Ending of fuel fee boosts travel from Japan
BRUCE ASATO / BASATO@STARADVERTISER.COM
Visitor arrivals from Japan were up 0.3 percent as of September. Tourists from Japan stopped to take selfies and video on the sidewalk at Kuhio Beach on Nov. 18.
Tourism from Japan to Hawaii is expected to hit visitor industry targets in 2016 as the removal of an airline surcharge cut costs for travelers.
The airlines lifted fuel surcharges on tickets for flights between Japan and Hawaii starting April 1, resulting in an average savings of $25 to $100 on a round-trip fare, said Eric Takahata, managing director of Hawaii Tourism Japan. Those savings, along with an increase in airline routes and improved regional access, have put the Japan visitor market on track to reach its targets for this year, he said.
“The savings visitors from Japan realize by not paying a fuel surcharge on Hawaii flights is the first in a series of positive measures helping our tourism industry entering 2017,” said George Szigeti, Hawaii Tourism Authority president and CEO.
Takahata said the state Department of Business, Economic Development and Tourism forecast as of Nov. 16 expects the Japan tourism market will bring 1,487,409 visitors, who will spend nearly $2.1 billion, this year.
“The outlook for the end of the year is flat to slight growth,” Takahata said, adding that arrivals from Japan were up 0.3 percent as of September.
The results contrast with last year, when arrivals from Japan fell 1.9 percent to 1,482,304 visitors and expenditures declined 14.4 percent to $2.1 billion.
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Takahata said Japanese arrivals next year are forecast to grow 1 percent to 1,501,895. While the Japan market is on the upswing again, it falls short of the peak, when 2.2 million visitors came to Hawaii in 1997.
Joseph Toy, president and CEO of Hospitality Advisors LLC, said arrivals from Japan to Hawaii started declining after the opening of new routes into Europe and the emergence of China and Thailand as popular destinations.
“Competition remains intense, and fluctuating exchange rates could have a big impact. Hopefully, the absence of fuel surcharges will mitigate any softening and help stabilize the market. Easier access to hub cities also could offset the time cost,” he said.
Sam Shenkus, Royal Hawaiian Center marketing director, said Japanese travelers are price-sensitive and should respond well to lower-cost airfares and yen stabilization.
“Fuel surcharges make a difference, especially with all those young families,” Shenkus said. “Also, the yen right now is 108.4 versus 122.6 at this time last year. I can’t tell you how challenging 2015 was with yen rates at that level. We’ve basically had a 20-point differential since last June, when the yen peaked at 128.2.”
14 responses to “Ending of fuel fee boosts travel from Japan”
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Whose initiative was it to cut the fuel charge? Certainly not any American flagged carriers.
It was the lower prices of oil globally, leading to the drop in jet fuel, thus the drop to zero of fuel surcharges, which have been in existence for 8 years in Japan.
agree…it will help
The yen is forecast to go back to 130 by this time next year….
I’ll be holding my breath.
Same was predicted for end of 2014
With terrorism, Hawaii looks more appealing compared to other destinations, including the Mainland U.S. this year, especially with no fuel surcharge and a stronger yen from a year ago. So yes, traffic will be strong this year.
When the yen hit 128 last year, retail sales in Waikiki dropped 20-30%. The yen touched 115 yesterday, it has moved 7 yen in just the past week. 130 is not far away. The point is, a good portion of the entire business model for Hawaii tourism is highly tenuous and contingent on volatile FX trade. This is not a recipie for stable growth. Weather the yen is at 130 next month or next year or two years from now it is inevitable but will weaken to that level or higher at some point. Sure it could retreat back to 98 for a period too, but that is an anonomly. House of cards shopoholic and Hawaii is always one small event away from economic stress.
“Tourism from Japan to Hawaii is expected to hit visitor industry targets in 2016 as the removal of an airline surcharge cut costs for travelers.”>>> Wait…so less surcharges/taxes PROMOTES more business activity? Who knew? Certainly not our current politicians.
Since tourism helps Hawaii, financially survive, then all businesses should have a direct or indirect financial benefit.
It is, the financial food chain of life, in Hawaii.
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Can Hawaii, still be a part of the USA, when it is no longer owned, by any USA citizen ?
Can Hawaii Politics, be changed or strongly influenced, when there are more foreign real property owners, than the Federal Government, the State Government, the City & County Governments, and the Civilian Community-At-Large, when all combined together ?
They could have always called it a surcharge for low fuel costs. Japanese airlines aren’t the only ones with bogus fuel surcharges.
I saw the video of the local lady trying to steal the visitors purse from her bike basket on TV last night…..that kind of stuff does nothing to increase safety and visitors…..
Lucky the thief was caught…….will the thief go through the catch and release program in the Nei?
SA reader should learn to refrain from commenting on topics they know nothing about, such as tourism, and Japan, thus far in this article.
Good news for the Big Island is that Hawaiian Airlines will start three-times weekly service between Haneda Airport in Tokyo and Kona Airport. I’ve been on the Haneda-Honolulu service, excellent and friendly service with good food compared to the U.S. carriers. Of course, pricier than its American rival carriers.
That starts on Dec. 20!