The U.S. East Coast may be Hawaii's
next Japan, a high-yield tourism market
that will likely never bring the volume of
visitors seen from the West Coast, but
makes up for that in spending
First of three parts
Hawaii's visitor industry has always looked to the east to supply its top tourism market, but as the state's tourism demographic has shifted from an international market dominated by Japan to a largely domestic one; it is frequently visitors from departure cities like Chicago rather than Tokyo that are filling planes.
>> Tomorrow: Asia, outside Japan
>> Tuesday: Europe and Australia
The number of Japanese visitors has rebounded since the state's sushi and sake economy tanked after the Sept. 11, 2001, terrorist attacks. But these days hoteliers and retailers are catering to a more beer and burger crowd from the U.S. West. And they've got their eye on higher spending, longer staying wine and cheese clientele from the U.S. East, a market that has been growing steadily for many of the reasons that the Japan market fell.
Although U.S. West visitors, Hawaii's largest visitor group, have contributed the most to the state's economy this year, it's the U.S. East that represents the state's top overall growth market, said Marsha Wienert, Gov. Linda Lingle's tourism liaison.
"The U.S. East has been identified for years as a market that holds great potential for Hawaii," Wienert said, adding U.S. East tourists are desirable because they are largely first-time visitors, who tend to stay longer and spend more.
According to state visitor arrival records for 2004, U.S. West visitors were the highest overall spenders through April, contributing $1.1 billion to the state's economy; however U.S. East visitors, which numbered significantly less, spent nearly the same amount, contributing $1 billion to the economy.
And, on a per-trip basis, U.S. East visitors spent an average $1,442 per person, compared to an average of $1,199 per person from U.S. West visitors.
Although shear distance means the U.S. East will probably never have the largest arrival numbers in the state, visitor industry leaders have compared its potential contribution to Japan, once Hawaii's dominant tourism market.
When it comes to developing Hawaii as a sustainable product, less could be more. It's important to find ways to increase visitor spending without taxing resources, said Sharon Weiner, a member of the Hawaii Tourism Authority.
"It's not about how many people arrive here, it's about how much they are spending," Weiner said. "What you want is fewer people spending more money."
So far, 2004 visitor arrivals have brought Hawaii's tourism industry just that mix, Wienert said.
Growth in 2004 visitor arrivals from the U.S. East has outpaced the healthy U.S. West market, according to state tourism statistics. As of April, the U.S. East market had increased 8.4 percent over last year, while the more substantial U.S. West market grew by 7.2 percent, she said.
"We're in the middle of a development cycle," Wienert said. "We've had some very good business coming out of that area. As more people in this region become more familiar with the brand of Hawaii and all that we have to offer, it can only get better."
While the state is not ignoring its core U.S. West market, the visitor industry is definitely putting more emphasis on reaching U.S. East travelers. They're using TV, radio, print and even a Hawaiian music road show to send the message to the U.S. East that Hawaii is a unique destination that's worth the extra distance and expense, said Chris Kam, market trends director for the Hawaii Visitors & Convention Bureau.
"They see us as the dream destination; the challenge is to turn Hawaii into the place I want to go now," Kam said. "The message we're promoting is that there's only one Hawaii, and it's well-worth the effort."
Capturing the U.S. East market share is also worth the effort to the state, Kam said.
Visitor industry leaders are banking on its potential to grow into a larger economic force. Since the terrorist attacks of 2001, the appeal of Hawaii has intensified for the long-haul U.S. East visitor, who is seeking exotic vacations closer to home, said Bob Hohman, president of Classic Custom Vacations, one of the largest luxury providers of vacations to Hawaii.
"Much of the business that was headed to the European continent is now headed to U.S. territories," Hohman said. "We're very bullish on the Hawaii market and see ourselves continuing to invest."
Confidence in the U.S. East market is reflected in increasing airlift from departure cities east of the Rockies and from travel wholesalers, hoteliers and retailers, who increasingly are catering to this market, Wienert said.
"Wholesalers and travel partners recognize that the demand for Hawaii is high and they are putting together packages that fit that market place," she said.
Retailers in areas like the Royal Hawaiian Shopping Center, Lewers Street and the International Market Place are all retenanting to make their product more appealing to shifting visitor demographics, said Stephany Sofos, retail consultant.
More domestic store brands like the Cheesecake Factory and Tommy Bahamas will continue to spring up in Waikiki as the domestic tourist market strengthens, she said.
"It's going to change the face of Waikiki," Sofos said.
For identification purposes
Characteristics of U.S. East visitors:>> Longer staying and higher spending than other domestic visitors
>> High percentage of first-timers
>> Prefer luxury trips
>> Enjoy arts and culture
>> Participate in many activities
>> Plan ahead for trips
>> Healthy honeymoon and wedding market
>> Sensitive to geopolitical events
Source: Industry professionals
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Fewer visitors, spending more
Although U.S. West vacationers, Hawaii's largest visitor group, contributed the most to Hawaii's economy this year, the travel industry is excited about the growing number of tourists from the U.S. East because they spent more per person. Although they will probably never lead the state's arrival numbers because of their distance from Hawaii, tourism leaders have compared the region's impact to Japan, once Hawaii's dominant market. If the U.S. East market continues to grow, they have said, it could achieve larger economic clout.
COUNTRY OR AREA ARRIVALS OVERALL SPENDING SPENDING PER TRIP (PERSON) SPENDING PER DAY Japan 445,804 $655.1 million $1,507 $253 U.S. West Coast 818,471 $1.1 billion $1,199 $138 U.S. East Coast 620,649 $1 billion $1,442 $156
