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 Ewing (vice chair), Vernon Char, Kobayashi Travel Service, Ltd. Kawaikapuokalani Hewett, Brennon Morioka, Laura Thielen, and Cha Thompson.

4 HAWAI‘ I TOURISM AUTHORITY Operations STAFF The HTA’s president and chief executive Research Efforts and Accountability Studies Lloyd I. Unebasami Interim President & Chief officer reports directly to the HTA Board of • TNS Executive Officer and Directors and is responsible for assisting the • Research and Economic Analysis Division, Chief Administrative Officer Board in its responsibility to execute the State Department of Business, Economic Momi Akimseu Strategic Planner mandates of Chapter 201B, HRS. This includes Development & Tourism Caroline Anderson Marketing Manager carrying out board policies, administering HTA • SMS Research & Marketing Services, Ltd. Muriel A. Anderson Vice President of Tourism programs and overseeing the agency’s day-to- • John Knox & Associates Product Development day operations. To accomplish these tasks, an • OmniTrak Group, Inc. Lynn D. Bautista Contracts Specialist in-house staff supports the president and chief • Market Trends executive officer. In addition, the HTA staff Product Development, Natural Resources, Maile Caravalho Accounting Assistant works with various professionals in their Hawaiian Culture, and Workforce Sharon M.L. Freitas Director of Communications respective fields to accomplish the necessary Development Programs Jadie Goo Administrative Assistant work in the areas, as outlined below: • County of Hawai‘i, Irene Iha Administrative Assistant Department of Research and Development Tourism Marketing in the Leisure Lois Kajiwara Administrative Assistant and Business Segments • County of Kaua‘i, • Hawai‘i Visitors and Convention Bureau Office of Economic Development Robbie Ann A. Kane Tourism Product Development Manager (HVCB) for the North America Major Market • County of Maui, Area and Corporate Meetings and Incentives Office of Economic Development Grace Lee Tourism Product Development Specialist (CMI) Market • City & County of Honolulu, • Hawai‘i Tourism Japan Office of Economic Development Stella V. Montero Budget/Fiscal Officer • Native Hawaiian Hospitality Association for the Japan Major Market Area Janna Nakagawa Administrative Assistant • Council for Native Hawaiian Advancement • Hawai‘i Tourism Asia Melissa Ortega Clerical Assistant for the Other Asia Major Market Area • University of Hawai‘i, School of Travel Winfred Pong Projects Manager • Hawai‘i Tourism Europe and Industry Management for the Europe Major Market Area • Other community groups statewide Roann Rakta Executive Secretary • Hawai‘i Tourism Oceania Legislative and Government Affairs Michele Shiowaki Administrative Assistant for Australia and New Zealand • Okudara & Associates Michael Story Sports Manager Management and Marketing of the Hawai‘i Communications Services Vengie S. Talaro Administrative Assistant Convention Center • Stryker Weiner & Yokota David Uchiyama Vice President of Tourism • SMG Hawai‘i Public Relations, Inc. Marketing • Digital Mediums Keli‘ihoalani Hawaiian Cultural Financial Services N. K. Wilson Coordinator • Bank of Hawaii

2008 ANNUAL REPORT 5 II. Hawai‘i Tourism Strategic Plan (State TSP) and HTA’s Efforts in Each of the Nine Initiatives

n 2004, the HTA, with assistance and input • Nine strategic initiatives that were Presented over the following pages, is a I from the industry and the community, identified as the priorities needed to brief narrative of the HTA’s programs and developed the Hawai‘i Tourism Strategic Plan: achieve the vision; and activities for each of the nine initiatives for 2005-2015 (State TSP). This 10-year plan is • Lead and support partners in the public the period January 1, 2008 through October focused on creating a sustainable future for and private sectors that need to work 31, 2008. Please note that the budgeted Hawai‘i’s visitor industry and identifies a together on each initiative to achieve the allocations for each of the initiatives are also shared vision for Hawai‘i tourism by industry overall vision. provided, although these amounts may differ stakeholders: A successful and sustainable visitor from the final expenditures for the year. By 2015, tourism in Hawai‘i will: industry will not be the result of the work of – Honor Hawai‘i’s people and heritage; any one organization. This is a plan for all – Value and perpetuate Hawai‘i’s natural of Hawai‘i and all stakeholders to take and cultural resources; responsibility for their role in the plan, to – Engender mutual respect among all work together to address issues as they arise stakeholders; and to achieve overall success. Therefore, – Support a vital and sustainable consistent with the philosophy of the State economy; and TSP, the HTA develops its own agency – Provide a unique, memorable and programs and plans within each of the nine enriching visitor experience. initiatives that are listed below: The plan also provides a roadmap for • Access achieving that vision, including the following • Communications and Outreach components: • Hawaiian Culture • Guiding principles and Native Hawaiian • Marketing values; • Natural Resources • Performance indicators to help measure • Research and Planning the collective success in achieving the • Safety and Security vision for Hawai‘i’s visitor industry; • Tourism Product Development • Workforce Development

6 HAWAI‘ I TOURISM AUTHORITY 1. Access

Statewide Airport Goal: To maintain and improve transportation and Harbor Greetings Program access, infrastructure and services to facilitate The objective of the HTA’s Greetings Program travel to, from and within Hawai‘i. is to share the spirit of aloha with arriving and 2008 Budget: $7,960,000 departing passengers at Hawai‘i’s airports and harbors. As such, this program supports or this initiative, the HTA plays a supporting entertainment, visitor information, hospitality role. Its primary programs include the F services, amenity upgrades, Hawaiian cultural following: craft demonstrations, airport displays, and Airlift Efforts other services at airports and harbors through- Given rising fuel costs, the instability of out the state. the airline industry and discussions about new Inaugural Alaska Airlines flight to Maui This year, a Hospitality Training Program mergers and codeshare partnerships, accessibil- was implemented at the Honolulu International • Addressing changes in the airline industry: ity has become one of the most important Airport for front-line employees to help improve The HTA, together with HVCB, hired an initiatives for the year. As a result, the HTA visitors’ first and last impressions through the airline consulting firm, Sabre Airline Solutions, has spent considerable time and resources in state’s major ports of entry. More than 1,000 to conduct an ongoing air service review of this area working on the following: airport employees have received training, Hawai‘i and provide recommendations on • HTA’s Airlift Development Program: As visi- including security personnel, the Visitor maintaining and growing lift to the state. tor numbers decline, it is essential to ensure Information Specialists of the Hawai‘i State The review provides an in-depth analysis on adequate lift to Hawai‘i. The HTA provided Department of Transportation’s Visitor a number of topics including the airline funding for 56 cooperative programs in Information Program (VIP) and personnel from industry’s current market conditions, the conjunction with airlines and travel wholesalers the Transportation Security Administration effects to Hawai‘i on potential mergers and who were required to provide at least a 3:1 (TSA). Efforts are underway to expand this code sharing of certain carriers, and match in funds to support travel during the training to the neighbor islands to ensure Hawai‘i’s interisland air system; and spring, summer and fall periods. The program improved quality and consistency of the visitor • Airline Meetings: In an effort to promote seeks to attract higher spending, active visitors experience on a statewide basis. and facilitate closer relations with current to Hawai‘i; expand exposure for the overall and potential airlines serving Hawai‘i, the destination and help sustain routes that are HTA’s executives have been meeting with at risk of cancellation. In total, more than their airline counterparts from the U.S. East, $11 million was invested into the market- U.S. West, Japan, Other Asia, and locally to place through these cooperative programs; discuss mutual concerns, operating issues, future outlooks, and proactive solutions.

2008 ANNUAL REPORT 7 2. Communications and Outreach

articles, 30 of which were included in neighbor Goal: To facilitate interaction among all HTA Recognized for island publications, and 73 broadcast interviews stakeholders that improves the lines of PR Campaigns and Tools that highlighted and informed the general public communication and enhances greater about various programs and events sponsored Keep it Hawai‘i understanding of roles, values and concerns. by the HTA, its partners and the visitor industry. HTA’s 2007 Keep it Hawai‘i Recognition 2008 Budget: $2,895,000 Enhanced publicity efforts were conducted for Awards was recognized with a Koa Anvil HTA’s 17th Annual Keep it Hawai‘i Recognition Awards of Excellence from the Public TA’s communication efforts provide Awards, the 2008 Hawai‘i Tourism Conference Relations Society of America (PRSA). Hinformation to key constituencies about and the annual Festivals and Events Seminar, The event was praised for its extensive agency plans and programs as well as educate which resulted in greater participation for these media coverage leading to an increase the public about tourism issues including the events. in quality applicants and recipients. role the industry plays in Hawai‘i. For this The 2007 Keep it Hawai‘i Recognition initiative, the HTA’s primary efforts for the year Awards also won an ‘Ilima Award of Merit included the following: for its communication program from the Public Relations Efforts International Association of Business As part of HTA’s legislative mandate, the Communicators (IABC). Authority is responsible for conducting communications and community outreach activities to educate and inform local stakeholder groups about HTA programs, policies, and its role in the community. This year’s efforts included a special focus on reaching out to the visitor industry. Communication tools used included the distribution of press releases to local media; a monthly electronic newsletter about HTA activities and programs distributed Muriel Anderson of HTA (left) receives an IABC ‘Ilima Award of Merit. to government officials, industry leaders and community members; speeches and presen- HTA’s 2007 Annual Report tations given by HTA representatives in Hawai‘i to the Hawai‘i State Legislature and abroad; and face-to-face meetings with HTA’s 2007 Annual Report to the Hawai‘i government, industry, business, and community State Legislature won a Koa Hammer leaders statewide. Award from PRSA and an ‘Ilima Award of HTA E-Bulletin In addition, the HTA increased its media Merit from the IABC. relations efforts securing more than 270 print

