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Hawai'i Tourism Authority Hawai‘i Tourism Authority 2008 ANNUAL REPORT to the Hawai‘i State Legislature October 31, 2008 Table of Contents I. Overview of the Hawai‘i Tourism Authority (HTA) • Background, Mission and Organization . 3 • Board of Directors & Committees . 4 • Staff & Operations . 5 II. Hawai‘i Tourism Strategic Plan and HTA’s Efforts in each of the Nine Initiatives . 6 1. Access . 7 2. Communications and Outreach . 8-9 3. Hawaiian Culture . 10-11 4. Marketing – Marketing Overview . 12-13 – Leisure Marketing . 14 – Marketing Partners . 15-19 – Other Marketing Projects . 20 – Business Marketing . 21 – Sports Marketing . 22-23 – Visitor Profile by MMA . 24 5. Natural Resources . .25 6. Research and Planning . 26 7. Safety and Security . 27 8. Tourism Product Development . 28-30 9. Workforce Development . 31 III. Hawai‘i Convention Center . 32 IV. Hawai‘i’s Visitor Industry • Visitor Industry Performance . 33 • Visitor Satisfaction . 34 • Transient Accommodations Tax . 35 V. HTA Fiscal Year (FY) 2008 Actuals . 36 HAWAI‘I TOURISM AUTHORITY – 2008 ANNUAL REPORT 1 Letter from the Hawai‘i Tourism Authority Aloha, On behalf of the Hawai‘i Tourism Authority (HTA), the state The campaign launched in May helped to stabilize the market while agency for tourism, we present you with the HTA’s annual report for communicating Hawai‘i’s value as a destination. Despite these calendar year 2008. This report covers the agency’s activities, additional marketing efforts, Hawai‘i tourism was still forecast to be accomplishments and challenges from January through October 2008. soft. As a result, in September, the HTA, HVCB and the visitor industry This year has been marked with uncertainty, as many variables, launched a new $12.5 million marketing campaign, “Return on both within and outside the state, have impacted Hawai‘i’s visitor Vacation,” targeting key markets with direct flight access to Hawai‘i industry. Externally, the global oil market, mainland credit crisis including San Francisco, Los Angeles, Seattle, Phoenix, Denver, Dallas, and most recently, the flux on Wall Street, have put the dream of a Chicago, and New York. Then, in October, the Board approved an Hawai‘i vacation out of reach for many travelers from our top additional $2 million to support Hawai‘i’s marketing efforts. And performing markets. while marketing was rightfully a focus this year, the HTA continued Locally, the state has been impacted by events including the loss to support and make progress in other initiatives including Hawaiian of two NCL cruise ships, the closure of Moloka‘i Ranch and decreased Culture, Natural Resources and Tourism Product Development. airlift to the islands. In particular, the airline crisis hit Hawai‘i directly These efforts are described in the following pages of this report. on March 30, when Aloha Airlines ceased its passenger service after Like the industry, this year has brought changes to the HTA as well. 65 years. Three days later, ATA Airlines suddenly shut down, and This includes new leadership at the board, committee and staff levels Hawai‘i had a potential crisis on its hands with 9,500 visitors stranded and tough decisions on its budget and programs. These changes have in-state. To address this situation, HTA’s board of directors held an given the Authority the opportunity to re-focus and look for ways to emergency meeting to approve $5 million to help underwrite activities improve as it moves forward. to assist travelers. Using $500,000 of these funds, the HTA secured In closing, we would like to acknowledge all of those many nine flight segments through Hawaiian Airlines, United Airlines and stakeholders for their support this year. With tourism representing Panda Travel to assist more than 2,200 visitors and residents who over 20 percent of Hawai‘i’s economy, now more than ever, it is took advantage of the HTA-subsidized flights. Hawai‘i was well critical that we come together as a community to work towards represented nationally as a state that takes immediate action to common goals that benefit everyone in the state. assist its visitors and residents in a time of need. We would like to acknowledge and thank the Hawai‘i Visitors and Convention Bureau Mahalo, (HVCB), the State Legislature, Governor’s Tourism Liaison, and the state’s visitor industry partners for coming together in a collaborative effort to show aloha for the safety and comfort of Hawai‘i’s visitors. The HTA board further responded to the loss of airline seats and Kelvin Bloom Lloyd I. Unebasami declining visitor arrivals, by approving $3 million of the remaining Chair Interim President $4.5 million, for an enhanced marketing campaign on the West Coast. & Chief Executive Officer 2 HAWAI‘ I TOURISM AUTHORITY I. Overview of the Hawai‘i Tourism Authority