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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- Air HawaiianFaleomavaega (AS00) - Washington, D.C.At Faleomavaegas Request, Hawaii Air National Guard to Bring American Samoas Troops Home on Sunday April 17, 2005 April 15, 2005 FOR IMMEDIATE RELEASE WASHINGTON, D.C. AT FALEOMAVAEGAS REQUEST, HAWAII AIR NATIONAL GUARD TO BRING AMERICAN SAMOA S TROOPS HOME ON SUNDAY APRIL 17, 2005 Congressman Faleomavaega announced today that at his insistence the Department of Defense has agreed to provide military transport to bring American Samoa s troops home. The troops will depart Hickam Air Force base on Sunday April 17, 2005 at 9:00am and arrive in American Samoa at 1pm . American Samoa s troops have been serving in Iraq for more than a year and returned to Hawaii three weeks ago. Only yesterday I learned that our troops have been stuck in Hawaii for three weeks after serving in Iraq for more than a year, the Congressman said. Like any soldier who has been away from his/her family for a year, our soldiers want to be reunited with their families. For this reason, I contact ed the military to determine why it has taken so long to get the paperwork done to release our soldiers and provide them airfare to American Samoa . Hawaiian Air flights have left every Monday and Friday for three weeks but, as a result of military delays, American Samoa s troops have not been on board. In order to make sure that our troops can be reunited with their families as soon as possible and also so that they can attend Flag Day celebrations, I asked the military to provide an aircraft to bring our soldiers home, Faleomavaega said. I am pleased to announce that the Hawaii Air National Guard answered my call and has agreed to provide a KC135 Tanker to fly our troops to American Samoa this Sunday. In a letter dated April 15, 2005 , the Honorable Henry Hyde, Chairman of the House Committee on International Relations, authorized me to escort our troops home and in separate correspondence the Department of Defense approved the request. At this time, I want to thank the crew which has been assigned to fly us including Lt Col Willie Benton, Aircraft Commander; 1Lt Ryan Iwasaki, Co-Pilot; SSgt Jamie Oliveros, Room Operator; SSgt Matt Lewis, Pax Handler; CMSgt Dennis Mishima, Crew Chief; TSgt Robert Tokuda, Crew Chief; SSgt Robert Rhoades, Avionics Specialist. I also want to thank Mr. Jim Townsend of the Hawaii Air National Guard for organizing all of this. The soldiers and their families appreciate this very much. Above all, I want to thank American Samoa s troops for their service to our country. As a Vietnam Veteran, I am proud of our soldiers for completing their mission and I am honored to escort them home, the Congressman concluded. Home || Press Releases -- Next Previous Press Release List HonoluluTEACHING TIPS QUICK LINKS TO TOPICS CLICK ON THE TOPIC OF YOUR CHOICE ASSESSMENT HOW PEOPLE LEARN COMMUNICATION HUMAN DEVELOPMENT CORE ABILITIES MOTIVATING STUDENTS CRITICAL THINKING COURSE DESIGN PREPARING A LESSON PLAN DEALING WITH STRESS PREPARING A COURSE SYLLABUS DIFFICULT BEHAVIORS TEACHING ORGANIZATION FEEL GOOD ABOUT TEACHING TEACHING TECHNIQUES THE FIRST DAY USING QUESTIONS EFFECTIVELY HCC CURRICULUM ACTION FORM RICHARD LYONS' ONLINE RESOURCES LORETTA'S TRAINING RESOURCE CENTER SKIP DOWNING ON COURSERESOURCE WO LEARNING CHAMPIONWEBSITE LANGEVIN LEARNINGSERVICES TOPICS FOR BACKGROUNDMUSIC , CLICK ON THE ICON WHENEVER IT APPEARS AT A PAGE LINK. THE FIRST DAY 101 Things the First Three Weeks Ways to create the best learningenvironment. 40 Successes Inviting and disinviting comments, etc. The First Day of Class Nine tasks for getting a class off on the right foot. 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Sample Lesson Plan Form (B) Another form. TEACHING TECHNIQUES 7 Principles of Good Practice Essentials of effective teaching and learning. Common Teaching Methods Strengths and limitations of 14 teaching methods. Common Visual Aids Advantages and disadvantages of four types. Encouraging Student Retention 63 ideas for dealing with retention/attrition. Enhancing Teaching Effectiveness Practical tips on improving your teaching. Evaluate Your Own Teaching Reasons, guidelines, and resources. Good Teaching Personal qualities that make for good teaching. Good Teaching: The Top Ten... Award-winning article about good teaching. Grading Practices Strategies, minimizing complaints, etc. Selecting a Delivery Strategy Choosing lecture, demonstration, or discussion. COURSE DESIGN Fink's Five Principles Five concise