8 HAWAI‘ I TOURISM AUTHORITY 30th Annual Visitor Hawai‘i Tourism Conference Other Communications Efforts Industry Charity Walk On August 7-8, 2008, Ongoing Web site development and enhance- Established in 1974, the Visitor Industry Charity more than 700 people ments for the following: Walk is still going strong with more than 9,500 walk- attended the fifth • HTA’s Web site ers participating in this year’s event. Along with the annual Hawai‘i Tourism (www.hawaiitourismauthority.org) provides Hawai‘i Hotel & Lodging Association, Hawai‘i’s visitor Conference – Hawai‘i an overview of the agency and information - industry helps to support the various local charities a Ma ‘O Aku– So Much about the HTA’s programs, plans and activities. on each island. To date, the walk has raised more More Hawai‘i, which It also includes news releases, requests for than $20 million, benefiting more than 160 local was held at the Hawai‘i proposals, presentations, and calendars; non-profit organizations statewide, including: Convention Center. • Travel Smart Hawai‘i’s Web site • Alzheimer's Association The purpose of the (www.travelsmarthawaii.com) provides • American Cancer Society conference was to bring information to visitors traveling to Hawai‘i. • American Heart Association together Hawai‘i’s visitor industry to hear from This year, the site was especially useful in • American Red Cross experts locally, nationally and from around the providing up-to-date information to the public • ARC globe about the latest trends in tourism. following the closure of Aloha Airlines and • Big Brothers Big Sisters On the first day, speakers presented a variety ATA regarding chartered flights and other • Boy Scouts of America of topics including preparing for the arrival of helpful resources for displaced travelers; • Boys & Girls Club of Hawaii Korean and Chinese visitors, how to find and • HTA’s Festivals and Events Microsite • Brantley Center, Inc use Hawai‘i visitor statistics and information (www.htafestivalsandevents.com) was • Catholic Charities Hawaii on the challenges Hawai‘i’s airline industry is launched this year to promote the agency’s • Child & Family Services facing. On the second day, the HTA’s marketing annual Festival and Events Seminar. The new • Food Bank partners presented their 2009 tourism marketing user-friendly site offered easy-to-find informa- • Foster Family Programs of Hawaii plans. For more information on this event, visit tion on registration, island schedules, speaker • Girl Scout Council of Hawaii www.hawaiitourismconference.com. biographies, as well as post-conference • Habitat for Humanity PowerPoint presentations and videos of the • Hawaii Children’s Theatre keynote speakers; and • Hospice • HTA’s Hawai‘i Tourism Conference Microsite • Kapiolani Child Protection Center (www.hawaiitourismconference.com) was • Mediation Services another microsite launched this year. The site • Mental Health Association featured program details, registration and • Mental Health Kokua hotel information, and speaker biographies. • PACT (Parents and Children Together) Following the conference, each speaker’s • Public Schools of Hawaii Foundation • Ronald McDonald House Charities of HI PowerPoint presentation, including links to • Special Olympics the 2009 marketing plans, were made • Visitors Aloha Society Hawaii available on the site. Media panel at Hawai‘i Tourism Conference. • Women Helping Women • YMCA • YWCA

2008 ANNUAL REPORT 9 3. Hawaiian Culture

Preservation Society’s Preserving the Past, Goal: To honor and perpetuate the Hawaiian Sharing the Future; and the Kipahulu ‘Ohana culture and community. Inc.’s Kapahu Living Farm (a complete list of 2008 Budget: $2,500,000 projects is available on the HTA Web site). Throughout the year, CNHA held informa- ecognizing that the Hawaiian culture and tional workshops on the 2009 program, its community makes Hawai‘i unique and is R criteria and the selection process. More than therefore critical to the sustainability of 200 individuals attended the workshops, which Hawai‘i’s visitor industry, the HTA supports were held in all counties. For more informa- several programs under this initiative including tion on the program, visit the following: www.livinghawaiianculture.org. Keli‘i Wilson of HTA presents the Koa Award to Kamehameha Investment Corporation for its Hawaiian Culture Community Program Keep it Hawai‘i Program Ho‘iho‘i Ku-lana Wahi Pana — Restoring Sacred In 2008, the HTA continued its partnership The Keep it Hawai‘i Places project. with the Council for Native Hawaiian Program recognizes the efforts Advancement (CNHA) to implement and and 26 Lehua Maka Noe Awards - Lehua Maka of individuals, organizations - administer the Ku-kulu Ola – Living Hawaiian Noe Mohala O Uka, were presented to individ- and businesses that help to Culture Program. Through this program, HTA uals, organizations and businesses (a complete perpetuate the Hawaiian provided $839,012 in funding to 20 organiza- list of all recipients is available on the HTA culture. The program continues tions for various projects that help strengthen Web site). This year’s 17th Annual Keep it to set the bar for the and perpetuate the Hawaiian culture. Projects Hawai‘i Recognition Awards ceremony was community and the industry supported include the Hawai‘i Maoli’s Hawaiian again part of the annual Hawai‘i Tourism by showcasing those who are Cultural Resource Directory; Hui Ku- Maoli Conference. “doing it right” throughout the Ola’s Lelekamanu – Moloka‘i Project; Hula state and abroad. In 2008, six Legacy Awards - He Kuleana Ke Aloha, were presented to those who have “built a legacy of aloha,” and strive to honor and perpetuate the Hawaiian culture. A single Koa Award - Ku- Kilakila Ka Ulu Koa I Ka Nahele, was presented to Kamehameha Investment Corporation for its Ho‘iho‘i Ku-lana Wahi Pana – Restoring Sacred Places project for best Moku Ola Education Foundation was awarded exemplifying its commitment to help preserve funding for its Growth of Hawaiian Healing ‘Ohana Pahinui receives a He Kuleana Ke Aloha Arts program, which promotes the education and perpetuate Hawai‘i’s host culture. In - - - award for their legacy in Hawaiian music. of lomilomi and la‘au lapa‘au. addition, 17 Kahili Awards – Kahili Ku Ki‘eki‘e

10 HAWAI‘ I TOURISM AUTHORITY 2008 Keep it Hawai‘i Recognition Awards Native Hawaiian Festivals Program Legacy Awards - He Kuleana Ke Aloha The HTA provided funding and support to Recipients Native Hawaiian Signature Events that perpetuate Lolena Nicholas - Native Speaker the Hawaiian culture through programs and Lolena began teaching young children as part of activities for residents and visitors, including the ‘Aha Pu- nana Leo’s movement to perpetuate the following: - - Hawaiian language. Because of her efforts, Hawai‘i • Prince Kuhio Celebration held annually in has a new wave of Native Speakers. March, to honor a Hawaiian Prince for his ‘Ohana Pahinui - Hawaiian Music Legacy many achievements and contributions; The ‘Ohana Pahinui’s legacy comes from the love - • King Kamehameha Celebration held each of Hawaiian music, and in particular, that of kiho-‘alu June, in commemoration of Hawai‘i’s first (slack key guitar), a style which was made famous by monarch, King Kamehameha I; Aloha Festivals Gabby “Pops” Pahinui. Today, Gabby’s legacy is carried • Prince Lot Hula Festival held in July, is a on through his children. management of the neighbor island festivities non-competitive hula event that includes and focus solely on the O‘ahu events. Under- AM 940 - Traditional Hawaiian Music, All the Time ha-lau (hula schools) from Hawai‘i and standing the importance of this event, the HTA Formerly known as KCCN 1420 AM, this traditional abroad; and Hawaiian music station was famous in the 1970s for provided funds and partnered with the Hawai‘i • Aloha Festivals (O‘ahu), is a long standing airing traditional Hawaiian music and Hawaiian- Visitors and Convention Bureau (HVCB) and its event that celebrates the Hawaiian culture related programming. The station’s continued island chapters on Hawai‘i Island, Maui and through activities and events during the commitment to this genre allows for the perpetuation Kaua‘i, and with other community organizers, to month of September. of Hawaiian music through the medium of public ensure that events on the Neighbor Islands For many decades, Aloha Festivals events radio. would continue. were held statewide. Due to various challenges, The Brothers Cazimero - Hawaiian Music Legends the organization made the decision to discontinue Native Hawaiian Hospitality Association The Brothers Cazimero are legendary performers. The HTA continues to provide support for the Their musicianship and stylish vocals blend to produce a style that is now part of the fabric of organizational capacity building of the Native Hawaiian music history. Hawaiian Hospitality Association (NaHHA), the lead organization in the Hawaiian Culture ‘Ohana Wa‘a - Deep Sea Voyaging Legacy Initiative. In May, NaHHA held its annual ‘Ohana Wa‘a is made up of various organizations including the Polynesian Voyaging Society and the conference that was attended by more than 800 Friends of Ho-ku-le‘a and Hawai‘iloa. United under one individuals from the Hawaiian community and mission and goal, these groups are coming together the visitor industry. The conference serves as to collaborate and share resources in order to a venue for participants to learn, share and continue the traditions of deep sea voyaging.

Moanalua Gardens Foundation collaborate on issues of mutual concern, and Wright Bowman Jr. - Master Canoe Builder to encourage the industry and the Hawaiian Prince Lot Hula Festival Wright Bowman Jr. is known to be one of the community to forge ahead collaboratively. greatest contributors to the perpetuation and renewal of traditional canoe building skills.

