Although clouds have hovered over the Hawaiian meetings horizon for the past two years, rays of sunshine are breaking through at last. Group business—including corporate meetings—is clearly on the upswing for the Aloha State.
"We’re really seeing some positive increases in the meetings market," says Mike Murray, vice president of sales and marketing for the corporate, meetings and incentive division of the Hawaii Visitors and Convention Bureau (HVCB). "Through April of this year, incentive business was up 6 percent over the same period last year. But what really stood out is the corporate market—which has been down for a significant amount of time. That business was up by 19 percent."
When asked why corporate groups are now more likely to host meeting and incentive programs in Hawaii, Murray says he believes that perception concerns, while still a reality, are being trumped by the need for organizations to gather in a productive, inspiring environment.
"Of course, you still have some companies that are apprehensive about meeting in a resort destination," he says. "But you also have companies that are willing to put those apprehensions aside because they know they need to create effective incentive programs for their salespeople if they want to stay competitive. You don’t want to undermine the incentive program by sending people to a less-motivating destination."
Chris Tatum, vice president-Hawaii, North Asia and South Pacific for Marriott International, agrees.
"We’ve had challenges, but we’ve been able to show that if you use Hawaii for your incentive program, sales go up," he says. "That’s the bottom line. We’re seeing encouraging booking trends, especially for 2011 and 2012."
Also boding well for corporate business is Hawaii’s growing reputation as a business destination, one with plenty of resources to offer organizations in fields such as technology, communications, health care, marine sciences, astronomy, alternative energy and diversified agriculture, Murray says.
Hawaii will have an unprecedented chance to present its business and meetings attributes on a global stage when it hosts the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting at the Hawaii Convention Center in November 2011, marking the first time the annual meeting has been held in the U.S. since 1993. President Barack Obama and other top world leaders will be joined by more than 16,000 international attendees.
"The fact that Hawaii was chosen for the APEC conference is a great statement," says Angela Vento, regional director of sales and marketing for Starwood Hawaii. "Not only will it bring in international leaders, but at least 250 CEOs of major companies. We will be able to demonstrate to them how we can handle meetings—that we’re a productive destination where you can combine leisure with business."
Although conventional wisdom has long held that the neighbor islands get the bulk of Hawaii’s incentive business, while Oahu is primarily for associations and SMERF groups, there is growing evidence that each island draws a broad spectrum of meetings business.
According to Vento, Starwood, which recently completed major makeovers of the Sheraton Waikiki and Royal Hawaiian, is seeing greater interest from incentive planners in its Waikiki properties, particularly among those who got a first-hand look at the hotels during Starwood’s recent Rendezvous gathering for its top customers.
"Incentive planners were surprised at how much redevelopment has happened—not just at our hotels, but throughout Waikiki," she says. "Some said they were seeing Waikiki as an incentive destination for the first time."
Conversely, SMERF (social, military, education, religious and fraternal) business is on the rise throughout all the islands, according to Murray.
"SMERF has been really strong in Hawaii during the past few years, with military especially important as we have a big military presence in the state," he says. "Not just in Oahu, but in places like Kauai, where there is a huge missile defense range. Fraternal, religious and amateur sports groups are also big sources of business throughout the state."
Other strong niches are medical and scientific meetings. While these groups have long been the bread and butter for the Hawaii Convention Center, they are now a growing segment for destinations such as the Big Island. Groups booked at the University of Hawaii’s Hilo Conference Center Pacific include the Congress on Marine Science & Technology, International Underwater Robotics, and Native Engineering and Technologies Summit.
"The University of Hawaii on the Big Island is drawing a lot of scientific meetings, as so much research is going on there," Murray says. "And on the south side of Maui, the Maui High Performance Computing Center, which is also operated by the University of Hawaii, is a catalyst for tech meetings."
Airlift, which has been a challenge for Hawaii in years past, is now turning into a positive asset for tourism, Murray says, noting that a net increase of over a half-million air seats are being added to the islands this year in response to consumer demand.
