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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- Hawaii travel guides, islandHawaii State Vacation Planner - Hawaii vacation information, Waikiki and Big Island of Hawaii vacation rentals, Maui and Kauai hotels, Hawaii travel guides, island maps and Hawaii vacation stories Win a Trip to Hawaii! 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Contact Us | Marketing/Advertising | Email this Page to a Friend | Privacy Policy Hawaii HotelStarwood Hawaii Hotels & Resorts - Sheraton Moana Surfrider - Waikiki, Oahu Vacation | "Hula Jazz" & Hawaian Music Concert in the Courtyard Na Hoku Hanohano award winner Owana Salazar will headline the Hula Jazz and Hawaiian Music Concert in the Courtyard on Thursday, January 19, 2006. January Parades Details on January parades and road closures throughout Waikiki Valentines Under The Stars With Your Sweetheart At Banyan Veranda Executive Sous Chef Richard Lancaster will serve an unforgettable meal, complemented by the moonlight and magic of the Moana. "Promise Me Again" at the Moana Island entertainers Hawaii Loa wrote a song for the hotel's group vow renewal ceremony... View all news In the heart of Waikiki Beach, the Moana Surfrider Hotel introduced the world to Hawaiian hospitality in 1901. Often referred to as the “First lady of Waikiki”, this oceanfront Oahu hotel is a legendary landmark. Step back into yesteryear with all the contemporary amenities and unique services to make your Hawaii vacation both memorable and enjoyable. Check in Check out Room(s) 1 2 3 4 5 6 7 8 9 Adult(s) 1 2 3 4 Book a Room + Air + Car package Select a Property ------------------------------ Starwood Worldwide Starwood Preferred Guest ------------------------------ Starwood Hawaii ------------------------------ Sheraton Hawaii ------------------------------ Sheratons in Waikiki Sheraton Waikiki Sheraton Moana Surfrider Sheraton Princess Kaiulani Sheraton Kauai Resort Sheraton Maui Resort The Royal Hawaiian Sheraton Keauhou Bay Resort & Spa ------------------------------ The Luxury Collection Hawaii ------------------------------ Princeville Resort ------------------------------ The W Hotel Honolulu ------------------------------ The Westin Maui Resort & Spa The Westin Kaanapali Ocean Resort Villas Maui snorkeling spot onMaui Snorkel Map - The Frog's favorite spots! Of course some of the best snorkeling available from Maui is around Molokini Crater. This requires a short boat ride, and we have just the trip for you! Ride aboard the Quicksilver , a brand new catamaran complete with glass bottom viewing area, waterslide and plenty of room to make sure everyone is comfortable. HOME | CHEAP FUN | GEAR RENTAL | MAUI MAPS | SNORKEL CRUISES This is a map of Boss Frog's favorite snorkeling spots. They are all on the West side of the island because that's where the water is generally safer. When North swells come in, it is best to snorkel at the southern locations, i.e. numbers 7 through 15. During South swells, numbers 1 through 6 are best. Generally, ocean swells come from the North in the Winter and South in the Summer. This isn't always the case so the best course is to check with The Frog when you get here for the latest report. Honolu'a Bay Honolu'a may well be the best Maui snorkeling spot on a good day. A good day here is when there have been no recent North swells or rain. During North swells, this is a world class surfing spot and for obvious reasons not good snorkeling. If there has been a recent rain in the area, the run-off enters at the mouth of the bay and ruins the otherwise great visibility. Most of the time this is a great place to snorkel or dive. There are coral formations on each side of the bay and lots of colorful fish. The chance of spotting a few turtles here is excellent. This is a marine reserve so you are not allowed to take anything but pictures. Location: North of Napili on Hwy. 30, about 1/2 mile past mile marker 32, you will see a metal gate down in a wash. Park where you can and walk around the gate, through a canopy of trees and to the water. Be sure to park off the road. If you are not completely outside of the white fog line, you may get ticketed. Do not leave valuables in your car. Facilities: none Beach: Large, smooth rocks Experience Level: Beginner to advanced MAP Makulei'a Bay Makulei'a Bay, also known as "Slaughter House" to surfers, is a good