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Honolulu Star-Bulletin Business — ADVERTISEMENT — Sunday, October 17, 2004 DENNIS ODA / DODA@STARBULLETIN.COM Yoshi Takahashi amuses his friends Kimi Toi and Michi Ogino with a wetsuit that's a little too small at the Xcel store in the Ward Village Shops. Hey! Big spenders New research shows just where tourists drop their money during stays in Hawaii By Allison Schaefers aschaefers@starbulletin.com ILLUSTRATIONS BY BRYANT FUKUTOMI / BFUKUTOMI@STARBULLETIN.COM China / South Korea travelers » More than 50 percent of these Asian visitors are first-timers and about a quarter of them come as part of a package tour. » Most come to visit friends or family (more than 28 percent), on business, or as part of a stopover, as stringent Visa requirements and a lack of flights has made Hawaii a difficult vacation destination. » In terms of activities, they are statistically similar to Americans, but plan to spend more money. » Most plan to attend a luau and 30 percent intend to play golf, the most of any other group surveyed. United States travelers » American travelers plan to stay longer and spend the least amount of money on retail and souvenirs. » They are most likely to engage in sports like running, scuba or going to the gym, but have the smallest percentage of people who planned to swim or sunbathe. » Americans are more likely to attend a luau, go to a Hawaiian history or cultural event and buy Hawaiian clothing and souvenirs than Japan or other Asian travelers. » They enjoy shopping at convenience stores, malls or hotel stores. They are also the most likely to go to a museum or art gallery or eat in high-end restaurants. Japan travelers » More than 60 percent of Japan travelers come to Hawaii as part of a package group. » These visitors plan to stay the least amount of time and spend the most money. » They are most likely to come to Hawaii to celebrate a wedding or honeymoon than any other group. » They are most interested in going to the beach and shopping while in Hawaii, but few plan to do any activities or eat in high-end restaurants. » They enjoy shopping across the board from outlet and discount stores to designer boutiques. While tourists from Japan and the mainland still pump plenty of money into Hawaii's retail stores, a more global mix of visitors is at the heart of Hawaii's improved tourism outlook, and their preferences are worlds apart. A new cross-cultural study from the University of Hawaii is available to help retailers take stock of what tourists buy, so local stores can match merchandise with spending habits. University of Hawaii marketing professor Mark Rosenbaum and travel industry management professor Dan Spears randomly surveyed more than 1,000 Waikiki tourists to determine cultural differences regarding their reasons for coming to Hawaii, their desire to shop and what purchases they planned to make during their stay. "Not all tourists are alike," Rosenbaum said. "Your target market should greatly impact how you merchandise and what products you stock." Hawaii's retail history gives businesses strong reasons to diversify their customer base, said retail analyst Stephany Sofos. "In the 1980s, the Japanese people came fast and furious and those who didn't cater to them were left out. Now it's changing, and as visitor groups change, retailers are having to figure out what their market is from one day to the next," Sofos said. The University of Hawaii study can help tourist-dependent businesses identify how to best keep their customers happy and how to increase spending from other visitor groups, Spears said. Their research showed that Japanese tourists plan to spend $1,400 on gifts and souvenirs during their stay in Hawaii, which is substantially more than all other visitor groups. According to the study, Chinese and Koreans spend about $750 on retail items and Americans spend around $600. They also found differences when it came to purchasing local foods, clothing and engaging in outdoor activities as well as differences in why these tourists groups were coming to Hawaii. For example, Americans and Japanese came to Hawaii primarily to vacation, while the Chinese and South Korean visitors were in Hawaii primarily to visit family members. Chinese visitors can only travel for leisure to a few designations, which does not include Hawaii. "Most Japanese will spend their vacation shopping at both high-end and discount retailers," Rosenbaum said, adding that data also confirmed the love-affair Japanese have with designer items. Nearly 60 percent of the Japanese visitors surveyed planned to visit Hawaii's designer boutiques; in contrast, only 35 percent of Americans planned to do so. However, the number of Japan travelers who plan to purchase products made in Hawaii, such as coffee, food and clothing, is lower than other groups. "The Japanese are the answer to our luxury business - not our economy," Rosenbaum said, adding that purchases of locally made products create more jobs and