During Travel Weekly’s Hawaii Leadership Forum in April, industry leaders gathered to discuss significant developments within Hawaii’s tourism sector.
Moderated by Travel Weekly editor in chief Arnie Weissmann, the roundtable addressed changes in leadership at the Hawaii Tourism Authority (HTA) and the Hawaii Visitors and Convention Bureau (HVCB), as well as federal impacts, economic uncertainty, and the implications of the increased Transient Accommodations Tax (TAT).
Ray Snisky, group president of ALG Vacations, expressed optimism regarding the continuous reinvestment by ownership groups into Hawaii’s tourism infrastructure.
He noted, “Hundreds of millions of dollars are being spent on the quality of experiences. It’s good to see that kind of investment. It’s vital to this destination.”
John Kimball, vice president for Hawaii and French Polynesia at Marriott International, echoed this sentiment, highlighting a communal commitment across various resorts to invest in their properties to prepare for a positive future after challenging periods.
David Hu, CEO of Pleasant Holidays, emphasized the commendable shift towards educational aspects in hotels, helping guests better understand the significance of their stay for local communities.
Hawaiian Airlines’ director of marketing, Hilary Palanza, mentioned notable investments in entertainment, referencing upcoming productions like the “Moana” live-action remake and other series that could enhance Hawaii’s visibility through cultural storytelling.
Caroline Anderson, interim president and CEO of HTA, spoke about the agency’s initiatives to support community organizations through programs such as the Community Tourism Collaboratives, which aim to develop visitor experiences that connect guests with the local culture more intimately.
Katrin Koenig, chief commercial officer of Delta Vacations, discussed how the industry has shifted since the pandemic, with noticeable upgrades in hotel properties and plans for further improvements to meet evolving consumer expectations.
As the discussion moved towards the recent leadership changes at the HTA, Weissmann raised concerns regarding the agency’s credibility following two notable resignations, including that of the board chairman.
Anderson addressed these issues, emphasizing the importance of rebuilding trust with the legislature and demonstrating the impact of tourism on the local economy.
Tom Mullen, senior vice president and COO of HVCB, highlighted the necessity of having a comprehensive strategy for tourism, stating, “There is a need to have somebody that sets a strategy overall that can get all the departments to work together.”
Mullen pointed out the reduced marketing budget, mentioning that their funding, significantly decreased since 2016, limits their ability to maintain and promote Hawaii as a tourist destination effectively.
Gina Gabbard, chief strategy officer at First in Service Travel, noted the marketing opportunities on the East Coast due to Hawaiian Airlines’ nonstop flights. She emphasized a potential oversight in not investing more aggressively in that market.
Mullen clarified that current resources only allow for marketing in the U.S. and that the messaging focus is primarily on the West Coast.
Palanza concurred, noting their similar challenges with insufficient marketing dollars to extend their reach beyond the West Coast market.
Kimball called for more state funding to broaden marketing efforts, underlining the critical state of the budget over the past years.
The conversation turned to the economy and its effects on travel, with Snisky reporting a strong start to the year but expressing concerns over bookings softening moving forward.
Angie Licea, president of Global Travel Collection, remarked on the trade-offs of reducing prices to increase transaction rates, cautioning that while sales might rise, it could destabilize the overall financial health of the industry.
Koenig emphasized the need for a deliberate approach, advocating against relying solely on discounts during downturns, and Gabbard highlighted luxury clients seeking value without feeling exploited.
Addressing the current federal landscape, Snisky noted the increasing interest in travel protection programs amid market uncertainties, while Gabbard raised concerns about international travelers’ hesitance due to fears regarding U.S. border policies.
Weissmann inquired about the travel reception from Japan and Canada, to which Palanza acknowledged Japan’s continued struggles in the market but maintained hope through ongoing investments in marketing.
Gabbard shared her group’s experiences in Canada, pointing out a divide among Canadian travelers regarding their willingness to visit the U.S., particularly in light of currency fluctuations impacting travel costs.
Discussions also touched on how declining corporate travel, especially post-pandemic, is impacting overall visitation trends to Hawaii.
The forum concluded with questions surrounding the state’s recent decision to raise the TAT, raised prior to its legislative approval on May 2.
Mullen argued for a clearer connection between tax revenue and tourism benefits, while Hu expressed opposition to the tax increase, fearing it could undermine the value perception of Hawaii tourism.
Anderson called attention to the need for a dedicated funding source to bolster HTA marketing efforts, stressing the importance of visibly returning tourism dollars to benefit both visitors and residents.
In reflecting on the broader state of the industry, Mullen pointed out their organization’s long-standing commitment to Hawaii, emphasizing the need for proactive leadership and collaboration among various stakeholders to navigate the challenges ahead.
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