place to snorkel. The snorkeling isn't quite as good as Honolu'a, but if there are some in your group that want to just hang out on the beach, this would be a good compromise. If you are an experienced swimmer, you could snorkel around the northern point to Honolu'a. There are coral formations on each side of the bay and lots of colorful fish. The chance of spotting a few turtles here is good. This is a marine reserve so you are not allowed to take anything but pictures. Location: North of Napili on Hwy. 30, at mile marker 32, you will see a chain link fence at the top of the cliff. Park where you can and walk down the concrete stairway to the beach. Be sure to park off the road. If you are not completely outside of the white fog line, you may get ticketed. Do not leave valuables in your car. Facilities: None Beach: Beautiful, sandy beach Experience Level: Beginner to advanced MAP Kapalua Bay Kapalua Bay, known as the prettiest beach on Maui is also a good snorkeling spot. The best snorkeling is on the north side of the bay. Unless you are very experienced, you should stay within the bay due to the potential for strong currents outside. Location: On Hwy. 30, at the Napili Plaza, turn toward the ocean on Napilihau Street. When Napilihau Street "T's" at Lower Honoapi'ilani Road, turn right. Drive almost a mile to Napili Kai Beach Club and turn toward the ocean at the Shoreline Access sign. Park in the lot and walk through the tunnel to the beach. The best snorkel access is on the north side of the bay. Facilities: Showers, change rooms, restrooms Beach: Beautiful, sandy beach Experience Level: Beginner to intermediate MAP Kahekili Beach Park Kahekili Beach Park, also known as Airport Beach, is a nice place to spend the day with the family. Great facilities and lots of reef to snorkel. The calm water and easy access make it a popular spot for scuba instruction. Location: North end of Ka'anapali, on Hwy. 30, just north of mile marker 25, turn toward the ocean on Pu'ukolii Road. Facilities: Lots of parking, showers, change rooms, restrooms, large covered picnic areas, barbecues and pay phones Beach: Nice, sandy beach Experience Level: Beginner to intermediate MAP Black Rock Black Rock is like a wall dive for snorkelers. A lava outcropping with coral attached. Swim from the South end up to the north and back again. If there is no ocean swell, this can be a very clear snorkel. One usually sees turtles along the way and an occasional tako (octopus). A common spot for night dives. Location: On Hwy. 30 in Ka'anapali turn toward the ocean on Ka'anapali Parkway. Look for the free beach access parking. If it's full, you'll have to park at Whaler's Village parking. If you decide to eat or buy something at this mall or have lunch, you can have your ticket validated. Facilities: Lots of parking (some free some not - see above), showers, change rooms, restrooms, pay phones, shops and restaurants. Beach: Beautiful, sandy beach Experience Level: Beginner to intermediate MAP Wahikuli Park Location: Facilities: Showers, change rooms, restrooms, Beach: Nice, sandy beach Experience Level: Beginner to intermediate MAP Olowalu Acres of coral reef. You could spend the whole day here and not see it all. If it's a little murky at first don't get discouraged - just go further out. This area stays shallow for a long way out. Follow the sand channels until you are deep enough not to scrape your belly on the coral. This location is also a good choice in the afternoon as it more protected from the trades. Location: On Hwy. 30 at mile marker 14, about 10 miles south of Lahaina. See mile marker post on the mountain side of the road. Be careful not to park in soft sand! Facilities: None Beach: Narrow sandy beach Experience Level: Beginner to advanced MAP Coral Gardens Great snorkeling with lots of coral and tropical fish. Good spot to see turtles. Unless you are on a boat, this is only recommended for advanced snorkelers due to the long swim and sometimes difficult access. Location: On Hwy. 30, about 1/2 mile north of the tunnel. The first parking area north of the Pali (cliffs). Enter by parking area and swim south in front of the cliffs. Facilities: Showers, change rooms, restrooms, Beach: None Experience Level: Advanced (beginner to intermediate from a boat) MAP Kamaole Beaches Kamaole beaches 1, 2, and 3 are stretches of sandy beaches along South Kihei Road. Each beach is bordered