HONG KONG: IMAGINE. HAWAI‘I. YOUR DISCOVERIES

PRESENTED BY

YVONNE MA HTHK DIRECTOR MARCH 7, 2018 INDUSTRY UPDATE AND TRENDS

INDUSTRY FACTS IN 2017 Civil International Air Traffic Statistics at HKIA 2010 - 2017 80,000,000 • 72.8 million air traffic, ↑3.3% YOY

70,000,000 • 12.6 million (Jan – Jun 2017) departed at the airport, ↑ 11.6% YOY 60,000,000 • 87% prefer FIT in 2017 compared to 84% in 2016 50,000,000 2010 2011 2012 2013 2014 2015 2016 2017 TOURIST ARRIVALS IN HAWAI‘I

ARRIVAL NO. 119 JAN – DEC 2017 YOY NEW HAWAI‘I TRAVEL 16% 8,800 PRODUCTS CREATED FROM JAN – DEC 2017

7,586

JAN – DEC 2017 EXPENDITURE AVG STAY USD 15,840,000

#Research based on MIDT report of all airlines booking data 2017 AIRLIFT ACCESSIBILITY

Airlines Via (1 stop) Total Duration Air Fare USD (excluding tax) ANA Tokyo 13 hr 574

*United Airlines Guam / Tokyo 13 hr 5m/ 15h 20m 495 / 685

China Airlines Taipei 13h 10m 595

* Eastern Airlines Shanghai 13h 20m 1,319

*Korean Air Seoul 14h 40m 1,248

Asiana Airlines Seoul 15h 805

Air China Beijing 15h 30m 1,217

*Japan Airlines Tokyo 15h 40m 1,321

*Top 4 Airlines Players driving traffic to Hawai‘i in 2017 #Research based on figures from various OTA in HK – May 2018 PRICE POSITIONING OF HAWAIʻI AGAINST COMPETITIVE DESTINATIONS Pricing Comparison (Flight + Hotel 5D3N) USD Variance 2018

Hawaiʻi Package 1,147 USA Mainland Package 1,053 8.2% cheaper Australia / New Zealand Package 785 31.6% cheaper Finland Package 963 16% cheaper Package 691 39.8% cheaper Fiji Package 1,085 5.4% cheaper Guam / Saipan Package 560 51.2% cheaper 511 55.4% cheaper Thailand Package 281 75.5% cheaper Japan Package 601 47.6% cheaper STRATEGIES IN 2018

• Continue to drive brand awareness and assist in trip planning activities to reduce perceived barriers

• Increase in educational sessions for travel trade

• Encourage island dispersal and enlarge spectrum of product offers

• Expand Hawai‘i presence across online channels

• Continue to focus on nature and cultural experiences KEY CO-OP PARTNERS IN 2018

Goal: +20% Total of Arrivals by 2018 KEY INITIATIVES: HONG KONG 2018

Trade Education

CAMP ALOHA SALES MISSION

Green Dreams

Nikon I am ALOHA!

Pink Dot - LGBT Romance GREEN DREAMS (MAY)

• Target: High-end Travelers  Promote eco-friendly destinations/activities

 ‘Enjoy travel with a conscience’ – KEEPING IT PONO!

 Educate the visitors via earned media NIKON – I AM ALOHA (JUL) PINK DOT HK X LGBT (OCT)

• Capture a greater market share of LGBT travelers from HK market = 700,000 population

• New product offerings to retail agencies and high spending niche market

• Pink Dot HK is a free, annual outdoor carnival and concert in support of inclusiveness and diversity

• Increase awareness of range of Hawai‘i offerings

• Promote equality to HK market, spreading Aloha spirit!

