While perception issues may have put the damper on meeting in resort destinations this year, Hawaii’s tourism executives are boldly asserting that there are now more solid reasons to meet
in the Aloha State than ever before.
Sure, they say, Hawaii happens to have weather, scenery and resorts that are nothing short of idyllic, but those attributes are not a detriment to realizing goals and objectives. If organizations are looking for value, an inspiring and productive atmosphere or a place for rejuvenation and motivation, they will find all of them in Hawaii.
Among planners who don’t need to be convinced is Fred Ferri, chief financial officer for Normac Inc., a Sacramento, Calif.-based construction supply company. Since 1998, Ferri has organized incentive meetings for the company’s top customers that take place every other year in Hawaii.
“I think you can have just as productive a meeting in Hawaii as you can anywhere,” he says.
While the Normac group takes full advantage of all the recreational activities available, Ferri says plenty of business still gets done at the seminars that are scheduled first thing in the morning on weekdays. With the time zone working in their favor, attendees are alert and ready to get down to work early.
“Then in the afternoon, people are free to go out and capture some of the day,” he says. “We also offer people the option of extending their stay, and many do. They bring their families and head off to another island after the meeting.”
If anything, Hawaii’s reputation as a premium resort destination works in its favor, Ferri adds.
“Every time, the satisfaction level is extremely high,” he says. “We like the comfort of knowing we’re in an English-speaking place that is very friendly and where there is low crime—you don’t have to worry about anything. And since Hawaii doesn’t have the perception of being a cheap destination, our customers feel we are treating them right. Yet we know we are actually getting a good value, especially since we book two years out.”
Focused Environment
At the Hawaii Visitors and Convention Bureau (HVCB) and the individual island bureaus, the message is that Hawaii provides an environment where groups can connect, focus and get their creative juices flowing.
“With these difficult times we’re in, Hawaii makes even more sense as a meetings destination because it’s so conducive for bonding and networking,” says Tom Risko, director of meeting, convention and incentive sales for the Maui Visitors Bureau (MVB). “We all need to be rejuvenated and inspired these days. Hawaii is a place where people can really focus—they feel differently as soon as they get off the plane.”
As an example, Risko cites a recent meeting of the American Bar Association, which was held on the island of Lanai, home to two Four Seasons resorts and part of Maui County.
“They were on the island for five or six days, and met for four of the days, all through the day,” he says. “It was very meetings-intensive.”
Similarly, Debbie Hogan, director of sales for the Big Island Visitors Bureau, says groups come to the Big Island of Hawaii because they know they can have a serious meeting in the destination.
“There is no distraction, and the stress level decreases,” she says. “There is no traffic and there are no security issues to worry about. And along with the other islands, we share a great service level and the attitude is good.”
Edie Hafdahl, director of sales for the Kauai Visitors Bureau, notes that the Hawaiian Islands have long dealt with the boondoggle-junket perception long before today’s economic woes and even the post-9/11 era.
“That perception is not true and has never been true,” she says. “When you hold a meeting in a resort destination, the satisfaction level and return on investment is higher. Kauai is a place where you can conduct serious business and at the same time be in a beautiful setting.”
Business Sense
To drive home the point that meeting in Hawaii makes good business sense, the HVCB has been steadily adding new services for planners as well as interactive features to its meetings website, www.business
aloha.com.
Among these initiatives is the Hawaii Speakers Bureau, which can be accessed through the website and represents over 20 Hawaiian business leaders and cultural experts, including David Cole, CEO of the Maui Land & Pineapple Co. and an expert in agricultural sustainability; and Ramsay Taum, developer of a cultural training program used in hotels and tourism organizations throughout Hawaii.
According to Michael Murray, vice president of sales and marketing for the corporate, meetings and incentives division of the HVCB, Hawaii is seeing strong results from its efforts to position itself as not only a resort destination, but a business capital. One result, he notes, are meetings that are increasingly global in nature.
“We have testimonials from North America-based association planners who tell us that Hawaii helps them break attendance records, especially in drawing overseas members,” he says. “In particular, Hawaii geographically fits in very well with people coming from Asia.”
Ed Hubenette, vice president for North Asia, Hawaii and South Pacific for Marriott International, reports that mid-Pacific meetings business, which draws attendees from both Asia and the U.S. mainland, is growing at Marriott properties throughout Hawaii.
