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HomeMy WebLinkAboutCOM 1039.001 1996-1998 1 r` East Hawaii's Visitor Industry: Opportunities at Hand - r a r Report from the Visitor Industry Working Group A Project of the East Hawaii Governor's Office and the Hawaii Island Chamber of Commerce October 20,1998 ~O 3 9. l COMM No. Flip No.-,_,,,, Ref. To) resent3,i 6/S~D Aef. Date lCT 2 0 SpeaalMa/EastHawau Tourism Group &mn&wy Repart This report provides a summary of ideas and recommendations put forward by the Hilo/East Hawaii Tourism Group. The group is an outgrowth of a cooperative effort by the Governor's Office in East Hawaii and the Hawaii Island Chamber of Commerce and is made up of over forty business and community leaders who are involved with visitors in East Hawaii. The group has met nearly 20 times over a ten month period in 1997-98 to discuss ideas, and identify major issues and opportunities for the visitor industry in East Hawaii. Four basic themes emerged from these discussions: 1. East Hawaii already has a substantial body of visitors (est. 1.5 million), primarily attracted by the Hawaii Volcanoes National Park on a one day journey. Although a larger visitor count is desirable, our biggest challenge is to extend the stay of our existing visitors and to garner more revenue from the traffic we already have. 2. East Hawaii is a viable destination for visitors who are looking for Hawaii in a more natural state. Our cultural diversity, tropical flowers, scenic waterfalls and volcanic wonders comprise what many visitors come to Hawaii expecting to see. Fortunately, we do not have to change what we are to attract visitors. Our future success lies in our ability to preserve, enhance and promote the attractions and assets we already have, and to maintain a safe, clean and cordial atmosphere in which to share what we already are. 3. East Hawaii does not represent a significant force in the State or Hawaii Island visitor industry, in terms of either total investment or annual revenues. As a result, the region is generally on the outskirts of the core industry discussion and decision making process. To increase our competitive position, East Hawaii needs a strong visitor destination organization that is supported by a full array of visitor-related businesses, elected officials and the community as a whole. I 4. The HVCB's Big Island Chapter has adopted the term "Aloha Spoken Here" as the tag line for future Big Island promotions. This reflects the belief that our core niche lies in the capability of our own people to express Aloha and to provide visitors with a positive, personal experience that will endure. To make this belief a reality, we need to take intentional actions to improve our community's abilities to be good hosts and to deliver a quality visitor experience one person, one interaction, one day at a time. This report lays out a menu of public and private actions that would stimulate the visitor industry in East Hawaii. It is not a complete blueprint and needs the thoughts and hands of others. It is, however, intended to provoke thought and to instill actions that will improve both the visitor industry in East Hawaii and the environment and community on which it depends. Vradl~~y The visitor industry is a major contributor to the economy of the Big Island, accounting for well over $1.0 billion in annual revenues from visitor related expenditures. A full accounting of the economic and demographic aspects of the industry is not well documented, however, and it is difficult to distinguish regional statistics between different areas of the island. This lack of statistical data makes it difficult to define the true role of the visitor industry within the regional economy of East Hawaii or to chart its growth. In lieu of comprehensive statistics, listed below are some general statements that may help to define the visitor industry in East Hawaii: There are over 10,000 visitor accommodation units on the island, ranging from luxury resorts to independently operated bed and breakfasts. Approximately 1200 of these units are in East Hawaii Hawaii Visitors and Convention Bureau (HVCB) reports over 1.2 million visitors came to the Big Island in 1997, with over 70% coming and going out of the Kona airport. This number does not count visits that originate from within the State of Hawaii for which there is no dependable source of statistics. 80% of the visitors to Hilo in 1994 were westbound, 20% eastbound; 59% were independent travelers, 22% came as part of a tour group.(HVCB) 2 • The median age of the traveler to East Hawaii was 44; 56% were male; 50% came as couples and 44% were employed in a middle management positions or above. (HVCB) • Although the Hawaii Volcanoes National Park (HVNP) is frequently reported to have over 2.0 million visitors a year, its annual records indicate that only 1.2 million were classified as "recreational visitors"(average 3,300/day). The remaining were staff and support visits. • HVNP estimates that of the 1.2 million visitors, roughly 333,000 came to the Park in commercial vehicles (tour buses, vans, taxis etc.). The remaining 873,000 visitors came in individual cars. • In 1998, cruise ships are expected to dock nearly 100 times in the Hilo harbor and deliver over 100,000 visitors (plus 40,000 crew members) for 8-12 hour visits. These numbers will grow substantially in the coming years as American Hawaii Cruises and the cruise industry continues to expand. • By HVCB estimate, over 801/6 of visitors to the State have pre- purchased accommodations from a travel agent that include airfare, room and car. These package deals are popular values for the traveler, but they result in less flexibility for visitor in selecting where to stay once they get here. The Hawaii Volcanoes National Park is the primary visitor attraction on the Big Island, and it is the essential feature in East Hawaii tourism. Although the Park is a major magnet, most visitors spend less than 3 hours in the park and spend more time on the road, coming and going from West Hawaii or Oahu accommodations than they do exploring the wonders of the park itself. The vast majority of visitors to East Hawaii see the region from a vantage point of the car or bus window. They have planned little time to stop and explore the windward coastline and have only limited exposure to the places and activities that are here to explore. Most have not planned, nor were they encouraged by their travel agents, to spend more than part of a day on the windward side of the island. EntHawmil'a Linage It is not easy to separate the allure of East Hawaii from that of the Big Island as a whole. We are an island of so many unique resources it is difficult for any area to claim an exclusive hold on any particular attribute. What is clear, however, is that East Hawaii is known for volcanoes, waterfalls and tropical 3 flowers. We are a lush, green region with a windward exposure and all the weather that comes with it. Our reputation as a rainy place works against us, if we allow it to do so. Without rain there are no rainbows, no waterfalls and no tropical jungle. We need to promote the products of our rainfall and encourage visitors to be prepared for whatever a day in East Hawaii brings. East Hawaii is perhaps more like "Old Hawaii" than many other places in the state. Our local community character has not been compromised by an unmanageable influx of new residents, nor can we easily accommodate very large numbers of visitors at a time. We are not a traditional, high volume visitor destination area and our community does not aspire to be one. In many ways, East Hawaii has much of the charm and character that visitors travel to Hawaii expecting to see. We are a place where Hawaiian culture and a local island lifestyle are still prevalent. The