Meeting News - July 21, 2008 - (Page 21)

Destination Insider: Hawaii Edited by Rayna Katz rayna.katz@nielsen.com Groups Come to the Rescue and Hoteliers Sweeten the Deal As leisure business sags, Hawaii sees an uptick in meetings and incentives business—and tries to lure even more goers accounting for only about 10 percent of all arrivals, he said. Further, state economists expect overall visitor arrivals to drop by 3 percent this year. The Hawaii Department of Business, Economic Development and Tourism said arrivals by air and by cruise ships dropped 7.4 percent in May versus the same month in 2007, and Hospitality Advisors said island hotels had an April drop in hotel occupancy of 1.4 percent, to 69.5 percent, its lowest level since 2003. The drop was attributed to the closures of Aloha Airlines on —Michael Murray, VP, Hawaii Visitors & Convention Bureau March 31 and of ATA 12 months especially, we’ve had an increase in Airlines early the following month—the latter havincentive programs, and new bookings in April ing stranded thousands of passengers in Hawaii were up threefold over April 2007,” said Michael and forcing the Hawaii Tourism Authority to spend Murray, vice president of sales and marketing for $500,000 on return tickets. In a further sign of softcorporate meetings and incentives at the Hawaii ness in the travel market, island-hopping carrier go! posted an $8.3-million loss in the second quarter, Visitors & Convention Bureau. Hoteliers are fighting to keep groups coming. ending March 31. But Murray saw some bright spots, too. Castle Hilo Hawaiian Hotel is offering all-inclusive meeting packages for groups of up to 400 people Aloha and ATA provided about 15 percent of that include meeting space, AV equipment, and F&B overall lift into Hawaii, but plenty of other major services with a 10-room-night minimum. Until carriers serve the market and no major city-pairs Dec. 20, Fairmont Orchid is offering a third room have been lost. night free to those who stay for at least two nights “We still have a high seat capacity, there is still and additional resort credits to attendees. Mauna Big Island’s Castle Hilo Hawaiian Hotel Lani Resort is offering “Hot Date” deals with a spe(below) is doing CMP pricing, while group cial rate of $200 to groups through December. business remains strong on Kauai (right). Thus far, despite a weakening economy and some gloomy leisure travel forecasts for Hawaii, group business is not showing signs of weakening. “We are not seeing a decrease,” said Edie Hafdahl, president of the Aloha chapter of Meeting Professionals International, and director of sales and marketing for the Kauai Visitors Bureau.“The majority of group business is booked over 12 months out, and this is especially true for the summer season; groups are moving forward with their programs.” But will this patronage of Hawaii by groups be enough to keep the state going during tough times ahead? Murray wasn’t sure. Hawaii is a “heavy leisure destination,” with attendees and conventionBy Corrie Dosh Meetings and incentives travelers are helping ward off an economic crisis in Hawaii this year as leisure business dwindles. Group business in the Aloha State is still thriving and, working to hold onto it, several resorts throughout Hawaii are offering allinclusive pricing and other perks to groups. “Meetings are still robust in Hawaii. In the past “Meetings are still robust in Hawaii. New bookings in April were up threefold over April 2007.” room, and Alaska, Delta, and Hawaiian [airlines] are adding flights,” Murray said. Also, when meetings business does come in, attendees spend more than individual visitors, Murray said. In total, visitors in town for a meeting or an incentive contribute about 15 percent of the state’s overall visitor expenditures and comprise the second highest market for the islands in terms of perperson, per-day spend. Both Murray and Hafdahl placed faith in the islands’ reputation for good weather and convenience to emerging markets in Asia to carry the destination through the downturn. Hawaii is increasingly the top meetings destination for multinational corporations that have offices in East Asia and the U.S. “The rising cost of airfare will definitely play a part in the decision-making process for 2009, and all destinations will feel the effect,” Hafdahl said. “Fortunately, Hawaii will continue to be affordable and planner-friendly.” r Contact Corrie Dosh at corrie.dosh@nielsen.com www.meetingnews.com July 21, 2008 MeetingNews 21 http://www.meetingnews.com

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Meeting News - July 21, 2008

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