An Examination of Factors Affecting Japanese Tourism in Hawaii

The Japanese tourist market is a crucial component of the Hawaii tourism economy due to both market size and higher per capita expenditures in comparison with other key markets for the state. Over the past decade, annual Japanese tourist arrivals have decreased significantly off a peak in 1997. This study examines various supply and demand factors, which may be influencing Japanese tourist arrivals to Hawaii using regression analysis. Results show that five of eight variables significantly influence the monthly Japanese tourist numbers to Hawaii: monthly total Japanese overseas tourists, available air seats, average room rates, available room units, and change in security checking procedure. Meanwhile, three variables were not found to be significant influencers: mean monthly exchange rate ($/100 Yen), anti-smoking law, and airline fuel surcharges. These results do not support the anecdotes and conjectures about the decreasing number of Japanese tourists to Hawaii