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The Honolulu Advertiser
Posted on: Wednesday, September 13, 2006

Another body blow for Japanese visitors

By Lynda Arakawa
Advertiser Staff Writer

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The airline fuel surcharges that have discouraged many Japanese travelers from visiting Hawai'i will increase in October, the state's tourism marketer to Japan said yesterday.

Japan Airlines has increased its fuel surcharge twice since February last year, with travelers now paying 16,000 yen � or almost $140 � per round trip to Hawai'i, said Hawai'i Tourism Japan executive director Takashi Ichikura. Come October, that will go up to 20,000 yen � about $170 � and other airlines are also raising their fuel surcharges, he said.

The increase adds to the problems that have plagued Hawai'i's Japanese market, which after two years of growth is down about 9 percent this year through July. Tourism officials have said the fuel surcharges are one of the key factors contributing to the decline in Japanese visitors. They also blame a decrease in air seats to Hawai'i, a limited number of hotel rooms and higher hotel rates.

Airlines will increase the surcharge on flights to other popular destinations among the Japanese, but the surcharge on flights to Hawai'i remains significantly higher, Ichikura said. For example, Japan Airlines' surcharge for flights to South Korea and China are now 2,600 yen and surcharges to fly to Singapore and Thailand are 13,000 yen, he said. Japanese passengers flying to Hawai'i pay the same surcharge as those flying to North America and Europe.

Ichikura and others said it's hard to say what impact the fuel surcharge increase will have on travel to Hawai'i. They noted that air capacity � which fell when Japan Airlines suspended two flights to Hawai'i in October last year � is improving. For example, Northwest Airlines increased its seats to Hawai'i in July, adding more than 900 seats weekly to the market, officials said.

In the meantime, Japanese consumer research shows baby boomers and high-income women in their 30s and 40s are emerging as promising new target markets for Hawai'i, according to Yuko Ishiwata, marketing planner at Dentsu Inc.'s Center for Consumer Studies in Japan.

Ishiwata, speaking at the Hawaii Tourism Authority's tourism conference yesterday, said these two groups want to enjoy the local way of life when they travel and want high-quality experiences and products that are unique to the destination. She said they also want to improve themselves, physically and mentally.

Ways that Hawai'i can capture these markets include offering workshops and courses on cooking, music, sports and dancing, as well as highlighting more premium, relaxing services like spas, she said.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.