HomeMy WebLinkAboutCOM 0079.000 1998-2000 0
J. CURTIS TYLER, III ' ` yl,� Tel: (808) 961 -8273
Counalmember ` 7t t Fax: (808) 969 -3291
.._ 99 JHN 5 Pi 2 27
COUNTY COUNCIL Cc
County of Hawaii rC11'- J 11‘1/
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
January 5, 1999
TO: JAMES Y. ARAKAKI
COUNCIL CHAIRMAN •
FROM: CURTIS TYLER, CHAIRMAN
COMMITTEE ON HUMAN SERVICES
AND ECONOMIC DEVELOPMENT
RE: REQUEST FOR REFERRAL
Attached for your review is a Report from the Special Hilo /East Hawai'i Tourism Group,
a project of the East Hawai'i Governor's Office and the Hawai'i Island Chamber of
Commerce, dated November 1998.
Please have the attached numbered and referred to the appropriate committee. A copy of
the report will be on file in the clerk's office.
Att.
JA/bb
C. Na. _ J
File No.
Ref. To: NSEDL
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77 -6399 Nalani St., Suite 1 -A Kailua -Kona, Hawaii 96740 Kona Telephone: (808) Pz 326 i. -5684 ate__ F (8
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u Report from the Special Hilo/East Hawaii Tourism Group
A Project of the
-J East Hawaii Governor's Office
-, and the
J Hawaii Island Chamber of Commerce
Li November 1998
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MAHALO —
The Special Hilo /East Hawaii Tourism Group gratefully acknowledges
Hawaii Printing Corporation for its generosity in printing this report, the —
Downtown Improvement Association for making available the front cover
drawing by Kehau Freitas; and the Hawaii Visitors 8 Convention Bureau
for use of the 'Aloha Spoken Here' design on the back cover
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0 :i %r• s AL CASTRO
BENJAMIN J. CAYETANO n ♦'-_ LIAISON OFFICER •
GOVERNOR 1! r �
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OFFICE OF THE GOVERNOR
Governor's Liaison Office - Hilo
76 Aupuni St.
Hilo, HI 96720
TELEPHONE 18061 974 -6262
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TELEPHONE (806) 974 -6265
FAX 48081 9746263
November 10, 1998
-J
During a fall 1997 visit to Hilo, Governor Benjamin J. Cayetano asked me what could
J be done to stimulate East Hawaii's visitor industry. Following that discussion, I posed
the question to Steve Todd, Hawaii Island representative of the State Department of
Business, Economic Development & Tourism, and Jeff Melrose, who was then serving
as president of the Hawaii Island Chamber of Commerce. Recognizing the necessity of
getting input from local businesses and organizations, we invited about a dozen
representatives to the first of what we believed would be a series of three meetings.
As we proceeded with brainstorming sessions of our Special Hilo /East Hawaii Tourism
Group, the response from business and community leaders was overwhelming. Many
others asked to participate, the range and depth of our discussions expanded, and
there was general agreement that the meetings had a synergistic effect -- resulting in
-J better communication, some tangible accomplishments and a clearer understanding of
a complex and promising community visitor industry. While the greatest benefit may
have been in the discussions themselves, this final report offers thoughts and
-J recommendations that emerged from more than 20 meetings over a period of 13
months, with nearly all of these sessions generously accommodated by Lei Andrade
and the Hawaii Naniloa Resort. With our particular mission completed, we hope other
public and private entities will continue to move these ideas forward.
A healthy visitor industry can be compatible with the desires and lifestyles of Hilo and
East Hawaii residents. To all who contributed towards this process, I offer my
sincere appreciation.
Aloha az?
AL CASTRO
East Hawaii Liaison Officer
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'An Equal Opportunity Employer /Agency'
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Special Hilo/East Hawaii Tourism Group
Sununary Report
This report provides a summary of ideas and recommendations put forward by
the Special Hilo/East Hawaii Tourism Group The group is an outgrowth of a
-J cooperative effort by the Governor's Office in East Hawaii and the Hawaii
Island Chamber of Commerce and is made up of over 40 business and
J community leaders who are involved with visitors in East Hawaii. The group
has met more than 20 times over a twelve 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 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
J organization that is supported by a full array of visitor - related
businesses, elected officials and the community as a whole.
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4. The Hawaii Visitors and Convention Bureau's (HVCB) 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
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
J 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.
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Visitor industry Background
The visitor industry is a major contributor to the economy of the Big Island,
J 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
-J 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.
