Rebuilding Hawaii Tourism 2OverviewHawaii Tourism Authority is a government-sanctioned organization that is meant to fund efforts ofpromotion for the state of Hawaii.HTA works under the state legislature and the governor of Hawaii, Neil Abercrombie. The CEO andPresident of Hawaii Tourism Authority is Mike McCartney (Hawaii).Here is HTA’s Total Budget for 2011.Brand Management Category FY 2011 Budget (in millionsAccess/Airlift Development Programs $6.1Hawaii Culture $1.7Natural Resources $3.0Safety and Security $0.5Tourism Product Development $3.0Workforce Development $0.2Leisure Marketing $37.1Sports Marketing $7.1Business Marketing $10.3Opportunity Fund $3.5Communications & Outreach $0.3Total Brand Management $72.8As seen above, Hawaii Tourism Authority’s major aspects are Marketing, Sporting Events, ProductDevelopment, and Tourism Research. HTA also oversees the Hawaii Convention Center and themoney that goes towards Hawaii Culture is spent on festivals and events that highlight the localculture.Hawaii Tourism Authority invests in sporting events such as PGA golf tournaments, the NFLProBowl, and XTERRA World Championships. The Hawaii Convention Center is in the top 15 in theUnited States. Three of the largest events from 2010 hosted here were the Baptist World Alliance,Alzheimer’s Association, and the International Foundation of Employee Benefit Plans Conventions.
Rebuilding Hawaii Tourism 3GoalsIn this document, there will be an assessment of the current procedures and how they can be madeeven better to improve the state’s tourism revenues.This will help both Hawaii Tourism Authority, and the community of Hawaii. My plans are to ensurethe growth of tourism to the beautiful state of Hawaii by recognizing problems, and implementingvaluable solutions.HTA VALUES:As an organization, and among ourselves and others, we value: Openness and respectfulness. Collaboration and partnership. Our host and multi-ethnic cultures. Social responsibility to our community. Excellence and integrity in who we are and what we do.By following our values, we will be able to move our organization in a positive direction. I will startthis by locating recent problems, and then state solutions that could reverse the decline of tourismsince 2008.
Rebuilding Hawaii Tourism 4Issues : United States RecessionThe United States saw a large drop in the DOW during the third quarter in 2008.This caused Hawaii air travel to drop by 13.5%. It affected both international andhomeland flights. In 2007, the annual flights throughout Hawaii were 36,364,056. In2009, the annual flight number was 30,293,737 (more than 6 million less than 2 yearsbefore).The number of flights have been getting higher, yet there is a deficit from theprevious years that needs to be undone. This effort has been stalled due to anotherproblem that lowered tourism in Hawaii more recently.
Rebuilding Hawaii Tourism 5Issues : Japan TsunamiIn the following chart, you can see how Hawaii was starting to recover. Yet, in thesecond half of the stats, you can clearly see a fall in numbers from Japan. This fallwill be detailed farther in the page.Visitor Arrivals February 2011 February 2010 % ChangeU.S. West 578,634 517,554 +11.8U.S. East 141,737 127,816 +10.9Japan 102,906 95,141 +8.2Canada 58,598 48,958 +19.7Visitor Arrivals March 2011 March 2010 % ChangeU.S. West 237,910 230,065 +3.4U.S. East 159,441 148,774 +7.2Japan 89,779 109,339 -17.9Canada 68,356 50,745 +34.7
Rebuilding Hawaii Tourism 6Issues : Japan TsunamiThis fall in travel from Japan was caused by the March 11, 2011 Earthquake andfollowing Tsunami. Historically, Japanese travel significantly less in the aftermath ofa national emergency or disaster. In the month since the natural disaster, we haveseen a 17.9% drop from Japan alone.These numbers are significant because Japanese tourists make up 17% of Hawaii’stotal visitors.Another large impact on Hawaii Tourism Authority from the disasters would be thecancellation of a Japanese convention that had an estimated 1,400 attendees. Thisdropped the bookings of the Resort hosting the convention from 92% full to 54%. Thisis dramatic for a 1600 room resort.The last problem for Hawaii associated with the tsunami, is the powerful waves thatreached the coasts of Hawaii. A local resort, the Kona Village Resort, is still closeddue to the damaged caused by the tsunami. 24 of the 125 bungalows were eitherseverely destroyed or became unattached and started to float out to sea.The waves caused $30 million worth of damage to Hawaii tourist businesses acrossthe state.