ultimately bring more benefit to the state. Visitors, who spend about $3 billion annually on retail goods in Hawaii, make up about 15 percent of the state's $19 billion retail market, said Carol Pregill, president of the Retail Merchants of Hawaii. The islands drew 6.4 million visitors last year, about two-thirds of them from the mainland. "Shopping is the third largest expenditure, next to food and lodging, for visitors," Pregill said, adding that about 20 percent of visitor expenditures can be attributed to shopping. "That's huge when you consider that shopping is a discretionary expense," Pregill said, and is an important part of a visitor's experience. But to make Hawaii shopping attractive to visitors it has to be distinctive, said Frank Haas, marketing director for the Hawaii Tourism Authority. "You can shop in Hong Kong and Las Vegas; what we need to know is what's distinctive about shopping in Hawaii," Haas said. As Oahu's visitor market stays strong, many retailers are going to take advantage of more visitor-based opportunities, said Jeffrey Hall, senior director of research at CB Richard Ellis. "There's huge amount of interest in redoing resort retail, especially in Waikiki," Hall said. According to market reports, Waikiki has a high number of retail vacancies, but in three to four years the sector will be more bullish as Waikiki renovation projects come to fruition, Hall forecasts. "The Royal Hawaiian Shopping Center is rapidly changing. The Beach Walk and the International Market Place projects are just getting under way," Hall said. "Expect that in a few years Waikiki will be an entirely different place." Any shift in visitor demographics changes the way businesses advertise their products. "It's important to know who is coming and what you need for inventory," Pregill said. "Inventory is a huge expense and no one wants to be stuck with goods that no one want to buy." That's where the Rosenbaum and Spears study comes in, said Anne Murata, marketing director of the Festival Cos., which manages the Royal Hawaiian Shopping Center. Murata said she purchased the study because it's the first retail survey in Hawaii that breaks data into small categories such as visitors' reasons for traveling to Hawaii, ability to spend and where they spend their money. Retailers are especially interested on the data about Chinese and South Korean visitors, she said. While Chinese and Korean visitors have more in common with Americans in terms of overall spending, their spending habits are very similar to the Japanese visitor market when it was new, Murata said. In the 1990s, when the Japanese tourism boom to Hawaii was growing, the state's largest industry went to great lengths to cater to their needs. Japanese signs ruled Waikiki marketing; but then the bubble burst and retailers had to regroup to stay in business. "We've been trained to think only in terms of U.S. westbound and Japan travelers," she said. "But our retail market is becoming increasingly global and we're starting to see more travelers from China, Korea, Australia, New Zealand, Europe and the U.S. East." Japanese visitor arrivals to Hawaii, which peaked at 2.2 million in 1997, fell to 1.3 million last year in response to a weakened Japanese economy and geopolitical troubles. Retailers say the market has rebounded, but it's time for those eyeing Hawaii's improved market to use the isles' changing tourist patterns to help determine what's in store. Although the China travel market to Hawaii is small, representing less than 1 percent of Hawaii's total visitors in 2002, state officials have identified it as a market with enormous potential. New research shows that Chinese tourists are now the biggest spenders in the Asia-Pacific region by average credit card transaction size, according to a study released by Visa. The report, published last week in the Financial Times, said Chinese cardholders on average spent $253 per transaction while traveling. The World Tourism Organization has also estimated that China will produce 100 million outbound tourists by 2020 and members of Hawaii's public and private sector want their share. "Just like we geared retail to the Japan market in its heyday, someday I expect we'll see retail signs in Chinese and Korean, too," Murata said. According to the Rosenbaum and Spears survey, the Chinese, enjoy participating in new activities, but look for familiarity in restaurants - characteristics similar to Japanese visitors before Hawaii became a common destination, "They only want to eat in Chinese restaurants," Rosenbaum said. But, more important for retailers is that the Chinese also appear to have a taste for luxury goods. "The Chinese, like the Japanese, also want to purchase luxury goods as gifts to take home," Spears said. While retailers need accurate data to capture their audience, there is one sure plan that works across cultures, Murata said. "One thing you can always sell them is the aloha spirit - that's an approach that works with visitors from China to