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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 ResortHawaii Resort and Timeshares The #1 Real Estate Directory Offers links and information to real estate related sites. 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Tell our advertisers you found them on Alternative-Hawaii. SPORTS & RECREATION (See also Adventures & Tours ) OAHU GOLF COURSES Sponsor: Ann Cecil's Photography - Visit a Michelle Wie Pictorial PUBLIC / SEMI-PRIVATE | MUNICIPAL | PRIVATE | MILITARY | ASSOCIATIONS DEFINITIONS Public - no restrictions on public play. Semi-private - some restrictions on public play. Municipal - public courses operated by local government. Private - normally not open to the public. Military - open to active duty military, military retirees, reservists, National Guardsmen, Department of Defense civilian employees & their dependents. Yards - longest yardage - to the back tees. PUBLIC / SEMI-PRIVATE BAY VIEW GOLF PARK 45-285 Kaneohe Bay Drive Kaneohe, HI 96744 (Windward Oahu) Tel. (808) 247-0451 Great views of Kaneohe Bay. Public. 18-Holes. Par 60; 3399 Yards. Photo CORAL CREEK GOLF COURSE 91-1111 Geiger Road Ewa Beach, HI 96706 (Southwest Oahu) Tel. (808) 441-GOLF Designed to expose natural coral rock formations in cliff-like structures. Public. 18-Holes. Par 72; 6870 Yards. Photo - Site HAWAII COUNTRY CLUB P.O. Box 861634 94-1211 Kunia Road Wahiawa, HI 96786 (Central Oahu) Tel. (808) 621-5654 The oldest public course on Oahu. Public. 18-Holes. Par 72; 5916 Yards. Photo - Site HAWAII KAI CHAMPIONSHIP GOLF COURSE 8902 Kalanianaole Highway Honolulu, HI 96825 (Honolulu / Hawaii Kai Area) Tel. (808) 395-2358 Challenging course with mountain and ocean views. Public. 18-Holes. Par 72; 6614 Yards. Photo - Site HAWAII KAI EXECUTIVE GOLF COURSE 8902 Kalanianaole Highway Honolulu, HI 96825 (Hawaii Kai District) Tel. (808) 395-2358 Original design by Robert Trent Jones Sr. Public. 18-Holes. Par 54; 2223 Yards. Site HAWAII PRINCE GOLF CLUB 91-1200 Fort Weaver Road Ewa Beach, HI 96706 (West Honolulu District) Tel. (808) 944-4567 Resort course designed by Arnold Palmer & Ed Seay. Public. Three 9-Hole Courses (A, B, C). Par 72. A&B 7117 Yards; B&C 7255 Yards; C&A 7166 Yards. Photo - Site KAPOLEI GOLF COURSE 91-701 Farrington Highway Kapolei, HI 96707 (Leeward Oahu) Tel. (808) 674-2227 Ted Robinson designed course. Five strategically placed lakes & 802 bunkers. Public. 18-Holes. Par 72; 7001 Yards. KO OLINA GOLF CLUB 92-1220 Alii Nui Drive Kapolei, HI 96707 (Leeward Oahu) Tel. (808) 676-5300 Ted Robinson designed resort course. Public. 18-Holes. Par 72; 6867 Yards. Photo - Site KOOLAU GOLF COURSE 45-550 Kionaole Road Kaneohe, HI 96744 (Windward Oahu) Tel. (808) 236-4653 Considered by many to be the toughest course in the nation. Public. 18-Holes. Par 72; 7310 Yards. Photo - Site LUANA HILLS COUNTRY CLUB 770 Auloa Road Kailua, HI 96734 (Windward Oahu) Tel. (808) 262-2139 Dye designed course situated deep inside a rain forest. Public. 18-Holes. Par 72; 6595 Yards. Photo - Site MAKAHA RESORT GOLF CLUB - MAKAHA WEST 84-626 Makaha Valley Road Waianae, HI 96792 (Leeward Oahu) Tel. (808) 695-7519 Championship resort course in beautiful setting. Public. 