CHINA : HAPPY HEALTHY HAWAI‘I

REENE HO-PHANG HTC MANAGING DIRECTOR MARCH 07, 2018 China Market Overview

CHINA OUTBOUND TRIPS CHINA TO USA ARRIVALS 140.0 25% 3500 80.0% 128.0 122.0 117.0 2972 70.0% 120.0 20% 3000 2797 107.0 2591 60.0% 100.0 94.2 15% 2500 2190 50.0% 83.2 Million 80.0 10% 2000 70.3 1807 40.0%

57.4 60.0 5% 1500 30.0%

20.0% 40.0 0% 1000 10.0% 20.0 -5% 500 0.0%

0.0 -10% 0 -10.0% 2010 2011 2012 2013 2014 2015 2016 2017 P 2013 2014 2015 2016 2017 P

*Source: China Tourism Academy *Source: NTTO

• China Outbound Tourist Growing Rate SLOW DOWN • China to USA Arrivals 5.9% Business + Leisure Travel • China to Hawai‘i 2017 Arrivals 7.9% 151,295 pax Intense Competition – Airlift

Changsha – LA Beijing – Las Vegas Shenzhen – Beijing – LA Hangzhou – San Francisco Xiamen – Shenzhen – Chengdu – LA Shanghai – San Jose Chengdu – New York Seattle Chengdu – New York Shenzhen – LA Chengdu – Hangzhou – LA Fuzhou – New York Chongqing – LA Xiamen – LA Chongqing – New York

Shanghai – Chicago Beijing – LA Kunming – Qingdao – San Xi’an – San Francisco Shanghai - Atlanta Francisco

• 300 Weekly Direct Flights into Continental USA 20 Launched in 2017 • 12 Weekly Direct Flights into Hawai‘i Airlift – 2017 Total FIT 140,576 PAX

Direct Airlift Capacity Top 10 Airlines China to Hawai‘i * Data from Airline DDS System

70,000 46% Weekly Weekly 60,000 Airlines Frequency Seats 50,000

3 879 40,000 22% 30,000 3 903 20,000 9% 6 1,806 10,000

0 Total 12 3,588 Airlift - 2018 Chinese New Year

2018 Chinese New Year Increase Air Seats

Total

Charter Flights 696 N/A Flights 1,674 2,547 4,917 Total Increase 2,370 2,547 HTC Initiatives Market Performance

*Data from HTA Hawai‘i - China’s #1 Highly Recommended Destination

YouGov Syndicated Research

* Data from SMG Insight / YouGov China Target Segments

Luxury Escapees

Other Family

Culture Adventure

Religion Self Travel Multi-Generation YOLOs Families Relax Business

*Research from Sabre China Traveler Need Camp Aloha 2018! Buyers From 16 China Cities

Hong Kong Shenzhen • 5 First Tier Cities Guangzhou • 11 New First Tier Cities

Wuhan Beijing Chongqing Chengdu Changsha Xi’an

Shanghai Hangzhou Suzhou Ningbo Camp Aloha Station Shaoxing Participate Partner City Wuxi Nanjing 300 New Products – OTAs, Luxury, Travel Operators FIT Co-op Partners Luxury Co-op Partners MCI Overview – Upcoming Potential Business

Tentative MCI Groups Top 3 Groups Attendance Date

19 Groups Direct Sales Company 3,000 May, 2019

9,575 Attendance Direct Sales Company 1,600 April, 2019

21,105 Room nights Insurance 450 April, 2018

Short-Term Market Hurdles • Concerns for VISA Approvals Rate • Uncertainty and changes for Executive Order MCI Overview – Market Counter Measures

Sales Promotion

HTC VISA SUPPORT SERVICES Sales HTC Visa Blitz Support Counter • Group Appointments • Documentation Measures • US Embassy & Consulate Liaison

Incentive Special Pack Airfare Happy Healthy Hawai‘i – 2018 INITIATIVES

7. “Be Inspired” 1. Sky Traveler MCI Pack

2. Diamond of 6. Little Islands Astronomer 乐活 of Hawaiʻi Lè huó 3. Hawaiʻi Baby Ambassador 5. Cuisine of ALOHA 4. Island Styles of Seasons Leisure Initiative #1 : Hawaiʻi - Diamond Of All Islands Leisure Initiative #2: Hawaiʻi Island Styles Of Seasons Leisure Initiative #3: Hawaiʻi Baby Ambassador Leisure Initiative #4: Food Culture Of Aloha 2018 Targets!

Incremental Target KPI 24,000 Visitor Arrivals Incremental Million US$43.2 Million Expenditures 88 Generated Number of Impressions

Million Total Tentative Room Nights US$16.5 PR Value 45,000

14,000 Total Definite Room Nights Total Definite Room Nights 10,000 (New to Hawaiʻi)