cultural diversity of our community is a rich resource and, on the whole, we are a friendly and accommodating place. The natural sciences are a key element of East Hawaii's image, from the depths of the volcanic earth to the outer reaches of the universe. We are a place of world class science and biological diversity that is rivaled by few places on the globe. We live on the edge of two of the world's most active and photogenic volcanoes which are recognized by the United Nations as both a World Heritage Site and an International Biosphere Preserve, East Hawaii has great opportunities for eco-tourism and for serving the needs of adventuresome travelers who are interested in learning as well as relaxing. The natural beauty and cultural diversity that East Hawaii residents often take for granted are now key resources for an emerging visitor market. Our opportunity lies in being able to harness an intentional visitor image that builds upon our native assets and reinforces what we are, rather than transforms us to meet the expectations of others. East Hawaii has the opportunity to develop a moderate visitor economy on our own terms and to enrich our own sense of place and community identity in the process. Ctvlee Sih~ O~artrsoiditxi The cruise ship industry is one of the fastest growing sectors of the visitor industry internationally and is an area of significant opportunity on the Big Island. It is a sector of East Hawaii's visitor industry that is already up and running. The challenge is to make the best use of the opportunity and to use it as a chance to coordinate other elements of a broader visitor development strategy. In 1998, there will be nearly 100 cruise ship stops in Hilo Harbor, with 100,000 passengers and an estimated annual economic impact of $8 million. American Hawaii Cruises (AHC), which operates the only domestic cruise liner in Hawaiian waters, makes weekly stops in both Hilo and Kona, carrying A 825 passengers and 300 crew. AHC is also poised to put a second, larger ship in service by mid-1999, more than doubling its existing capacity. Foreign cruise ship arrivals have risen substantially in the last two years with nearly 50 arrivals annually. The foreign cruise ships originate or terminate their Hawaii tours in a foreign port, primarily in Mexico or Canada, and often involve extended open-ocean travel in a self-contained floating resort atmosphere. Foreign ships arrive seasonally during March-June and September-November, and carry an average of 1,150 passengers plus 500 crew members. Cruise ship passengers are, on average, older than the average Hawaii visitor and the industry sees growing opportunity in the demographics of our aging "baby boom" generation. Virtually all cruise ships arrive at the dock in the early morning and sail by sunset. They do not use existing overnight accommodations and virtually all meals are provided on-board ship. Between 40-50% of cruise passengers take pre-arranged shore excursions while in port, including half and full day tours to Hawaii Volcanoes National Park and helicopter, bus, taxi or rental car tours. The remainder of the passengers either remain on board or disembark and explore in small independent groups. The County of Hawaii and the HVCB, in partnership with Destination Hilo, underwrite the cost of a musical greeting for all cruise ships. At this point, Hawaii is the only island to provide such greetings and they are part of what distinguishes our ports from any others. The County also provides bus service to the pier on boat days with a 30 minute tour of Hilo and stops at several commercial and recreational places in the greater Hilo area. This bus service is a valuable asset to the cruise visitors with recent ridership averaging 100- 400 per boat day. Private shopping and visitor destinations (Prince Kuhio Plaza and Hilo Hattie's) also provide shuttle services from the pier to their facilities. The Hilo Sampan Co. also offers a city tour with key stops at beaches, downtown shops and the mall which is a popular and unique way to get introduced to Hilo town. Private taxis are a significant visitor option and drivers compete actively for cruise ship business. Taken together, the public and private transportation services are key to spreading the benefits of the cruise ship economy throughout our community. Cruise passengers are very short-term visitors. Their economic impact is concentrated with large, pre-booked transportation companies and their network of wayside shops, gardens and eateries. They do, however, present a significant opportunity to generate new business opportunities amongst small shop owners or entrepreneurial tour guides. They are also represent a significant opportunity for return visitors who will come back to the Big Island to explore further without the regiment of a ship's schedule. s A recent study conducted by the Downtown Improvement Association and funded by the State CBED program outlined an agenda for downtown merchants to follow to build off the cruise ship opportunities. The Hawaii Tribune Herald has also instituted an excellent promotional opportunity in the "Port of Call" tabloid which is available to passengers at the dock. A significant innovation in Hilo's cruise ship program has been the development of the Aloha Room at pier side. This has been a cooperative effort between DOT Harbors, Destination Hilo and the business community to provide personal orientation services to visitors and to maintain contact with visitor comments and needs. Hilo is the only port in Hawaii with such a facility and the effort has proven valuable as a means to spread the economic opportunity of the cruise industry. Most of this effort has been on a volunteer basis and, if it going to continue, there is a need for additional funds to sustain the effort on a long term basis. Recommendations • Ship Greeting programs requires ongoing County, HVCB and private support to accommodate the current growth in cruise ship arrivals. The ship-side kupuna hula greeting is a unique trademark of the Big Island and should be retained. The Aloha Room also requires additional funding to sponsor familiarization tours for the crew and to keep a trained body of volunteers on duty during busy periods. (County, HVCB, Destination Hilo, Private Sector) • Public and private transportation options need to be expanded as ship arrivals increase. (County, Private Sector) • Coordination with ship agents, on-shore staff and crew is critical to building local economic opportunities. Merchants should consider offering crew discounts to attract "top of the mind" awareness of merchants and opportunities in Hilo. Familiarization tours for crew and on board activities staff should be organized frequently to help crew members direct passengers before they hit the gangplank. (Private Sector, Destination Hilo) • Hilo merchants and individual entrepreneurs need to expand the range of activities that cruise passengers can take advantage of once they arrive in port. Tour packages sold on- board can be expanded to include small group tours for diving, fishing, touring, collectable shopping, etc. (Private Sector, DIA) 6 • American Hawaii Cruises should be seen as our key partner for year-round cruise ship programming. AHC is open to new opportunities for its passengers and wants each port to develop a range of unique program and activity options that enrich its island cruise. Destination Hilo and other groups need to nurture an ongoing relationship with AHC personnel and continually assess new ways to improve services to their passengers. (Destination Hilo, Private sector) • DOT Harbor's 2020 Plan proposes major improvements at Hilo Harbor to accommodate cruise ships. Improvements need to proceed rapidly to meet the short term need for additional wharf space in the face of increased cruise ship arrivals. Advocacy and political pressure are needed to maintain Hilo as a priority area.