18-Holes. Par 72; 7077 Yards. Photo - Site MAKAHA VALLEY COUNTRY CLUB - MAKAHA EAST 84-627 Makaha Valley Road Waianae, HI 96792 (Leeward Oahu) Tel. (808) 695-7111 One of two courses in the valley of the peacocks! Public. 18-Holes. Par 71; 6369 Yards. Photo - Site MID-PACIFIC COUNTRY CLUB 266 Kaelepulu Drive Kailua, HI 96734 (Windward Oahu) Tel. (808) 261-9765 Championship course with panoramic views. Semi-private. 18-Holes. Par 72; 6792 Yards. Site MILILANI GOLF CLUB 95-176 Kuahelani Avenue Mililani, HI 96789 (Central Oahu) Tel. (808) 623-2222 Backdrop view of the Waianae Mountain Range. Semi-private. 18-Holes. Par 72; 6455 Yards. Site MOANALUA GOLF CLUB 1250 Ala Aolani Street Honolulu, HI 96819 (West Honolulu District) Tel. (808) 839-2311 Hawaii's oldest golf course built in 1898. Semi-private (no reservations required). 9-Holes. Par 36; 2972 Yards (non members required to play 2 rounds-18-holes). NEW EWA BEACH GOLF CLUB 91-050 Fort Weaver Road Ewa Beach, HI 96706 (West Honolulu District) Tel. (808) 689-8351 Designed around native Hawaiian foliage and landscape. Public. 18-Holes. Par 72; 6541 Yards. OLOMANA GOLF LINKS 41-1801 Kalanianaole Highway Waimanalo, HI 96795 (Windward Oahu) Tel. (808) 259-7926 Views of the Koolau Mountain Range. Public. 18-Holes. Par 72; 6326 Yards. PEARL COUNTRY CLUB 98-535 Kaonohi Street Aiea, HI 96701 (West Honolulu District) Tel. (808) 487-3802 Great view of Pearl Harbor. Public. 18-Holes. Par 72; 6787 Yards. Photo - Site ROYAL KUNIA COUNTRY CLUB 94-1509 Anonui Street Waipahu, HI 96797 (Southwest Oahu) Tel. (808) 688-9222 Views of Diamond Head and Pearl Harbor. Public. 18-Holes. Par 72; 7007 Yards. Photo - Site TURTLE BAY RESORT - FAZIO COURSE 57-091 Kamehameha Highway Kahuku, HI 96731 (North Shore Oahu) Tel. (808) 293-8574 Resort course designed by George Fazio. Public. 18-Holes. Par 72; 6535 Yards. Site TURTLE BAY RESORT - PALMER COURSE 57-091 Kamehameha Highway Kahuku, HI 96731 (North Shore Oahu) Tel. (808) 293-8574 Championship resort course designed by Arnold Palmer. Public. 18-Holes. Par 72; 7199 Yards. Photo - Site WAIKELE GOLF CLUB 94-200 Paioa Place Waikele, HI 96797 (Central Oahu) Tel. (808) 676-9000 Ted Robinson design - overlooking Pearl Harbor. Semi-private. 18-Holes. Par 72; 6663 Yards. Photo - Site Top MUNICIPAL ALA WAI GOLF COURSE 404 Kapahulu Avenue Honolulu, HI 96815 (Honolulu / Kapahulu Area) Tel. (808) 733-7387 Flat course along the Ala Wai Canal, adjacent to Waikiki. Municipal. 18-Holes. Par 70; 5861 Yards. Photo - Site EWA VILLAGES GOLF COURSE 91-1760 Park Row Street Ewa Beach, HI 96706 (Southwest Oahu) Tel. (808) 681-0220 Very challenging course. Municipal. 18-Holes; Par 73; 6455 Yards. Site KAHUKU GOLF COURSE Kahuku, HI 96731 (North Shore Oahu) Tel. (808) 293-5842 Sporty, seaside links course. Municipal. 9-Holes. Par 70; 5,398 Yards (18 holes). Site PALI GOLF COURSE 45-050 Kamehameha Highway Kaneohe, HI 96744 (Windward Oahu) Tel. (808) 266-7610 Picturesque hillside course with ocean and mountain views. Municipal. 18-Holes. Par 72; 6524 Yards. Site TED MAKALENA GOLF COURSE 93-059 Waipio Point Access Road Waipahu, HI 96796 (Southwest Oahu) Tel. (808) 675-6052 Flat, walking course. Municipal. 