by rocky points. These points are the best snorkeling. Great family beaches with plenty of stores and restaurants close by. Location: On South Kihei Road in Kihei Facilities: Showers, change rooms, restrooms, lifeguards, phones, park facilities Beach: Nice, sandy beach Experience Level: Beginner to intermediate MAP Ulua/Mokapu Mokapu and Ulua are two beaches separated by a nice little snorkel point. This is a nice place for the family, especially if you are staying in the Wailea area. Parking lot may be full if you are not there early or later in the afternoon. Location: In Wailea between the Renaissance and Outrigger hotels. See the sign on Wailea Alanui and turn toward the water Facilities: Showers, change rooms, restrooms, Beach: Nice, sandy beach on either side of snorkel area Experience Level: Beginner to intermediate MAP Polo Beach Polo Beach is by the Kea Lani Hotel. This is a pretty sand beach with the best snorkeling area to the right. Nice coral formations and plenty of fish. Location: Between Wailea and Makena in front of the Kea Lani Hotel. Take Kaukahi (the road on the south side of the hotel) toward the ocean and turn right at the bottom of the hill, following the beach access signs. Facilities: Showers, change rooms, restrooms. Beach: Nice sandy beach Experience Level: Beginner to intermediate MAP Five Caves One of Maui's best snorkel or scuba spots. Abundant marine life including many turtles. Not for beginners due to the swimming distance . Many caves and "swim-thrus" for advanced scuba divers. Visibility is sometimes poor after rain or south swells. Location: South of Wailea on Wailea Alanui, turn toward the ocean on Makena Rd, just south of the Makena Surf Condos. In about 1/4 mile, you will see some dirt parking on both sides of the road and a small graveyard between the parking and the ocean. Follow the trail to the sea and look for an inlet for entry. Facilities: None Beach: None Experience Level: Intermediate to advanced MAP Molokini Crater Geologically, Molokini is a volcanic cinder cone that has eroded over the ages. Now the island is a Marine Life Conservation District Seabird Sanctuary, and a world-class dive location. Located 3 miles off the shores of Maui, it is famous for having incredibly clear water with visibility exceeding 100 feet almost every day. You will enjoy thousands of brightly colored tropical fish and it is possible to see monk seals, whale sharks, manta rays, spotted eagle rays and harmless white tip sharks. Molokini is one of the most popular & exotic snorkel & diving sites in the entire world. It is a must see destination for any visitor interested in Maui's underwater world . Location: 3 miles off the coast - boats only Facilities: Whatever is on the boat Beach: None Experience Level: Beginner to advanced MAP Ahihi Keanau Reserve Snorkeling at it's best. Anywhere along this reserve you feel comfortable entering the water is great. Ahihi Bay itself is a great place to get used to your gear if you are new or rusty at snorkeling. After you get comfortable in the water, head out of the bay for some of the best snorkeling on the island. Location: South of Wailea and all of the hotels, after the road narrows and follows the coast closely, you will begin to see Ahihi Keanau Reserve signs. Ahihi Bay is an obvious bay within the reserve. Facilities: None - park where you can. Beach: Rocky to none Experience Level: Beginner to advanced MAP La Perouse To the North is reserve and the best snorkeling. This is an excellent place to snorkel if it isn't too windy. There is a pod of dolphins that frequents the area - usually in the early morning hours. If you are lucky they will swim with you! Location: Past Ahihi Reserve, this is end of the road unless you have 4-wheel drive and a lot of clearance. Facilities: None Beach: Rocky to none Experience Level: Intermediate to advanced MAP CONTACT US | HOME GEAR RENTALS | ONLINE STORE | OCEAN FUN | LAND & AIR FUN | CHEAP FUN VISITOR TIPS | INTERNET SPECIALS | MAUI MAPS | OTHER RESOURCES Site Designed & Maintained by Tortuga Roja Web Services Hawaii Volcanoes Photo GalleryHawaii Volcano Photo Gallery Pu`u `O`o - Kupaianaha Eruption of Kilauea fumes billowing from two prominent collapse pits You are here: About > Travel > Hawaii / South Pacific for Visitors Travel Go Hawaii Essentials Which Hawaiian Island Suits You Best? 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