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The Honolulu Advertiser
Posted on: Thursday, October 2, 2008

WINNING BACK TOURISTS
Visitor industry opens promotion spigot

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Surfing instructor Danny Tamonte gives Mike Lewis of Canada, left, a bronze medal winner in rowing at the Beijing Olympics, and Chicagoan Rob McCurdy lessons in the sand before heading out to the waves. Business is slow in Waikiki, in and out of the ocean.

GREGORY YAMAMOTO | The Honolulu Advertiser

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MORE MARKETING DOLLARS TO PITCH NORTH AMERICAN TRAVELERS

In the current fiscal year, state tourism officials have teamed up with Hawai'i Visitors and Convention Bureau and industry travel wholesalers to beef up marketing to North American visitors to help ease the current slump in visitors.

For the current fiscal year, the plan is three campaigns:

1. $1 million HTA and $3 million industry match. Campaign began last month and runs until March.

Sub-total: $4 million

2. $1.5 million HTA, $1.4 million HVCB and $1.6 million industry match. Campaign runs until Sunday through March.

Sub-total: $4.5 million

3. $2 million HTA and $2 million industry match. Campaign runs until January through May.

Sub-total: $4 million

Total: $12.5 million in marketing money this year to North America.

Source: Hawai'i Tourism Authority and Hawai'i Visitors and Convention Bureau

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Starting Sunday, tourism officials officially launch a new $4.5 million marketing campaign designed to persuade travelers that the total price of a Hawai'i vacation can cost much less than last year, even after the spike in airfares this year.

The pitch is part of a joint effort by the state and tourism executives from the private sector. They are trying to slow a decline in tourism in recent months. In August, visitor arrivals plummeted 17.3 percent. And the statistics were even gloomier for a traditionally strong source of Hawai'i visitors, the U.S. West, which posted its biggest decline on record, down 24.2 percent, according to the August report by the state Department of Business, Economic Development and Tourism.

The campaign aims at various markets: the mainstay of Sunday newspaper travel sections across the country, network television Web sites, and www.kayak.com and other travel-related Web sites and magazines, according to John Monahan, president and CEO of the Hawai'i Visitors and Convention Bureau.

The bureau handles more marketing to North American travelers for the state's lead tourism agency, the Hawai'i Tourism Authority. When you combine the $4.5 million in state funds with $1.4 million from HVCB and at least $7.8 million from industry sources, Monahan said the dollar impact quickly goes over $12.5 million.

Monahan said concerns about the economy are prompting lots of travelers to skip vacations or shop around for a value. "We have a big consumer confidence problem," he said.

Monahan said officials are targeting an avid traveler who wants to try different things but isn't necessarily affluent. "We want someone who isn't going to just come and plop and drop," he said.

David Uchiyama, the Hawai'i Tourism Authority's marketing chief, said this marketing campaign is different and significant because it represents the industry working closely with the state in unprecedented collaboration.

Gov. Linda Lingle and some hotel leaders earlier proposed the state pump $10 million more into marketing to help slow the decline.

But Uchiyama said this coordinated campaign will roll out targeted marketing, especially in cities found to have the most potential visitors. They include Los Angeles, San Francisco, Seattle, Phoenix, Dallas, Chicago and New York City.

With hotel-room tax dropping because of the declines, the tourism authority is anticipating less revenue and a scaled-back budget, Uchiyama said.

Still, he thinks the marketing planned has great potential because of the level of state-industry partnership. "I think it's going to make more of an impact," he said.

Hawai'i is competing with other destinations that include Mexico and the Caribbean.

Uchiyama said Puerto Rico just spent $20 million on a marketing campaign aimed at the East Coast, reeling this week from financial crises.

Dropping $10 million all at once now could sap resources needed to keep marketing in the coming months, he said. "We think that could be like the Puerto Rico plan," he said.

Monahan said the price savings for vacation packages can be hundreds of dollars because hotels are offering reduced prices, free nights, food and beverage credits, activities are doing 2-for-1 deals, and other industry segments are offering savings.

Although the March-April demise of Aloha and ATA airlines are the flashpoint for the decline in many people's minds, Monahan said the declining U.S. economy had the larger impact.

The theme of the campaign is "Discover More of Hawai'i For Less Than You Imagined." As part of the strategy, the campaign will steer consumers to a new Web site at www.gohawaii.com/Value.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.