J
In lieu of comprehensive statistics, listed below are some general statements
J 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
-J bed and breakfasts. Approximately 1200 of these units are in
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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)
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• The median age of the traveler to East Hawaii was 44, 56°-o
tivere male; 50% came as couples and 44 °• were employed in
muddle manaeennent positions or above. (HVCB)
J
• Although the Hawaii Volcanoes National Park (HVNP) is
frequently reported to have over 2.0 million visitors a year, its
J annual records indicate that only 1.2 million were.classified as
r "recreational v isitors' (average 3.300 /day) The remaining
ivere staff and support visits
• 1-IVNP estimates that of the 1.2 million visitors, roughly
7 333.000 came to the park in commercial vehicles (tour buses.
J vans, taxis, etc.) The remaining 873,000 visitors carne in
individual cars.
-J • 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 continue to expand.
• By HVCB estimate, over 80% 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
J for the traveler, but they result in less Flexibility for visitors 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 three hours in the park .
and spend more time on the road, corning and going from their overnight
— 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.
East Hawaii's Image
It is not easy to separate the allure of East Hawaii from that of the Big Island
J 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
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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 ram there are no rainbows, no waterfalls and
no tropical jungle. We need to promote the products of our rainfall and
r - encourage visitors to he 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
J 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
J 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
J and photogenic volcanoes, which are recognized by the United Nations as
both a World Heritage Site and an International Biosphere Preserve.
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East Hawaii has great opportunities for eco- tourism and for serving the needs
of adventuresome travelers that 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 hamess 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.
J
Cruise Ship Opportunities
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
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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 tend to be older than the average
Hawaii visitor and the industry sees growing opportunity in the demographics
J 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
j 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.
J The County of Hawaii and the HVCB, in partnership with Destination Hilo,
t underwrite the cost of a musical greeting for all cruise ships. At this point,
` f Hawaii is the only island to provide such greetings and they are part of what
distinguishes our ports from any other. The County also provides bus service
to the pier on boat days with a 30 minute tour of Hilo and stops at several
J 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
J 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 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.
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A recent study conducted by the Downtown Improvement Association and
funded by the State Community -Based Economic Development (CBED)
Program outlined an agenda for Downtown merchants to follow in order to
take advantage of cruise ship opportunities. The Hawaii Tribune Herald has
n also instituted an excellent promotional opportunity in the "Port of Call"
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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 Department of Transportation (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 is going to continue, there is a
need for additional funds to sustain the effort on a long -term basis.
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Recommendations
• Ship Greeting program 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
J Room also requires additional funding 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)
J • 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)
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• Hilo merchants and individual entrepreneurs need to expand
r 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,
DTA)
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• 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 tivays to improve services to their
passengers. (Destination Hilo, Private Sector)
• DOT Harbors Division's 2020 Plan proposes mayor
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)
J • DOT needs to move quickly to enhance the appearance of the
passenger off - loading area at Pier 1 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, Private Sector)
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in Interpretive and Directional Signage
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 the Great is a significant contribution to Hilo's bayfront, but it
will be incomplete until there are signs at the site that 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
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photo opportunity and a pretty piece of art in a public place A sigmage
project at the statue is currently undenvay
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 desigm, locate, construct and fund signage projects. The
benefit of such efforts will he the planting of more opportunities for visitors to
understand where they are, 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 S1,000-$5,000
each (including artwork and installation) and come in a variety of sizes and
materials. There are limited funds available through State Parks' Aina
Ho'omalu program that can assist in areas of State interest. DBEDT's
J 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.
J The Hamakua Heritage Corridor Program provides a good model for the
establishment of consistent signage and a regional view of scenic and cultural
J 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
J grassroots level.
Signage along the road side to aid travelers can be improved. The large
J "Tourist Beware" sign at Nanue Falls near Ninole is a good example of
insensitive visitor signage and needs to be replaced. Scenic waterfall views
whiz by on the Hilo - 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 Department of Parks and Recreation, State Parks, Service
Organizations, Community Groups)
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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
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• Replace the big "Tourist Beware" sign at Nanue Bridge with a more
friendly visitor oriented sign. (State DOT)
• Expand the Heritage Corridor program on an island wide basis. (State,
J County, Community Groups)
• Pursue 1STEA funds for the federal Department of Transportation to
support highway beautification, signage and visitor enhancements.
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Community Beautification
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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 grunted.
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:
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Recommendations
• 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 Avenue (County)
• 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, State)
• Landscape Kalanianaole Avenue between the harbor and
J 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)
�J • Prepare a master plan for Bayfront 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 Laupahoehoe Point in North Hilo.
(State Department of Land and Natural Resources,
Landowners)
Transportation
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
L surfaced in our tourism group discussions.
RENTAL CAR SHORTAGES
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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
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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
promotional efforts with the hotels, may result in expanded ridership
J within the Hilo area. Drivers need to he selected and trained to interact
constructively with visitors
-J SAMPAN SERVICE
The Hilo sampan/jitneys are more than a good means of transportation for
J 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 operational guidelines for the sampans that
allow them to serve a wide variety of transportation niches and to
J encourage their long -term sustainability as an essential part of the Hilo
character.