(DOT Harbors, Elected Representatives, County, Private Sector) • DOT needs to move quickly to enhance the appearance of the passenger off-loading area at Pier I by adding public telephones, wall murals, better ventilation in the warehouse arrival area and covered walkways out to the transportation area and Aloha Room. Artwork on large open spaces could be provided by local students or commissioned as "art in public places". (DOT Harbors, Community and Private Sector) Part of the magic of the Big Island is the places and stories that bring our community, history, environment and culture to life. Hawaii has a storied landscape and there is much to share and to know about where we live. It is one thing to watch water flow over a waterfall on the Wailuku River. It is quite another to do so understanding the name of the falls, its meaning, the height of the falls and any legend or interpretive vignette that might be appropriate. Interpretive signage is like having a tour guide always on duty at our special places, and they invite the visitor to be more familiar with the place they are visiting. Interpretive signage at selected locations throughout the island could be a valuable asset to visitors and residents alike. Done correctly, signage provides a bond between people and place. For example, the new statue of King Kamehameha is a significant contribution to Hilo's bayfront, but it will be incomplete until there are signs at the site which tell the stories of Kamehameha's exploits in Hilo and explain the unique history of the place where the statue now stands. Without this signage, the statue is merely a 7 photo opportunity and a pretty piece of art in a public place. A signage project at the statue is currently underway. The County and State can do much more to help interpret Hawaii with the use of interpretive signage. The community can, and must, be a major partner in this effort, helping to design, locate, construct and fund signage projects. The benefit of such efforts will be the planting of more opportunities for visitors to understand where they are, to develop a more profound respect for the place they are visiting, and seed a greater desire to stay longer or return more often. The cost of free-standing interpretive signs can range from $1,00045,000 each (including artwork and installation) and come in a variety of sizes and materials. There are limited funds available through State Park's Aina Ho'omalu program that can assist in areas of State interest. DBEDT's Cultural Tourism Grant Program could also fund signage projects. County and private resources also need to be developed to place and maintain informative signage in public places. The Hamakua Heritage Corridor Program provides a good model for the establishment of consistent signage and a regional view of scenic and cultural assets. This effort needs to be expanded island wide and should provide individual communities with the opportunity to identify the resources they want to share with visitors and those sites they want to protect from broader public use. The process of discerning what places to promote and what to say about them is key to building a broader community acceptance of the visitor industry. It also can be a means to develop community pride and identity at a grass roots level. Signage along the road side to aid travelers can be improved. The large "Tourist Beware" sign at Nanue bridge near Ninole is a good example of insensitive visitor signage and needs to replaced. Scenic waterfall views whiz by on the Hamakua coast and could be enhanced by improved pull-offs and signage to announce an upcoming photo opportunity. We also need to enhance our directional signage to address the travel needs of more than a million visitors a year who pass through Hilo on their way to the Volcano. Visitor maps, drive guides and other publications provide a good basis to work from, but much more could be done. Recommendations • Establish an island wide signage initiative at County and State Parks to provide place-oriented interpretation and promote our storied landscape. (County P&R, State Parks, Service organizations, community groups) s The following are some locations where new interpretive signage is needed: COUNTY Waipio Valley Lookout Wailuku River Banyan Drive/ Liliuokalani Punalu'u Bay Park Scenic Stops on the Onomea Coconut Island Scenic Loop STATE Akaka Falls Wailoa Park Rainbow Falls Tsunami Clock Pe'epe'e Falls Nanue Falls Bridge Kamehameha Statue Hilo Bay Lookout • Replace the big "Tourist Beware" sign at Nanue Bridge with a more friendly visitor oriented sign. (DOT) • Expand the Heritage Corridor program on an island wide basis. (State, County, Community Groups) OOMMWCft Community beautification is an ongoing concern in virtually every town where community pride is alive and well. The outward appearance of our community is an essential building block of a viable visitor industry and should never be taken for granted. Everybody has a list of things that need to be improved in their community. Here is a list of ideas generated by the Tourism Group: • Clean up Kamehameha Avenue in downtown Hilo, replace and/or maintain planters, sidewalks and crosswalk patterns. (County, merchants, service groups) • Install paving blocks along the graveled areas in front of shops on Kamehameha Ave. (County) s • Spruce up Banyan Drive by trimming trees on a regular basis, keeping the street clean, adding creative safety lighting and installing resort entry signage. (Banyan Drive Association, County and State) • Landscape Kalamanaole Ave. between the harbor and bayfront with shade trees to accommodate cruise ship and other passengers/crew. Erect a large "Aloha" sign and map near the harbor gate and install signage directing visitors towards Banyan Drive and Hilo bayfront. (State DOT, service groups, County) • Prepare a master plan for Bay Front and implement improvements including new rain shelters, bike paths, bathrooms, signage, seating and other visitor friendly features. (County) • Maintain scenic vistas throughout East Hawaii, including the removal of foliage that blocks the view of such spectacular view planes as Nanue and Umauma Falls in South Hilo, Pu'u O'o vent in Glenwood, and Laupahoehce Point in North Hilo. (State DLNR, landowners) "fYluti~pt, There are many parts to the transportation network that serves East Hawaii visitors. There are public buses, private taxis, sampans and bus companies, rental car companies and airlines. All of these play important roles in moving visitors to and from our community and they make our visitor resources accessible to the "touring" tourist. Several priority issues surfaced in our tourism group discussions. RENTAL CAR SHORTAGES The existing rental car fleet is often inadequate to service peak periods. Weekends are frequently overbooked and local hotels are forced to turn away visitors for the inability to assure them a rental car. This issue needs to be addressed with a concerted effort to coordinate major events and to insure that rental agencies know far in advance of group activities so they can supplement fleet capacity. HELE-ON BUS SERVICE The County's Hele-On bus provides valuable service to the cruise ships and offers a town tour that could be more widely utilized by visitors. Additional service to the Banyan Drive area, coupled with better 10 promotion efforts with the hotels, may result in expanded ridership within the Hilo area. Drivers need to be selected and trained to interact constructively with visitors. SAMPAN SERVICE The Hilo sampans are more than a good means of transportation for both visitors and residents. The sampans are part of Hilo's unique tradition and they need to be nurtured and