HAWAI I TOURISM CANADA

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1 HAWAI I TOURISM CANADA

2 Canada Economic Overview GDP very strong 2017, 3% growth, leading the G8 Unemployment at 5.9%, lowest in 40 years Canadian Dollar is $0.79, some economists predict $0.85 later in 2018, which is very favorable for U.S. travel Consumer Confidence jumped over 20 points in 2017 Canadians are spending on travel!

3 Competing Destinations Western Canadians escaping winter California, Arizona, Nevada, Mexico Eastern Canadians escaping winter Florida, Mexico, Cuba, Dominican Republic, Jamaica and other Caribbean destinations In million visits to the U.S. for leisure, a 3.2% increase 5.5 million visits to Europe, a 7.2% increase 3.0 million visits to Asia & the South Pacific, a 7.6% increase 4.5 million visits to the Caribbean, Mexico, and Central America, a 5.3% increase

4 Hawai i s Percentage of Outbound Canadians are traveling! 30.7 million overnight trips in 2017 to the U.S. and other destinations, an increase of 5.6% 23.2 million trips were for leisure 3.2% increase in leisure travel to the U.S. vs Travel to U.S. accounted for 61% of outbound leisure trips in 2017 compared to 70% during the peak travel year of 2013* Hawai i ranks as the 7th most visited state by Canadians,** but accounts for only 2.3% of all U.S. leisure trips.* *Conference Board of Canada **2016 Statistics Canada all visits FL, NY, WA, CA, NV, MI, HI

5 Canadian Travelers to Hawai i 2017 Total Arrivals 518,051 Total Visitor Expenditures $1,032,700,000 Total Visitor Days 6,451,673 Average Length of Stay Days Per Person per Day Spending $160 Per Person per Trip Spending $1,993 Total Arrivals increased by 10.4% vs Forecasted Arrivals 530,738 (+2.4%) All DBEDT/HTA 2017 Canada Statistics

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7 What are Canadian Travelers looking for? Most Canadians are still very price sensitive, they shop around Value for money All-inclusive for sun-seekers Accessibility Employed Canadians think in weeks of vacation (travel time is a factor) Multiple Accommodation Options HTCAN to continue to reinforce... Unique Culture & Experiences Friendly & Welcoming Safe & Sustainable

8 Package Price Comparison Canadians love all-inclusive! 90% of all winter Caribbean/Mexico visits are to Cuba, Dominican Republic, Jamaica, Mexico Average 2017 flight + 7 day resort price was $1,550 USD all-in, a decrease of 5.4% vs. 2016* Estimated Transportation, Meals, Beverages, Activities 7 Day All Inclusive Average per person 0 Cuba DR Mexico Jamaica Hawai i Hawai i average of first 20 properties on OTA for Mar 17-24, flights + accommodation = $1,597 *Conference Board of Canada - December 2017 Package Pricing Monitor Report

9 Airlift from Canada 2017 Recap 0.3% increase in airlift between WestJet & Air Canada Load factors increased to 82.8% from 75.7% in 2016 Moving Forward... Nov 2017 to Apr 2018 WJ & AC increasing capacity by 17k seats WestJet 223k and Air Canada 133k for 2018 No planned increase for remainder of year

10 Airlift from Canada Fuel prices expected to hold or increase slightly Air Canada Vacations seeing more seats going to shared accommodation (Airbnb), but planes still filling WestJet adding flight to Maui, increasing to daily through summer 2018, but not anticipating a significant overall change Partners expressed concern that as air and hotel prices rise, Hawai i s competitiveness with other sun destinations

11 Improving arrivals of high yield visitors Refine Positioning Affluent Targeting less price sensitive Flexible schedule travelers (retirees) Canadian Snowbirds made 1.72 million U.S. trips in 2016 Since 2011, Snowbird trips up an average annual rate of 9.7% 47% of Snowbird trips are for over 60 days Take market share from Florida, Arizona, Nevada, Mexico, etc.

12 How we bring partners together Contests TV driven contests featuring prizing from air and hotel partners Promotions Zoomer Media live radio remotes hotel, attractions, air partner Tradeshows WestJet Vacations Product Expos multiple hotel partners Aloha Canada Sales Mission Hotels/resorts, air partner, Tour Operators, Visitor Bureaus

13 Opportunities to partner FAMs Travel Trade & Media Education Webinars & Training Consumer Promotions On and Offline media, contest support, etc. Consumer & Trade Shows Romance/Wedding, Travel, Zoomers (50+) Aloha Canada Sales Mission Toronto, Vancouver, Edmonton - Oct Accommodation, Attractions, Tour Operators, Visitor Bureaus Over 450 Selected Travel Agents in 2017

14 Innovative Approaches for 2018* National Editorial, Advertising and Digital program in the Globe and Mail Canada s most influential business newspaper. Multi-platform media program including magazine, digital and trade show presence plus live radio broadcast from Honolulu. Consumer tie-in with Canada s national cinema chain in conjunction with June release of Jurassic World 2. *Pending HTA Approval

15 Innovative Approaches for 2018* Toronto Raptor Game Activation WOWing a crowd of 20k and impacting a national audience Generating excitement, database building Tour Operator as Sales Partner Social Media Blitz Train with Canada s Top Ironman in Hawai i! Contest, Promotion, Social Media, etc. Channeled through retailer with 80+ locations Influencing Canada s running/athletic community, an active, affluent, traveling segment *Pending HTA Approval

16 Best Practice Approaches for 2018 Incorporating Travel Trade Media into Agent FAMs Increasing FAM impact exponentially National in printed Agent publication to 22k Live social media content on Facebook, Instagram, Twitter Extends reach and engagement Keeps digital archive of activity Provides access to resources and inspires Agent curiosity Significant value for all supporting partners

17 2018 Media Themed TV Promotions Gotta Love Hawaii (W Network National Coverage) History Channel and H2 (theme to be determined) 28,000,000+ TV Impressions (Adults 25-54) Additional Brand Sell Support (Fall) Vancouver, Calgary, Edmonton, Toronto Primary Magazine Circulation 700,000+ Radio Impressions (Adults 25 to 54) Vancouver, Calgary, Edmonton, Toronto 10,000,000+

18 Promotion #1 You Gotta Love Hawai i Contest

19 2018 Media Activity BS Brand Sell

20 2018 Digital Marketing Strategy Augment and reinforce travel intention by producing engaging content that is educational and impactful. Inspire travel enthusiasts Showcase the breadth of the Hawai i travel experience Educate on rich culture and heritage Secondary audience layer to be applied based on content: Family, Arts & Culture, Adventure Travel, Romance, Luxury

21 MICE Overview Soon to close... Jan 2019 Education Maui Approx. 992 RN July 2020 Insurance Maui & O ahu Approx. 800 RN Oct/Nov 2020 Government O ahu Approx. 1,740 RN Decision pending. All groups only assessing Hawai i. Future Opportunities... Apr & Sept 2020 Financial & Medical Maui & O ahu - Approx. 3,500 RN Decision pending. Aiming to close within 3 months.

22 MICE Overview Hurdles for 2019 & 2020 business Inquiries and RFP s are being generated Planners watching currency. A dip would have an impact Planners watching for political decision making that could effect access for employees Overcoming Hurdles Continue opposition to any restrictive U.S. entry policies Keeping up with the volume of RFPs!

23 MAHALO, MERCI, THANK YOU!

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