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J Develop New Attractions
A key to extending the stay of visitors in East Hawaii is expanding the range
J 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 that could be pre -sold to visitors while they are still planning their
Big Island vacation. 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 does not in itself 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
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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
-J 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
J into pocket areas of the local economy.
Recommendations
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J • Solicit and support the development of one or more large -scale
commercial attractions 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)
r Improve and promote the County's Panaewa Zoo to highlight tropical
wildlife in a rainforest setting. (County Parks, Private Sector)
• Expand the Hamakua Heritage Corridor concept on an island -wide
basis. (County, State DBEDT)
L- • 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, Pacific 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
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and forest walks. Both public and private lands need to be available
for these uses. (Private Sector, State and County Land Use Regulators)
Banyan Drive Resort Area
Banyan Drive Resort's 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
over 500 direct jobs, Banyan Drive visitors support hundreds of indirect jobs
in a wide range of shops, tour companies, visitor attractions and service
J 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 sports tournaments and large family gatherings.
1 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)
I
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
J 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
J 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.
J Banyan Drive is a significant economic engine for East Hawaii and it cannot
-i be allowed to fall into disrepair. No reasonable businessperson will reinvest in
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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
r retain a strong resort economy in East Hawaii, the State must look closely at
its land leasing policies to allow for negotiated .lease extensions wider certain
circumstances and to reinvest portions of their revenues to enhance the value
of its asset.
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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. (DLNR, Legislature, Private Sector Banyan
Drive Lessees)
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• The Banyan Dnve Association needs to establish a unified
voice for lease reform and initiate joint efforts at beautification
and cooperative destination marketing. (Banyan Drive Lessees) .
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• DLNR needs to take a proactive approach to the teasing of the
former Orchid Isle property, w hich has sat vacant for over 20
years. The new use should he complementary to the
surrounding resort area. In the meantime, this vacant lot needs
to he kept clean and landscaped to enhance pedestrian views.
J (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
1 public restrooms in Hilo. It is currently under - developed.
J (County Parks)
7 • Signage improvements are needed to mark the entries into the
J resort area and to correctly highlight the celebrities who
planted the banyan trees from the 1930's through the 1970's.
n (Banyan Drive Association)
• Banyan trees and other foliage need to he trimmed on a regular
1 basis and the street needs to be cleaned regularly to maintain a
`} groomed appearance. (County, Banyan Drive 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
banyans. (Banyan Drive Association)
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Public Safety
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.
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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 aggressive panhandling, un- sanctioned sales at
visitor sites and excessive drinking in public parks. (County,
Police, Neighborhood Watch)
J • Provide appropriate signage to warn visitors of natural hazards
and potential criminal activity. (State Parks, DOT Highways.
, County Parks)
East Hawaii Visitor Industry Organization
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J 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
�y generic destination marketing. HVCB's goal is to attract visitors to the state
and to compete with the other destination markets worldwide.
U The second level of promotions comes from the Big Island Chapter of the
HVCB, which advocates more specifically for Big Island promotions and
J 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.
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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 creati'. itv.
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
(l Since 1995, when the State stopped subsidizing Destination Hilo, the
J 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-
tourism programs that are emerging at the University of I- Iawaii 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
J unified voice for increased expenditure of promotional moneys to underwrite
local tour promotion and coordination efforts.
lJ Recommendations
• Expand both public and private support for Destination Hilo,
J 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-term support to insure expanded success of the Aloha
Room at the pier. (County, HVCB, Private Sector)
t�J • Coordinate a concerted effort needed to attract and
�J 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
'l and gohilo.com) (Public and Private Sectors)
J
• Identify specific East Hawaii market niches and direct
promotional efforts accordingly. (HVCB, Destination Hilo,
County)
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Conferences, Sports, Special Events and Edutravel
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 1 -lilo
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 Invitational Volleyball Tournament and a
J wide range of other UHH, Big island Interscholastic Federation (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
these events. We note, however, many of our most significant and most
utilized facilities are aging and will need to be refurbished in next few 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
J of all ages. UHH's new strategic plan 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,
1 and other natural sciences offer a unique niche of life -long learning and have
natural linkages to the visitor industry. Conferences, Elderhostel 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)
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• 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 Peoples' Conference
in August, 1999 as an opportunity to promote the Big Islands
cultural authenticity and capacity to host large, flexible
groups.(County. Private Sector, Community)
Aloha Spoken Here
Perhaps the most important outcome of the Special Tounsm Group was
the consensus recognition that the character of our community is among
J 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
C 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
G in a constructive and hospitable fashion is an essential part of a long -terns
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
Q 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 islandwide will he 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 doing so
with Aloha.