supported at all levels. In recent years the Hilo Sampan Co. has made a concerted effort to keep the sampans running and they are a welcome addition to the transportation mix. Competition from several private taxi drivers has created some legal conflict for the sampans in recent years. It is important to resolve these issues quickly and to lay out operation guidelines for the sampans that allow them to serve a wide variety of transportation niches and to encourage their long term sustainability as an essential part of the Hilo character. A key to extending the stay of visitors in East Hawaii is expanding the range and type of activities that are available. Aside from the Volcano, and a handful of flower, garden, candy and macadamia nut attractions, there are few commercial attractions in East Hawaii that offer a commissionable experience which could be pre-sold to visitors while they are still planning their Big Island vacatioiL The current competition between existing East Hawaii visitor attractions focuses around the ability to provide a timely lunch, a clean bathroom and consume a given period of time to accommodate a tight bus schedule. Our current palette of private attractions do not in themselves justify a trip to East Hawaii nor does it offer most visitors an adequate reason to come back. Part of the fundamental solution for stimulating new growth in East Hawaii tourism is to develop a menu of quality commercial attractions, ones that are large and exciting enough to accommodate the commercial tour market and stimulating enough to bring independent travelers back for a return visit. Projects such as an historic steam train excursion, an Hawaiian Cultural Center or an enhanced tropical zoo are needed to entertain and educate visitors about our past and the various resources of our place. New attractions such as these could result in increased visitor counts in East Hawaii based on pre-sold travel packages with promotional discounts. If these projects are effectively delivered, they could create a destination that would both supplement the Volcano tour and create a new option for return visitors. Less centralized attractions are also needed to add new dimensions for the East Hawaii visitor. Again, the Hamakua Heritage Corridor is a good example. Other small museums, unique restaurants, botanical gardens, eco- adventures and self-guided driving tours are all part of increasing our palette of activities. New scenic lookouts or enhanced views are part of the formula for slowing down visitor traffic in East Hawaii and channeling visitor interest into pocket areas of the local economy. Recommendations • Solicit and support the development of one or more large-scale commercial attraction in the Hilo to Volcano area. Examples include an Historic Steam Train attached to an agricultural products marketplace or a Hawaiian Cultural Center with authentic demonstrations and daily hula shows. (Private sector) • Improve and promote the County's Panaewa Zoo to highlight tropical wildlife in a rain forest setting. (County Parks, Private sector) • Expand the Hamakua Heritage Corridor concept on an island wide basis. (County, State DBED) • Promote greater tour group utilization of the Downtown area by consolidating a series of activities including a hula display, performances at the Palace Theater, art galleries, Tsunami Museum etc. to stimulate commercial activity in the core town area. (Downtown Merchants) • Develop "waterfall and collectable tours" to be offered as a commercial tour for cruise passengers to share South Hilo's scenic waterfalls and downtown gallery shopping opportunities. (Downtown Merchants) • Encourage small businesses to develop eco-tour activities including scuba diving, mountain bike tours, horse-back riding, bird watching and forest walks. Both public and private lands need to be available for these uses. (Private sector, State and County land use regulators) BWVW, EdeRNOtlE.Arm Banyan Drive's over 978 rooms provide nearly 80 % of East Hawaii's total overnight accommodations. It is the region's only significant resort facility and it is a vital part of East Hawaii's economic infrastructure. In addition to 12 over 500 direct jobs, Banyan Drive visitors support hundreds of indirect jobs in a wide range of shops, tour companies, visitor attractions and service providers. Banyan Drive's hotel room inventory is vital to the success of virtually every major event in East Hawaii from the Merrie Monarch Hula Festival to University of Hawaii at Hilo (UHH/community sports programs and even large family gatherings. The property under the Banyan Drive Resort belongs to the State of Hawaii and is managed by the Department of Land and Natural Resources (DLNR) under the standard body of law that controls the State's land assets. Operators lease the land under their hotel and/or condominium from the State and those leases will run out in the next 10-15 years. In coming years, the infrastructure and appearance of the Banyan Drive Resorts is sure to suffer as the reinvestment horizon becomes shorter. Lessees have little incentive to reinvest in their hotel assets, because State law precludes them from negotiating directly to extend leases to accommodate such investment. This is a serious problem, both for the lessees and for the local businesses that are dependent on a continued flow of visitor revenues in East Hawaii. Banyan Drive is a significant economic engine for East Hawaii and it can not be allowed to fall into disrepair. No reasonable businessperson will reinvest in infrastructure improvements if they have to turn around several years later and buy those improvements back in an open State lease auction. In order to retain a strong resort economy in East Hawaii, the State must look closely at its land leasing policies to allow for negotiated lease extensions under certain circumstances and to reinvest portions of their revenues to enhance the value of its asset. Recommendations • DLNR must be strongly encouraged to consider alternative leasing policies to promote reinvestment in resort infrastructure. The County and the broader business community need to work with the Banyan Drive lessees to protect the future of East Hawaii's most productive visitor industry resource. (State BLNR, Legislature, Private Sector Banyan Drive Lessees) • The Banyan Drive Association needs to establish a unified voice for lease reform and initiate joint efforts at beautification and cooperative destination marketing. (Banyan Drive Lessees) • DLNR needs to take a proactive approach to the leasing of the former Orchid Isle property, which has sat vacant for over a twenty (20) years. The new use should be complementary to the surrounding resort area. In the meantime, this vacant lot 13 needs to be kept clean and landscaped from pedestrian views. (State DLNR) • The sand beach near Reed's Bay is a significant asset for both visitors and residents. The County restroom needs to be cleaned up, the park landscaped and the beach needs to be replenished with new sand. This area is the only sand beach in walking distance from the resort area and has one of the few public restrooms in Hilo. It is currently under-developed. (County Parks) • Signage improvements are needed to mark the entries into the resort area and to correctly highlight the celebrities who planted the Banyan trees in the 1950's and 60's. (Banyan Association) • Banyan trees and other foliage need to be trimmed on a regular basis and the street needs to be cleaned regularly to maintain a groomed appearance. (County, Banyan Association) • Night lighting needs to be installed in the Banyan trees to enhance public safety after dark and to accent the appearance of the resort by highlighting the unique natural forms of the Banyan. (Banyan Association) pubft l Public safety is a