Lithuania," Murata said. BACK TO TOP | The Hawaii experience A new University of Hawaii study of tourist spending habits raised some interesting questions. For instance, do Japan travelers, who planned to spend $1,400 on gifts and souvenirs during their stay in Hawaii, really contribute the most money to Hawaii's economy? While Americans, who planned to spend about $600 on retail, and Chinese/ Koreans, who planned to spend about $750, lagged behind in overall spending, the data showed that these groups spent significantly more on made-in-Hawaii products. The percentage of visitors planning to buy each product: Items USA / Canada Japan China / South Korea Hawaiian coffee 53.1 38.4 70.8 Macadamia nuts 66.8 52.2 75.5 Pineapples 37.4 7.3 30.2 Hawaiian candies 35.7 12.3 35.8 Hawaiian clothing 47.3 21.7 43.4 Hawaiian souvenirs 60.9 41.1 58.5 Source: University of Hawaii marketing professor Mark Rosenbaum and travel industry management professor Dan Spears Where it all goes Percentage of visitors doing the following activities: Activities U.S. Japan China/Korea Honeymoon/wedding 6.8 18.2 4.7 Visit family/friends 13.4 3.8 28.3 Part of Packaged tour 15.8 61.3 25.5 Buying designer clothes 29.2 34.9 37.7 Golf 16.0 5.6 30.2 Tour bus 30.9 25.2 37.7 Beach 77.4 78.3 84.0 Fine dining 58.2 8.5 49.1 Culture/History 64.2 27.3 43.4 Luau 59.7 16.1 62.3 Designer boutiques 35.1 59.2 41.5 Mall 65.4 74.5 75.5 Characteristics of visitors' stays: Visit U.S. Japan China/Korea Planned Expenditures $644 $1,416 $745 Length of Stay in Hawaii 12 days 7 days 11 days Source: University of Hawaii marketing professor Mark Rosenbaum and travel industry management professor Dan Spears — ADVERTISEMENTS — — ADVERTISEMENTS — | | | PRINTER-FRIENDLY VERSION E-mail to Business Editor BACK TO TOP Text Site Directory: [News] [Business] [Features] [Sports] [Editorial] [Do It Electric!] [Classified Ads] [Search] [Subscribe] [Info] [Letter to Editor] [Feedback] © 2004 Honolulu Star-Bulletin -- http://starbulletin.com -Advertisement-

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No Treason - Heisenberg in a Hawaiian Shirt by Billy Beck Journal | Weblog | Metablog | Forum | Archives | Featured Articles | Resources | On Voting Author Index John T. Kennedy Lynette Warren John Sabotta Billy Beck Kipawa Condor Bob Murphy Andy Stedman Aaron Hartter John Lopez Mike Soja Joshua Holmes Patri Friedman Rob Robertson Tim Starr Dick Freely Heisenberg in a Hawaiian Shirt -- By Billy Beck Dec. 6 -- I'm sitting here right now watching the Florida House ofRepresentatives Minority Leader, Lois Frankel (D), making an astonishingfool of herself on network television. Her grief over the announcementof a special session of the Florida Legislature in order to appoint aslate of presidential electors has driven her to distraction. For onething, she says the thing is illegal, and even hinted at litigation toenjoin it. Given the state of the courts these days, she couldprobably get someone to actually hear the case. During herpainful moan, Rep. Frankel asserted it as "naive" that anyone shouldthink the Florida Legislature's leadership was "calling the shots." "The only thing missing from the proclamation today was thepostmark from Austin," she said. She went on about theubiquitous "WillofthePeople" and how outrageous it would be for the"partisan" majority to supplant themselves for the wishes of six millionFloridians. If there is one thing I cannot stand, it's a whineyloser. ("Legal and constitutional scholars far smarter than me have been saying that there is no legal grounds for this!" she let on.)Oh, there's room for it in the case of, say, a ninety-seven-poundweakling getting trounced by a two-hundred-pound bully pounding him justbecause he's little. I could see that sort of thing being worth howlingabout, because the injustice of it is starkly obvious: anyone like thatwho would destroy someone smaller just because he's smaller, isalso a good candidate for a tire-iron on the kneecap just to get hisattention before making things right again. In the matter ofbig-time politics, however, nothing like this is the case. For oneobvious thing: ignorance of the rules is no excuse. Rep. Frankel coulddo herself a favor just by reading the US Constitution. Personally, I'mnot a real big fan of that document, but it's not terribly long orotherwise difficult to understand. Also: I'm not the one who's gone intobusiness under its provisions, which is not the case with Rep. Frankel,even though she's just a whiney Florida state representative. In theinstant case everything she was talking about is subject to theauthority of the US Constitution. "Each State shall appoint, insuch a Manner as the Legislature thereof may direct, a Number ofElectors." (Article II, Section 1, paragraph 2) The periodisn't strictly quotation, because the sentence continues beyond thatpunctuation, but it'll stand for the purpose of a great big "HELLO!" toRep. Frankel. So, what exactly is it that drives a person likeher to her appearance this afternoon? Well, she