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1
Appendix
J • List of Special Hilo /East Hawaii Tourism Working Group
• Cruise Ship Arrival Schedule
J • Cruise Ship Economic Impact Studies
• Aloha Room Budget
(� • Recent HVCB Visitor Exit Surveys
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9 SPECIAL HILO /EAST HAWAII TOURISM GROUP
Name Affiliation
Kate Ahia Destination Hilo
— Lei Andrade Hawaii Naniloa Resort
Ian Birnie State DOT Harbors Division
Michael Brandon Aquatic Perceptions
i_- John Campbell Consultant
Al Castro Governor's Office
D Marsha DeClue Destination Hilo
Taka Domingo Hawaii County Council Staff
Judith Fox - Goldstein Destination Hilo /UHH Conferencing Center
Toni Freeland- Robert Destination Hilo
_ Tom Goya Japanese Chamber of Commerce & Industry
Howard Haymore State DOT Highways Division
Michael Hendricks Chalet Kilauea
Julie Hugo Hawaii Island Chamber of Commerce (HICC)
Myra Ikeda Consultant
Kenneth Johnston Hawaii Visitors & Convention Bureau (HVCB)
Lani Kahawaii Hawaii Island Chamber of Commerce
Makanani Kaaua Hawaii Tribune - Herald
r Mardie Lane Hawaii Volcanoes National Park
J Lorna Larsen -Jeyte Kilauea Lodge /Destination Hilo
Jeff Melrose HICC /Kamehameha Schools- Bishop Estate
r- David Morgan Nani Mau Gardens
Howard Nakamura County Dept. of Research & Development
Patty Sue Nielsen Orchid Village Restaurant
Violet (Balbarino)Oliver State DOT Visitor Information Program
J Sharon Paoa Roberts Hawaii /Captain Bean's
David Reed Hilo Downtown Improvement Association (DIA)
Paul H. Rosendahl Hilo DIA
9
Karen Sakoda HVCB
Bev Sorensen Destination Hilo
Stanley Tamura State DOT Highways Division
Steve Todd State Dept. of Business, Econ. Dev. Si Tourism
— Carol Van Camp Prince Kuhio Plaza /HICC
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Sandy Yokomizo Hilo Bay Hotel
Others contributing through their participation and interest: Bob Adler, Hon. James Arakaki, Liz
Barton, Debbie Baker, Renee Carpenter, Esther Cazimero -Aio, Lucille Chung, Michael Crawford,
�
) Paul Dahlquist, Gerald DeMello, Lei Fountain, Paula Helfrich, Alexa Holt, Troy Iwamoto, Missy
11JJ Kaleohano, Sue Keohi, Daryle Kitamori, Hon. Bobby Jean Leithead -Todd, Diane Ley, Eldon Lindsey,
Warren Maisenbach, Lorraine Mendoza, Mike Miyahira, George Miyashiro, Alice Moon, Ken Okimoto,
Martin Oliver, Diane Quitiquit, Randy Rohner, Gregg Shiroma, Robert F. Taira, Terri Toki, Charlene
Unoki, Rick West, Ross Wilson, Nelson Wong, Harry Yada, and Tracy Yoshimoto.
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1999 PASSENGER SHIP SCHEDULE
J HILO HARBOR As of 1 Sep 98
Date Day Ship Ica Pax/Crew ETA -ETD Agent
1. 1/2 • Sat DEUTSCHLAND 574' 620/250 1300 -2300 Inch
2. 1/3 Sun LEGEND OF THE SEAS 865' 1700/732 0800-1800 Wal
3. 1/7 Thu NORWEGIAN DYNASTY 567' 550/370 0700 -1800 Wal
_ 4. 1/23 Sat ASTOR 578' 650 /270 0800.1800 Inch
5. 1 /27 Wed MAXIMGORKIY 639' 650/350 0800.1800 Inch
6. 2/11 Thu LEGEND OF THE SEAS 865' 1700/732 1100 -2200 Wal
7. 2/21 Sun LEGEND OF THE SEAS 865' 1700/732 0700-1800 Wal
8. 3/21 Sun CROWN PRINCESS 804' 1600/675 0800.1800 TMC
0 9. 1. 4/8 Thu CROWN TDAMCESS 804' 2' 1200/588 0900.18 0 Wal
11. 4/17 Sat CROWN PRINCESS 804' 1600/675 0800.1800 TMC
12. 4 /20 Tue CROWN PRINCESS 804' 1600/675 080 -1800 TMC
13. 4 /22 Thu SKY PRINCESS 788' 1200/540 0800 -1800 TMC
14. 4 /23 Fri RHAPSODY OF THE SEAS 915' 1800/765 0700 -1800 Wal
15. 4 /24 Sat STATENDAM 720' 1200/588 0800.1800 Wal
16. 4/27 Tut SKY PRINCESS 788' 1200/540 070 -1800 TMC
0 17. 4/28 Wed JUBILEE 733' 1500/700 0800.1700 Wal 15' 19. 5/2 Sun RHAPSODY 0 THE SEAS 915' 180 1200-00 800.1800 Wa
20. 5/5 Wed JUBILEE
21. 5/6 Thu VISION OF THE SEAS 733' ' 1750/765 1200 -20 0 Wal
22. 5/10 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
