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The Honolulu Advertiser

Posted at 12:50 p.m., Friday, April 4, 2003

State tourism slows down

By Kelly Yamanouchi
Advertiser Staff Writer

Hawai'i tourism leaders said yesterday their business has declined by about a third since the start of the war with Iraq, prompting a change in the state's tourism marketing strategy.

Japanese visitor business fell 30 percent to 40 percent, and tour group business is down as much as 30 percent, said Peter Schall, senior vice president of Hilton Hotels Corp. in Hawai'i.

For Japanese tour wholesaler JTB, Hawai'i travel is running about 60 percent of last year, said Yujiro Kuwabara, JTB's general manager of tour planning and marketing. Student group travel from Japan has nearly disappeared.

The slump likely will continue for weeks. Japanese aren't expected to travel as readily as they normally do during Golden Week, the annual vacation period starting in late April that the tourist industry counts on heavily. Japan Airlines has reduced flights scheduled for that week.

"This Golden Week, most Japanese will stay in their hometown," Kuwabara said.

Industry leaders told the Hawai'i Tourism Authority that since March 19, more than 1,400 Jalpak customers have called off trips for April and May. Thirty percent to 35 percent of JTB's group and individual travelers canceled trips during March 17 to March 27, and the pace has since quickened in recent days.

About 120,488 Japanese visitors came to Hawai'i in February, the most recent state visitor arrival data available. But daily total passenger counts in March and early April show the numbers are declining.

To counteract the trend, the tourism authority is redirecting $1.7 million to attract frequent fliers and Mainland visitors who are more inclined to travel despite the war and the spreading cases of the respiratory disease SARS.

At the same time, it is canceling $512,000 in media programs, and $200,000 in small magazine ads, shifting $288,000 in financing for cable television programs and $700,000 in programs with tour wholesalers.

"As the crisis goes on we will continue to look at what else needs to be changed, but $1.7 million gives us a start," said Frank Haas, the tourism authority marketing director.

The strategy is to focus largely on visitors from the Mainland. The money will be used for $935,000 in marketing and promotions in the U.S. West region, $465,000 in the U.S. East and $300,000 for Japan.

"Where we believe we're going to get the most immediate response is from the U.S. West," Haas said.

The tourism authority may also get $8 million in its next fiscal budget beginning July 1 if a bill pending in the state Legislature becomes law.

Some visitor sectors have remained strong, including the kama'aina market, meetings and conventions, and business and independent travelers, Schall said.

The Hawai'i Convention Center has not had any major cancellations, but "part of the challenge is to keep the business that we have on the books," said Joe Davis, convention center general manager. But a looming problem has been the shrinking numbers of people attending conventions and corporate meetings.

Some in Hawai'i hope that travelers and groups who are canceling trips to Hong Kong and other areas in Asia because of concerns about SARS will visit Hawai'i instead.

But if SARS cases are confirmed here, "this thing has the potential to be so much more damaging to travel throughout the world" than the war, said tourism authority executive director Rex Johnson.