Hawaii's visitor industry is off to a shaky start in 1997. Recent arrival trends from our core westbound and eastbound markets indicate a rapid softening: the Japan market, which has been propping up the industry over the past few years, shows an alarming downturn, and arrivals from the U.S. mainland remain 18 percent below 1989 levels. Significantly, the average length of stay of visitors is down in both the westbound and eastbound markets. This alone seriously reduces Hawaii's tax revenues.
The disappointing performance of these markets can be attributed to a lack of visibility for Hawaii, and aggressive marketing by other destinations. In Japan, the situation is compounded by the decline of the yen against the U.S. dollar and an uncertain economic outlook.
With shrinking revenue bases, we realize that government is faced with some tough budget decisions. However, the decision to appropriate these supplemental funds is a wise one. Money spent on tourism marketing is not an expense to the people of Hawaii, it is an investment in the people of Hawaii. This is a crucial point of difference versus other government expenditures. Tourism produces a dividend, and the better tourism performs, the bigger the financial return for our community in terms of tax revenues, jobs and personal income.
The plan for spending the $10 million in emergency funds earmarks $6 million for Japan and $4 million for North America in the period from April to August 1997. The westbound funds will augment existing mainland campaigns by increasing the reach and intensity of our messages in key markets through spot television, cable network and newspaper advertising.
The selected markets for the campaign account for 30 percent of all U.S. visitors to Hawaii and include cities such as New York, Dallas, San Francisco, Denver, San Diego and Chicago. The bureau's efforts will be supplemented by industry-supported newspaper advertising programs.
In Japan, our campaign will also be led by television with supporting roles played by newspapers, magazines and radio. The campaign has been developed by Hakuhodo, the bureau's Japan advertising agency, with input from our Japanese travel partners. Large media receptions in Tokyo, Osaka, Nagoya and Fukuoka the week of April 14 will launch the campaign.
The attendance of Governor Cayetano and the four county mayors will bring added media attention to Hawaii's efforts. Both the eastbound and westbound programs focus on all and each of the islands, targeting various categories of new and repeat visitors.
The HVCB takes very seriously the issue of accountability and measurement. We have produced revenue targets that show a return of $52 million in tax revenues over a two-year period as a consequence of the supplemental appropriation. We will produce a special report for our external auditor of all the revenues related to the $10 million.
The HVCB believes that state money invested in tourism is the best possible way of growing and reaping the benefits of a prosperous Hawaii economy. Again, we thank the governor and our legislators for their action, and trust that significant investments in tourism promotion will continue to be viewed as the key to improving Hawaii's economy.