2008 ANNUAL REPORT 11 4. Marketing

Goal: To develop marketing programs that Challenges Affecting Tourism contribute to sustainable economic growth. State of Hawai‘i • Economic Variables (mortgage crisis, stock market, international economies, fuel prices) Aids Stranded Travelers 2008 Budget: $54,350,000 • Fuel Surcharge Due to the shutdown of ATA on the • Airlift heels of Aloha Airlines’ closure of Marketing Overview for CY 2008 • Fuel Cost transpacific and interisland passenger Marketing Hawai‘i effectively in both leisure • Competitive Product Offerings • Time value operations, an estimated 9,500 passengers and business markets has been the HTA’s top • Adoption of a staycation priority in 2008. This year was especially • Changing Workforce were stranded in Hawai‘i unable to challenging for Hawai‘i’s visitor industry due • Refreshing our destination secure an alternative flight home. • Maturing Destination To service Hawai‘i’s visitors and assist to rising fuel costs, overall volatility of the • Foreign Currency Strength airline industry, the recent U.S. economic residents who were stranded on the downturn, and many other variables including mainland, the HTA issued a request for the closures of Aloha and ATA Airlines, and additional $2 million to market Hawai‘i. proposal on April 3 for charter airline the withdrawal of NCL America’s Pride of While the HTA’s short-term focus has been services to help stranded passengers. Hawai‘i and Pride of Aloha cruise ships earlier on markets like North America, that can drive The following day, the HTA board held this year. business to Hawai‘i immediately, the Authority an emergency meeting to approve funds To address these challenges, throughout the has also been working closely with its market- to help underwrite flights and support year, the HTA has put more focus and increased ing contractor in Asia, Hawai‘i Tourism Asia other potential activities to assist travelers. resources towards marketing-related initiatives (HTAsia), which includes Hawai‘i Tourism The HTA secured a total of nine flight intended to stimulate travel to Hawai‘i. In China (HTC), Hawai‘i Tourism Korea (HTK) segments on Hawaiian Airlines, United particular, with the most notable decline in and Hawai‘i Tourism Taiwan (HTT), to position Airlines and Panda Travel that month. arrivals occurring from the traditionally strong Hawai‘i as an attractive visitor destination in More than 2,200 visitors and residents North America market, the HTA, the Hawai‘i developing international markets. This year, took advantage of the HTA-subsidized there were two exciting developments in two Visitors and Convention Bureau (HVCB) and flights at the approximate cost of of those markets: the visitor industry launched a cohesive $500,000 of the allocated funds. marketing program to supplement current • In June 2008, the Chinese and U.S. In addition, informational updates were marketing efforts in key U.S. cities that presently governments implemented the Tourism posted on HVCB’s Web site - gohawaii.com – have direct flight access to Hawai‘i including Memorandum of Understanding (MOU). about the situation. Hawai‘i was well San Francisco, Los Angeles, Seattle, Phoenix, This is a milestone for the travel industry represented nationally as a state that Denver, Dallas, Chicago, and New York. The in both China and Hawai‘i because for takes immediate action to assist its additional marketing funds are being delivered the first time, travel agents in China are visitors and residents in a time of need. in three media campaigns themed “Return on able to openly promote group leisure Vacation.” In October, the board approved an tours to Hawai‘i. While Chinese will still

12 HAWAI‘ I TOURISM AUTHORITY need visas to travel to Hawai‘i, given this been in discussions with other carriers Breakdown of Marketing Campaigns MOU, HTC projects a doubling of arrivals including Shanghai Airlines, China The campaign supplements ongoing marketing from China to Hawai‘i within two years. Eastern Airlines, Hainan Airlines, and efforts in North America, and are planned as follows: • It is widely anticipated that before year- Air China. In November, Mega Global, 1) Fall 2008 Access: end, President Bush will expand the current a charter airline from China, is planning The campaign ran August-September 2008. visa waiver program to include South Korea its inaugural flight from Tianjin to $1 million HTA; $3 million visitor industry match. and six European nations. As a result, Honolulu. there will be fewer travel restrictions on • Korea: HTA and HTK are continuing to Subtotal: $4 million visitors from those countries, including dialogue and partner with Korean Airlines 2) Fall-Winter 2008 Supplemental: obtaining visas before traveling to the U.S. and United Airlines regarding airlift to The campaign began in early October and goes for short-term visits. Once this occurs, Hawai‘i. through December. HTK and the Visit USA Committee project In addition to the efforts described above, $1.5 million HTA; $1.4 million HVCB; a doubling of arrivals from South Korea to the HTA and its marketing contractors, together and $1.6 million visitor industry match. Hawai‘i within the first one to two years. with visitor industry stakeholders, have been Subtotal: $4.5 million In anticipation of these developments, working diligently to implement their 2008 3) Winter 2008 - Spring 2009 Supplemental: the HTA provided HTAsia with an additional marketing plans. The following section The campaign will run January through April. $800,000 in February to increase marketing details this year’s marketing highlights from $2 million HTA; $2 million visitor industry match efforts in China and Korea for the following: those plans for each market. Subtotal: $4 million • Enhance training efforts and sales tools; • Increase familiarization tours to educate the travel trade and media about Hawai‘i; Marketing Categories • Develop co-op opportunities with key Budget (in $ millions) agents and airlines for joint promotions Leisure Marketing $37.86 and campaigns; and Hawai‘i Arts Program $0.15 • Open a second office in Beijing, China (in addition to their current office in Corporate Meetings & Incentives $2.56 Shanghai, China). Hawai‘i Convention Center $4.0 To complement marketing efforts in these Marketing Flexibility Fund $2.0 two areas, work on increasing airlift from China Sports $7.78 and Korea to Hawai‘i was conducted as follows: • China: HTA and HTC have been working TOTAL $54.35 to obtain direct flight service from Within the marketing initiative, HTA’s primary mainland China to Hawai‘i with potential marketing efforts are categorized as listed in Ad from HVCB’s “Return on Vacation” campaign startup charter companies and have also the chart above.

2008 ANNUAL REPORT 13 Marketing Partners Hawai‘i Visitors & Convention Bureau (HVCB) 2008 Leisure Budget North America MMAs $$ Jay Talwar, Senior Vice President, Marketing N. America 25,753.0 Tel: (808) 924-0220 • Email: [email protected] Corporate Meetings & Incentives Japan 8,210.0 Mike Murray, Vice President, Sales & Marketing, Other Asia 1,870.0 Corporate Meeting & Incentives Europe 883.0 Tel: (808) 924-0253 • Email: [email protected] Oceania 980.0 Hawai‘i Tourism Japan (HTJ) Other 160.0 Takashi Ichikura, Executive Director TOTAL 37,856.0 Tel: 81 (03) 35732511 • Email: [email protected] Hawai‘i Tourism Asia (HTAsia) Masaki Sakamoto, Director Asia Pacific Incentives and Meetings Expo (AIME) Tel: 81 (90) 5568-9373 • Email: [email protected] China (Hawai‘i Tourism China) – Shanghai Office David Sun, Travel Trade Marketing Director Leisure Marketing Tel: 86 (21) 6359-1523 • Email: [email protected] The HTA works with five marketing partners: China (Hawai‘i Tourism China) – Beijing Office Hawai‘i Visitors & Convention Bureau (HVCB); Cynthia Zhou, Director Hawai‘i Tourism Japan (HTJ); Hawai‘i Tourism Tel: 86 (10) 8532-5213 • Email: [email protected] Korea (Hawai‘i Tourism Korea) Asia (HTAsia); Hawai‘i Tourism Europe (HTE); Emily Kim, Marketing Director and Hawai‘i Tourism Oceania (HTO) to promote Tel: 82 (2) 777-0033 • Email: [email protected] Hawai‘i in the major market areas (MMAs) Taiwan (Hawai‘i Tourism Taiwan) Jemy See, Account Director which include U.S. East, U.S. West, Japan, Tel: 886 (2) 2377-4930 • Email: [email protected] and Canada, as well as other developing Hawai‘i Tourism Europe (HTE)* international markets. Continental Europe Of the total leisure marketing Christine Klein, Account Manager budget, nearly 90 percent of the Tel: 49 (89) 23662197 • Email: [email protected] U.K. and Ireland funds were allocated to Hawai‘i’s Robert Wilson, Regional Director two largest source markets: North Tel: 44 0207 367 0919 America and Japan. Email: [email protected] In addition to traditional market- Hawai‘i Tourism Oceania (HTO) Australia ing efforts, the HTA ensured that all Helen Williams, Country Manager marketing plans incorporated more Tel: 61 (2) 9286 8937 • Email: [email protected] travel trade education through work- New Zealand Darragh Walshe, Country Manager shops and seminars to provide retail Tel: 64-9-9772234 • Email: [email protected] agents with adequate information to SMG Hawai‘i sell Hawai‘i to consumers. Neil Mullanaphy, Hawai‘i Citywide & Convention Sales, The Motivation Show Executive Director of Sales & Marketing Tel: (703) 647-7410 • Email: [email protected] *Contact through December 31, 2008

14 Marketing

NORTH AMERICA North America is Hawai‘i’s largest source • Develop creative marketing solutions to No Reservations” and “Bizarre Foods” market for visitors and includes Canada, the address barrier-to-sales issues including and in “Dinner: Impossible” on The Food U.S. West (which is defined as the 11 Pacific time, distance and price in U.S. East and Network; States west of the Rockies) and the U.S. East Eastern Canada; and • The Summer Promotion Campaign put (all other states). • Target the avid traveler which includes special package values in front of targeted HVCB’s 2008 marketing plan is designed to: outdoor recreation, arts and culture, golf, customers to blunt the impact of downward • Develop critical mass with marketing and romance traveler (including national economic and travel trends; programs that focus on a select portfolio weddings and honeymooners). • The special Fall-Winter Promotion of market segments; HVCB highlights for the year include the Campaign kept the value message in the • Target marketing programs towards following: minds of potential travelers through the high-experiential travelers; • Spring and Fall integrated multi-media balance of the year; and • Leverage programs that fill-in spring “Stories of Hawai‘i” campaign that drove • The “Aloha Season” promotion on and fall shoulder seasons; potential visitors to a microsite featuring The Golf Channel, including more than • Maintain a consistent brand position videos showcasing unique experiences 60 hours of live programming originating throughout North America; shared by the people of Hawai‘i; from Hawai‘i and more than 100 hours of • Hawai‘i was featured on The Travel programming, including 20 vignettes on Channel’s hit shows, “Anthony Bourdain’s “Hawai‘i’s Hidden Golf Adventures.”