“Hawaii is a very sought-after destination for these kinds of meetings and many major meetings hotels are seeing their business go this way,” he says.
At the Hawaii Convention Center, meetings with strong international attendance have become such a factor that the facility is providing an increasingly broad range of services for overseas delegates from Europe as well as Asia. According to June Matsumoto, director of international sales and marketing for the Waikiki-based center, the services range from language interpretation to special registration areas and “microsites” on convention websites with travel information tailored for overseas delegates.
“Given the economy now, the international component has become more important to our customers, even as they worry about international attendance,” she says. “We want to provide them with an opportunity to look to different markets to draw on. This is of great interest.”
Global attendance at meetings is not only growing on Oahu, but on the neighbor islands as well. Among them is the Big Island, which has nonstop air service into Kona from Japan.
“We’re getting more inquiries about mid-Pacific meetings,” Hogan says. “Japan is already familiar with us, but there are new emerging markets like China and Korea that know Honolulu, but are now discovering the Big Island. With the new visa waiver in Korea and the memorandum of understanding in China, all these things stimulate activity from the Pacific Rim.”
Business Interest
While Hawaii has seen its share of cancelled corporate meetings, Murray says incentive business for the state remains strong, while association and SMERF (social, military, education, religious and fraternal) groups are responding to this year’s attractive hotel rates, air fares and availability.
“Our incentive bookings for the year through last February actually doubled from the year before,” he says. “We know that companies are hurting, but many are putting together incentive trips to have a positive impact on the bottom line. They are looking past the perception issues and saying, ‘I’m not willing to take a chance of not motivating my people by taking them to a second-tier city.’ At the end of the day, it won’t accomplish the goal.”
He also notes that association business, particularly from medical groups, is strong this year, with the American Dental Association one of several healthcare citywides booked into the Hawaii Convention Center in 2009. SMERF meetings are also on the rise.
“The SMERF market has really come up—it was the fifth-highest-producing market for Hawaii last year,” he says. “In particular, military is a leader because we have a military presence here that has grown. Religious and fraternal are growing as well.”
Along with the Hawaii Convention Center and the many thousands of Waikiki hotel rooms in close proximity, the neighbor islands, particularly Maui and the Big Island, are also well equipped for large groups requiring several properties.
“Before I joined the Big Island bureau, I thought we were mostly incentive-driven, but then I found that our association groups are actually higher than incentive,” Hogan says. “We can easily handle groups requiring 1,200 hotel rooms in the Waikoloa area if we combine the Hilton and the Marriott. Plus there is other infrastructure to support the group like the new Queen’s Marketplace, which can handle huge events.”
In general, association and SMERF planners are finding unprecedented opportunities at even the most upscale resort properties. With corporate business down, as it is everywhere, Hawaii has more room for budget-conscious business.
“We want all types of groups, including associations,” says Elaine Macy, director of group sales for Oahu’s Kahala Resort, which is offering 10 percent off the master rate and 10 percent off food and beverage through the end of the year. “We’re under the $300 mark this year, which is very unusual for us. We’re very flexible with contractual agreements and with concessions.”
At Maui’s Grand Wailea Resort, both association and SMERF business are finding more opportunities, according to Director of Sales and Marketing Brian Lynx.
“We used to relegate that business to our slow periods, but now there is business every month,” he says. “With new business, people are looking to save money and we’re working with them on this.”
Emerging Markets
Emerging meetings markets for Hawaii can be found in industries such as alternative energy and wellness.
“The state of Hawaii has several initiatives going that are designed to encourage businesses that harness wind and solar energy from the ocean,” Marriott International’s Hubenette says. “So companies relating to this type of business see Hawaii as a great place to meet.”
The Kauai Visitors Bureau’s Hafdahl, who describes Kauai as “a healing place,” says meetings business related to health and wellness is especially strong for the island.
“We hold a Kauai wellness expo every year that draws exhibitors and others in the spa industry from all over,” she says. “Kauai’s easy-going, rejuvenating atmosphere is a good fit for this kind of business.”
While each island has its strengths in the meetings and tourism markets, the reality is that most groups, unless they require a convention center, don’t always gravitate toward any one island, Murray says.
“We have a lot of data on who the visitors are who come in, but no particular island seems to have a constant niche,” he says. “Most groups are repeat customers—some come every year—and many rotate between islands from year to year.”