HAWAIIS TOURISM INDUSTRY A FEW THOUGHTS Hawaii Transportation
& Infrastructure Summit June 25, 2014
Slide 2
Adjusting our sails
Slide 3
Most isolated land mass in the world Dow Jones fluttering just
above the 16,000 mark Ukrainian crisis could affect travel
dramatically on short notice Crude Oil fluctuating, now above
$102.00 a barrel Dollar strengthening against international
currency Length of Stay shortening to adjust for travel budget
Airlift adjusting to demand Harsh Winter, and cabin fever could be
our best friend Our World
Slide 4
Executing Supply and Demand HTA CustomerAir Lift Brand Hawaiian
Islands Accomm Marketing and Promotion Brand Promise
Reputation
Slide 5
The Hawaiian Islands 920 flights per week Connecting 53 cities
worldwide By 21 carriers
Slide 6
Access Honolulu ranked as the 4th busiest international port of
entry for the U.S. NEED: Re-establish Kona as a 2 nd international
port of entry. TOTAL% change PORTSOVERSEAS2014/2013 Rank MIAMI,
FL355,8562%1 NEW YORK, NY323,25211%2 LOS ANGELES, CA244,47716%3
HONOLULU, HI173,54310%4 SAN FRANCISCO, CA127,96520%5 *YTD as of
January 2014. Source: U.S. Department of Commerce, ITA, National
Travel and Tourism Office.
Slide 7
Arrivals from Major Market Areas: Relative Size (2013)
Slide 8
2013 Arrivals by MMA
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2013 Arrivals International vs Domestic
Slide 10
Air Route Development Conditions Differ by Market North
America20122013 Seat Inventory 7,008,1777,206,155 Load Factor
87.1%88.4% Airline Yield (per RPM) $0.101 International20122013
Seat Inventory 2,910,0913,277,478 Load Factor 80.0%76.5% Airline
Yield (per RPM) $0.227$0.157 *Excludes Other MMA
Slide 11
Total scheduled air seats could reach record levels (again) in
2014 Source: Hawaii Tourism Authority, based on data from Diio Mi
airline schedules as of March 31 2014 Total Seats
20072008200920102011201220132014F
9,813,5898,854,8778,353,2088,948,3369,207,48310,206,73110,768,71911,040,460
Slide 12
Honolulu International Airport International Flights Schedule
Arrival TimeAlFlightOrgSeats 0600Air Pacific Ltd.820Nadi, FJ180
0615Hawaiian Airlines482Tahiti, PF260 0640Jetstar Airways -OR- Alba
Star.es3Sydney, NS, AU303 0700Delta Air Lines638Tokyo-Narita, JP403
0705United Airlines880Tokyo-Narita, JP272 0725Japan
Airlines76Tokyo-Narita, JP230 0750Korean Air Lines51Seoul, KR280
0805Hawaiian Airlines444Brisbane, QL, AU260 0815China
Airlines18Tokyo-Narita, JP383 0835Qantas Airways3Sydney, NS, AU229
0845Delta Air Lines598Fukuoka, JP218 0845Japan
Airlines74Tokyo-Narita, JP230 0905Delta Air Lines578Tokyo-Narita,
JP298 0915Delta Air Lines278Osaka-Kansai, JP298 0920Asiana
Airlines232Seoul, KR290 0925Hawaiian Airlines450Osaka-Kansai, JP294
0930All Nippon Airways1052Tokyo-Narita, JP215 0935Japan
Airlines72Tokyo-Narita, JP230 0940Korean Air Lines53Seoul, KR335
0945Hawaiian Airlines454Fukuoka, JP260 0955Delta Air
Lines612Nagoya, JP218 0955Hawaiian Airlines442Sapporo, JP260
0955Japan Airlines84Nagoya, JP230 1005Hawaiian Airlines452Sydney,
NS, AU294 1015Japan Airlines78Osaka-Kansai, JP230 1040Japan
Airlines80Tokyo-Haneda, JP389 1100Hawaiian Airlines460Seoul, KR260
1200Hawaiian Airlines458Tokyo-Haneda, JP294 1240All Nippon
Airways1062Tokyo-Haneda, JP215 2025Air New Zealand10Auckland, NZ234
12 flights arrived between 9:05 and 10:05
Slide 13
Scheduled Air Seats Outbound Interisland Seats Source: Diio Mi,
based on airline schedules for the day of Friday, May 2, 2014