Stories of Hawai‘i campaign Aloha Season - Golf Channel Promotion (Spring and Fall promotion)

HVCB Stories of Hawai‘i print ad Anthony Bourdain at Uptown Fountain on O‘ahu 2008 ANNUAL REPORT 15 Marketing

JAPAN Japan is the largest source of international • Target key segments including active sen- • HTJ, Japan Airlines and JALPAK partnered visitors to Hawai‘i and boasts the biggest daily iors and baby boomers, multigenerational for Hula Week 2008, a promotional event spenders in the market. As such, given the families and romance travelers (wedding, encouraging shoulder season travel. The various challenges affecting visitor arrivals honeymoon and vow renewal). event resulted in nearly 5,000 additional from that market, marketing efforts have been HTJ highlights for the year include the Japanese visitors to Hawai‘i during June refocused to successfully promote longer stays following: and July. The Fall promotion is expected and increased daily visitor spending. • 2008 “So Much More Hawai‘i” campaign to yield similar results; and Hawai‘i Tourism Japan (HTJ)’s 2008 communicated new events, attractions • Korean Airlines’ “Beyond Inchon” marketing plan is designed to: and activities to discover in the islands Campaign included seminar and familiar- • Support Hawai‘i’s brand image as a through new Web content, public relations ization tour support to promote connector sophisticated and constantly evolving efforts, advertising, and other collateral flights to Hawai‘i from Japan’s regional destination; materials; markets, via Inchon, Korea. As a result, • Communicate new and/or renewed reasons • Year-round public relations efforts resulted 4,000 Japanese visitors are now flying to and ways to travel throughout the islands; in more than $66 million worth of media Hawai‘i via Inchon each month. and coverage;

Hula Week

Beyond Inchon familiarization Hula Week Hawai‘i featured in Asahi newspaper tour

So Much More Hawai‘i campaign poster

16 HAWAI‘ I TOURISM AUTHORITY Marketing

OTHER ASIA Hawai‘i Tourism Asia’s (HTAsia) 2008 HTAsia’s highlights for the year include the • HTK, with support from the U.S. Embassy marketing plan focused on positioning Hawai‘i following: in Seoul, launched the “Aloha Incentive as a compelling choice for a growing segment • Following the signing of the Tourism MOU Visa Program” to bring more incentive of the upscale traveling population from three in June, a large China tour group number- groups to Hawai‘i. Companies planning main geographic areas: China, South Korea and ing 160 which included tourism officials, incentive trips to Hawai‘i obtain HTK’s Taiwan. industry and media representatives from recommendation letter, which is then HTAsia’s 2008 marketing plan is designed to: Beijing, Guandong and Tianjin Provinces, submitted to the U.S. Embassy to expedite • Raise visibility and top-of-mind awareness departed for Hawai‘i. In recognition of the visa application process. This expedited of Hawai‘i as a destination to major this significant occasion, the HTA and visa program for Incentive Groups is media throughout Asia; industry partners welcomed the group applicable only to Hawai‘i; and • Educate and motivate the travel trade to with a special reception on O‘ahu; • HTK organized its 4th Annual Hawai‘i more aggressively package and sell • HTC launched a major advertising Travel Mission to Seoul which included Hawai‘i; campaign with Air China Travel Service 26 Hawai‘i participants. The two-day • Work with the airlines to increase lift to in Beijing and Shanghai. The campaign travel mission was divided into four main Hawai‘i, particularly for Korea and China; featured group and FIT tour packages functions: Travel Mart, Travel Agent • Aggressively target the leisure incentive targeting the mass market, seven-day Seminar, Aloha VIP Reception, and Mayor groups from Korea; and Romantic Paradise packages targeting lux- Harry Kim & Big Island Visitors Bureau’s • Support television initiatives and guide- ury honeymooners, and top-end packages Media conference. book publications that showcase Hawai‘i. for platinum and gold credit card holders through China Merchant Bank;

Aloha Incentive Visa Program Korean Air’s Hawai’i coupon booklet Welcome Dinner at Hilton Hawaiian Village

Air China’s Travel Romantic Paradise ad 2008 ANNUAL REPORT 17 Marketing

OCEANIA In 2007, Oceania was the third largest HTO’s highlights for the year include the the diversity of tourism and cultural source of international visitors to Hawai‘i. following: experiences available throughout the However, this year, despite its favorable • HTO worked with Flight Centre Limited, islands. The show included five travel exchange rate and a healthy economy, there has Australasia’s most successful travel agency agent events, two media events, and a been a decline in air seat capacity to Hawai‘i. group, to stage its annual global awards consumer show where suppliers met with Consequently, year-to-date visitor arrivals from event in Hawai‘i this past July. More than more than 650 agents, product and Australia and New Zealand through September 2,700 qualified travel consultants from marketing managers and key journalists have also seen a decline. Flight Centre offices around the world and travel writers from Oceania; and Hawai‘i Tourism Oceania’s (HTO) 2008 traveled to Hawai‘i for the event. • HTO secured the Australian version of marketing plan is designed to: In addition, HTO and Hawai‘i travel the “Biggest Loser” television show, and • Grow Hawai‘i’s presence in the Oceania industry partners hosted 150 Flight Centre hosted six final contestants in Hawai‘i, marketplace by tactically aligning efforts consultants for a “Taste of Hawai‘i” where they faced their fears and with key partners to impact arrivals, familiarization tour; participated in a variety of challenges. length of stay and per person per day • Twenty-four Hawai‘i suppliers joined HTO Exposure resulted in five hours of spending; for its annual “Aloha Down Under” television coverage (estimated media • Cultivate the leisure market targeting the road show, which was held in Auckland, value of US$15 million). The Hawai‘i family, romance and avid traveler and Melbourne, Brisbane, and Sydney. Challenge week was one of the highest business segments; and The theme of this year’s road show was rating weeks for the series with 5.3 • Address historical shoulder periods “So Much More Hawai‘i,” and focused on million viewers over the six-day period. through collaboration.

Flight Centre Limited’s Global Gathering in Hawai‘i Aloha Down Under Flight Centre campaign

HTO Hawai’i promotion 18 HAWAI‘ I TOURISM AUTHORITY Marketing

EUROPE For Hawai‘i, the European market presents partners to impact arrivals, length of stay Surf’s Up. The promotional campaign many challenges to overcome such as the travel and per person per day spending; and included a one-page ad in 500,000 DVD distance from Europe to Hawai‘i, competition • Cultivate the leisure market through booklets, an on-pack promotion with from “closer to home” destinations, limited romance, avid vacationer and business 2.5 million coffee packets and a grand options for access between the two geographic segments. prize trip to Hawai‘i; and areas, and immigration concerns. Despite these HTE’s highlights for the year include the • Travel agent training guide with U.K. tour challenges, year-to-date visitor arrivals from following: operator, Virgin Holidays. The guide, a sales Europe through September 2008 are showing an • Lifestyle promotion with Dove, a leading tool distributed to more than 3,000 travel increase over the same period last year. body care product company in Germany, agencies, was also featured on the Hawai‘i Tourism Europe (HTE)’s 2008 and Meier’s Weltreisen travel agency, company’s trade Web site. marketing plan is designed to: which resulted in a major promotional In October, the HTA announced that it will • Promote Hawai‘i as an attainable dream campaign featuring 350,000 pieces of end its marketing management service contract destination to the European market; point-of-sale material, advertising in various with Aviareps Mangum effective December 31, • Increase destination knowledge and magazines with a total circulation of 2008. Aviareps Mangum has managed Hawai‘i awareness of Hawai‘i and stimulate sales 500,000, Web site promotion, and a grand Tourism Europe’s marketing efforts on behalf of through travel trade education; prize drawing for five trips to Hawai‘i; the HTA since 2004. The HTA is currently • Grow Hawai‘i’s presence in Europe by • Consumer campaign with Sony Pictures, soliciting proposals from interested contractors coordinating efforts with key trade United Airlines and Starwood Hotels & to provide tourism related general sales agent Resorts in Hawai‘i for the DVD launch of services and represent Hawai‘i in Western Europe.

Hawai’i promotion with Surf’s Up

HTE familiarization trip HTE and Dove Body Care’s Hawai‘i campaign promotion

2008 ANNUAL REPORT 19 Marketing

Other Marketing Projects ties relating to the development of travel between Japan and Hawai‘i. Industry Stakeholder The first general meeting was held on - - Marketing Meetings April 22, 2008 in Waikiki, where members This year, the HTA invited key industry identified four important issues that needed to stakeholders to participate in the planning be addressed: service, marketing, airlift, and process with HTA’s marketing contractors on meetings, incentives & conventions. Following their respective 2009 annual tourism marketing the first meeting, council members formed plans. These meetings, which occurred in four committees to further examine the issues March, June and August of this year involved and identify next steps. On September 24, over 140 participants and have resulted in an the entire council met in Japan to present the active exchange between the visitor industry actions and results that the various committees Pacific Network Web site and HTA’s marketing contractors and improved have conducted. collaboration and support in all of the MMAs. • HTA’s marketing partners promote Marketing Hawai‘i’s Arts & Culture Hawai‘i’s arts and culture through media Japan Hawai‘i Tourism Council To showcase the diversity of culture and blitzes to the U.S. mainland, an “Arts The Japan Hawai‘i Tourism Council (JHTC) arts Hawai‘i has to offer throughout the year, with Aloha” themed press trip, and was established in 2008 in place of the Japan the HTA has undertaken several efforts as public relations efforts with the media. Hawai‘i Economic Council, which disbanded described below: last year. The council is comprised of more • Contract with Pacific Network, a newly Online Marketing Initiative than 60 top government and industry executives created Internet network and Web site, In an effort to increase online marketing from Japan and Hawai‘i’s visitor industry and to showcase island artists and arts organ- efficiencies, the HTA began work this year, to its purpose is to address issues and opportuni- izations. With a focus on pre-arrival centralize its marketing contractors’ Web sites marketing, potential visitors looking to under one physical location. While the connect more closely with Hawai‘i’s respective market’s identity will still be cultures can access information such as maintained, centralizing the Web sites will calendar listings of cultural events and allow for improved cross utilization of assets activities on the Pacific Network Web site, for all markets, in addition to elevating while they are still in their decision-mak- Hawai‘i’s online representation. In 2008, the ing process; initial phase of the online initiative took place. • Hawai‘i’s arts and culture were featured Results include improved integration of the in key U.S. publications like Sunset Island Chapter Web sites into HVCB’s site - Magazine, Los Angeles Times, Condé gohawaii.com, better cross-selling of the Nast Traveler, Country Living, Vacations islands, and improved navigation between the Magazine, Seattle Metropolitan, and islands. HVCB is also working with two other Japan-Hawai‘i Tourism Council Meeting in Chinzan-so, Tokyo. Portland Monthly; and English-speaking Web sites: Oceania and U.K.