key element of any successful visitor destination. For the most part, East Hawaii is a safe place for visitors, but there are areas where improvements need to be made. Hawaii County's Community Policing initiative has made a significant impact on public safety island-wide. This effort must be continued, with additional efforts focused on areas frequented by visitors. Recommendations • Continue to expand community, policing in areas frequented by visitors, including Banyan Drive, Keaukaha Beach Parks, Downtown Hilo, Akaka Falls, scenic lookouts and other public parks. (County, Police, Neighborhood Watch) • Work to suppress the activities of those who accost visitors, including panhandlers, unsanctioned sales at visitor sites and excessive drinking in public parks. (County, Police, Neighborhood Watch) 14 Provide appropriate signage to warn visitors of natural hazards and potential criminal activity. (State Parks, DOT Highways, County Parks) East M a V"vk9 *by Q n < The visitor industry on the Big Island is organized in three distinct layers. At the top, the Hawaii Visitors and Convention Bureau (HVCB) sets statewide marketing directions and expends the lion's share of funds earmarked for generic destination marketing. HVCB's goal is to attract visitors to the state and to compete with the other destination markets worldwide. The second level of promotions comes from the Big Island Chapter of the HVCB, which advocates more specifically for Big Island promotions and partners with large local partners such as the County and the Big Island Group (BIG), to undertake Big Island promotional projects. The Kona-Kohala Resort Association is a key player at this level. This collective Big Island effort tries to differentiate the Big Island from other Hawaii destinations and focuses its promotional dollars where they will do the most good to attract Big Island visitors. The third level of visitor industry organization includes the destination organizations. On the Big Island, there are three major groups-- Destination Kona, Kona-Kohala Resort Association and Destination Hilo. These groups represent regional interests and depend almost entirely on private funds to operate. We are learning that it is not enough to merely bring visitors to the island. We need to do a better job of delivering a quality experience once they are here (informing, welcoming, directing etc.). Regional tourism groups such as the destination organizations can do much in this area, but they need more intentional support from the business sector, the community and the County and State. To be truly successful, East Hawaii needs a vibrant and well-funded destination association to aggressively market the region's unique attributes and to serve as a forum for the industry's own self-examination and creativity. This association should be broadly supported by major industry players, small businesses and individuals. A strong destination association is key to East Hawaii's long term visitor industry success. Since 1995, when the State stopped subsidizing Destination Hilo, the organization has operated on very limited funds and has shown that it can assume difficult responsibilities and rise to the occasion. It has shepherded the growth of the Aloha Room at the pier and is deeply involved in the edu- 1s tourism programs that are emerging at the University of Hawaii at Hilo. Raising new funds has been difficult in a struggling economy. With the establishment of the new State Tourism Authority, the future of Hawaii's promotional efforts is in transition. This is an important time to organize the interests of destination groups throughout the State and to assert a unified voice for increased expenditure of promotional moneys to underwrite local tour promotion and coordination efforts. Recommendations • Expand both public and private support for Destination Hilo, including the consideration of an incentive program to match private contributions with public funds to establish a broader resource base to promote East Hawaii travel. (Destination Hilo, Private Sector) • Maintain funding for the cruise ship greeting and provide short tern support to insure expanded success of the Aloha Room at the pier. County, HVCB, Private Sector) • Coordinate a concerted effort needed to attract and accommodate travel agents, travel writers, "fam" tours, etc. (Destination Hilo, HVCB, County R&D) • Develop new ways to utilize the Internet to serve the growing independent travel market. (See gohawaii.com, bigisland.com and gohilo.com) (Public and Private Sectors) • Identify specific East Hawaii market niches and direct promotional efforts accordingly. (HVCB, Destination Hilo, County) !~e?t~~etta, S'pi~r~+'3~~aand~d~ The Big Island, East Hawaii in particular, has some strong niche market opportunities that can contribute significantly to the growth of the industry. The obvious examples are the major events that take place annually in Hilo and draw thousands of off-island visitors. The Merrie Monarch Hula Festival is an excellent example of a culturally-based event with broad market appeal. Sporting events, such as the Haili Volleyball tournament and a wide range of other UHH, BIIF and various league sports tournaments year-round, bring thousands of guests to East Hawaii. Sports and special events are an important part of East Hawaii's tourism mix and need to be expanded and encouraged wherever possible. Sports and special event facilities at Ho'olulu Park and the UHH are adequate for most of is these events. We note, however, many of our most significant and most utilized facilities are aging and will need to be refurbished in next five years. There is also a shortage of meeting spaces to stage conferences with current technologies and breakout rooms. The University, through its Conference Center program, has broken new ground in offering innovative and educationally oriented programs to students of all ages. UHH's new strategic plans calls for the expanded use of the natural and cultural resources of the Big Island as core assets of the University's mission. Credit and non-credit programs on astronomy, geology, and other natural sciences offer a unique niche of life-long learning and have natural linkages to the visitor industry. Conferences, Elderhostle programs, and other educational gatherings create opportunities of multi-night stays and focus the visitor's attention on the true nature of the resources we have to offer. Conference facilities are available at UHH on a limited basis and the size of conferences is severely limited by the available inventory of overnight accommodations. Small to medium sized gatherings (40-200 participants) can be accommodated fairly easily. Larger groups must go elsewhere. Additional meeting space and conferencing facilities at the UHH would open up new opportunities to edu-tourism. Recommendations • Support Merrie Monarch, the Haili Tournament, International Festival and other traditional East Hawaii events. (State County, Private Sector, Community) • Develop new conferencing and event facilities near UHH or Banyan Drive Resort area. (State, Private Sector) • Establish a conferencing strike force made up of the public and private sector to pursue conference activities and to develop opportunities that will spin off of the new State Convention Center in Honolulu. (Destination Hilo, Private Sector, HVCB) • Support the upcoming World Indigenous People's Conference in August, 1999 as an opportunity to promote the Big Island's cultural authenticity and capacity to host large, flexible groups.