knows an implacablething when she sees it. The Republican majority in Florida is gettingready to have their way with the elector slate, and if they really wantto do that, there is nothing in the world that anyone can do about it.They have all the numbers breaking their way, and poor Rep. Frankel, whowants Al Gore to be president, is going to lose in that case. One wonders if she didn't understand politics when she chose a career.Did she never look forward to a day when her own party would be in themajority and have its way? If she ever did, then whence all thishollering about "partisanship?" What the hell else could sheever expect? If she has some idea that her own appearance on the heelsof the announcement was "non-partisan" or something like it, she shouldbring it on, because I can always use a good laugh. Whether theFlorida Republican leadership of the legislature are"partisans," one thing remains indisputably true: thatassembly is mandated by the US Constitution to appoint a slate ofpresidential electors. They're calling the special session a "safetynet" in case the Certificate of Ascertainment -- already stashed inWashington -- turns out to be not so certifiable as a result of anynumber of legal actions now in progress. They might never stand up andcop to "partisanship" in the deal, right out loud, any more than Rep.Frankel would admit that for motive of her own distress, but they feellike they need to cover the action. Who could blame them? It'svariously said that "the electors were chosen on electionday." This is the "photo-finish" argument; that the only thingremaining is to examine the photos of the finish. That would be thefull-blast manual recounts. The most notable example at the moment isthe Leon County circuit court case which was appealed to the FloridaSupreme Court. The Gore team is still playing for a hand recount of14,000 "under-vote" ballots in Palm Beach and Miami-Dade counties. The "undervote" ballots are the sort that require human peeringthrough to a light source, nonsense aptly called "ballot phrenology" byLynette Warren right here in The Union Square Journal. It was great forillustrating the actual cognitive value of various ardent work carriedon by the various bleary-eyed canvassing boards, which is nil. Now, we could rehearse all the hue & cry over "divining voterintent" and all the rest of it, but I'm not interested. I'll justsensibly assert , here, that anyone who thinks they know who an"undervote" voter voted for, is also just making it up. The simple factis that there is no evidence, in the same way that there is no evidencefor leprechauns. That's that. It's just the way it is. The far more pressing question involves who, exactly, is making up what,exactly, and why they would do it. This is the point whereintegrity requires Full Disclosure. I want to get out of the way, rightaway, that I am a dedicated Clinton Hater. Sooner or later in thesecolumns I will make clear to all the fullest depths of my contempt forThe Lying Bastard and his Ozark Long March. The point is brieflynecessary here, however, for this reason: I am not unreasonable about it. Throughout The Long National Nightmare -- duringwhich I have been far more fully awake than to fall for all the"prosperity" jazz -- I grew to my status ("If only the guykept an "Enemies List" like some presidents we've known!") withclose observation of this administration's record, which was alwaysappraised in terms of principles . All of that leads to fairlyheavy material, all its own. My principles (mainly freedom) are anathemato many, but I'm not here to argue them. (Yet.) What I'm getting at isthe fact that hating Maximum Bill, as well as his whole rotten cast, isan eminently reasonable conclusion at which to arrive by a process ofreason. One more disclosure in order to set a context: Bush isgoing to be a spectacularly rotten president. Not especially evil, Ithink, but spectacularly rotten. Tack that up on your refrigerator: Isaid that. Period. Way, way back in that unholy nightbetween the 7th and 8th of November, Christopher Ruddy writing atNewsmax filed a 4:21am report which stated that "key Democraticprecincts held back turning in their final tallies until the bitterend." Ahead of a few of its unfortunate or improvident competitors, TheNew York Times had stopped its presses sometime near 3:30am in order toavoid another Truman/Dewey style headline goof. Before the morning sunhad raced from sea to shining sea, the Florida vote was legally mandatedfor recount by the hair-thin margin, and forecasts of court challengeswere already hours old. The Florida vote looked like a trainwreck that had finally found its grid-coordinate. The Place To Be. Very shortly after the train wrecked, air was densely fogged withshouts of confusion in numbers that eventually far outstripped thealleged mistaken Buchanan votes. Even before the train wrecked,Gore fund-rouser Terry McAuliffe told reporters, "We got to make surethis election is right." Looking back at that November 7th