HAWAI I S TOURISM INDUSTRY A FEW THOUGHTS Hawaii Transportation & Infrastructure Summit June 25, 2014
Adjusting our sails
Our World 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
Executing Supply and Demand Customer Accomm HTA Air Lift Marketing and Promotion Brand Promise Reputation Brand Hawaiian Islands
The Hawaiian Islands 920 flights per week Connecting 53 cities worldwide By 21 carriers
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 PORTS OVERSEAS 2014/2013 Rank MIAMI, FL 355,856 2% 1 NEW YORK, NY 323,252 11% 2 LOS ANGELES, CA 244,477 16% 3 HONOLULU, HI 173,543 10% 4 SAN FRANCISCO, CA 127,965 20% 5 *YTD as of January 2014. Source: U.S. Department of Commerce, ITA, National Travel and Tourism Office.
Arrivals from Major Market Areas: Relative Size (2013)
2013 Arrivals by MMA Japan 18.5% China 1.6% US East 20.6% Canada 6.2% Korea 2% Taiwan 0.3% Oceania 4.3% Europe 1.7% Other 3.7% US West 39.1% Cruise 2%
2013 Arrivals International vs Domestic 0 International 38.3% Domestic 59.7% Cruise 2%
Air Route Development Conditions Differ by Market North America 2012 2013 Seat Inventory 7,008,177 7,206,155 Load Factor 87.1% 88.4% Airline Yield (per RPM) $0.101 $0.101 International 2012 2013 Seat Inventory 2,910,091 3,277,478 Load Factor 80.0% 76.5% Airline Yield (per RPM) $0.227 $0.157 *Excludes Other MMA
Total scheduled air seats could reach record levels (again) in 2014 Total Seats 2007 2008 2009 2010 2011 2012 2013 2014F 9,813,589 8,854,877 8,353,208 8,948,336 9,207,483 10,206,731 10,768,719 11,040,460 2007 2008 2009 2010 2011 2012 2013 2014F Domestic International Source: Hawai i Tourism Authority, based on data from Diio Mi airline schedules as of March 31 2014
Honolulu International Airport International Flights Schedule 12 flights arrived between 9:05 and 10:05 Arrival Time Al Flight Org Seats 0600 Air Pacific Ltd. 820 Nadi, FJ 180 0615 Hawaiian Airlines 482 Tahiti, PF 260 0640 Jetstar Airways -OR- Alba Star.es 3 Sydney, NS, AU 303 0700 Delta Air Lines 638 Tokyo-Narita, JP 403 0705 United Airlines 880 Tokyo-Narita, JP 272 0725 Japan Airlines 76 Tokyo-Narita, JP 230 0750 Korean Air Lines 51 Seoul, KR 280 0805 Hawaiian Airlines 444 Brisbane, QL, AU 260 0815 China Airlines 18 Tokyo-Narita, JP 383 0835 Qantas Airways 3 Sydney, NS, AU 229 0845 Delta Air Lines 598 Fukuoka, JP 218 0845 Japan Airlines 74 Tokyo-Narita, JP 230 0905 Delta Air Lines 578 Tokyo-Narita, JP 298 0915 Delta Air Lines 278 Osaka-Kansai, JP 298 0920 Asiana Airlines 232 Seoul, KR 290 0925 Hawaiian Airlines 450 Osaka-Kansai, JP 294 0930 All Nippon Airways 1052 Tokyo-Narita, JP 215 0935 Japan Airlines 72 Tokyo-Narita, JP 230 0940 Korean Air Lines 53 Seoul, KR 335 0945 Hawaiian Airlines 454 Fukuoka, JP 260 0955 Delta Air Lines 612 Nagoya, JP 218 0955 Hawaiian Airlines 442 Sapporo, JP 260 0955 Japan Airlines 84 Nagoya, JP 230 1005 Hawaiian Airlines 452 Sydney, NS, AU 294 1015 Japan Airlines 78 Osaka-Kansai, JP 230 1040 Japan Airlines 80 Tokyo-Haneda, JP 389 1100 Hawaiian Airlines 460 Seoul, KR 260 1200 Hawaiian Airlines 458 Tokyo-Haneda, JP 294 1240 All Nippon Airways 1062 Tokyo-Haneda, JP 215 2025 Air New Zealand 10 Auckland, NZ 234
3,000 2,500 2,000 1,500 1,000 500 0 Scheduled Air Seats Outbound Interisland Seats 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 Kahului Kona Lihue Japan Source: Diio Mi, based on airline schedules for the day of Friday, May 2, 2014
In the first 4 months of 2014 The State Experienced: $40.8 million in visitor spending per day $521.4 million in state tax revenue generated 54,835 jobs supported 22,673 visitors arrived daily
In the first 4 months of 2014 Each County Experienced: Direct Visitor Spending ($ million) $4.2 mil per day $19.2 mil per day $11.1 mil per day $5.8 mil per day
2013 Visitor Unit Counts by Type of Accommodation Other 2% IVU 9% Timeshare 15% Condo-Hotel 15% Hotel 59%
State Tax Revenue: Everyday visitors contribute $4.6 million in state tax $1,800 State government tax revenue generated (direct, indirect, and induced) $1,600 $1,400 $1,565 $1,681 $million $1,200 $1,000 $1,221 $800 $932 $600 $400 2007 2009 2012 2013 Note: Calendar Year 2002-2013 Actual
What are other destinations doing to compete with the Hawaiian Islands?
Hawai i 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 Hawai i s 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.
Mexico Los Cabos Tourism Board s 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.
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. $43.3 million by the Mexico Tourism Board + $10 million rebranding of Vallarta Nayarit www.youtube.com/watch?feature=player_embedded&v=ln15q4kcjxw
Caribbean In March 2013, Jimmy Buffet announced his partnership with Wyndham to open a 262-unit timeshare resort in St. Thomas.
NEXT STEPS
No one leader for change It s a new era We have to lead together
If we only spend our time fighting for our piece of the pie who will bake new pies? We need to bake new pies
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
Hawai i 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.
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!
ALOHA The world will turn to Hawai i as they search for world peace because Hawai i has the key and that key is Aloha. Auntie Pilahi Paki
MAHALO The Hawaiian Islands is our Hōkūle a