(County, Private Sector, Community) 17 Perhaps the most important outcome of the Special Tourism Group was the consensus recognition that the character of our community is among our richest assets. More often than not, it is the people who visitors come in contact with that make their most lasting impressions. All the visitor signage and interpretive efforts in the world will not make up for one negative experience with a local person and, by the same token, few memories are more long lasting than those we get from the good people we meet when we travel. The ability of our community to engage visitors in a constructive and hospitable fashion is an essential part of a long term visitor industry strategy that is at the root of East Hawaii market appeal. Our ability to share Aloha is a key part of the reputation we all seek to promote. This is not a trite statement and it is something we cannot take for granted. We cannot simply market our community's capacity for Aloha, we need to work intentionally with our own people to insure that Aloha is part of who we are and the essential cord of what we bring to the visitor experience every day. The Big Island Chapter of the HVCB has registered a trademark for the tag line "Aloha Spoken Here". This is a term that will be used in most of the Big Island promotional material in the coming years. Part of the ongoing work for the visitor industry island-wide will be to design and operate a program that puts some meat to the tag line "Aloha Spoken Here". We need to develop vehicles to enhance our community's ability to serve as hosts for off-island guests, to share local events, to inform them of our history and to share with them our genuine affection for this place and its people. If we succeed, we will not only have a healthy visitor industry, but we will have an enriched community that is capable and committed to sharing its uniqueness with others and to do so with Aloha. 18 APPENDIX • List of East Hawaii Visitor Industry Working Group Participants • Cruise Ship Arrival Schedule • Cruise Ship Economic Impact Studies • Aloha Room Budget • Recent HVCB Visitor Exit Surveys • Aloha Spoken Here SPECIAL HILO/EAST HAWAII TOURISM GROUP - As of 10 / 2 0 / S 8 Name Affiliation Kate Ahia Destination Hilo Lei Andrade Hawaii Naniloa Resort Violet (Balbarino) Oliver Visitor Information Program Ian Birnie, State DOT Harbors Div. Michael Brandon Aquatic Perceptions John Campbell Consultant Renee Carpenter Hawaii Tribune-Herald AI Castro Governor's Office Brian Crawford Chalet Kilauea Marsha DeClue Destination Hilo Gerald DeMello Univ. of Hawaii at Hilo Take Domingo County Council Judith Fox-Goldstein Destination Hilo/UHH Toni Freeland-Robert Destination Hilo Aloha Room Tom Goya JCCI/HELCO Howard Haymore State DOT Highways Div. Paula Helfrich HIEDB Michael Hendricks Chalet Kilauea Alexa Holt Aloha Airlines Julie Hugo HICC Myra Ikeda Consultant Troy Iwamoto Roberts Hawaii Kenneth Johnston HVCB Daryle Kitamori Hilo Hawaiian Mardie Lane HVNP Lorna Larsen-Jeyte Kilauea Lodge/Deet. Hilo Jeff Melrose HICC/KS-BE Mike Miyahira JCCi George Mfyashiro Jack's Tours David Morgan Nant Mau Gardens Howard Nakamura County R&D Patty Sus Nielsen Orchid Village Restaurant Ken Okimoto DIA Sharon Papa Roberts Hawaii/Capt. Bean's David Read Hilo DIA Paul H. Rosendahl Hilo DIA Karen Sakoda HVCB Bev Sorensen Destination Hilo Stanley Tamura State DOT Highways Div. Steve Todd DBEDT Charlene Unoki DLNR Carol Van Camp Prince Kuhio Plaza/HICC Rick West HIEDB Ross Wilson Current Events Sandy Yokomizo Hilo Bay Hotel '(More than 25 others attended at least one meeting of the Group) 1999 PASSENGER SHIP SCHEDULE HILO HARBOR AS of 1 Sep 98 Date Day Ship loa Pax/Crew ETA-ETD Agent 1. 1/2 Sat DEUTSCHLAND 574' 620/250 1300-2300 Itch 2. 1/3 Sun LEC3END OF THE SEAS 865' 1700/732 0800-1800 Wal 3. 1/7 Thu N I WEGIAN DYNASTY 567' 550870 0700-1800 Wal 4, 1/23 Sat A T R 578' 650/270 0800.1800 Inch 3. 1127 Wad M GORKIY 639' 650/350 0800.1400 huh 6. 2/11 Thu LF. OF THE SEAS 865' 1700/132 1100-2200 Wal 7. 2121 Sun LEGEND OF THE SEAS 865' 1700/732 0700-1800 Wal 8. 3/21 Sun CROWN PRINCESS 804' 1600/675 0800-1800 TMC 9. 3128 Stu CROWN PRINCESS 804' 1600/675 0800-1800 TMC 10. 4/8 Thu STATENDAM 720' 1200/588 0900.1800 Wei 11. 4/17 Sat CROWN PRINCESS 804' 1600/675 0800.1800 TMC 12. 4/20 Tue CROWNPRINCESS 804' 1600/675 0800-1800 TMC 13, 4/22 Thu SKY PRINCESS 788' 1200/540 0800-1800 TMC 14. 4/23 Fri RHAPSODY OF THE SEAS 915' 18001765 0700-1800 Wal 15. 4/24 Sal STATENDAM 720' 1200/588 0800.1800 wal 16. 4/27 Tue SKYPRINCESS 788' 1200/540 0700-1900 TMC 17, 4/28 Wad JUBILEE 733' 1500/700 0800-1700 wal 18. 4/30 Fri VISION OF THE SEAS 915' 1750/765 1200-2000 Wal 19. 5/2 Sun RHAPSODY OF THE SEAS 915' 1800/765 0800-1800 wal 20. 515 Wcd JUBILEE 733' 1500/700 0700.1600 Wal 21. 5/6 Thu VISION OF THE SEAS 915' 1750/765 1200-2000 wal 22. 5110 Mon STATENDAM 720' 1200/588 0900-1800 Wal 23. 5/16 Sun PACIFIC VENUS 602 720/180 0800-1600 Inch 24. 7/4 Sun ASUKA 623' 425/268 0800-1800 NLH 25. 9124.5 Fri-Sat VISION OF THE SEAS 915' 1750/765 24/1200-25/1800 Wal 26. 9/27 Mon N WEGIAN WIND 758' 1750/614 1200-2000 Wal 27. 10/1 Fri RHAPSODY OF THE SEAS 915' 1800/765 0700-1600 Wal 28. 10/2 Sat REGAL PRINCESS 804' 1600/100 0700-1800 TMC 29, 10/4 Man VISION OF THE SEAS 915' 1750/765 0800-1800 Wei 30. 10/6 Wed JUBILEE 733' 15001700 0700.1700 Wal 31, 10/8 Fri NORWEGIAN WIND 758' 1750/614 0800-2000 Wal 32. 1019 Sat REGAL PRINCESS 804' 1600/;100 0700.1800 TMC 33. 10/10 Sun STATENDAM 720' 1200/38.8 0900.1800 wal 34. 10/11 Mon RHAPSODY OF THE SEAS 915' 1800/765 0800.1900 wal 35, 10/15 Fri JUBILEE 733' 1500/700 0700-1800 Wal 36, 10/18 Mon NORWEGIAN WIND 758' 17SW614 0800-2000 wal 37. 10/29 Fri NORWEOIAN WIND 758' 1750/614 0800-2000 Wal 38. 11/1 Mon REGAL PRINCESS 804' 16001700 0700.1800 TMC 39. 11/5 Fri STATENDAM 720' 1200/588 0900.1800 wal 40. 11/6 Sat NORWEGIAN WIND 758' 1750/614 0700.1300 Wal 41. 1211 Wed STATENDAM 72V 1200/588 0800.1800 wal 42. 12/17 Fri STATENDAM 720' 1200/588 0900.1800 Wei TO: Hawaii Island Chamber of Commerce (Julie Hugo) 28 May 1998 Kona-Kohsla Chamber of Commerce (Maori Hedws) FROM: Harbors Division/Hawaii District Gan Biraie) SUBJ: Economic Impact of Passenger Ships Visiting Hawaii County in May, 1997, DBEDT's'READ' (Research and Economic Analysis Division) provided Hawaii County's Department of Research & Development (R & D) with figures relating to the impact of cruise ship passengers on the island's economy. R do D provided us with a copy, and we noted that several of the numbers, most noticeably the average number of passengers carved on foreign ships, were on am low side. We also noted a disparity in the estimates of passenger expenditures, as the Cruise Una International Association was publishing a 5200 per day average expemdiwrc per passenger at the acme Cane that the HVB was providinj an $98 per day figure. We )mew we couldn't do anything about these expenditure numbers, except use high, low and 'in-between' estimates, but we thought we should provide slightly more accurate figures for numbers of port calls and numbers of passengers. Thus the calls and passenger caroms are pretty accurate, but the jobs created, personal income and taxes Swerated all depend on the remaining variable - the average expcnditure per Passenger. We are enclosing the original DBEDT memo, with Table 1, as pages 1 and 2 of the enclosures. Pages 3 and 4 compare the DBEDT estimates with our numbers, for 1997, and page 5 contains our projections for 1998. The impart, particularly in jobs created and taxes generated, is considerably more than anyone initially thought, and hopefully may help in justifying support for various passenger-related projects - both at the people and and with physical improvements to Uu Wlitics. Enc. A. DBBDT Memo and Table 1, 5/15/97, 2 pgs. B. Harbors data, Economic Impact, 1997,2 pgs. C. Harbors date, Projections for 1998,1 pg. A ~1100c1~i full a . • ,.Jtl • _ e DEPARTMENT OF BUSINESS, P.90 ECONOMIC DEVELOPMENT & TOURIS N~ECE(VCD snuxae.ornclaaw USIMCHM011CONOMICANALY1118DM8tON ,a' ~~u Tel.: (606) 366• No. 