20 HAWAI‘ I TOURISM AUTHORITY Marketing

Hawai‘i Romance Festival Business Marketing To increase arrivals during the May shoulder The strategy for business marketing is to period and to showcase Hawai‘i as a romance promote Hawai‘i as a preferred destination for destination, the HTA partnered with the Hawai‘i business tourism (to attend a meeting, conven- Romance Festival for a week of concerts tion or incentive conference) by increasing featuring local, national and international promotional presence and brand identity of singers and other events on O‘ahu. The HTA’s the destination on a global basis. In 2008, marketing partners took advantage of this the HTA worked with the Hawai‘i Convention partnership by assisting with the promotion of Center’s (HCC) sales and marketing department this event and marketing Hawai‘i as a romance of SMG Hawai‘i and the HVCB’s Corporate destination. More than 20,000 visitors and Meetings and Incentives (CMI) Department to: residents participated in this year’s festival, 2008 Pow Wow in Las Vegas • Brand Hawai‘i as a business destination – up 100 percent from the previous year. Hawai‘i is an excellent place for 2008 International Pow Wow corporate meetings and incentives; The HTA, HVCB’s Island Chapters, and HTA’s • Expand sales efforts through collaborative international marketing partners representing partnerships; Europe, Oceania, Japan, and China, along with • Increase leads and bookings; and 23 Hawai‘i vendors, participated in the Travel • Increase “top of mind” awareness for Industry Association of America’s 2008 Hawai‘i as a business destination. International Pow Wow. The 40th Annual International Pow Wow, held in May/June in Las Vegas, Nevada, brought international whole- salers and tour operators face-to-face with domestic suppliers (i.e. destination management organizations, hotels, receptive operators, retail, airlines, and attractions) and allowed HTA and Hawai‘i Romance Festival its marketing team to establish new and support existing travel relationships. The HTA marketing team scheduled more than 180 appointments with international wholesalers, tour companies and media. In addition, an all-island media release highlighting the latest destination news was distributed to 400 international and Where Business and Aloha Meet Web site domestic journalists. (Chinese version)

2008 ANNUAL REPORT 21 Marketing

Hawai‘i Convention Center • Launched the Japanese Business Sports Marketing Sales and Marketing Microsite in conjunction with the “Global Sporting events offer several benefits for SMG Hawai‘i, and the HVCB continued to Outreach” insert developed together with Hawai‘i including the following: joint-market and target the meetings industry Nikkei Business to highlight key industries • Economic Impact: People coming to using the successful tagline – Where Business in Hawai‘i which can help draw meetings Hawai‘i to participate, attend or operate and Aloha Meet through an innovative ad and conventions to Hawai‘i. events translates to visitor spending. campaign featured in various national meetings For more on the Hawai‘i Convention This helps to create and sustain jobs and publications and its Web site, Center, see page 32. generate state and local tax revenues; www.BusinessAloha.com. This year, four new • Media Coverage: The positive publicity language versions (Japanese, Korean, simplified Corporate Meetings & Incentives (CMI) The HVCB’s CMI division focused on direct generated by national and international Chinese, and traditional Chinese) of the Web selling, lead generation and client services for media coverage promotes Hawai‘i as a site was launched. SMG Hawai‘i and HVCB corporate meetings and incentives for hotels desirable sports venue and an attractive continued to build Hawai‘i’s brand positioning and resorts on all islands. The leads generated visitor destination; and using the themes of “rejuvenation” and are selling opportunities for the hotel/resort • Residents’ Quality of Life: Sporting events “inspiration” and joint advertising and market- properties to convert into business, which in provide residents with opportunities to ing efforts. The call-to-action used by both turn create business for Hawai‘i’s companies, attend or participate in additional teams in print and online advertising drove including restaurants, transportation sporting activities which add to their customers to the Business Aloha Web site. companies, retailers, activities, and attractions. quality of life. Below are highlights of SMG Hawai‘i’s CMI marketing highlights for the year Recognizing these benefits, the HTA marketing activities and accomplishments: included the following activities and developed a sports marketing program that is • Kicked off the 10th Anniversary promotion accomplishments: designed to increase Hawai‘i’s sports presence at the January annual meeting of the • Recipient of the 2008 Gold Service Award to a globally competitive level and to facilitate Professional Convention and Meetings for the 19th consecutive year by readers sports business development in Hawai‘i. Association (PCMA) in Seattle, Washington, of Meetings & Convention magazine; Through the program, HTA also: targeting associations of more than 2,500 • Awarded the 2008 Pinnacle Award for • Stimulates visitor travel during non-peak attendees and encouraging them to book Top Destination Support Organization travel periods (fall and spring); Hawai‘i over “need” years; Worldwide by Successful Meeting News; • Supports local sports organizations and • Developed insert pieces in both English and sports intrinsic to the islands; and and Japanese for the “Global Outreach” • Translation of the Meeting Planners Guide • Supports initiatives that showcase the program, targeting associations which are into Japanese, Korean, simplified Chinese islands, host culture and distinctive seeking opportunities to draw attendance and traditional Chinese for use in cultural assets. from both sides of the Pacific; building business from Asia. In 2008, the HTA’s Sports Marketing • Initiated the “Global Outreach” program Program included the following efforts: in Japan with convention organizers and • More than 20,000 fans watched travel partners in May 2008 in Tokyo; and international soccer sensation David Beckham, Hawai‘i’s own Brian Ching,

22 HAWAI‘ I TOURISM AUTHORITY Portfolio of Sports Events and other stars from L.A. Galaxy and the was 6.3, an increase of 37 percent over 2007. In addition to the NFL Pro Bowl and PGA Tour Houston Dynamo of Major League Soccer, The HTA is currently in discussions with the contracts, the HTA invested in other sports events for Gamba Osaka of Japan and Sydney FC of NFL to secure a new agreement to keep the 2008, as listed below: Australia compete in the inaugural Pan- Pro Bowl in Hawai‘i for another four years. • Honolulu Triathlon Pacific Championship at Aloha Stadium. • The HTA’s partnership with the PGA Tour, The two-night tournament on February 20 for seven Hawai‘i-based tournaments includ- May 17-18, 2008 (O‘ahu) and 23 was broadcast live on ESPN Classic ing the Sony Open in Hawai‘i, Mercedes-Benz • Moloka‘i World Championships and online at ESPN360.com. The game was Championship and MasterCard Championship May 18, 2008 (Moloka‘i & O‘ahu) - also shown in Japan, Hong Kong, Malaysia, at Hualalai, resulted in more than 20 hours • Maui Jim Hawai‘i Marlin Tournament Series Canada, Australia, Vietnam, South Korea, of television coverage, broadcast nationally June-October, 2008 (Hawai‘i) and other international markets. During the during the winter months. The HTA is • Hawai‘i International Billfish Tournament week leading up to the tournament, players reviewing its partnership with the PGA Tour July 20-24, 2008 (Hawai‘i) from all four teams participated in community by assessing the structure of the contract events on O‘ahu including youth soccer and its present value and relevance in • Duke’s OceanFest clinics and a meet and greet with fans. Hawai‘i’s golf market. August 17-24, 2008 (O‘ahu) The Pan-Pacific Championship accounted for • In October, the HTA announced a new • OHCRA Championship Racing Series more than $8.4 million in visitor expenditures partnership with ESPN Regional Television, August-October, 2008 (Moloka‘i & O‘ahu) and generated $750,000 in state tax revenue. Inc. (ERT), a subsidiary of ESPN, which will • Maui Marathon • The 2008 NFL Pro Bowl brought in approxi- provide Hawai‘i with an exceptional marketing September 14, 2008 (Maui) mately 24,761 visitors, 80 percent of which opportunity. Through this new agreement, • Ford Ironman World Championships specifically came to Hawai‘i to attend the Hawai‘i will receive nearly $4 million worth October 11, 2008 (Hawai‘i) game, accounting for $28.07 million in visitor of national media coverage in target consumer spending and $2.5 million in state taxes. markets during the inaugural Diamond Head • Xterra World Championships The Nielsen national rating for the Pro Bowl Classic and Sheraton Hawai‘i Bowl. October 26, 2008 (Maui) • EA Sports Maui Invitational November 24-26, 2008 (Maui) • Van’s Triple Crown of Surfing November-December 2008 (Maui & O‘ahu) • Xterra Xduro 21K Trail Run World Championship December 7, 2008 (O‘ahu) • Sheraton Hawai‘i Bowl December 24, 2008 (O‘ahu)