Slide 14
In the first 4 months of 2014 The State Experienced: $40.8
million in visitor spending per day $521.4 million in state tax
revenue generated 54,835 jobs supported 22,673 visitors arrived
daily
Slide 15
In the first 4 months of 2014 Each County Experienced: $19.2
mil per day $4.2 mil per day $11.1 mil per day $5.8 mil per day
Direct Visitor Spending ($ million)
Slide 16
2013 Visitor Unit Counts by Type of Accommodation
Slide 17
State Tax Revenue: Everyday visitors contribute $4.6 million in
state tax Note: Calendar Year 2002-2013 Actual
Slide 18
What are other destinations doing to compete with the Hawaiian
Islands?
Slide 19
Hawaii Logo Competitor Logo Exercise HTA believed that the
rainbow brushstroke logo, while it had been unique and fresh when
first introduced, had become lost among the competitor logos. It
was believed that other destinations had copied Hawaiis look and
feel. September 2010: MVNP gathered other rainbow destination logos
to verify that this was indeed the case and developed the existing
bamboo font logo.
Slide 20
Mexico Los Cabos Tourism Boards Flip for Cabo Consumer Blitz
June 26, 2013 from 11am 7pm at The Grove Los Angeles Through a
partnership with popular luxury flip-flop brand, Havianas, the
event aimed to drive consumer traffic to The Grove's central park
area with live entertainment, cooking demos, trip giveaways and a
series of authentic Cabo experiences.
Slide 21
Mexico Mexico Taxi Project In 2011, the Mexico Tourism Board
launched a $25 million campaign designed to overcome Americans
perception that the country is unsafe. An element of the campaign
were testimonials shot in a style similar to the TV show Taxicab
Confessions where visitors were given a transfer home from the
airport to discuss their Mexican vacation on camera. These
testimonials can be found on
www.visitmexico.com.www.visitmexico.com
www.youtube.com/watch?feature=player_embedded&v=LN15Q4kCJxw
$43.3 million by the Mexico Tourism Board + $10 million rebranding
of Vallarta Nayarit
Slide 22
Caribbean In March 2013, Jimmy Buffet announced his partnership
with Wyndham to open a 262-unit timeshare resort in St.
Thomas.
Slide 23
NEXT STEPS
Slide 24
No one leader for change Its a new era We have to lead
together
Slide 25
If we only spend our time fighting for our piece of the pie who
will bake new pies? We need to bake new pies
Slide 26
Infrastructure Message from Roger Dow, US Travel Association,
June 18, 2014 The travel community's message: air travel hassles
are keeping potential flyers at home and costing our economy
billions. Investing in our nation's aviation infrastructure needs
to be a national priority. "We cannot have a big league economy
with little league infrastructure...We must continue to invest in
our infrastructure to remain economically competitive." Rep
Larsen
Slide 27
Hawaii could go into a deeper hole Marketing is only as good as
its product We need to invest in the destination Clean Safe
Friendly What we do in the next 5 years will affect the next 50:
There is no time. We must grow. We must diversify. We must refresh
our product.
Slide 28
5 Rules from our Uncles and Aunties No get big head eh! No need
talk stink! No hog the cheese! Be proud of your heritage, but no
make shame! Play to win vs play to lose!
Slide 29
The world will turn to Hawaii as they search for world peace
because Hawaii has the key and that key is Aloha. Auntie Pilahi
Paki ALOHA