1 Capitol DI&W tlttlp., 260 South Hotel St., 4th Mr., Hondt HaIW A6ijPM 1 08 RA: (906) Wa Malunp Address: P.O. lox 2930, HmolWu, Howell 96909 RESEARCH AND May 15, 1997 DEVELOPMENT Ms. Colette Rapoao-Yamamom Resource Materials Specialist Department of Research and Development County of Hawaii 25 Aupuni Street Room 219 Hilo, Hawaii 987204252 Dear Colette: As you requested, our DBBDT Research and Econoutic Analysis Diviston has estimated the impact of visitor arrivals to Hawaii County in 1997 via cruise ships. As the enclosed Table 1 indicates, the arrm& of cruise ships in 1997 generated 118 jobs, $3.6 million of income, and more than $600,000 of state and local government tax revenues. We have not made a specific estimate of the impact of purchasing fresh fruit and vegetables and the impact of purchasing lunches on premises. We have contacted the Hawaii Visitors and Convention Bureau in Honolulu and in Hilo; they indicated that they do not have the data needed to do such an estimate. Further, the $88 expected daily expenditure for visitors includes spending on meals. If you have arty questions, please feel free to call me at (808) 586-2470. Sincerely, Dr. Pearllmada Iboshi Chief Economist and Administrator PILTP:sy Enclosure ~/SEDT sraT~sric5 ,e~~avEST~O .9Y H,frrJ~¢a GoduTy 2. E p. Table I. Economic Imaaet,of Grubs llhlols to tfatrall Countv.ltllL Fs+rmstbn etanrlse shin esaarxfalsNto~ndtnrrls 1 Numberof domwft ahip &nlvale: 96 2 Average number of pssteegets•per ship: 800 3 Average fsr4ph of stay 1 4 Number of vlskor days from domesdo ends. shims (1)•(2)•(3) 76,800 days 6 Number of forelpn ahp artNais: 35 6 Average number of passengers per ship: 675 7 Average length of stay 1 8 Number of vbgor days from foreign efulte ships.(sr(b)'(7) 625 9 TOWvMWdays.(4)+(6): 10 1?5 10 Expendllut" Per Adw W day OM 1996 dam. lodghrp exduded): 86 dollats 11 Total viftr elpeftcMrres. (9)Y10) 8,837.400 dollars Estimation of aeeno Ic Imood 12 a8P mul*Por for ioudsm (SQSP/iv(dror e)q.. MDT r/O moc".- 0.7 13 Job multlp%r for uwl8m Oobsgmt AM? axp„ DOEDT I O m doo: 13.3 14 Household income muMplierfor rolUlsm (UncomeMAsew *V., W modal. 0.4 15 QW "naaated (S"Q a (11)' (19) 4929.918 dollars 18 Jobe peneraled m (11)•(13)fI,=XO 118 jobs 17 Household hroome pino a t (11)1(14) 3.567.974 dollars 18 Eellmated stela and loW fulo preens mtio: (based on tax and lW&-na data) 0.17 19 State end local taxes 9snsrated a (171Y1~ 808 996 dollars ECONONUC IWACT OF CRUISE SHIP ARRIVALS TO HAWAII COUNTY, 1997 (Hilo Harbor and Kailua Bay/Pier) Estimates of cruise ship visitors and vis w expenditures. using updated numbers reflecting higher passenger courts and more actual pmt calls than listed in the initial study. DBEDT Harbors I Number of domestic ship arrivsta 96 96 2 Average number of pesseegempodO 800 811 3 Average length of stay 1 1 4 Number of visitor days (lx2x3) 76,800 77,896 5 Number of f ercip ship arrivals 35 39 6 Average number of pass ragas per ship 675 1176 7 Average length of stay 1 1 8 Number of visitor days (5x6x7) 23,625 45,864 9 Total visitor days (4+8) 100,425 123,750 10 Expenditures per visitor per day (HVB 496 at) 888 888 11 Total visitor avaWkwas (9x10, HVB est.) 58,837,400 $10,890,000 Alternate A: 10 Expenditures per visitor per day (CLIA) $200 $200 11 Total visitor expenditure (9x10, using CLIA est.) $20,085,000 $24,750,000 Alternate B: 10 Expenditure per visitor per day say $123 say S125 I1 Total visitor expenditure (9x 10) $12,553,125 S15,468,750 Notes: (a) American Hawaii Cruisers (AHC) averaged 811 passengers per voyage, thus Harbors' figures mflect 811 vice DBEDT's 800. (b) There were 21 foreign vessel calls in Hilo, 18 in Kane, thus 39 total calls in Hawaii County. (c) Foreign cruise ships averaged 1176 psaaengeia per vessel in 1997 (501 more passengers per call than anticipated). Harbors' Sgum reflect 1176 vice 675 in line 6. (d) HVB's 1996 data Wail" visitor expenditures at $88 per person per day, the Cruise Liao International Association (CUA) claims that ship passengers spend an average of S200 per day. We suspect that the actual figure is somowlxxe in between, thus we have calculated "total visitor expenditures," Line 11, using both numbers, then we also re-calculated using an "in between" figure of $125 per day. ESTIMATES OF ECONOMIC IMPACT 1997 (A) Using DBEDT figures and HVB's $98 amount (Line i l - S8,837,400) 12 GSP multiplier for tourism 0.7 13 Job multiplier for tourism 12.3 14 Household income multiplier for tourism 0.4 13 GSP generated (I I x 12) $6,186,180 16 Jobs gerreratod (i 1 x 13 / 1M) Hs 17 Household Income generated (11 x 14) 53,534,960 is Estimated state and local tax rate 0.17 19 State and local taxes generated (17 x 18) $600,943 Note: disregard DBEDT Table 1 Lines 15,17,19 on previous page; irxxareot multiplication. (B) Using DOT-Harbors figures in Lines 2, 5, 6 and HVB's S88 amount (Line 11- S 10,890,000) 12 GSP multiplier for tourism 0.7 13 Job multiplier for tourism 13.3 14 Household income multiplier for tourism 0.4 IS GSP generated (I1 x 12) S70623,000 16 Jobs generated (1l x 13 / 1M) 145 17 Household irworw generated (11 x 14) 54,356,000 18 Estimated state and local tax rate 0.17 19 State and local taxes geruxated (17 x 18) $740,520 (C) Using Harbors Division figures and an average S125 expenditure (Lino 11- $15,468,750) 12 GSP Multiplier, for tourism 0.7 13 Job multiplier for tourism 13.3 14 Household Income multiplier for tourism 0.4 15 GSP generated (I1 x 12) 510,828,125 16 Joba generated (11 x 13 / 1M) 206 17 Household intone generated (I I x 14) $6,187,500 18 Estimated state and local tax rate 0.17 19 State and local taxes generated (17 x l8) 51,051,875 w 1 PROJECTED IMPACT OF CRUISE SHIP ARRIVALS TO HAWAII COUNTY -1998 HILO HARBOR AND KAILUA BAY / PIER 1 Number of domestic sWp arrivals 104 2 Average number of passengers per ship 825 3 Average IenS* of stay 1 4 Nmnbcrofvisitordays 85,800 5 Number of foreign ship arrivals 86 6 Average number of passengers per ship 1150 7 Average length of stay 1 8 Number of visitor days 94,600 9 Total visitor days 180,400 10 Expenditures per visitor per day (HVB) $88 11 Total visitor expenditures $15,875,200 Alter=to A: 10 F.xpmffiwres per visitor per day $200 11 Total visitor expenditure $36,080,000 Alternate B: 10 Expenditurea per visitor per day $125 11 Total visitor expenditure $22,550,000 @$88.00 @S125.00 12 OSP multiplier 0.7 0.7 13 Job multiplier for tourism 13.3/1M 13.3/1M 14 Household income multiplier 0.4 0.4 15 OSP generated $11,112,640 $15,785,000 16 Jobs generated 211 300 17 Household income $6,350,080 $9,020,000 18 Estimated statailocal tax rate 0.17 0.17 19 State & local taxes generated $1,079,514 S1,533,400 Notes: (A) Line 2 - We are currently (May 1998) averaging 825 passengers per call on SS INDEPENDENCE. (B) Line 6 - We arc currently averaging 1100 passengers per call on foreign ships. (C) Hilo bas 45 foreign ships (52%) and Kona has 41(48%) scheduled for 1998. PO Box 1391 Hilo, Hawaii 96721 ALOHA ROOM OBJECTIVES: To develop an ALOHA PRESENCE at the Pier in an effort to positively impact the visitors stay in East-Hawaii. To develop a traditional ALOHA GREETING that will set the standard for Hawaii's Port of Call greetings. To provide on-site supervision for the Aloha Room to facilitate the pressing need for information and assistance and visitor assistance. To act as an effective vehicle of information which will allow the visitor to positively maximize their short time on the East Side of the island. To serve as a liaison between the business community, the Harbor, the cruise lines and all modes of ground transportation in an effort more effectively service the cruise line passengers IMPLEMENTATION STEPS Design Master calendar Maintain volunteer list Establish a protocol for volunteer training Develop affirmation program for