Ending of fuel fee boosts travel from Japan

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.

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.”