statement,one wonders whether he knew the wreck was coming, although itwould be fair to note that we're talking about a state in which votefraud is so pervasive that the Miami Herald won a Pulitzer Prize forinvestigating the subject, so I guess it's possible that my eightyear-old niece could have expressed the same worry had she beeninterested. By 4:30am during the overnight on NBC, Newsweek'sJonathan Alter threw down what can only now be regarded as A Plan,looking back on actual events. Nearly frenzied over the nationwidepopular vote margin for Gore, Alter suggested shotgun litigation inevery court with an open door, essentially aimed at keeping the Bushelector slate from being certified for as long as possible. Twobeneficial ricochets might possibly accrue from this angle: 1) Bushmight yield to various unspecified pressures to concede the electionunder the weight of the national popular vote; and 2) it could later beplausibly argued that there could never be an accurate (i.e. - "true")accounting of the Florida vote. It shouldn't require aquantum physicist to understand which way the particles are blowing whena James Carville says that the day will come when we will all understandthat Al Gore won the election in Florida. It's likely the furthestdistance from accident when US Sen. Harry Reid, (D-Nev) come along toremind everyone: "Remember, there's something of a pale over all this:he lost the popular vote by over a quarter-million votes." Now,for the purposes of my own judgment in these matters, a resort tohistory is quite often good enough for me, and here's one thing I know:the name "Daley" anywhere near them is something like acid on fineleather... which isn't to point up a comparison of fine leather toelections, but actually the particular ferocity of the corrosive effect.And that's just for starters, as in: a generation before Carville, ifyou can imagine the devolutionary implications. So, now, we'retreated to some dynamic portrait of yet another working class herolaboring in The Ballot Fields for the future of the past, and here's anoteworthy fact: it's the... Gore people... who pitch that rubbish.Nobody else. I could sit here and nod my head and smile at thesuggestion that there is no Uncertainty Principle at work in thisbusiness, but I'm afraid I won't be very good at it, because theresimply can be no other way of things than that the data will change aslong as they care to look at it, because they're looking at it. Iam not a fool: I know "phrenology" when I see it, even if only as far asI can see the damned lawyers tramping around and the whining losersbaring fangs. Just look at these people, and tell me if the truth is inthem. Go ahead. Pat Caddell is nearly coming ungluedlately, and that looks like a signal matter, to me. "We are headed tohell," he said tonight in looking ahead at partisan divides. The poorguy is making as much righteous noise as he can over the electionstealings of Florida, but he's also got a pretty good grip on which waythe particles are blowing into the future. I've not heard him remarkgreatly on the legal plays. But he might see that sort of thing as swellfor people who dig it, but anyone who thinks that's where the action is,is also the type of person to be excited by a field-goal kicked in thelast six seconds of a 21-7 football game. Yeah: there's a lotof noise in the stands, and even side-bets on miracles (e.g., MartinCounty), but Al's dead. Nobody has to believe that, of course,but they get to hang around and watch to see who's right about it. Andthen, as Carville tells us where his bet lays, "We're gonna have thewrong guy in the presidency because these votes are going to be countedunder the Florida sunshine law." It was Nancy "Amazing" Grace who hippedus, "Those votes will be counted, come hell or high water." Wonder which it'll be. Don't you? Which would be what to the Bushadministration, and would it be "partisan?" Jeez, it wouldalmost call for some kind of price to be paid for winning the election,what Thomas Bray at OpinionJournal.com characterized as "go[ing] allwobbly with gauzy visions of a bipartisan future." How much hell or highwater would that take? The question occurs because of the ways thesepeople raise them... but this isn't the place to start raising otherquestions about burnt drowned bodies. And, see, the thing isthat Maximum Bill can go ahead and ride off to Hollywierd or Oxford ifhe can get away with either one of them... if he can get far enough awayto dodge the splinters if one of his old pillars explodes under him,which is to say: out of reach of "the law." He probably will, and Isaid so years ago. (From 1776 on, nobody ever died so that somethinglike Bill Clinton could be what he has been and then just flit off toparty like a retired Soviet apparatchik as if the blood of the Lubyankacellars had never splashed his trousers.) But the Clintonism is seeped now, and I ain't counting on Dubya to ward it off. [1] Comments Billy Beck Archive

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