18-Holes. Par 71; 5976 Yards. Site WEST LOCH GOLF COURSE 91-1126 Okupe Street Ewa Beach, HI 96706 (Leeward Oahu) Tel. (808) 675-6076 Challenging short course with a variety of water features. Municipal. 18-Holes. Par 72; 6335 Yards. Site Top PRIVATE HONOLULU COUNTRY CLUB 1690 Ala Puumalu Street Honolulu, HI 96818 (Southwest Oahu) Phone (808) 441-9400 Designed by Francis Duane and Arnold Palmer. Private. 18-Holes. Par 72; 6,438 Yards. Site OAHU COUNTRY CLUB 150 Country Club Road Honolulu, HI 96817 (Honolulu / Nuuanu Pali Area) Tel. (808) 595-6331 The oldest private country club west of the Rockies. Private. 18-Holes. Par 71; 5820 Yards. Photo - Site WAIALAE COUNTRY CLUB 4997 Kahala Avenue Honolulu, HI. 96816 (Honolulu / Kahala Area) Tel. (808) 732-1457 Site of the annual PGA Sony Open in Hawaii. Private. 18-Holes. Par 72; 7012 Yards. Photo Top MILITARY BARBERS POINT GOLF COURSE - NAVY Access Road, Barber's Point Kapolei, HI 96707 (Leeward Oahu) Telephone: (808) 682-1911 Flat course with excellent greens. Military. 18-Holes. Par 72; 6403 Yards. Site HICKAM GOLF COURSE - MAMALA BAY - AIR FORCE Hickam Airforce Base 900 Hangar Avenue, Honolulu, HI 96853 (Southwest Oahu) Tel. 449-6490 Championship course on the ocean. Military. 18-Holes. Par 72; 6868 Yards. Site KANEOHE KLIPPER GOLF COURSE - MARINES Box 63073, MCBH Kaneohe Bay, HI 96863 (Windward Oahu) Tel. 254-2107 Championship course with ocean & mountain views. Military. 18-Holes. Par 72; 6269 Yards. Photo - Site LEILEHUA GOLF COURSE - ARMY Schofield Barracks Schofield, HI 96857 (Central Oahu) Tel. 655-4653 Treelined surrounded by magnificent Eucalyptus and Palm Trees. Military. 18-Holes. Par 72; 6916 Yards. Photo - Site NAVY MARINE GOLF COURSE 943 Valkenburgh Street Honolulu, HI 96818 (Honolulu / Airport Area) Tel. 471-0348 Rated among the military's top 10 courses in the world! Military. 18-Holes. Par 72; 6406 Yards. Site WALTER J. NAGORSKI GOLF COURSE - ARMY Fort Shafter, HI 96858 (Honolulu / Aiea Area) Tel. 438-9587 Hilly course with panoramic views. Military. 9-Holes. Par 34; 2837 Yards. Site Top ASSOCIATIONS ALOHA SECTION PGA 770 Kapiolani Boulevard, Suite 706 Honolulu, HI 96813 (Honolulu / Ala Moana Area) Tel. (808) 593-2230 Committed to promoting the game of golf, elevating the standards of the golf professional, and providing educational opportunities and tournaments for its members. Site CITY AND COUNTY OF HONOLULU Dept. of Parks and Recreation Golf Course Division 404 Kapahulu Avenue Honolulu, HI 96815 (Honolulu / Kapahulu Area) Tel. (808) 733-7381 (Office) or (808) 296-2000 (Reservation Line) Free information line and tee time reservation system for all six municipal courses. Site HAWAII STATE GOLF ASSOCIATION 770 Kapiolani Blvd., Suite 701 Honolulu, HI 96813 (Honolulu / Ala Moana Area) Tel: (808) 589-2909 A nonprofit organization, founded in 1984, to enhance the enjoyment and preserve the traditions and integrity of golf, and serve the best interest of golfers in Hawaii. Site Top Hawaii Golf Courses Index | Sports & Recreation Index | Activities Index | Home Page Contact Us | Sponsor Join Us Form ©Ala Mua Hawaii 1997 |
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