Isles’ Japanese
tourism off
6.3% in ’98

The decline of 131,000
visitors cost the state $100
million, by HVCB estimates

Associated Press

The number of Japanese visitors to Hawaii dropped by more than 131,000 last year, costing the state an estimated $100 million in tourist spending, according to the Hawaii Visitors & Convention Bureau.

The decline was part of an overall drop in Hawaii's biggest industry last year, the first such decline in five years.

HVCB said yesterday that 1.96 million Japanese visited Hawaii in 1998, a 6.3 percent drop from 2.1 million in 1997. The decline resulted from the Asian economic crisis, unfavorable exchange rates between the yen and the dollar and more competition from other destinations, said HVCB president Tony Vericella.

Downhill

Japanese arrivals were up in January and February but declined every month thereafter.

"The worsening economy tended to drive Japanese outbound travelers to heavily discounted destinations such as Korea, Thailand and Europe," Vericella said.

The HVCB also said the number of airline seats available between Japan and Hawaii fell by almost 10 percent last year. Both United and Northwest airlines reduced their Japan-Hawaii service last year.

On the positive side, the average length of stay by Japanese visitors increased by about 3 percent last year: from 5.59 days in 1997 to 5.77 days last year. HVCB attributed that increase to a gradually strengthening yen and extended-stay packages offered by tour wholesalers.

Still, the Japan market outperformed other eastbound markets. Arrivals from Asia-Pacific countries other than Japan dropped more than 23 percent.

Konishiki takes stage

The HVCB already has taken steps to recover the Japanese market. Last month, it unveiled a $10.4 million multimedia ad campaign -- triple last year's budget -- featuring Hawaiian-born former sumo champion Konishiki.