Pan-Pacific Championship Ford Ironman World Duke‘s OceanFest Championships

2008 ANNUAL REPORT 23 Marketing

Visitor Profile by MMA JAPAN* To appeal to different geographic markets around the world, Primary Purpose of Stay: Pleasure (882,628) vs. MCI (44,347) the HTA, on behalf of the state, has identified different major Average Length of Stay: 5.72 days market areas (MMAs) based on visitor characteristics, state of First Time Visitors: 42.1% market development, and competitive environment. The following are profiles of Hawai‘i leisure visitors by MMA. Repeat Visitors: 57.9% Average Number of Trips: 3.62 NORTH AMERICA* (U.S. WEST, U.S. EAST AND CANADA) OTHER ASIA** Primary Purpose of Stay: Pleasure (76,860) vs. MCI (12,852) U.S. WEST: Average Length of Stay: 8.96 days Primary Purpose of Stay: Pleasure (1,875,891) vs. MCI (130,547) First Time Visitors: 73.1% Average Length of Stay: 9.55 days Repeat Visitors: 26.9% First Time Visitors: 20.0% Average Number of Trips: 1.95 Repeat Visitors: 80.0%

Average Number of Trips: 6.66 OCEANIA** Primary Purpose of Stay: Pleasure (148,106) vs. MCI (4,343) U.S. EAST: Average Length of Stay: 8.94 days Primary Purpose of Stay: Pleasure (1,112,742) vs. MCI (146,640) First Time Visitors: 51.6% Average Length of Stay: 10.40 days Repeat Visitors: 48.4% First Time Visitors: 44.6% Average Number of Trips: 2.48 Repeat Visitors: 55.4% Average Number of Trips: 3.75 EUROPE** Primary Purpose of Stay: Pleasure (92,627) vs. MCI (6,720) CANADA: Average Length of Stay: 12.28 days Primary Purpose of Stay: Pleasure (245,567) vs. MCI (12,834) First Time Visitors: 70.0% Average Length of Stay: 12.72 days Repeat Visitors: 30.0% First Time Visitors: 39.9% Average Number of Trips: 2.29 Repeat Visitors: 60.1% * 2008 data through October Average Number of Trips: 3.72 **2007 data, since 2008 preliminary data is not yet available for these markets.

Source: State of Hawai‘i Department of Business, Economic Development & Tourism

24 HAWAI‘ I TOURISM AUTHORITY 5. Natural Resources

across the state and for work to be done Throughout the year, NRAG and HTA staff Goal: To respect, enhance and perpetuate on the following: have conducted site inspections to monitor and Hawai‘i’s natural resources to ensure a high – Kiholo Bay State Historical Park on evaluate the progress of programs that have level of satisfaction for residents and visitors. Hawai‘i Island received HTA funding and to assess areas that 2008 Budget: $5,000,000 – Ko-ke‘e State Park’s Kalalau Lookout may need assistance in the future. In 2008, on Kaua‘i site inspections were conducted on O‘ahu awai‘i’s natural environment is a critical – Na-pali Coast State Park at Kalalau (He‘eia State Park, Ka-ne‘ohe Bay, La-‘ie Point Helement of Hawai‘i’s tourism product. Beach on Kaua‘i State Wayside, Lania-kea Beach Park, and Together with its Natural Resources Advisory – Ka‘ena Point State Park on O‘ahu Mokule-‘ia State Park) and on Kaua‘i Group (NRAG - member listing is available on – Statewide interpretive signage (Mano-kalanipo- /Po‘ipu- Beach Park, Ko-loa HTA’s Web site), the HTA focuses on setting development; and Heritage and Ma-ha-‘ulepu- Heritage trails, policies and priorities for the agency’s Natural • Supported 25 community-based projects Ko-ke‘e Park, and Kalalau Lookout). Resources Program and building partnerships throughout the state (A complete list of throughout the community. projects can be found on the HTA Web site). Specifically, through this program, the HTA: • Provided $1.75 million to support the The following is a partial list of community-based programs that received funding from HTA in 2008. A complete State Department of Land and Natural list of projects can be found on the HTA Web site. Resources (DLNR) to address priority list projects, identified by the 2003 Natural Organization Project Title Project Description Island Resources Assessment, including the The Kohala Center Saving Kahalu'u Bay Supports educational, environmental, following: and community activities to preserve – Ha-puna Beach State Recreation Area and restore Kahalu‘u Bay Hawai‘i Island on Hawai‘i Island Volcano Art Center Volcano Native Encourages sustainable tourism - – Wailua River State Park (‘Opaeka‘a Rainforest Preservation for visitors and land stewardship Falls) on Kaua‘i & Education by residents Hawai‘i Island - – Wai‘a-napanapa State Park on Maui; Hui o Laka Koke‘e Trails, Trees, Supports trail restoration and • Provided $250,000 to the County of & Lookout planting efforts Improvement Project Kaua‘i Kaua‘i to support work at the Ha-‘ena County Beach Park, a priority site Project S.E.A.-Link Changing Tides: Supports education, outreach and Marine Education, biological monitoring programs identified in the Assessment; Outreach & Monitoring at Honolua Bay Maui • Provided $1.0 million to DLNR to support - - Hale‘iwa Laniakea Beach Honu Supports an educational outreach the Na Ala Hele Trails and Access Main Street Education Project program at Lania-kea Beach to Program and its State Parks Division. dba Northshore protect the Hawaiian green sea turtles O‘ahu These funds were used to hire additional Chamber of Commerce DLNR staff to manage and maintain trails

2008 ANNUAL REPORT 25 6. Research and Planning

Table 1.1 shows that intent to travel from make informed decisions relating to Hawai‘i’s Goal: To perform collaborative research and the state’s core markets – Japan and U.S. West – visitor industry. Information on the various planning for use in the development of remain strong while U.S. East is showing some reports and statistics can be found at programs, policies and plans that will positively decline. http://hawaii.gov/dbedt/info/visitor-stats. contribute to the state’s economy, benefit the community and sustain Hawai‘i’s resources. Hawai‘i Visitor Statistics Hawai‘i Cruise Industry Study 2008 Budget: $5,000,000 HTA provided approximately $1.5 million to During the 2007 Legislative Session, funds the Research, Economic and Analysis Division were appropriated to HTA and to the Hawai‘i asic data is essential for making informed (READ) of the Hawai‘i State Department of State Department of Transportation for a Bdecisions, developing accountability measures Business, Economic Development and Tourism Hawai‘i Cruise Industry Study. Since its start and exploring new avenues. The HTA’s primary (DBEDT) to conduct Hawai‘i visitor research last October, the study has been managed by efforts within this initiative are listed below: on a variety of topics including monthly visitor DBEDT and includes involvement by a TNS arrival and expenditure information by MMA, stewardship group of over 25 individuals from Using services provided by TNS, the HTA airlift by MMA to Hawai‘i and visitor satisfaction across the state, who have provided input continues its accountability measurement surveys. The visitor information generated by relating to Hawai‘i’s environment, economy, system to track the impact and effectiveness of READ is used by the HTA, its marketing Native Hawaiian culture, maritime industry, its marketing programs in three MMAs – U.S. contractors, other government agencies, visitor cruise industry, and visitor industry. The study West, U.S. East and Japan. The results are industry businesses, and many other tourism is scheduled for completion by year-end and compared against the previous quarter to gauge stakeholders to better understand the economic will be provided to policymakers to assist changes in consumers’ attitudes about Hawai‘i impact of Hawai‘i’s visitor industry and to them in their decision-making processes. as a destination. This Resident Sentiments on Tourism Survey year, TNS expanded its Table 1.1 Future Travel Intentions Remain Steady The HTA conducts a survey of resident survey to determine if Total Long Distance Travelers – U.S. West 2006 2007 2008 Q1 2008 Q2 sentiments on tourism each year to gauge those who said they resident feelings about tourism, and to under- were planning a Consider Hawai‘i 37% 36% 38% 36% stand both stress triggers and benefits generated vacation to Hawai‘i Likely to Visit (next 2 years) 43% 39% 37% 37% by Hawai‘i’s leading industry. The survey is actually traveled here. Total Long Distance Travelers – Japan 2006 2007 2008 Q1 2008 Q2 one of the identified performance benchmarks The final 2008 report is of the State TSP. The 2008 survey will be due in February 2009. Consider Hawai‘i 39% 38% 38% 39% conducted before year-end and results will be Year-to-date quarterly Likely to Visit (next 2 years) 35% 31% 33% 32% available by first quarter 2009. reports are available on HTA’s Web site. Below is Total Long Distance Travelers – U.S. East 2006 2007 2008 Q1 2008 Q2 a sample of some of the Consider Hawai‘i 18% 18% 21% 16% findings through June Likely to Visit (next 2 years) 20% 17% 18% 16% 2008.