O 25. 9 /24 -5 Fri-Sat VISION OF THE SEAS 915' 1750/765 2411200- 25/1800 Wal
27. 9/27 F i RHAPSODY OF THE SEAS 758'
15' 1800/765 0700 -1600 Wal
28. 10/2 Sat REGAL PRINCESS 804' 1600/700 0700 -1800 TMC
29. 10/4 Mon VISION OF THE SEAS 915' 1750/765 0800 -1800 Wal
3 10/8 Fri JUBILEE OR IAN WIND 758' 1750 614 0800 -2000 Wal
32. 10/9 Sat REGAL PRINCESS 804' 1600/700 0700.1800 TMC
33. . 10/10 M RHAPSODY OF THE SEAS 720' ' 1800/765 0900-1800 8.00 Wal
1 35. 10/15 Fri JUBILEE
36, 10/18 Mon NORWEGIAN WIND 733' ' 175014 0800- -2000 Wet
38, 10/29 Mon NORWEGIAN PRINCESSD 758' ' 1750/614 0800-2000 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. 12/1 Wed STATENDAM 720' 1200/588 0800-1800 Wal
42. 12/17 Fri STATENDAM 720' 1200/588 090.1800 Wel
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TO: Hawaii Island Chamber of Commerce (Julie Hugo) 28 May 1998
Kona- Kobala Chamber of Commerce (Maori Hakes)
FROM: Harbors Division/Hawaii District (Ian Birnie)
J 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
J passengers on the island's economy. R & D provided us with a copy, and we noted that several of the
numbers, most noticeably the average number of passengers carried on foreign ships, were on the low side.
We also noted a disparity In the estimates of passenger expenditures, as the Cruise Line International
Association was publishing a $200 per day average expenditure per passenger at the same time that the HVB
was providing an S88 per day figure.
We knew 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
O numbers of passengers. Thus the calls and passenger counts are pretty accurate, but the jobs created,
personal income and taxes generated all depend on the remaining variable - the average expenditure per
passenger.
We am 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 impact, particularly in jobs created and taxes generated, is considerably more than anyone initially
J thought, and hopefully may help in justifying support for various passenger-related projects - both at the
people end and with physical improvements to the facilities.
r
Enc.
A. DBEDT Memo and Table 1, 5/15/97, 2 pgs.
B. Harbors data, Economic Impact, 1997, 2 pgs.
L C. Harbors date, Projections for 1998,1 pg.
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O O BENJAMIN J CAYETANC
GOVERNOR . a.F... SEIJI E. NAPA
N4 , g DE PARTMENT OF BUSINESS BRADLEVJ MOSS DIRECTOR
TOR
ECONOMIC DEVELOPMENT & TOURISM_ RIC
_ DEP DI RECTOR
{^'� ti ( , RICK EGGED
`*+�y+ f y I n _ F I l' ``I DIRECTOR OFFICE OF PLANNING
c
-'•'"`"�"'J Tel (808) 586 -2466
r ........ RESEARCH AND ECONOMIC ANALYSIS DIVISION r ll l
~ �"`= =��'' No 1 Capitol District Bldg , 250 South Hotel St , 4th Fir Honolulu, MawaiiA813 r' 1 Fax (808) 586 -8449
•— Mailing Address. P 0 Box 2359, Honolulu, Hawaii 96804
C
May15,1997 GE 1 1
Ms. Colette Rapozo- Yamamoto
Resource Materials Specialist
Department of Research and Development
County of Hawaii •
J 25 Aupuni Street, Room 219
9 Hilo, Hawaii 98720 -4252
9 Dear Colette:
As you requested, our DBEDT Research and Economic Analysis Division
J has estimated the impact of visitor arrivals to Hawaii County in 1997 via cruise
ships. As the enclosed Table 1 indicates, the arrivals of cruise ships in 1997
J 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
u 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 $88 expected daily expenditure for
visitors includes spending on meals.
If you have any questions, please feel free to call me at (808) 586 -2470.
Sincerely,
Dr. Pearl Imada Iboshi
Chief Economist and Administrator
U PIl:TPsy
Enclosure
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lJ Table 1. Economic Impact of Cruise Ship Arrivals to Hawaii County, 1997.
