HONOLULU — Hawaii hotel bookings are in the red through December, but funding from Congress could help the Hawaii Tourism Authority launch a new multimillion-dollar marketing campaign targeting U.S. travelers It became.
The new campaign focuses on the local people and places that make the Hawaiian Islands an unforgettable destination.
While the Maui wildfires pose challenges to the tourism industry across the state, other factors are also slowing tourism. These include uncertainty in the U.S. economy, the strength of the dollar relative to some international currencies, increased competition from other destinations, and a community-driven push to manage rather than grow tourism. .
It didn’t help that HTA had been defunded by Congress for the past two years, at times fighting not just for money but for its survival. A procurement battle to award the state’s top U.S. tourism award has sapped energy from the market.
The importance of the US market to Hawaii cannot be underestimated. In 2023, approximately 7.42 million visitors visited Hawaii from the United States. This represents approximately 77% of all visitors to Hawaii. They spent $15.9 billion, about 77% of the $20.7 billion spent by visitors across all markets.
Meanwhile, the Hawaii Tourism and Convention Bureau, HTA’s largest U.S. market contractor, continued its COVID-19-era malama (Caring for Hawaii) campaign. According to the study, HVCB’s Marama campaign was effective compared to other campaigns from other destination marketing organizations. Still, industry commentators say the effects of COVID-19 and the Maui wildfires have left Hawaii exhausted and some tourists wondering if the state really wants to visit. Stated.
Now, the messaging in HTA and its latest multi-million dollar marketing campaign in the US is about to change direction. HTA began tracking 135 bills in the state Legislature, including several carryover bills that were supposed to eliminate the organization but have since died.
The agency is currently seeking to exit this Congress with appropriation of House Bill 1800, which funds 30 positions and a $63 million recurrent budget, allowing the agency to continue to be funded without special legislative approval. guaranteed.
“This is a very important accomplishment for HTA, and I would like to thank everyone who contributed to it,” said Mufi Hanneman, HTA Board Chair and Hawaii Lodging and Tourism Association President and CEO. Yes, some of us took the lead, but at the end of the day, he needed all of you to help him get his $63 million operating budget. did. We’ve been through two years of defunding and a very heated debate about whether we should continue. In my opinion, those are all things of the past. ”
funding
The finance bill, which will be fully voted on this week, looks good for the HTA, as the Senate and House of Representatives have agreed to fund it at the higher of two proposed levels. The funding will enable the agency to support HVCB’s new campaign called ‘The People’. place. Hawaiian Islands.
Jay Talwar, HVCB Senior Vice President of Marketing and Chief Marketing Officer, shared the new campaign with the HTA Board of Directors on Thursday. Funding for the new campaign comes from HVCB’s total 2024 U.S. Markets Budget, which includes Phase 2 of the Maui Marketing Recovery Plan and grants from the U.S. Economic Development Administration, totaling more than $18.9 million. Become.
The total value of HTA and HVCB’s contract for the U.S. market is approximately $38.4 million for an initial two-and-a-half year term, with one two-year extension option.
The deal comes after HVCB, the sole agency that sold HTA’s U.S. contracts, initially won the award, but then lost it to the Native Hawaiian Advancement Council, which ultimately lost it to the Native Hawaiian Advancement Council. That contract was also cancelled.
Both companies protested, but the protests ended when the HTA board split the contract, awarding the U.S. brand portion to HVCB and a market-wide stewardship agreement to CNHA. The compromise removed confusion and enabled contractors to respond to new markets. conditions.
new campaign
HVCB’s new campaign retains many of the values of the Marama campaign, which was rated highly by SMARInsights as part of HVCB’s ROI in 2023.
Alisha Valentine, vice president of SMARInsights, told the HTA board Thursday that for every dollar HVCB spent on marketing in 2023, about $407 was returned to the state.
“This (return on investment) is 43% above average. Since COVID-19, the average return on investment for states (destination marketing organizations) is $285,” Valentine said. “However, since 2021, state governments with more than $5 million in paid media investments have had an average ROI of $219, and their media purchase returns in 2023 are 86% higher than the average competitor.”
HVCB’s latest campaign is similar to Marama’s. However, there has been a shift from the COVID-19 era tone of telling visitors how to behave, and instead communicating that consideration is expected by having locals and visitors model. Masu.
“You can feel the difference. There is a welcome here,” Talwar said, highlighting the campaign’s images and videos. “There are people who are smiling and happy to see you. We believe that the benefits of tourism include chefs, agricultural producers, farmers, fishermen, ranchers, culturalists, musicians, lei makers, fashion designers, artists, etc. , we want to reach a wider part of the community, a large number of people who need support from the tourism industry to continue their craft and lifestyle here on the island, all of which are brought to life in the campaign. Masu.”
In Maui, Maui Fresh Streetly chef Kyle Kawakami is depicted feeding and interacting with residents and tourists against the lush green backdrop of Maui’s interior.
On Oahu, Mereana Estes, author of Lei Aloha, shares the cultural importance of leis.
Hanalei Strings on Kauai is a small music store run by Kirk and Tora Smart and their son Eli Smart, where visitors come in, have an impromptu jam session, and then meet the participants later. It shows the magic of a small island. beach.
HTA said it is planning additional ambassadors.
“I actually know most of the ambassadors,” said HTA senior brand manager Iwalani Kuali’i Kahoohanohano, who oversees the U.S. contract. “Being able to be in this position in the tourism industry and see them share their stories to our market and beyond is really special to me. That’s what living in Hawaii means to me.
Keith Vieira, president of hospitality consultancy KV&Associates, one of Wednesday’s industry judges, said the overall feedback was positive, saying each island is an independent and special place with its own beauty. Participants said that the campaign’s emphasis on
But some industry leaders have expressed concern that Maui’s long-form video focuses too much on past fires rather than current recovery, Vieira said. He said some leaders would like to see more coverage of Hawaii’s beaches and oceans.
Josh Hargrove, general manager of The Westin Maui Resort & Spa, said he likes the image of Maui’s interior as lush and green, which contradicts some people’s perception that the entire Valley Island was on fire. He said it was to cancel it out. He suggested future campaigns could focus on beaches, waterfalls and other areas on Maui.
“We need visitors to know that Maui is more beautiful than ever,” Hargrove said.
“We are listening to their feedback and HVCB is making small adjustments,” Hanneman said. He said a new campaign will be rolled out soon to address the expected reservation shortage not only on Maui but everywhere.
“We’re hearing from the industry that it’s going to be a mild summer this year, so the sooner we get this kind of message out, the better off we’ll be,” he said.
Mr. Talwar showed the board a slide showing the pace of hotel bookings across the islands, noting that as of April 14, Hawaii’s hotel booking pace this month has been in the red in the single digits for every month through December except August. . Maui saw a slight increase in April, but will be in double-digit deficits through the first quarter of next year, and West Maui is even worse.
“(The numbers are) consistently negative. So we’re really grateful for what’s going on in Congress and your leadership that made it possible for us to get the funding. Like it’s been very solid. I see it,” he said.
Funding wasn’t the only legislative victory for HTA this year.
Senate Bill 3006, which would allow naming rights for Hawaii Convention Center facilities to be sold or leased to government agencies, has stalled. However, House Bill 2563, which began as a mobile app development bill, passed out of session with a naming rights provision. Funding for mobile apps that HTA supported was removed from the bill. However, it is now included in House Bill 1800, allowing the project to move forward.