26 HAWAI‘ I TOURISM AUTHORITY 7. Safety and Security

of partner organizations from outside and Goal: To achieve a safe Hawai‘i visitor Hawai‘i Visitor Alert System within the visitor industry, offer assistance in experience. Developed with the cooperation and support of State Civil Defense, the City’s Department of many forms: guidance and support, restaurant 2008 Budget: $2,350,000 Emergency Management and the Hawai‘i Hotel coupons, amenity bags, lodging and airline and Visitor Industry Security Association, this assistance, bereavement services, and much he HTA is identified as a support entity in system features pre-recorded in-room hotel more. Referrals for assistance are provided T this initiative, and as such, is committed to television programming on various security by various entities including county police assisting other lead agencies and organizations and emergency situations. Programming is in departments, visitor bureaus, visitor industry that are responsible for ensuring that Hawai‘i both English and Japanese languages and businesses, and hospitals. continues to be a safe and secure visitor provides information on what to expect and destination. what do in the event of an actual emergency. Visitor Assistance HTA Safety and Security Plan Security Camera Surveillance Systems – Program Contacts Tourism & More, Inc. completed a plan for A State and County Partnership Through June 2008, visitor assistance the HTA to help advance its Safety and Security With successful results generated by a pilot program (VAP) volunteers assisted in over initiative. The plan (available on HTA’s Web security camera program, the HTA entered into 1,700 cases on O‘ahu, Kaua‘i, Maui, and site) includes an assessment of visitor industry agreements in 2008 with each of the four Hawai‘i Island that involved visitors to safety and security needs and various counties to develop and implement security Hawai‘i who were victims of crime or recommendations for the HTA to implement camera surveillance systems in public areas experienced unexpected hardships. that would contribute to a safe visitor frequented by visitors and residents. VAP is funded by HTA with additional experience. Following is a listing of the high support provided by the visitor industry. priority recommendations for HTA: County Program Amount For more information or to find out how • Continue funding the Visitor Assistance you can volunteer, please contact a VAP on Programs (VAP) statewide; City & County of Honolulu $175,000 your island: • Utilize multi-media technology to deliver County of Hawai‘i $500,000 Visitor Aloha Society of Hawai‘i (O‘ahu) visitor safety/security information; County of Kaua‘i $375,000 Ph: (808) 926-8274 • Increase the use of camera surveillance Visitor Aloha Society of Kaua‘i in high crime areas; County of Maui $400,000 Ph: (808) 482-0111 • Further publicize HTA’s Travelsmart Maui Visitors Bureau (Maui County) Visitor Assistance Programs Hawai‘i Web site; and Ph: (808) 244-3530 • Encourage the development of a statewide When visitors in Hawai‘i are affected by Visitor Aloha Society of Hawai‘i Island crime and other adversities, Hawai‘i’s hospital- ocean safety awareness program. Ph: (808) 765-0785 – Kona ity is exemplified by Visitor Assistance Programs Ph: (808) 756-1472 – Hilo (VAP) available in each county. These agencies, along with their volunteers and a wide network

2008 ANNUAL REPORT 27 8. Tourism Product Development

Goal: To provide a diverse and quality tourism product unique to Hawai‘i that enhances the Hawai‘i visitor experience and enriches residents’ quality of life. 2008 Budget: $5,390,000

TA’s primary efforts in this initiative are centered on the experiential aspects of the H tourism product. Specifically, HTA’s efforts for the year are listed below:

Product Enrichment Program (PEP) C.E. The County PEP (CPEP) is a partnership between the HTA and each of the four counties Kona Coffee Cultural Festival (Hawai‘i Island) to diversify and enrich Hawai‘i’s tourism product by developing new and enhancing existing community-based events, experiences and projects related to activities in the niche areas of agritourism, cultural tourism, ecotourism, health and wellness tourism, edutourism, and Major technotourism. In 2008, each county was allocated $500,000 and an additional $200,000 was made available to support the Statewide PEP (SPEP) that covers multi-county or special In 2008, the HTA supported seven major festivals: activities. A complete list of all projects is available on the HTA Web site. • Hawai‘i International Film Festival – Established in 1981, the Hawai‘i International Film Festival (HIFF) is dedicated to the advance- ment of understanding and cultural exchange among individuals from Asia, the Pacific and North America, through the medium of film. HIFF is the premiere international film event in the Pacific and the largest “East meets West” Festival in the United States.

• Honolulu Festival – The Honolulu Festival is Ebb and Flow Bureau Federation Farm Hawaii one of Hawai‘i’s premier East Maui Taro Festival North South East West Festival KCC Farmers Market cultural events, promoting Major Festivals Program understanding, economic cooperation and ethnic HTA’s Major Festivals Program supports events that portray the diversity and culture of harmony between the Hawai‘i while drawing significant attendance to the state. Festivals that receive support people of Hawai‘i and under this program also market and promote their activities locally and outside of the the Asia-Pacific region. state.

28 HAWAI‘ I TOURISM AUTHORITY Maui Film Festival at Wailea Ko-loa Plantation Days (Kaua‘i) Pan Pacific/Matsuri in Hawai‘i Festival (O‘ahu) Festivals Program

This three-day event features dance performances, • Maui Film Festival at Wailea – The Maui Film lectures, workshops, and informal gatherings art demonstrations, a parade and other cultural Festival is a unique annual event where visitors where aspiring writers learned about writing and activities. can watch quality films under the clear skies on the business of publishing and film. Featured Wailea Beach. In addition to movie-going, participants in the event included New York • Ko- loa Plantation Days – “Getting Together – attendees can participate in exciting activities Times best-selling author of 18 novels, John Plantation Style” was the theme of this year’s such as a food and wine event or chocolate tast- Lescroart, Pulitzer Prize finalist, H.W. Brands event held on Kaua‘i’s South Shore, where ings. This year’s event attracted premier actors and Bobby Moresco, Academy Award winning Hawai‘i’s first sugar plantation was founded in including Pierce Brosnan, Dennis Quaid and screenwriter for the movie Crash. 1835. The nine-day festival included activities Felicity Huffman. ranging from craft fairs, nature walks and other • Pan Pacific/Matsuri in Hawai‘i Festival – events to showcase the area’s social history, • Maui Writers’ Conference – This year’s Maui The Pan Pacific/Matsuri Festival began in 1980 natural history and its diverse cultural traditions. Writers Conference went on the road to Honolulu as a cultural exchange between Japan and and featured dozens of agents and editors along Hawai‘i but has since grown to include other • Kona Coffee Cultural Festival – Now in its with the best Asian and Pacific Rim countries. This three-day 38th year, the Kona Coffee Cultural Festival is writers and intercultural event includes festivities such as a a celebration and promotion of Kona coffee and - - screenwriters Waikiki block party, live entertainment, ethnic the multi-cultural heritage of its Kona coffee in the country. food sampling and dance performances from pioneers. The festival features various events The conference featured countries. including contests, food tastings, parades, offered more a scholarship pageant, farm tours, exhibits, than 100 and more. Randy Jay Braun Randy Jay

2008 ANNUAL REPORT 29 Tourism Product Development

Technical Assistance Joe Vera, President/CEO of BorderFest, and Capacity Building “Small but Mighty: A Town of 8,000 Within this initiative, one of HTA’s major Hosts One of the Top Festivals in the focuses this year is to provide support to Nation;” and festival and event organizers so that they can Kay Wolf, Assistant City Manager of build capacity while improving the quality of Hidalgo, Texas and Planner of festivals and events offered in the state. BorderFest and Festival of Lights, The two efforts under this area are: “Advanced Operations – The Nitty • Annual Festivals and Events Seminar Gritty of Operations Planning.” In May, the HTA sponsored its fourth • Certified Festival and Event Executive annual Hawai‘i Festivals and Events HTA and OmniTrak staff welcome Festivals and (CFEE) Program Seminar: “Secrets for Growth.” The Events Seminar speakers. Through a partnership with the seminar, conducted on the islands of provides information to post-arrival visitors, as International Festivals and Events O‘ahu, Maui, Kaua‘i, and Hawai‘i, well as residents, of the many quality festivals Association (IFEA), the HTA initiated attracted 365 attendees who participated and events happening in Hawai‘i. the “CFEE Fast Track” – a new program in various professional development The “Festivals of Hawai‘i” campaign includes offered for the first time anywhere. opportunities. The seminar featured print, television, radio, and internet media, as The CFEE certification program was national and island speakers including well as a promotional effort targeted at hotel developed by the IFEA in 1983 to provide the following: concierges throughout the state. New elements industry professionals the opportunity to Dan McConnell, Managing Director of for 2008 included enhanced promotion through enhance and be recognized for their DB Public Relations, “Destination Hawaiian Air’s in-flight video and in-flight professional stature and set higher Trends & The Role of Festivals and publication, This Week visitor publication and standards for the festivals and events Events;” promotions with KSSK radio station. industry. Ed Struzik, The Fast Track version of the program 2008 President allows candidates from Hawai‘i to complete of the Gilroy the program in two years versus the Garlic Festival, normal three or more years at a “Leadership: substantial cost savings and without How the Gilroy leaving the state. Garlic Festival Became Post-Arrival Promotional Campaign Synonymous The Post-Arrival Promotional Campaign with Garlic;” supports island festivals and events that Ed Struzik, The Gilroy Garlic Festival receive funding from HTA. The campaign Festivals of Hawai‘i print ad

30 HAWAI‘ I TOURISM AUTHORITY 9. Workforce Development

of the actions recommended in the Tourism was developed to provide training for Goal: To ensure a sufficient and highly Workforce Development Strategic Plan 2007- youth at the Kalihi Youth Services Center. qualified workforce that is provided with 2015 that was developed by the University of The program focused on exposing youth meaningful careers and advancement Hawai‘i at Ma- noa, School of Travel Industry to visitor industry businesses, allowing opportunities. Management for the HTA. The recommen- them an opportunity to observe how 2008 Budget: $1,200,000 dations implemented by DLIR are as follows: Hawaiian cultural values are incorporated • Establish a Tourism Workforce in the workplace, and acquaint them with TA’s efforts in this initiative are listed Development Advisory Council; hiring processes; H below: • Hire a full-time tourism workforce • Ho‘okipa Me Ke Aloha Program (Phase II) coordinator; and – Kapi‘olani Community College’s Academy of Hospitality and Tourism • Expand its tourism workforce Web site Interpret Hawai‘i program is expanding The Academy of Hospitality and Tourism platform to provide data, information, its statewide certification training for (AOHT) is a partnership between local resources, and networking opportunities visitor industry employees with a Train- businesses and schools to help prepare young for all stakeholders. the-Trainer Certification of Professional people for future careers in hospitality and Development. Upon completion, certified tourism through a combination of school-based Other Workforce Development efforts trainers will be able to share what they curricula and work-based experiences. There supported by the HTA in 2008 include: have developed with fellow employees, are currently six high schools on O‘ahu, Maui • Language and culture training for people in their communities and and Kaua‘i that participate in this program. Hawai‘i’s visitor industry with a focus on professional industry associations. HTA’s partnership supported the following: Chinese, Korean and Japanese markets – Phase II continues the efforts that began • Various AOHT workshops, enrichment HTA partnered with University of in 2007 to provide this training to programs and activities; Hawai‘i’s Kapi‘olani Community College Hawai‘i’s visitor industry statewide; and • Participation of AOHT students and to develop a curriculum and training • Hawai‘i Business advisors at HTA’s annual Hawai‘i Tourism program to prepare employees working in Magazine Special Conference held in Honolulu; Hawai‘i’s hospitality and tourism industry Insert – The HTA • Funding for the annual AOHT student on the language, culture, protocol, and provided support conference and career fair day; and customs of these emerging visitor markets. for special inserts • Support for a statewide program This program was launched statewide in in Hawai‘i coordinator. Fall 2008; Business magazine • Ho‘okipa Me Ke Aloha Program – In Tourism Workforce Coordinator and summarizing the collaboration with the City and County of Advisory Council Tourism Honolulu’s Youth Build Services Center HTA partnered with the Hawai‘i State Workforce and Kapi‘olani Community College’s Department of Labor and Industrial Relations Development Interpret Hawai‘i Program, this program (DLIR) to support the implementation of three Strategic Plan.

