A couple of articles in Pacific Business News discuss decline in Japanese market. Fuel surcharges are a factor, and will be lowered incrementally. The surcharge, around $73, will be lowered about $2. Japanese arrivals were down 13% in January, 5% in February, and so far down 14% this month. (Mar 7 article).

In addition, (article Feb 8), JAL will cut some 4300 jobs (8% of its labor force), during the next year or so. Slack tourism business to Hawaii and Guam were cited, as well as soft passenger and cargo business to US. Also noted was competition from ANA, UA and NW. Visitor traffic from Japan was down most of 2006, and is sometimes below 4000/day.

Another article (Mar 16) stated Oahu hotel occpancy had fallen below 75% and more than 1/3 of the rooms on Kauai were empty. As of Mar 10, statewide occupancy was 75.2%, down 8.4% from last year, but hotel rates are up an average of 11.5%. Big Island led the increase with rates up 18.7% for an average room cost of $216. Average on Oahu $169, Maui $265, Kauai $211.

UH report (article Mar 2) predicts Hawaii's economy to slow down more abruptly than previously expected. Factors given are a high rate of inflation, fewer visitors, (especially from Japan), and fewer affordable hotel rooms.

One bright spot is the increase in Korean travel, especially to Hawaii. (Mar 16).