Estimation of cruise ship visitors and visitor expenditures
1 Number of domestic ship arrivals: 96
- 2 Average number of passengers per ship: 800
3 Average length of stay 1
4 Number of visitor days from domestic cruise ships= (1)'(2)'(3) 76,800 days
- 5 Number of foreign ship arrivals: 35
J 6 Average number of passengers per ship: 675
7 Average length of stay 1
8 Number of visitor days from foreign cruise ships=(6)*(7)*(8) 23,625
9 Total visitor days: 100,425
10 Expenditures per visitor per day (HVB 1996 data, lodging excluded): 88 dollars
11 Total visitor expenditures = (9)'(10) 8,837,400 dollars
Estimation of economic impact
9 12 GSP multiplier for tourism ($GSP /$visitor exp., DBEDT I/O model): 0.7
13 Job multiplier for tourism Qobs /$mil. visitor exp., DBEDT I/O model): 13.3
14 Household income multiplier for tourism ($income /$visitor exp., I/O model): 0.4
15 GSP generated ($mil.) = (11) * (12) 5,929,918 dollars
J 16 Jobs generated = (11)*(13)/1,000,000 118 jobs
17 Household income generared: (11)'(14) 3,587,974 dollars
^ 18 Estimated state and local tax rate on income: (based on tax and income data) 0.17
19 Household income generated = (17)'(18) 609,956 dollars
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ECONOMIC IMPACT OF CRUISE SHIP ARRIVALS TO HAWAII COUNTY, 1997
(Hilo Harbor and Kailua Bay/Pier)
Estimates of cruise ship visitors and visitor expenditures, using updated numbers reflecting higher passenger
counts and more actual port calls than listed in the initial study.
DBEDT Harbors
1 Number of domestic ship arrivals 96 96
2 Average number of passengers pi ship 800 811
3 Average length of stay 1 1
4 Number of visitor days (1x223) 76,800 77,886
J 5 Number of foreign ship arrivals 3 5 39
6 Average number of passengers per ship 675 1176
7 Average length of stay 1 1
r 8 Number of visitor days (Sx6x7) 23,625 45,864
9 Total visitor days (4 +8) 100,425 123,750
10 Expenditures per visitor per day (HVB '96 est) 588 588
11 Total visitor expenditures (9x10, HVB eat) 58,837,400 510,890,000
7 Alternate A:
J
10 Expenditures per visitor per day (CLIA) 5 200 5200
9 11 Total visitor expenditure (9x10, using CL1A est.) 520,085,000 524,750,000
Alternate B:
--/ 10 Expenditure per visitor per day say 5125 say 5125
11 Total visitor expenditure (9x10) 512,553,125 515,468,750
Notes:
(a) American Hawaii Cruises (AHC) averaged 811 passengers per voyage, thus Harbors' figures reflect
r 811 vice DBEDT's 800.
(b) There were 21 foreign vessel calls in Hilo, 18 in !Conn, thus 39 total calls in Hawaii County.
(c) Foreign cruise ships averaged 1176 passcngeri per vessel in 1997 (501 more passengers per call than
I anticipated). Harbors' figures reflect 1176 vice 675 in line 6.
(d) HVB's 1996 data calculates visitor expenditures at 588 per person per day; the Cruise Line International
Association (CLIA) claims that ship passengers spend an average of 5200 per day. We suspect that the
0 actual figure is somewhere in between, thus we have calculated "total visitor expenditures," Line 11,
using both numbers, they we also recalculated using an "in between" figure of 5125 per day.
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ESTIMATES OF ECONOMIC IMPACT 1 9 9 7
(A) Using DBEDT figures and HVB's $88 amount (Line 11 - 58,837,400)
-- 12 OSP multiplier for tourism 0.7
13 Job multiplier for tourism 13.3
14 Household income multiplier for tourism 0,4
15 OSP generated (11 x 12) 56,186,180
�, 16 Jobs generated (11 x 13 / 1M) 118
17 Household income generated (11 x 14) 53,534,960
18 Estimated state and local tax rata 0,17
J 19 State and local taxes generated (17 x 18) 5600,943
Note: disregard DBEDT Table 1 Lines 15, 17,19 on previous page; incorrect multiplication.
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0 (B) Using DOT - Harbors figures in Lines 2, 5, 6 and HVB's $88 amou g (Line 11= 510,890,000)
12 OSP multiplier for tourism 0.7
13 Job multiplier for totaism 133
-- 14 Household income multiplier for tourism 0.4
15 GSP generated (11 x 12) 57,623,000
1 16 Jobs generated (11 x 13 / IM) 145
,.J 17 Household income generated (11 x 14) 54,356,000
18 Estimated state and local tax rate 0.17
0 19 State and local taxes generated (17 x 18) 5740,520
_ (C) Using Harbors Division figures and an average 5125 expenditure (Lino 11 - 515,468,750)
12 GSP multiplier for tourism 0.7
0 13 Job multiplier for tourism 13.3
14 Household income multiplier for tourism 0.4
15 GSP generated (11 x 12) 510,828,125
r 16 Jobs generated (11 x 13 / 1M) 206
17 Household income generated (11 x 14) 56,187,500
18 Estimated state and local tax rate 0.17
r- 19 State and local taxes generated (17 x 18) 51,051,875
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PROJECTED IMPACT OF CRUISE SHIP ARRIVALS TO HAWAII COUNTY - 1998
HILO HARBOR AND KAILUA BAY / PIER.
