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2021 Htk Market Update 2021 MARKET UPDATE HTA BOARD MEETING 5.27.2021 Irene Lee Korea Country Manager of Hawai‘i Tourism Korea MARKET CONDITIONS 3 MARKET CONDITIONS Outbound market condition • Exemption from 14-day quarantine: Starting May 5, Korea exempts the 14-day quarantine to Korean residents who are fully vaccinated in Korea. • Vaccine passport: Korea’s vaccine passport app, COOV, has been officially released on Apple’s iOS app store. Vaccinated people can authenticate themselves by downloading COOV on their smartphones in the form of a QR code, and can use the app at airports, restaurants, sports stadiums, and more places in the future. 3 4 MARKET CONDITIONS Korea COVID-19 status (as of May 17, 2021) • Total number of confirmed cases: 131,671 • Total number of recovery: 121,764 (92%) / Total number of death: 1,900 (1.4%) • Total number of inoculation: 1st dose - 3,733,806 (7.2%) / 2nd dose - 940,345 (1.8%) • The government will maintain the social distancing measure to Level 2.5 till the end of May Korea vaccination update (as of May 17, 2021) • Free vaccination to all citizens which began in mid February aiming at vaccination rate of 23% by Q2 and achieving herd immunity by November • Vaccination timeline: ✔Q1 & 2: high-risk groups, front-line medical staff and senior citizens aged over 65 ✔Q3 - 1: chronically ill people, citizens aged over 50 and infrastructure workforce ✔Q3 – 2: all adults aged from 18 to 64 ✔Q4: completion of 2nd dose vaccination and achieve herd immunity (source: Seoul Metropolitan Government) 4 5 MARKET CONDITIONS Overall market condition • Forecasted Korean economy growth in 2021: 3.2% • Currency exchange: USD 1 = KRW 1,124.52 (as of May 17; appreciated vs. LY) • Number of outbound travelers in 2020: 2,519,118 pax (-85.6% YoY) • Number of outbound travelers in March 2021: 143,366 pax (-48.4% YoY) • Flight operation forecast (number of flights per week) May – Aug Sept 2021 Oct 2021 Nov 2021 Dec 2021 Seats Aircraft 2021 Hawaiian 277 seats Airlines 2 flights/w 2 flights/w 3 flights/w 3 flights/w 3 flights/w (A330) (HA460) 276 seats Korean Air (A330) - 3 flights/w 3 flights/w 5 flights /w 5 flights /w (KE001/KE053) 368 seats (B747) Asiana Airlines 311 seats - 3 flights/w 3 flights/w 3 flights/w 3 flights/w (OZ232) (A350) 5 6 MARKET CONDITIONS Korea pre-travel testing program • Launched in Feb 5 • 4 Major hospitals in Korea made the agreement of trusted testing partner programs with the State of Hawai‘i ✔Yonsei University Severance Hospital (owned by Yonsei University) ✔Kangbuk Samsung Hospital (owned by Samsung Group) ✔Inha University Hospital (owned by Inha University & Korean Air) ✔Seoul Asan Medical Center (owned by Hyundai Group) • Waiting AG/DOH to sign the submitted agreement letters: ✔COVID-19 Test Center at ICN (operated by Inha University) ✔Korea University Hospitals (owned by Korea University) 6 7 MARKET CONDITIONS Competitive destinations • Countries under discussion with Korea for mutual recognition of vaccine certificates: Australia, Taiwan, Marianas, Switzerland, and Maldives ✔Visit Maldives launched ‘I’m Vaccinated’ campaign targeting to make Maldives the first fully vaccinated tourism sector in the world. As of now, over 65% of the eligible Maldivian population have received the vaccine and over 90% of the eligible tourism industry is vaccinated ✔Switzerland tourism board Launched the online Switzerland Travel Academy in May to enhance the understanding of the destination for trade partners in Korea ✔Guam Tourism Office announced its vaccination status recording over 50% full vaccination rate among adults and will exempt quarantine to all international travelers with negative COVID-19 test result within 72 hours of departure starting from May 15 7 TARGET AUDIENCE 9 TARGET AUDIENCE • Hawai‘i Tourism Korea will target high value mindful visitors under the COVID-19 recovery stage along with four key strategic pillars • Key geographic Area: Seoul and Busan High Value Mindful visitors Millennial-Minded First-time visitors Independent, Mainstreamers followers of special Conformist, conventional, interest, adventurers favoring well-known brands, Travelers who haven’t keen to try various family travel, safety, visited Hawai‘i yet, activities and new High disposable income, high-spending, romance experiences, romance high-spending, romance 9 KEY RECOVERY STRATEGY 11 2021 KEY RECOVERY STRATEGY Revitalize the market demand targeting mindful travelers Position Hawai‘i as the top of mind destination and the first go-to destination for COVID-19 recovery period Refresh the images of Hawai‘i with DMAP initiatives Educate the travel trade and media partners for regenerative tourism Develop co-op with airlines, travel agencies and OTAs July, 2018 CONSUMER STRATEGY 13 CONSUMER STRATEGY Consumer strategy • Through active promotion with consumer publications and social media HTK will: ✔Inspire Korean travelers that Hawaiian Islands are an ideal destination to travel in COVID-19 recovery period where people can travel without quarantine ✔Position the Hawaiian Islands as a clean, safe and sustainable destination ✔Educate Korean consumers on regenerative tourism • Promote Hawaiian culture and educate Koreans on regenerative tourism as a unique experience to help understand the spirit of Aloha and Mālama value • Leverage social media channels active in all consumer activities to create online buzz and drive engagement 13 14 CONSUMER PROGRAMS Social media campaign - #Stories of aloha • Re-launch consumer interactive social media campaign called #StoriesOfAloha • Launch consumer giveaway online event to share and post best travel moments, safe & clean environment and experiences, community enrichment program in Hawai‘i through social media channels to share their memories in Hawaiian Islands • Re-start of Aloha Report by engaging a local correspondent living in Hawai‘i to deliver up-to-date local contents on HTK Instagram channel • Expected ROI: Social Media Value of $1.2M from consumer reaches 14 15 CONSUMER PROGRAMS Digital recovery consumer campaign - It’s time, experience Hawai‘i • Collaborate with NAVER, largest portal site in Korea to publish series of Hawai‘i posts to position the Hawaiian Islands as the first go-to travel destination in recovery period of COVID-19 • HTK will publish 1 post a week during 4 months (total 16 posts) to generate online exposure on its main website targeting Korean high-value mindful travelers • Each post to embrace HTA’s 4 strategic pillars ✔Branding ✔Natural Resources ✔Hawaiian Culture ✔Community 15 16 CONSUMER PROGRAMS Media promotion - B2C educational content development with major publication Work with Vogue, the leading consumer lifestyle magazine in Korea with the largest online fan base to develop GenZ- friendly educational content and place online/print advertorial • Co-op consumer campaigns with sustainable consumer brands to increase branding and Gen Z consumer participation which will also go viral to create online buzz • Collaboration with professional Influencers whose voices reach avid and mindful travelers to create more in- depth message of DMAP in interview article format 16 TRADE STRATEGY 18 TRADE MARKETING STRATEGY-1 • Create campaigns that accelerate the pace of Hawai‘i bookings and stimulate calls-to-action in partnership with online booking platforms run by retail groups and trade partners • Drive high-value visitation: increase Per Person, Per Day Spending (PPPD) and Visitor Spending for the Hawaiian Islands. Focus marketing on segments that have higher trip expenditures • Drive regenerative destination image: build the brand awareness of the Hawaiian Islands as a regenerative tourism destination through DMAP initiatives 18 19 TRADE MARKETING STRATEGY-2 • Execute integrated marketing and regenerative tourism branding campaigns with travel trade partners from wholesalers and OTAs as well as airlines to develop new products • Organize educational seminars in collaboration with travel agents to provide in-depth training about the Hawaiian Islands and DMAP initiatives • Expand marketing initiatives with airline partners – Korean Air, Asiana Airlines, and Hawaiian Airlines – to increase airlift on the ICN-HNL route for the recovery period 19 20 KEY TRADE PROGRAM Regenerative tourism promotion with wholesalers/OTAs • Develop large-scale online promotions with key wholesalers and OTAs throughout 2nd half of the year to boost Hawai‘i products sales in recovery period • Feature regenerative tourism and Mālama messages in promotions targeting potential consumers • The promotion may include live-commerce/home shopping platform • Potential promotion partners: - Hana Tour - Mode Tour - Interpark - Verygood Tour - Honeymoon Travel • Expected KPI – develop new Hawai‘i FIT & PKG tour products in market and maximize the number of product sales 20 21 KEY TRADE PROGRAM Airline co-op with HA/KE/OZ • Initiate marketing co-op promotions with major airline partners – Korean Air, Asiana Airlines, and Hawaiian Airlines to aggressively promote resumed ICN-HNL route for the recovery period HA – Hawai‘i Rooted promotion (regenerative tourism & Mālama) KE – Aloha Care First promotion (safety & sustainability) OZ – Fly Hawai‘i promotion (culture & authenticity) • Expected KPI – Increase the ticket sales of ICN-HNL route of respective airlines throughout intensive co-op promotions 21 22 KEY TRADE PROGRAM Aloha Specialist University (ASU) • Kicked off its in-market agent training program called Aloha Specialist University (ASU) • Invite Korean travel agents who can better represent Hawaiian Islands
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