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China trip yields
mix of small deals,
great expectations

THE ISSUE Gov. Linda Lingle and business people are returning to Hawaii after a 10-day economic mission to Asia.

HAWAII business people who traveled to China on a state-sponsored excursion return with small deals in hand or contacts that might help their enterprises grow. Government officials come back with a realistic appraisal of ventures from which the state could profit.

Though the trip might not have yielded immediate blue-chip advances, participants gained a clear picture of the important economic potential China holds for Hawaii. The possibilities are entangled in myriad issues with global implications; however, the experiences and education might prove valuable.

Led by Gov. Linda Lingle, representatives from about three dozen Hawaii companies whirled through China and South Korea for an eye-opening, 10-day trade visit. The Star-Bulletin's Dan Martin, in a series of reports, described the sometimes perplexing nature and the perils of doing business in that country as well as its considerable promise.

Manufacturers mobbed a Web-based clothing retailer, eager to supply her with goods. A Kahaluu aquarium merchant made a deal for fish tanks at one-tenth the cost of American suppliers. He also was offered a chance to distribute the supplier's products exclusively in the United States. While both businesses could profit, the deals showed that though the Chinese are willing to sell, its consumer market isn't mature enough for reciprocal commerce, at least for smaller outfits.

The state's principle interest in China centers mostly on attracting some of its 1.3 billion people to our shores as tourists. One tangible accomplishment of the trip was the establishment of an official Hawaii trade and tourism office in Beijing. Hawaii is one of only two U.S. states -- Nevada is the other -- that enjoy this official recognition from the Chinese government.

But as Martin reported, political obstacles stand in the way of establishing easy passage from China to Hawaii. China appears willing to grant the United States special status that would allow large-scale leisure travel, but won't do so as long as the United States continues to closely examine tourist and other visa applications from a country it views as a top espionage threat.

With little chance of resolution on the issue, Hawaii cannot expect the numbers of visitors it hoped would boost China as another buttress in its tourism structure.

In addition, there is debate about whether Chinese tourists fit into the industry's and the government's current framework for visitor growth. Both want to shift toward people who spend more money rather than continuing to draw volume, but there are conflicting assessments. State officials say their data show Chinese are high spending, others say they aren't.

"Chinese travelers are extremely price conscious," spending little on hotels, transportation and food, said Robert Char, a former Hawaii travel consultant now based in Beijing. "The question is, does Hawaii want them?" Char said.

While the spending template might not hold true, there are other uncertainties, one being how attractive the islands will be. Even if price isn't a concern, the span of global destinations will come into play once China loosens up travel restrictions.

It's too soon to gauge the success of the trade mission, but the governor's trip demonstrates the importance Hawaii places in China and positions the state at the threshold of its economic borders.

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