Hawaii/Pacific district export council: starting to reap rewards

Business America, Sept, 1998 by Piia M. Aarma

With Hawaii's economy in the doldrums, businesses are getting serious about finding new waters for nourishment. So is the state. Recognizing its dependence on the visitor industry, which brings in approximately $40 billion a year, Hawaii is aggressively pursuing diversification and new markets. The efforts have put a new importance on the Hawaii/Pacific District Export Council (DEC).

Renewed emphasis is being placed on diversified tourism, such as educational and health tourism, as well as on continuing efforts to diversify and find new markets for the state's agricultural industry.

Promoting Hawaii as a learning destination is paying dividends. In February, the Hawaii/Pacific DEC sponsored a successful trade mission to Hong Kong in which eight Hawaii schools and colleges participated. Reinforcing these efforts, as well as the marketing initiatives of the state's academic institutions, the state launched three video releases for broadcast on television stations in China, Japan, and Korea to attract students from these countries. Although the Asian financial crisis is currently cutting into student tourism from those countries, the base is solid and students from North America and Europe are filling in the gaps.

Health tourism is a natural niche for a state known for its longevity. Earlier this year a consortium of health care providers in Hawaii received a $400,000 Market Development Cooperator Program grant from the U.S. Department of Commerce to promote Hawaii's health care facilities in China, Korea, Hong Kong, and Taiwan. The Oahu Economic Development Board, a local partner of the Honolulu Export Assistance Center (EAC), is currently organizing another trade mission to Korea and Hong Kong later this year to pa)mote the health care industry. The Commercial Service's offices in Seoul and Hong Kong will arrange vital Gold Key appointments.

In the sports and fitness arena, another natural for the home of the Ironman, Hawaii is working with the United States Olympic Committee for a number of pre- and post-Olympic activities to host tot the 2000 Olympics in Sydney, Australia. It is also aggressively looking at the 2001 World University Games.

Given the weak domestic market, exporting has become even more attractive to local businesses, and the DEC is stepping up its activities to accommodate the increased demand. In April, a special Hawaii issue of Commercial News USA featured more than 40 small- to medium-sized companies. To encourage greater participation and to offset costs, the DEC and the Honolulu EAC arranged for subsidies from state and local businesses.

In March, the DEC held a major Asia-Pacific Outlook Conference which featured Senior Commercial Officers from China, Hong Kong, Korea, and Taiwan. Numerous seminars on exporting have been held throughout the state, as well as "specialty" workshops on business opportunities in the Pacific Islands. Electronic commerce is another avenue particularly attractive to a state surrounded by water, and the DEC has held several successful workshops on this topic attended by more than 100 companies.

Transitioning from cane and sugar is on the top of the agenda for Hawaii's agribusinesses. Macadamia nuts and coffee are already showing profit, as are flowers and bottled water. To keep up the momentum, the DEC, in conjunction with the State Department of Agriculture and the Foreign Agriculture Service, regularly recruit Hawaii companies for trade shows around the world, with an emphasis on South East Asia.

Perhaps most importantly, the DEC moved its muscle around the state this year and helped establish four Associate Export Assistance Centers on the neighbor islands -- two on the big island (Hawaii), and one each on Maui and Kauai. Response has been tremendous and the Hawaii/Pacific DEC will continue its efforts to further expand outreach to the businesses throughout the state.