volunteers Develop on-going community linkages in support of Aloha Room Develop working relationship with Harbor and Cruise Lines Develop media program to keep community informed about cruises and Aloha Room Develop "Cruise Alert" radio spots and PSA's Develop Hawaiiana program for Aloha Room Develop internship program with University of Hawaii at Hilo Develop protocol for business advertising in Aloha Room Develop on-going promotional programs that will embrace our visitors and inspire community involvement. J.Fox-Goldstein 6/13/98 Destination Hilo P.O. Box 1391 Hilo, Hawaii 96721 ALOHA ROOM BUDGET January 1999- December 1999 Operating Budget Total In-Kind Donations Aloha Room Coordination $35.000.00 $10,000.00 Volunteer Coordination Community/Business Coordination Publicity/Media Coordination On-Site Coverage (2 paid staff) $15.500.00 $ 5,000.00 Administrative Services $ 5,000.00 $5,000.00 Fiscal Services $ 1,500.00 $1,000.00 Supplies $ 1,500.00 $ 500.00 Phone, Fax $ 500.00 $ 500.00 0 Equipment $1,000.00 $1,000.0 $60,000.00 $23,000.00 Total Operating Budget $60,000.00 Total In-lend Contributions $23.000.00- Total Budget Deficit $37,000.00 The Aloha Room requires a significant amount of oversight, coordination, recruitment, networking and program development. A full time coordinator, in addition to two (2) paid staff are required to fully implement the services required by our ever-increasing cruise industry. Additionally, during six (6) months of peak season activity, the room requires a voluntary staff of approximately 10-15 'Aloha Ambassadors." Off season voluntary requirements demand a steady core of approximately six (6) volunteers. Calculations based on approximately 120.140 ships per year Calculations based on $18.001hr x 40hrs per week for Coordinator Calculations based on $8.00 x 20hrs per week for two (2) assistant staff coordinators. *44WAI 4 Big Island Visitors Bureau May 21, 1998 The Big Island To: Distribution L(O KI"JwC ~(lFF[ From: Ken Johnston Hilu. Hewau. USA 96+¢0 Subject: '98 Westbound Visitor Survey Results Tdephuna-i.8o8i161.579- F:u". i.NO8.96i=c6 The Big Island Visitors Bureau, in conjunction with Hawaii County Department of Research and Development, surveyed departing westbound (mainland) visitors at Kona Kona international Airport. Two hundred seven written interviews were obtained during the period of April 23 through May 13. Your executive summary of survey results is -5-57l') W Ahf Drive attached. K'ajlua-Kona. USA 96740 This is the first time we've interviewed departing mainland-bound Kona passengers. TdFphonF'. i.8o8.h9.7787 You will also receive a similar survey conducted at the Hilo International Airport in the near future. Fax- i.808. 326.7563 As we saw in the earlier eastbound survey (Japanese visitors), visitor satisfaction with the destination is excellent. Of the 207 westbound respondents, 206 enjoyed their Big Island vacation. Nearly 97% would recommend the destination to their family and friends, and 90% would return to the Big Island. Highlights: • Visitors to Hawaii's Big Island tend to stay longer - nearly 39% stayed more than seven nights - and 21 % stated the one thing that would improve their vacation here is even more time. • Volcano is the top attraction and snorkeling is the favorite activity. • Over 71 % traveled to just one island - Hawaii's Big Island. • Over 26% of survey respondents came to a corporate meeting or incentive program. We hope this visitor profile proves useful in your strategic marketing. Westbound Visitor Profile page two • # of nights on Big Island 8.0% less than four nights 11.1 % four nights 13.6% five nights 14.6% six nights 13.6% seven nights 38.9% more than seven nights Age 7.3% '20s 27.2% '30s 25.7% '40s 22.5% '50s 17.3% '60s and older • Gender 53.8% Female 46.2% Male • Areas of Residence 22.4% California 12% Canada 7.3% Washington 6.8% Oregon 6.8% Colorado 6.3% Michigan 5.2% Illinois • Other states/countries mentioned (in ranked order) Arizona Alabama Wisconsin Maryland Indiana New Mexico Nebraska Florida New York Idaho Germany Massachusetts Louisiana Oklahoma Virginia Kansas Utah New Hampshire Nevada Montana North Carolina London Alaska Switzerland Texas Australia Ohio Iowa / 4 Big Island Visitors Bureau Activities & Attractions Westbound Visitor Survey Results Kona International Airport - Spring `98 The Big Island • Favorite Attractions "''0 27% Volcano „.K,,a„.e,,,ee, 20.3% Beach/ocean 6.3% Helicopter Hil".. USA 96' ° 5.8% Snorkeling Telephone. o8o8,961.3-9- • Other attractions mentioned (in ranked order) - Fu i.8o8.961.2126 golf fishing hotel Mookini sightseeing Kona Coast State Park Kona weather flowers City of Refuge Nautilus w. Ah, onve Akaka Falls hiking K,dm-Kona. USA 9674o Parker Ranch Fairwinds forest tennis Telephone: 1.808.329778' sunset Capt. Beans diving petroglyphs Fa, .e08.316.7563 Waipio luau Hilo sailing Waimea Mauna Kea observatories zodiac Merrymans Merrie Monarch • Favorite Activity 22.3% Snorkeling 12.7% Sightseeing 10.2% Relaxing 8.1% Golf 6.6% Ocean/beach • Other activities mentioned (in ranked order) - helicopter walking swimming Dolphin Quest shopping tennis dining fishing Westbound Activities/Attractions page two diving hula weather horseback riding volcano observatory sailing Mookini whales museum hiking mountain kayaks parasailing Capt. Beans submarine moped Akaka Falls Four Seasons Cultural Center • Favorite Photo Opportunity 19.4% volcano 18.8% ocean beach 17.6% sunset 8.2% snorkeling • Favorite Cultural Experience 30.2% luau 10% people 6.9% hula 6.9% food 3AWAft Big Island Visitors Bureau Travel Patterns Westbound Visitor Survey Results The Big Island Kona International Airport - Spring `98 H`h, • 66% traveled to the Big Island with family =SO Knawe Srrcer • 28.7% Big Island visitors traveled to more than one island • 71.3% traveled only to the Big Island Hdo. Hawaii. USA 96-20 • Of those visiting another island(s) - Telephone: 1.8.8961.: 9- 37.7% chose Oahu 34.4% chose Maui Fax:..8.8,96.._1x6 21.3% chose Kauai • 85.5% indicated travel agent was not part of decision to visit the Big Island • Top three factors in selecting a vacation destination - Kona 20.5% weather 11.1% activities 75-5-19 W AI1i Dme 10.3% value Kn oa.Kona. USA 96-40 . Top three factors in selecting the Big Island as a vacation destination - 26.4% corporate meeting/incentive travel Telephone: 1,808.3'9 -787 18.9% friends/family Fam. i.8n8.3=6.756, 9% returnees 9% new destination • Other factors mentioned in choice of Big Island - volcano more Hawaiian weather group travel diversity travel package business post Oahu convention less commercial sightseeing special occasion direct flights timeshare scuba condo/property owner golf quality of hotels beach reputation hiking family activities guidebook affordable accommodations • Top four other destinations considered - 17.2% Mexico 11.8% Maui 10.7% Oahu 9.7% Caribbean cruise 76.3% used United Airlines of which 65.6% booked the direct flights flAWAto Big Island Visitors Bureau Visitor Satisfaction Westbound Visitor Survey Results Kona International Airport - Spring '98 The Big Island Of the 207 respondents, only I did not enjoy their Big Island vacation Hilo .50ICea,ve ~eeee• Respondents rated the destination - 53.5% superior Hd...Hmvau. USA 967ao 38.9% good Teephone 5.808.961.179, 7.0% average 0.6% poor Fus' i.8o8.96,.v16 • Top three things mentioned to improve Big Island vacation experience- 21.3% more time KOn. 6.6% more direct flights/better connections 6.6% better transportation system -5-5-19 W. ALi Drive Kailua.Kona. USA 96740 . 90.2% would return to the Big Island Telephone. i.808.129.+787 : 96.9% would recommend the Big Island to family/friends Far. ~ 808.116.7563 Notes: 207 written surveys were collected at Kona International Airport Survey data collected in April 23 - May 13, 1998