1 Number of domestic ship arrivals 104
2 Average number of passengers per ship 825
3 Average length of stay 1
4 Number of visitor days 85,800
5 Number of foreign ship arrivals 86
6 Average number of passengers per abip 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) 588
11 Total visitor expenditures 515,875,200
Alternate A:
10 Expenditures per visitor per day 5200
11 Total visitor expenditure 536,080,000
Alternate B:
10 Expenditures per visitor per day S125
11 Total visitor expenditure 522,550,000
(4588.00 ®$125.00
12 GSP multiplier 0.7 0.7
13 Job multiplier for tourism 13.3/1M 13.3/1M
14 Household income multiplier 0.4 0.4
15 S g��d 511,112,640 515,785,000
16 generated 211 300
17 Household income 56,350,080 59,020,000
18 Estimated state /local tax rate 0.17 0.17
19 State & local taxes generated 51,079,514 51,533,400
a Notes:
(A) Line 2 - We are currently (May 1998) averaging 825 passengers per call on SS INDEPENDENCE.
(B) Line 6 - We arc currently averaging 1100 passengers per call on foreign ships.
(C) Hilo has 45 foreign ships (52 %) and Kona has 41(48 %) scheduled for 1998.
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DE$ LN& QVHILO
PO Box 1391
Hilo, Hawaii 96721
J ALOHA ROOM
OBJECTIVES:
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To develop an ALOHA PRESENCE at the Pier in an effort to positively impact the visitors
stay in East - Hawaii.
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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
0 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
l . Develop working relationship with Harbor and Cruise Lines
J . Develop media program to keep community informed about cruises and Aloha Room
. Develop "Cruise Alert" radio spots and PSA's •
O . 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
J inspire community involvement.
J.Fox- Goldstein
6/13/98
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Destination Hilo
P.O. Box 1391
Hilo, Hawaii 96721
ALOHA ROOM BUDGET
January 1999- December 1999
J Operating Budget Total In -Kind Donations
Aloha Room Coordination $35.000.00 $10,000.00
Volunteer Coordination
7 Community /Business Coordination
J Publicity /Media Coordination
On -Site Coverage (2 paid staff) $ 15.500.00 $ 5,000.00
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Administrative Services $ 5,000.00 $5,000.00
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J Fiscal Services $ 1,500.00 $1,000.00
Supplies $ 1,500.00 $ 500.00
Phone, Fax $ 500.00 $ 500.00
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Equipment $ 1,000.00 $ 1,000.00
$60,000.00 $23,000.00
- Total Operating Budget $60,000.00
Total In -IGnd Contributions $23,000.00-
x -.
Total Budget Deficit $37,000.00
J 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 $18.00/hr x 40hrs per week for Coordinator
Calculations based on $8.00 x 20hrs per week for two (2) assistant staff
coordinators.
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Big Island Visitors Bureau
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May 21, 1998
The Big Island
To: Distribution
ti. awe o«rr5
From: Ken Johnston
L lu. Haxan USA 96-00
Subject: '98 Westbound Visitor Survey Results
i r phnnc 1 8o8 961579
I 6l SoS obi 2126
The Big Island Visitors Bureau, in conjunction with Hawaii County Department of
Research and Development, surveyed departing westbound (mainland) visitors at Kona
na International Airport. Two hundred seven written interviews were obtained during the
Ko
period of April 23 through May 13. Your executive summary of' survey results is
719 W Ah, Drive attached.
K -Kona. USA 9
n This is the first time we've interviewed departing mainland -bound Kona passengers.
ep 1 80 129 - You will also receive a similar survey conducted at the Hilo International Airport in the
near future.
Fay 1 8o8 526'565
�j 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.
