HAWAI I ALOHA TOURISM CHINA HAWAI I TOURISM CHINA CONTACT. MONTHLY NEWSLETTER May 2015

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1 HAWAI I TOURISM CHINA MONTHLY NEWSLETTER May 2015 ALOHA On April, we have celebrated Hawaiian Airlines' 1-year anniversary of direct service from Beijing to Honolulu in Beijing. This route has helped to increase travel opportunities to Hawai i from China. Hawai i Tourism China will continue to work closely with Hawaiian Airlines to maintain the success of this route and bring more Chinese visitors to Hawai i. Mahalo nui loa! HAWAI I TOURISM CHINA CONTACT BEIJING - COVERING NORTHERN CHINA Address: Room 412, Lido Office Tower Building, No.6 Jiangtai Road, Beijing P.R. China Tel: beijing@hawaiitourism.com.cn Contact Person: Ms. Ivy Gao - Account Director GUANGZHOU - COVERING SOUTHERN CHINA Address: Room 2412, South Tower, Guangzhou World Trade Centre, Huan Shi Dong Road Guangzhou, P.R. China Tel: guangzhou@hawaiitourism.com.cn Contact Person: Ms. Janet Huang - Manager, Guangzhou SHANGHAI - COVERING EASTERN CHINA Address: Room 1512, Shui On Plaza, No. 333 Huai Hai Road, Shanghai, P.R. China Tel: shanghai@hawaiitourism.com.cn Contact Person: Ms. Elsa Sun - MCI manager CHENGDU - COVERING SOUTHWEST CHINA Address: Room 1603B, Plaza Central, No, 8 Shun Cheng Dajie, Chendu, , Sichuan P.R. China Tel: chengdu@hawaiitourism.com.cn Contact Person: Ms. Freda Hua - Manager, Chengdu

2 CHINA MARKET UPDATES NEWS China Outbound - Overseas Spending by Chinese Tourists Nears $500bn China Confidential, a Financial Times research service, estimates that total spending by Chinese travelers on outbound trips hit Rmb3.1tn ($498bn) in Its estimate for total spending is higher than the official estimate of $200bn, which excludes spending on flights, visas and other items. But the figures are in line with those from other external sources. China Confidential s latest annual report on outbound tourism, released recently and based on a survey of 1,288 outbound tourists and 40 travel agencies nationwide, identified a 6.2 per cent year-on-year slowdown in per capita spending on travelers outbound trips during 2015, following a 9.4 per cent decline between 2013 and The most recent contraction was led by an 8 per cent year-on-year decline in spending on shopping. This slowdown was particularly marked among high-income travelers. - Chinese Tourist Expenditure to Reach USD 264 Billion By 2019 As reported by Bloomberg News, some 174 million Chinese outbound tourists are expected to spend $264 billion by 2019, according to a forecast by Bank of America Merrill Lynch. It s predicted that by 2019 both the number of tourists and their spend will have increased by around 60% over The number of Chinese outbound tourists was at 10 million in According to their prediction, the number of Chinese tourists will rise 16 times over 20 years. Travel Trends - Changes in Habits of Richer Chinese Tourists Pushing Aside Casino, Retail Stocks The changing habits of Chinese travelers have shunted aside casinos and Hong Kong retailers as top-of-the-line stock darlings for punters in the resurgent stock market. That role has been taken over by mid-scale hotels, duty-free shops, cosmetic producers and online travel agencies who are now the stars of the show. Chinese tourists are also changing the way they arrange their trips by relying more on online services, and foregoing the habit of staying at economy hotels and booking branded boutique hotels instead. With experiences becoming more important than luxury purchases, other sectors, such as hospitality, entertainment and tourism services, would now profit to a much greater extent from Chinese tourism. Online Trends - Big Data Analysis a New Trend in China's Tourism Industry Big data analysis is becoming more and more popular in China's tourism industry. Ctrip.com, the country's largest online travel agency, recently set up a big data company named JointWisdom Information Technology Co.Rival Alitrip.com, meanwhile, has been cooperating with Shiji Network, while Eastern Crown hotel group and Home Inns Group have launched respective intelligence management systems. At present, many scenic spots in China are working with big data companies in the hope of using big data analysis to predict visitor traffic. Airlift Air China will put on 2 extra flights weekly between Beijing and Honolulu from July 12 to August 31, which means there will be 5 Air China flights every week by then. Beijing--Honolulu CA837 Mon/Tue/Thu/Fri/Sun 01:50 17:30-1 Honolulu--Beijing CA838 Mon/Tue/Thu/Sat/Sun 23:30 04:55+2

