More Hawaii store closures forecast

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According to the latest Japan Report lower-priced package tours are spurring a return of Japanese tourists to Hawaii, but a full recovery for retailers there is not yet in sight. In the three months since the terrorist attacks, many Hawaii businesses have been adding to their losses just by opening their stores. Sales for Gucci and other luxury boutiques are down 50% since September. According to Japan Report more Waikiki retailers will close down after the New Year holiday. Over 10 stores in Waikiki and Ala Moana combined are expected to go under. All of them will be independent businesses catering primarily to Japanese tourists. 

Tourists responding to special offers of package tours to Hawaii for Y40,000-Y50,000 ($331 to $413) are mainly office ladies (OLs). The number of small groups of two or three office ladies has been increasing in Hawaii but they tend to be in the younger age groups with lower spending power. Japan Report says the senior tourist market, expected to be a major force in the future, is yet to return.

Japan Report forecasts that next year about 1.3m Japanese will visit Honolulu, equivalent to 3,500 per day, a level not seen since 1989. According to an announcement from Japan Airlines, reservations to North America and Hawaii are still 65% to 70% below last year's levels. But overall, the airline said a recovery trend has started to emerge. Japanese reservations to Hong Kong, mainland China and other Asian destinations are said to be better than last year.