Editorials
Monday, April 6, 1998

Japan’s ills are cause
for concern in Hawaii

ALTHOUGH there has been some tailing off of tourist traffic from Japan, the surging U.S. mainland economy has made up for most of the drop in eastbound tourism. Total visitor arrivals in February were slightly lower -- 0.2 percent -- despite a 4.4 percent decline in visitors from Japan and elsewhere in Asia. Visitor spending was down by a larger amount because Asian visitors, who typically spend more than Americans, shortened their stays and the Japanese yen has declined in value against the dollar.

But the modest decline in the Asian visitor totals could get much steeper if the problems of the East Asian economies get worse. The most significant Asian country, particularly in terms of the effect on Hawaii, is of course Japan. The news from Tokyo is disturbing. Pessimism about the Japanese economy is growing. On Friday the credit rating agency Moody's Investors Service changed its outlook for Japan's economy to "negative" from the previous "stable" -- a sign it may be considering lowering its appraisal of Japan's ability to repay its debts. In response, the dollar soared to a six-year high against the yen.

Norio Ohga, chairman of consumer electronics giant Sony Corp., warned that Japan's economy is on the brink of collapse and could threaten the health of the global economy. He urged the government to stimulate consumer demand, and said that simply cutting taxes wouldn't be enough."Instead, we need to do away with taxes related to purchasing a home, even if only for the short term," he suggested.

Meanwhile Japan's central bank released its latest survey, showing businesses are increasingly pessimistic about the state of the economy. The Bank of Japan's quarterly survey said big companies cited sluggish growth at home and worries about the impact of Asia's financial crisis.

All this is of much more than casual interest to Hawaii. The island economy is highly dependent on conditions in Japan and the U.S. mainland. The various proposals to revitalize the local economy, while they may have merit, won't succeed if conditions in the mainland and Japan are unfavorable.

Tony Vericella, president and chief executive officer of the Hawaii Visitors and Convention Bureau, maintains that Hawaii should be putting more money and effort into promotion in Japan despite the weakness of the Japanese economy. Vericella points out that Hawaii's chief competitors for Japanese tourists -- Hong Kong, Australia and Southeast Asia -- are experiencing much sharper declines in tourism. Hawaii, he notes, is still the most attractive destination for Japanese tourists. He says Hawaii should try to take advantage of the fact that its competitors have fallen into disfavor in Japan.

The Japanese economy has been struggling for about as long as Hawaii's -- and that is not just a coincidence. But even in adversity, as Vericella points out, there may be room for improvement. Certainly Hawaii shouldn't give up on Japanese visitors.

Death of a terrorist

THE Islamic militant group Hamas, which has been responsible for many acts of terrorism against Israelis, blames Israel for the death of its chief bombmaker. Mohiyedine Sharif, who topped Israel's most-wanted list, died under mysterious circumstances. Although Palestinian officials have cleared Israel of responsibility, it would hardly be surprising if Israel did try to kill him. Assassins shouldn't complain if their victims fight fire with fire. However, Israel denies any involvement.

Of course that isn't how Hamas sees it. Hamas is threatening to avenge Sharif with a wave of terrorism not only in Israel but throughout the world. Thousands of Hamas supporters marched in protest against Israel.

For his party Prime Minister Benjamin Netanyahu is demanding that Palestinian leaders stop blaming Israel for Sharif's death. Netanyahu warned that he would hold them responsible for any revenge attacks on Israel.

The bombmaker was found dead near the site of a car bombing in a garage in an industrial zone in the West Bank town of Ramallah. Israel said he died when the bomb, intended for an attack in Israel, exploded prematurely.

The initial Palestinian police statement said Sharif was shot to death three hours before the blast, and that his body was placed near the car, which was detonated by remote control, suggesting an attempt to cover up an assassination. However, a senior Palestinian official said later that Sharif actually may have been involved in assembling a bomb.

Whatever the truth may be, the fact that Palestinians found it outrageous that a man engaged in making bombs to be used in terrorism against Israelis was killed gives some indication of the immense gulf that must be bridged if peace is to be achieved.

The OHA vacancy

THE inability of the directors of the Office of Hawaiian Affairs to select a replacement for the late Billie Beamer on the board has prompted a call for the directors' resignation. Ho'omalu ma Kualoa, an umbrella organization representing various native Hawaiian groups, said the board should resign by April 12 and new elections should be held in 90 days.

That isn't likely. Instead, what presumably is going to happen is that Governor Cayetano will make the appointment. The governor had urged OHA to resolve the issue, but the directors are divided into two factions and have been unable to reach agreement. A compromise candidate failed by one vote on Thursday.

There are several well-qualified people among the applicants for the director's position. The problem is that whoever is appointed will break a 4-4 tie. The faction that winds up in the minority will blame Cayetano. No wonder he doesn't want the job.

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Rupert E. Phillips, CEO

John M. Flanagan, Editor & Publisher

David Shapiro, Managing Editor

Diane Yukihiro Chang, Senior Editor & Editorial Page Editor

Frank Bridgewater & Michael Rovner, Assistant Managing Editors

A.A. Smyser, Contributing Editor