenth century that a clever chef named Yohei decided to forego the fermentation and serve sushi in something resembling what we eat today, thus the meaning of sushi, the marriage of vinegar rice to other ingredients. Sushi became popular and two distinct styles emerged--Kansai style, from the city of Osaka and Edo style, from Tokyo (which was then called Edo). Osaka, abundant with rice merchants, developed sushi that consisted primarily of seasoned rice mixed with other ingredients and formed into decorative, edible packages. Tokyo, rich with fish and shellfish, produced nigiri sushi, featuring a select bit of seafood on a small pad of seasoned rice. Here is a list of some types of sushi:

Nigiri sushi---fish or shellfish on a small pad of rice.
Oshi sushi---pressed sushi, packed into a mold with ingredients, then cut into bite-sized pieces.
Maki sushi---rolled sushi with a variety of ingredients such as seafood, vegetables, or pickles.
Chirashi sushi---scattered sushi, sushi rice with ingredients mixed in or placed on the rice.
Maze sushi---mixed sushi, sushi wrapped in miscellaneous ingredients such as bean curd pouches (inari) or egg (fukusa).

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To most of us, it's no surprise that Internet search engines are the most popular way to find web sites. Google, which is ranked as the world's most popular search engine, has been called the key to success on the web. That is why PacRim Marketing is happy to tell our clients that the web site we manage, Hawaii-Arukikata.com (globetrotterhawaii.com), is the most searched site about Hawaii in Japanese. When entering "Hawaii" (note: Hawaii needs to be in Japanese characters) in the Google search engine , you will find globetrotterhawaii.com as the #1 site match found.

If you have not discussed what options are available for your business on this web site, you need to call us. With the summer season quickly approaching, it is not too late to have a presence on the site. Some of the advertisements available on the site include a coupon, an advertorial (a full web page on your business), on-line research, and our newest product - streaming video. For more details about this media of the month, click here or call your advertising representative for an on-line Japanese marketing consultation.

Call Toby Tamaye now at 949-4592 ext. 814 and ask for more information!

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Click here for our Media Request Form or contact us.

Space Deadlines:

5/20/04 Aloha Express - July 2004 (FINAL CLOSINGS NOW!)
07/10/04 Nouveau - Ala Moana Center Selection September 2004
07/01/04 Aloha Express - September 2004

Material Deadlines:

06/18/04 Aloha Express - July 2004 (DROP DEAD!)
08/10/04 Nouveau - Ala Moana Center Selection September 2004
07/15/04 Aloha Express - September 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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06/20/2004 Chichi no Hi -- Father's Day
07/07/2004 Tanabata -- Star Festival
07/20/2004 Umi no Hi -- Marine Day
08/13/2004 Obon Season begins (8/13-8/15)
09/20/2004 Respect-for-the-Aged Day
09/23/2004 Autumnal Equinox Day

Click here to see entire 2004 year.

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