Background Organization In 1998, the Hawai‘i Tourism Authority The HTA is headed by a policy-making (HTA) was established through a legislative board of directors, which consists of 12 public, act as the lead state agency for Hawai‘i’s voting members, and four ex-officio nonvoting visitor industry. This same act also established members. The public voting members consist the Tourism Special Fund, a set percentage of of members representing each of Hawai‘i’s transient accommodations tax (TAT) collections four counties and maintain expertise in the Kaua‘i Moloka‘i that is assessed on hotels, vacation rentals and area of visitor industry management, marketing, O‘ahu other accommodations, that is used by the promotion, transportation, retail, entertainment, Maui HTA to market, develop and support Hawai‘i’s or visitor attractions. One of the board La-na‘i visitor industry. members also maintains expertise in the area Among its responsibilities as the state’s of Hawaiian cultural practices. The nonvoting tourism agency, the HTA is charged with the board members include a representative of the following: Department of Business, Economic • Setting tourism policy and direction Development & Tourism; the Department of from a statewide perspective; Transportation; the Board of Land and Natural • Developing and implementing the state’s Resources; and the State Foundation on Hawai‘i Island tourism marketing plan and efforts; Culture and the Arts. The HTA Board reports • Administering programs and activities to to the legislature through its president and sustain a healthy visitor industry for the chief executive officer. state; The primary purpose of the Board is to set • Developing and monitoring broad policies and directions for the HTA’s implementation of the State Tourism activities consistent with the Hawai‘i Tourism Strategic Plan; and Strategic Plan: 2005-2015 (State TSP). • Coordinating tourism-related research, This 10-year plan identifies nine initiatives planning, promotional, and outreach for the industry that make up the framework activities with the public and private under which the HTA develops and imple- sectors. ments its tactical programs and activities throughout the year. Mission To strategically manage Hawai‘i tourism in a sustainable manner consistent with our economic goals, cultural values, preservation of natural resources, community desires, and visitor industry needs. 2008 ANNUAL REPORT 3 BOARD COMMITTEES Board of Directors Administrative Standing Committee (as of October 31, 2008) Makes policy recommendations related to the Members Representation evaluation of the executive director and the Members Representation administration of the HTA. Kelvin Bloom, Chair At-large Brennon Morioka Ex-officio Committee members: Kelvin Bloom (chair), President Director Sharon Weiner (vice chair) and Douglas Chang. ResortQuest Hawaii, LLC State of Hawai‘i, Department of Transportation Budget & Audit Standing Committee Sharon Weiner, Vice Chair At-large Develops policies to ensure the financial Vice President Laura H. Thielen Ex-officio integrity of the HTA through the proper Global Communications Chairperson & Government Relations, State of Hawai‘i, allocation and expenditure of funds in a DFS Group L.P. Board of Land and manner consistent with the Board’s policies Natural Resources and objectives, and ensures that funds are Douglas Kahikina Chang At-large properly expended under a budget previously General Manager Charlene “Cha” Thompson City & County Ritz Carlton Club Owner, of Honolulu approved by the Board. & Residences Executive Vice President Committee members: Vernon Char (chair), Kapalua Bay Tihati Productions Leon Yoshida (vice chair), Douglas Chang, Michael Kobayashi, Marsha Wienert, and Vernon F.L. Char At-large Marsha Wienert Ex-officio Attorney at Law Tourism Liaison Stephen Yamashiro. Char Sakamoto Ishii Lum & Ching State of Hawai‘i, Marketing Standing Committee Governor’s Office Patricia Ewing County of Kaua‘i Makes policy recommendations on initiatives Owner Ronald K. Yamakawa Ex-officio that relate to promoting the visitor industry. Kong Lung Company Executive Director Committee members: Sharon Weiner (chair), State of Hawai‘i, Patricia Ewing, Kyoko Kimura, Kawaikapuokalani K. Hewett Hawaiian Culture State Foundation on Culture & the Arts Michael Kobayashi, Marsha Wienert, Kyoko Y. Kimura County of Maui Ronald Yamakawa, and Leon Yoshida. President & General Manager Stephen K. Yamashiro County of Hawai‘i Strategic Planning Standing Committee Diamond Resort Hawaii Consultant/Attorney Makes policy recommendations relating to Michael K. Kobayashi At-large Leon Yoshida At-large research and planning. President President Committee members: Kyoko Kimura (chair), Polynesian Hospitality/ Sawayaka Hawaii, Inc. Patricia
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