U 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.
a
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O Westbound Visitor Profile
page two
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• # of nights on Big Island
` 8.0% Tess than four nights
II. 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
U 27.2% '30s
25.7% '40s
22.5% '50s
17.3% '60s and older
• Gender
53.8% Female
J 46.2% Male
• Areas of Residence
22.4% California
12% Canada
7.3% Washington
1 6.8% Oregon
6.8% Colorado
6.3% Michigan
5.2% Illinois
• Other states /countries mentioned (in ranked order)
G Arizona Alabama
Wisconsin Maryland
Indiana New Mexico
Nebraska Florida
New York Idaho
Germany Massachusetts
Louisiana Oklahoma
Virginia Kansas
Utah New Hampshire
1 Nevada Montana
North Carolina London
Alaska Switzerland
Texas Australia
L Ohio
Iowa
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0 Big Island Visitors Bureau
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Activities & Attractions
Westbound Visitor Survey Results
_, Kona International Airport — Spring `98
The Big Island
• Favorite Attractions
--' 27% Volcano
,,o % tSrrett 20.3% Beach/ocean
6.3% Helicopter
�.1Io. Haw m. USA 96-:0 5.8% Snorkeling
C � Icphone ■ 8o8 961
• Other attractions mentioned (in ranked order) —
taa , 808.961 2186 golf fishing
r. hotel Mookini
J sightseeing Kona Coast State Park
Kona weather flowers
0 City of Refuge Nautilus
-,i IX' dlu Drive Akaka Falls hiking
Kadua -Kona. USA 96740 Parker Ranch Fairwinds
forest tennis
1
Iephone , 808 729 9 78- sunset Capt. Beans
diving petroglyphs
-Fax , 8o8.c6. *
I Waipio luau
J Hilo sailing
Waimea
Mauna Kea observatories
zodiac
Merrymans
J Merrie Monarch
—, • Favorite Activity
22.3% Snorkeling
12.7% Sightseeing
10.2% Relaxing
8.1% Golf
6.6% Ocean/beach
O • Other activities mentioned (in ranked order) —
helicopter walking
r swimming Dolphin Quest
shopping tennis
dining . fishing
Westbound Activities /Attractions
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page two
diving hula
weather horseback riding
volcano observatory
sailing Mookini
whales museum
hiking mountain kayaks
J parasailing Capt. Beans
submarine moped
Akaka Falls Four Seasons Cultural Center
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• Favorite Photo Opportunity
'1 19.4% volcano
18.8% ocean/beach
17.6% sunset
8.2% snorkeling
• Favorite Cultural Experience
30.2% luau
10% people
6.9% hula
J 6.9% food
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J Big Island Visitors Bureau
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n Travel Patterns
J Westbound Visitor Survey Results
The Big Island Kona International Airport — Spring `98
1
"'I° • 66% traveled to the Big Island with family •
:90 Kea..e Greet • 28.7% Big Island visitors traveled to more than one island
1 • 71.3% traveled only to the Big Island '
HiOi Hawaii. L5'{'° ° • Of those visiting another island(s) —
Telephone 8o8 a6� 9C 37.7% chose Oahu
[ 34.4% chose Maui
Fax 1808.961:12b 21.3% chose Kauai
-7 • 85.5% indicated travel agent was not part of decision to visit the Big Island
J • Top three factors in selecting a vacation destination —
Kona 20.5% weather
1 5i 9 �, Al „ 01e 11.1% activities
j 10.3% value
Kailua-Kona, USA 8o-10 • Top three factors in selecting the Big Island as a vacation destination —
'1 26.4% corporate meeting /incentive travel
Telephone 1 8o8 un ^87
18.9% friends /family
ri ax 1.808 ):6'56; 9% returnees
J 9% new destination
• Other factors mentioned in choice of Big Island —
volcano more Hawaiian
J weather group travel
diversity travel package
business post Oahu convention
less commercial sightseeing
special occasion direct flights
— 5 timeshare scuba
condo /property owner golf
quality of hotels beach
reputation hiking
family activities guidebook
affordable accommodations
r • Top four other destinations considered -
17.2% Mexico •
11.8% Maui
10.7% Oahu
9.7% Caribbean cruise
r - • 76.3% used United Airlines of which 65.6% booked the direct flights
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J Big Island Visitors Bureau
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J Visitor Satisfaction
Westbound Visitor Survey Results
Kona International Airport — Spring `98
The Big Island
7 , • Of the 207 respondents, only 1 did not enjoy their Big Island vacation
u
•(p Kozne str • Respondents rated the destination —
53.5% superior •
rib, Ha" m. USA 96 ^0 38.9% good
Fdephone 8o8.96 5797 7.O% average
C I 0.6% poor
Fax 1 Sotl obi vu6
rs • Top three things mentioned to improve Big Island vacation experience —
J 21.3% more time
Kona 6.6% more direct flights/better connections
'-) 6.6% better transportation system
I_,-i W Al„ Dnve
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Kailua.Kona. USA 96740 • 90.2% would return to the Big Island
n •
J elrphone 1 Bob 3.9 „e,
• 96.9% would recommend the Big Island to family /friends
.„ t Hob 126 7{61
% 1
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_ Notes:
t_. 207 written surveys were collected at Kona International Airport
Survey data collected in April 23 — May 13, 1998
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