There’s no doubt about it, Hawaii has emerged as a global powerhouse for meetings. Last fall’s Asia Pacific Economic Cooperation (APEC) conference, which was hosted by President Barack Obama and drew political and economic leaders from around the world to Waikiki, removed any lingering doubt that the Aloha State can handle even the most complex gathering any organization could require.
“With APEC, we accomplished what we wanted to accomplish,” says Michael Murray, vice president, sales and marketing, corporate meetings and incentives for the Hawaii Visitors and Convention Bureau (HVCB). “Beyond just executing a flawless conference, we can now use APEC as a pillar to help rebrand Hawaii as a destination for high-level meetings.”
That strategy is already paying off in terms of new business, according to Angela Vento, regional director of sales and marketing for Starwood Hawaii. She says hotels are seeing more interest in Hawaii as a mid-Pacific meetings destination ideal for drawing attendees from both Asia and the U.S.
“We’re getting new inquiries from associations as well as from domestic and international companies,” she says. “APEC has really shown our ability to handle a serious meeting.”
While Chris Tatum, vice president-Hawaii for Marriott International, says the full impact of APEC won’t be known for a couple of years, it definitely put Hawaii on the radar screen as a meetings destination.
Like Vento, he sees APEC as making an especially good case for Hawaii as a place for mid-Pacific meetings, adding that economic trends are working toward this as well.
“As we become more of a global economy, more companies are looking to penetrate the Asia market, particularly Korea, China and Japan,” he says. “It’s a great strategy to meet with business counterparts halfway.”
Tatum says Marriott Hawaii is seeing a boost in group business this year from mainland U.S. companies.
“Things are still a little tepid, but there is growing confidence,” he says. “Companies are seeing the economy improve a bit, and they feel more comfortable in the direction they are going. The really good news is that incentives are back, which is very exciting. Nothing motivates salespeople more than a trip to Hawaii.”
Even before APEC, Hawaii’s meetings business was trending upward, posting growth of 11.2 percent last year over 2010, Murray notes.
“It was up across all sectors—conventions, incentives and corporate meetings,” he says.
While the West Coast remains the strongest feeder market for Hawaii, whether it’s group or leisure business, improving air transportation from the East Coast is having a positive impact, according to Murray.
“There’s a substantial amount of new airlift coming into the islands, including new direct service out of JFK, Newark, Dulles and Atlanta,” he says. “With this added service, we are seeing a gradual increase in both tourism and meetings.”
Part of Hawaii’s rebranding effort has also included educating meeting planners about the resources the state offers to groups with an interest in such specialized areas as earth sciences, renewable energy, astronomy, life sciences, biochemistry and agriculture.
“We just had a fam trip where we showcased what we do in biochemistry and diversified agriculture,” Murray says. “A planner told me, ‘I had no idea that you offer this. Now I know that I can pitch this side of Hawaii to clients, that we can do field trips to companies in these specialized areas.’”PageBreak
International Convention Outreach
Also playing a significant role in boosting Hawaii as a high-profile meetings destination with international appeal is the Hawaii Convention Center. According to General Manager Joe Davis, the convention center’s global outreach program is unparalleled. It offers attendance-building services that include customized micro-sites and marketing collateral in a variety of languages, targeted promotions to potential exhibitors and working with travel company partners to develop packages and tours.
“When it comes to cultural sensitivity and international markets, there is no better program than that of the Hawaii Convention Center,” Davis says. “Our marketing team works closely with the associations to reach across the Pacific and bridge communication gaps.”
Among groups that have used the convention center’s services to full advantage is the American Academy of Neurology (AAN), which was able to draw a record number of international attendees—37 percent of the 10,000-delegate total—to its annual convention at the Hawaii Convention Center last year.
“We worked for three years with the center on our international outreach program and strategy, and will now integrate these highly successful efforts into a national campaign for future meetings,” says Catherine Rydell, AAN’s executive director and CEO.
Other recent examples include the annual convention held in May by the American Orthodontics Association, which drew nearly 14,000 delegates, a third of which traveled from 70 countries outside the U.S.PageBreak
Upswing in Demand
Hawaii is seeing an upswing in demand not only from meeting groups, but from leisure visitors as well. Hotel occupancies are robust this year, especially on Oahu, which means planners may need to exercise a little more flexibility in getting the dates and rates that they want for their groups.
How fast is Hawaii rebounding in terms of demand? The state is expected to receive a record 7.8 million visitors this year, up by 6.5 percent from 2011 and more than the previous record of 7.6 million in 2006, according to figures from the state’s Department of Business Economic Development and Tourism.
“Tourism in general is very strong in Hawaii right now,” Murray says, adding that more visitors are coming not just from the mainland U.S., but from Asia, especially Japan, South Korea and China.
This upswing is illustrated by hotel occupancies that achieved a statewide average of 75.1 percent during the second week of May 2012, according to Smith Travel Research. Oahu hotels are experiencing the biggest boom, posting occupancy rates of 86.5 percent during that same period. Maui and Kauai posted occupancies of 68.3 percent and 67.8 percent, respectively, while the Big Island’s occupancy rate was 51.1 percent.
“Getting discounted rates is definitely harder now, especially in Waikiki,” says Starwood Hawaii’s Vento, adding that demand from both the meetings and leisure side is expected to be even stronger in 2013. “Planners will want to make decisions early—if they book now for 2013, that will be advantageous.”
Marriott Hawaii’s Tatum also recommends flexibility.
“If a planner can approach a property with a range of dates that work and the destination can fit things into the calendar, they will get the best value,” he says.
The need to book a little further out with hotels is not the only consideration these days; other components such as rental cars also need more advance planning, advises Sue Kanoho, executive director of the Kauai Visitors Bureau.
“We’re pushing out the message that you need to make car reservations at the same time you make air reservations,” she says. “People should not wait until the last minute.”