Rebuilding Hawaii Tourism 7Solutions : Seminars to the PublicHawaii Tourism Authority already is set to host a series of seminars to business andother government officials. The seminars are planned to discuss the effects on thetsunami on all aspects of Hawaii.This would be beneficial to local business owners or managers so they can be awareof any changes they need to undergo to move forward in making money.The only problem with this seminar series is the cost.For each person for each seminar the cost is $30.The issue is that the larger resorts may decide to bring in a manager from eachaspect of their business. This could be up to 20 participants from each resort, whichcan cost over $600 for one seminar. The pricing could be even more detrimental tosmaller businesses especially in a time when they are losing customers.My solution to this problem is to offer a discount to businesses with more peopleattending, as well as a package deal if the business attends all the seminars.New Costs:$20 each (for 3 or more participants)$100 for the entire seminar series (per participant)
Rebuilding Hawaii Tourism 8Solutions : ConventionsSince Hawaii Convention is under the regulations and authority of HTA, it will besimple to implement a few suggestions to this beautiful business. Since the HawaiiConvention Center is ranked in the top 15 convention centers for the United States,it needs to live up to its name.The largest convention held here in 2010 was the International Foundation ofEmployee Benefit Plans Convention. Roughly 12,500 people attended this convention.When compared to large events (just in the United States) like E3 (45,600 attendees)and GenCon (30,000 attendees), it is significantly smaller.My solution is to put in a bid to host a convention called Comicon. Last year,Comicon had an estimated 125,000 people in attendance. The contract for hostingComicon expires in 2015 for the San Diego location. If Hawaii puts it name in for therunning, this will create free marketing now, instead of the long-run benefits hostingthis event will have.In the future, this will benefit Hawaii Tourism because according to surveying collegestudents (the usual age of Comicon attendees), students travel more with familythan any other group.This is helpful to Hawaii businesses because while some will attend the convention,their families will be out spending money in other locations.It is apparent that perhaps less Americans will attend, but that is acceptable becauseHawaii is in a central location for international travel. Many people will fly in fromother countries to attend Comicon, because it closer to them than San Diego was.
Rebuilding Hawaii Tourism 9Solutions : Marketing Outside the BoxHawaii Tourism Authority contracts 5 separate companies to market the Hawaii nameas a great tourist destination across the world. These 5 companies include HawaiiNorth America, Hawaii Japan, and Hawaii Europe.When looking at the chart in the Issues : Japan Tsunami section, you can see thatCanadian tourism is up 34% from last year. This is a very significant increase that hadgreat potential.I suggest we market more to Canada by taking $2.5 million dollars from the Japanmarketing fund to get the word out more in Canada. The marketing we are alreadydoing there is apparently working very well, so we need to simply increase thevolume and expand our campaign to more of Canada.This includes buying more airtime to air the commercials already playing in Canada.Also, buying space on Canadian news websites is quite low when compared to howmuch money might come from it. We can use the same commercials and fliers weuse now, but expand its audience.Canadians stay on average 13 days per visit compared to Japanese tourists’ 6 days.Both the U.S. West and East have more tourists travelling to Hawaii than Japan.Hawaii Tourism Authority needs to market to the younger generation. Whensurveying students in college, students said they would travel during a recession inorder to “get away from stress,” so they may have less consequences from spendingmoney.A way to market more to young adults would be through Facebook. By adding a linkto gohawaii.com from a Facebook page, younger adults would be more likely to planvacations and spring breaks online.
Rebuilding Hawaii Tourism 10Solutions : Discounted TravelSince Hawaii Tourism Authority already oversees the convention center, HawaiianAir, gohawaii.com, plans festivals, and invests in sporting events, I think it would bea relatively quick process to create package deals for returning customers.Many of Hawaii’s tourists are return visitors. In fact, 68% of Japanese and 81% ofvisitors from the United States West are return visitors, which makes it veryimportant to keep those customers satisfied.One way to keep them happy would be to give them incentive for booking 2 flights ormore per year. That does not mean fly twice, just booking, that way they can plan inadvance. I would like to see Hawaiian Air give each customer an I.D. number, thatway every time they book a flight through them it will be recorded. We can usethese numbers to give discounts to members who book 2 or more flights a year. Bygoing on line, it also gives us more money because they will not be using other travelsites.Another way to get people to use online sites for booking trips through us would togive free or discounted admission to events and festivals in Hawaii during their stay.This is possible because HTA organizes many of these events themselves.Hawaii Tourism Authority must not forget about the people in Japan. They willreturn to Hawaii, and when they do, they may have less money to spend thanpreviously. A way to ensure their return is to help them save while planning theirvacations. HTA can do this by keeping their presence at the JATA World Travel Fainin Japan. This convention has an average attendance of 110,000 people every year.Its attendance is made up of 70% travel agents and the rest are customersthemselves.By supplying coupon booklets to the travel agents, we would be encouraging morecustomers to travel to Hawaii. If for some reason people were thinking about goingsomewhere else, savings could be a large incentive for Japanese travelers.
Rebuilding Hawaii Tourism 11ConclusionHawaii Tourism Authority will continue making revenue even without using mysolutions. The only way for them to grow as a company is to implement new ways ofdoing business.In order to regain the influence they had in the 1990’s Hawaiian businesses shouldtake to heart the way savings marketing affect people when choosing where totravel.Hawaii Tourism Authority has the potential to bring much more money to the citizensof Hawaii, by adding a few new techniques. They can prosper and with thesechanges, HTA can afford to give more money to product development and HawaiianCulture.
Rebuilding Hawaii Tourism 12Works CitedHawaii Tourism 2010 Annual Report. Williams, Ronald. http://www.hawaiitourismauthority.org/pdf/HTA_2010_Annual_Report_FINAL. pdf“Quake Sinks Hawaii’s Tourism”. Carlton, Jim. Wall Street Journal. 4 April, 2011.U.S. GDP. Graph. http://theexplosivegeneration.com/wp- content/uploads/2009/02/_45429709_us_rec_466.jpgVisitor Statistics. http://hawaii.gov/dbedt/info/visitor-statsWho We Are. Hawaii Tourism Authority. http://www.hawaiitourismauthority.org/index.cfm?page=who_index&level1=w ho_we_are