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Economic Conditions and Japanese Tourism to Hawaii
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Sort Desciption: dependent on economic conditions in Japan there ought to be significant .... economic conditions have little impact on Japanese tourism to Hawaii or that ...
Content Inside: Economic Conditions and Japanese Tourism to Hawaii by David A. Latzko Business and Economics Division Pennsylvania State University York Campus 1031 Edgecomb Avenue York PA 17403 USA phone: 717-771-4115 fax: 717-771-4062 e-mail: dlatzko@psu.edu 1 Economic Conditions and Japanese Tourism to Hawaii Abstract Spectral analysis is used to investigate the sensitivity of the Hawaiian tourist industry to fluctuations in the Japanese economy. The number of Japanese visitors to Hawaii comoves most strongly with fluctuations in relative prices as measured by the ratio of the Japanese wholesale price index to the Honolulu consumer price index. Compared to qualitative factors fluctuations in Japanese gross domestic expenditures and in consumer confidence are not strongly correlated with movements in the volume of Japanese tourism to Hawaii. 2 Economic Conditions and Japanese Tourism to Hawaii As the structure of the Hawaiian economy has evolved over the past 45 years the state has become increasingly reliant on tourism. Visitor expenditures totaled just 14 percent of total exports from Hawaii in 1960; by 1992 the export share of visitor expenditures was 56 percent (Hawaii Department of Business Economic Development and Tourism 1995). Tourism in Hawaii now accounts for as much as 33 percent of gross state product and nearly half of total employment in the state (Hawaii Department of Business Economic Development and Tourism 1999). More than six million people now annually visit the State of Hawaii; nearly one- quarter of these visitors come from Japan (Hawaii Department of Business 2002 p. 16). The demand for international tourism is often assumed to depend in part on such economic variables as income in the originating country and the exchange rate between the destination country and origin countrys currencies. Since the Hawaiian economy is so strongly dependent on tourism and Japan is a major source of visitors to Hawaii the purpose of this paper is to investigat ...
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