principles of good coursedesign. Preparing or Revising a Course Strategies, recommendations, and more. COMMUNICATION Culturally Effective Communication Ethnocentrism, sterotyping, blindness,etc. Diversity and Complexity ... "Considerations of Race, Ethnicity, and Gender" Do's and Don'ts of Inclusive Language Avoidcreating and perpetuating negative stereotypes. Interactions among the Generations Tips toImprove Interactions among the Generations. Improving Nonverbal Communication It's how as much as what you say. CRITICAL THINKING The Foundation for CriticalThinking Cultivation of fair-minded criticalthinking. The CriticalThinking Community A range of articles oncritical thinking. TheElements of Critical Thinking Two essential dimensions ofcritical thinking. USINGQUESTIONS EFFECTIVELY IN TEACHING Answering and Asking Questions Types and examples for differentresponses. Effective Techniques ofQuestioning Plan key questions to teach around. Socratic Questioning Challengeaccuracy and completeness of thinking. Fivebasic types of questions Asking questions is one ofthe basic skills of good teaching. Types of Questions Question types based on Bloom's taxonomy. ASSESSMENT HCCAssessment Website Information on HCC assessmentendeavors. Classroom Assessment Techniques Techniques for better teaching andlearning. Classroom Assessment Examples Five examples from the previous article. Quizzes, Tests, and Exams Types, Bloom bases,guidelines, construction. The Knowledge Survey ATool for All Reasons Rubrics Ascoring guide used in subjective assessments.. TEACHING ORGANIZATION STW Series: Organize Yourself Saving time and finding time. The Teacher as an Organizer The why and how of organization for teaching. HUMAN DEVELOPMENT Erikson's Developmental Stages Developmental stages infant through older adult. Knowles: The Adult Learner Applies Piaget and Erikson to adult learners. Maslow's Hierarchy of Needs Basic human needs and their educational import. Piaget's Cognitive Stages From "sensorimotor" to abstract reasoning. Returning Adults Understanding adults returning to school. HOWPEOPLE LEARN 30 Things About Teaching Adults 30 Cornerstone Things to Know. Achieving Success with Adult Learners As more mature adults pursue career changes, educators must beready! AdultLearning The differences between adult and child learners. Active Learning A model for better engaging students. How Students Learn/How WeTeach Studies can teach us how to teach. The Keirsey Tests Online temperament andcharacter questionnaires. Using the Keirsey Test Data Interpreting and applying data from the Keirsey tests. Learning Assumptions Fundamental assumptions to make about learning. Learning Domains Understanding cognitive and psychomotor domains. Principles of Adult Learners Understanding the adultlearner. Principles of Adult Learning What to know aboutteaching adults. LearningStyle Inventory Understand how you prefer to learn andprocess information. The VARKInventory "How Do I Learn Best?" PAYING ATTENTION TO CORE ACADEMIC AND WORKPLACE SKILLS The Contemporary Work Environ Traditional classroom vs. today's work environment. Core Abilities Seven core abilities in the national limelight. SCANS Skills Popular SCANS Report: workplace skills. Workplace Habits Rating Scale Model ABRP scale adaptable to other disciplines. Workplace Skills Assessments Another model form adaptable to various disciplines. MOTIVATING STUDENTS General Principles of Motivation More thaninstructor excitement or prodding. Motivating Students A wealth of good ideas. Motivating Students - 8 Simple Rules Keepstudents focused and motivated. Motivating the Unmotivated This just might changeyour thinking. Empowering Students Through Encouragement Encouraging collegestudents DEALING WITH DIFFICULT BEHAVIORS Difficult Behaviors in the Classroom Behaviors and Possible Responses Campus Student Conduct Policies DEALING WITH STRESS 101 Ways to Cope With Stress 101 simple, easy-to-use ideas. Life Stresses Causes, values, and management. Life Stress Scale 24 items to help you figure your stress level. Time to Reenergize? FEEL GOOD ABOUT TEACHING Love and the Cabby One person's goodwill can make a difference. A True Teacher Accepts All .. The characteristics of a real teacher. ThreeLetters from Teddy Teddy's letter came today... Hawaii HoneymoonHawaii Honeymoon packages, Hawaii Honeymoon Vacations, Kauai, Maui, Lanai, Molokai, Oahu, Big Island Bride & Groom Guests & Gifts Log In | Sign-Up -- Shopping Bag | | What do you think? What type of look do you want for your wedding-day jewelry? 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