3 CHINA MARKET UPDATES EVENTS - Hawai i Tourism China Conducts New Products FAM Trip for Travel Agents in Beijing HTC has organized the first new product agent FAM tour from April 1 to April 7. Five most key agents attended this in depth itinerary of Maui including representatives from China Environment International Travel Service Co., Ltd, China International Travel Service Limited, China CYTS Tour Holding Co., Ltd, Beijing China International Travel Service Co., Ltd, and Grand Vision (Beijing) International Travel Service Co., Ltd. This group aims to design, develop and launch Maui in-depth products within this year. This group has gained a lot of support from local partners. We would like to express our sincere gratitude to below partners for their outstanding work and effort (all in random orders): Maui Visitor Bureau, Hawaiian Airlines, Grand Wailea Waldorf Astoria, Kāʻanapali Beach Hotel, The Outlets of Maui, Aliʻi Kula Lavender, Maui s Winery/Tedeschi Vineyards, Ltd., Maui Divers Jewelry Center, Atlantic Cruises, Ala Moana Center, DFS, Pan Pacific Enterprises Group Inc., Roberts Hawai i. - Hawai i Tourism China Conducts Education FAM Trip for Junior High School in Northern China Cooperated with DBEDT, Study Hawai i and Hawaiian Airlines, Hawai i Tourism China has conducted an education FAM trip for junior high schools in Northern China to create an understanding about Hawai i and its education system for university and pre-university students. Representatives from Beijing Middle School, Beijing No. 35 Middle School, Beijing No. 65 Middle School, Beijing No. 80 Middle School, Beijing 21st Century International School, Beijing Fangcaodi International School, Shijiazhuang Foreign Language School, Qingdao Experimental Middle School, Huhehaote Middle School have explored campuses and main attractions in Oahu and Hawai i the Big Island. These visits are intended to allow invitees to conceive compelling selling points to market Hawaii education and develop unique programs/projects marketable to Chinese educational institutions and students. - Hawai i Tourism China Has Attended Asia MCI Mega FAM Representatives from six top meeting planners in China were invited to the FAM from 6 to 13 in April. Ms. Grace FENG from tuniu.com, Mr. David WU from Eventown, Mr. Yongfei SUN from STG, Ms. Rain WANG from Chongqing Golden Holiday, Mr. Xiangdong JIANG from GZL and Ms. Sunny SUN from CTS were parts of this trip. The delegates visited various meeting venues in both Oahu and Hawai i Island, including hotels, restaurants, Hawai i Convention Center and museums, etc., as well as shopping centers, which is greatly concerned in the China market and training activities fields such as Kualoa Ranch. Through the site inspection and the workshop, the Chinese meeting planners have gained better understanding about Hawai i as a MCI destination and great inspirations and confidences on bringing their customers to Hawai i.

4 - Hawai i Tourism China Has Attended Consumer Activity in Chengdu One of the key medium in South-western China, Chengdu Commercial Daily has organized a consumer activity focusing on popular destination promotion and civilized tourism promotion. Hawai i Tourism China Chengdu Office was invited to introduce Hawaiian Islands and Hawaiian culture to hundreds of audiences on location. 200 Hawai i brochures and island maps were distributed to audience during the event. 3 Hawai i gifts distributed to the Q&A winner. - Tier 2 City Promotion Zhengzhou is another key tier 2 city with a remarkable development on outbound tourism in recent years. Hawai i Tourism China has selected and visited 7 key agents in Zhengzhou, learning about local outbound tourism development, requests from local industries and giving them brief introduction about tourism resources and support policies in Hawai i. MEDIA EXPOSURE - Aloha, Honolulu By National Geographic Traveler (Magazine) Publicity Value: $626,035 Circulation: 790,000 This 14-page article is about re-discovering Honolulu and her excellences. - Hawaiian Lei: Greetings from the most remote island By Deep (Magazine) Publicity Value: $106,664 Circulation: 560,000 Lei and its culture is very important in Hawai i. Lay Day is a big festival in Hawai i and every year the Lei Day Queen will be selected.

5 - Guide of Hawaii for senior visitors By Grazia (Magazine) Publicity Value: $132,493 Circulation: 1,162,000 Spa China has published a 12-page theme article about the cozy lifestyle in Hawai i. UPCOMING EVENTS - Joint Media FAM with Hawaiian Airlines (22-29, May) As a part of the joint media promotion plan, Hawai i Tourism China and Hawaiian Airlines will invite popular travel magazine Voyage together with one famous celebrity to Hawai i to photograph the natural beauty and luxury hotel facilities. Besides O ahu, this group will go to Maui to explore local culture and history in depth. The whole group will include 10 persons. Voyage is a high-end leader in travel magazines, designed for elites who have an international vision and the passion to explore the world. Voyage advocates elegant, in-depth and responsible trip and represents an extended definition of class travelling. - Joint media FAM with Air China Chengdu (18-23, May) 6 key media agents from South-western China will have the chance to visit Hawai i for the first time and give comprehensive media exposure to Hawai i. - New Product Development FAM-Shanghai (19-24, May) - Getting China Ready seminar on Hawaii island and agent FAM (21-27, June) For interests in participating, please kindly send to beijing@hawaiitourism.com.cn.

6 OTHER OPPORTUNITIES - Consulting service for media investment Hawai i Tourism China would like to offer consulting service on media investment in China. We can assist you to have media background investigation and media selection, at no cost to you. - Social Media SINA Weibo Hawai i industry partners are welcome to send us your news release and photos, if appropriate, we will post them on Hawai i tourism China s SINA weibo account accordingly. - Wechat HTC wechat (Account name: Hawai i tourism) is for tourist, focus on destination introduction and culture sharing. HTC would like to invite Hawai i industry partners to share your information with tourists. - Newsletter Hawai i Tourism China will send monthly newsletter to China travel trade by the end of each month. Hawai i partners are welcome to feature your most update news/products/service into the newsletter, please send the Chinese materials to before 20 of each month.