2008 ANNUAL REPORT 31 III. Hawai‘i Convention Center Hawai‘i Convention Center Top Events of 2008 he Hawai‘i Convention Center (HCC), T marketed and managed by SMG Hawai‘i, Sweet Adelines International continues to draw new dollars into the economy 2008 Annual Conference: and brings tax revenues into the state through Delegates: 10,000 the booking of large offshore conventions. In Room Nights: 80,400 addition to the economic benefits, HCC also pro- Tax Revenue: $4,580,134 vides benefits to the local community, serving as Pediatric Academic Societies a venue for consumer shows, concerts and civic Annual Meeting: and educational programs throughout the year. Delegates: 7,000 Room Nights: 56,280 HCC Major Highlights for 2008: Tax Revenue: $3,206,094 • HCC has received the “Prime Site” award by Facilities and Destinations magazine for Leadership in Energy and Environmental Society for Critical Care Medicine the 10th year in a row. This award Design (LEED) through green building and 2008 Annual Congress: positions the HCC as one of the nation’s energy savings programs such as a complete Delegates: 4,500 Room Nights: 36,180 top entertainment, sports and special event lighting retrofit of the exhibit hall, recycling Tax Revenue: $2,061,060 venues and allows the center to be market- management, delegate education programs, ed to a larger audience; procurement of green products, and reuse American Podiatric Medical Association • New records were set for two organizations of resources; and Annual Scientific Meeting: holding their events at the center: • SMG leveraged partnership relationships Delegates: 3,500 – The Society of Critical Care Medicine with the Professional Convention Room Nights: 28,140 surpassed its projected attendance of Management Association (PCMA), the HCC Tax Revenue: $1,603,047 Association Advisory Board, and a newly 4,500 by 29 percent; and American Counseling Association: created Corporate Advisory Board to achieve – The American Society of Pediatrics Delegates: 3,500 exceeded its projected attendance of more leads and bookings for the center. Room Nights: 28,140 7,000 by three percent; Community Relations: Tax Revenue: $1,603,047 • Business and attendance development were HCC employees reached out to the community Flight Centre Global Gathering 2008 targeted for future conventions at the center through participation in Aloha United Way, Toys Delegates: 2,200 including the Alzheimer’s Association 2009, for Tots, the Annual Visitor Industry Charity Room Nights: 3,300 the American Academy of Cosmetic Walk, Tour de Trash, River of Life Mission’s Tax Revenue: $1,007,629 Dentistry 2009, the American Dental Thanksgiving Outreach, the American Cancer Association 2009, and the American College Society’s Relay for Life, and by providing surplus Major Corporate Groups: Sony, Cisco Systems Partner Summit, Corporate Global Annual Meeting, of Chest Physicians 2011; food donations to Harbor House. and Best Western International 2008 Annual • SMG is working to ensure that the HCC Meeting total 9,400 delegates, 69,036 room nights, is able to achieve certification in the and $4,305,326 in statewide tax revenue.

32 HAWAI‘ I TOURISM AUTHORITY IV. Hawai‘i’s Visitor Industry

he overall health of the visitor Table 1: 2007 Performance and Projected Performance T industry is measured by four high- for 2008 by MMA level performance indicators that are noted in the State TSP: Visitor Expenditures Visitor Days Visitor Arrivals • Visitor expenditures; 2008* 2007 2008* 2007 2008* 2007 • Visitor satisfaction; Projections Actuals Projections Actuals Projections Actuals • Resident sentiments; and ($billion) ($billion) (million) (million) (million) (million) • Tax receipts. In the past, the measurement of a US West 4.113 4.760 26.727 30.537 2.779 3.245 healthy and successful visitor industry was based on the number of visitor arrivals US East 3.240 3.777 17.589 19.596 1.682 1.902 to Hawai‘i. However, with the develop- Japan 1.892 1.982 6.659 7.373 1.167 1.296 ment of the State TSP and its stated vision, the measurement of a successful and Canada 0.705 0.634 4.590 4.207 0.362 0.333 sustainable visitor industry has shifted Others 1.592 1.425 7.562 7.423 0.746 0.721 away from counting visitor arrivals. The new measures of success are based Business supplement 0.162 0.185 NA NA NA NA on economic growth and benefits, satisfied Visitors by cruise ships 0.038 0.048 0.757 0.940 0.100 0.131 visitors and most importantly, satisfied residents. All of these elements are Total 11.743 12.811 63.883 70.075 6.837 7.628 essential to the long-term health and sustainability of tourism in Hawai‘i. *2008 projections are based on DBEDT statistics using actual information from January - September and projections for the months of October, November and December 2008. Visitor Industry Performance The industry’s projected performance Source: State of Hawai‘i Department of Business, Economic Development & Tourism for 2008, as compared to last year’s (2007) performance in terms of visitor expenditures, visitor days and visitor arrivals are listed by MMAs, business supplement and cruise ship passengers in Table 1.

2008 ANNUAL REPORT 33 Hawai‘i’s Visitor Industry

Visitor Satisfaction Top 10 Visited Attractions in 2007

1. U.S.S.Arizona Memorial, O‘ahu 1,557,336

2. Hawai‘i Volcanoes National Park, Hawai‘i Island 1,467,779

3. Haleakala- National Park, Maui 1,322,817

4. Polynesian Cultural Center, O‘ahu 719,221

5. Honolulu Zoo, O‘ahu 601,510

6. Diamond Head State 584,909 Monument, O‘ahu

7. Pu‘uhonua O Ho-naunau, Hawai‘i Island 489,785 - 8. Kilauea Point National Wildlife 478,000 Refuge, Kaua‘i

9. Aquarium Maui/Maui Ocean Center, 471,570 Source: State of Hawai‘i Department of Business, Economic Development and Tourism Maui - Resident Sentiment Survey 6. ‘Iao Valley State Monument, Maui 431,400

Another measurement of the State TSP is resident sentiments. An important Source: State of Hawai‘i Department of Business, question on the survey is listed below: Economic Development and Tourism Agree or disagree: “Overall, tourism has brought more benefits than problems.” • Survey conducted in 2007 and released in February 2008 73 percent agree • Survey conducted in 2006 and released in December 2006 74 percent agree • Survey conducted in 2005 and released in February 2006 71 percent agree • Survey conducted in 2002 and released in 2003 77 percent agree

Source: Market Trends Pacific, Inc., and John M. Knox & Associates

34 HAWAI‘ I TOURISM AUTHORITY Hawai‘i’s Visitor Industry

Transient Accommodations Tax (TAT) Collections Economic Contributions Another measurement of the industry’s As of July 1, 2007, the TAT revenues of Hawai‘i’s Travel & Tourism’s performance is the amount of TAT collections collected for the state are distributed as follows: Industry in 2007 the state receives each month. The more TAT • 17.3 percent is deposited into the • Hawai‘i’s Travel & Tourism Industry collected, the more benefits that are accrued convention center enterprise special fund; produced $12.5 billion or 21.8 percent to the state as a whole, to the individual • 34.2 percent is deposited into the tourism of Gross State Product; counties, and also, to Hawai‘i’s residents. special fund (HTA’s fund); • Hawai‘i’s Travel & Tourism Industry Importantly, this revenue finds its way into • 3.7 percent is deposited into the general accounted for approximately 187,000 the local community on each island, to fund; and jobs or 21.4 percent of total employment support schools, police, infrastructure, and • 44.8 percent is distributed to the counties for the state; and parks, and contributing to an improved (14.5 percent to Kaua‘i, 18.6 percent • Hawai‘i’s Travel & Tourism Industry quality of life for all. to Hawai‘i, 22.8 percent to Maui, and contributed $1.29 billion tax dollars to 44.1 percent to Honolulu). the state and county government or 20.8 percent of total state and county tax revenue.

Source: State of Hawai‘i Department of Business, Economic Development & Tourism

2008 ANNUAL REPORT 35 V. HTA Fiscal Year (FY) 2008 Actuals

Hawai‘i Tourism Authority Fiscal Year 2008 Actuals ($000)

REVENUES Tourism Special Fund $78,447 Investment Pool Interest/Miscellaneous Receipts 1,943

TOTAL REVENUES $80,390

APPROPRIATIONS FY 2008 $87,000

TOTAL APPROPRIATIONS $87,000

HTA EXPENDITURES Administrative Costs 2,979 Sports & Festival Events (Includes Pro Bowl/PGA) 9,142 Community & Special Events 15,932 Product Development 7,631 MAJOR MARKETING Leisure Marketing 34,249 Meetings, Conventions & Incentives Costs 9,264

TOTAL HTA EXPENDITURES $79,197

36 HAWAI‘ I TOURISM AUTHORITY Hawai‘i Convention Center 1801 Kala-kaua Avenue Honolulu, Hawai‘i 96815 (808) 973-2255 www.hawaiitourismauthority.org

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