HAWAI‘I TOURISM CANADA

Canada Economic Overview• GDP – very strong 2017, 3% growth, leading the G8 • Unemployment at 5.9%, lowest in 40 years• Canadian Dollar is $0.79, some economists predict $0.85 later in

2018, which is very favorable for U.S. travel • Consumer Confidence – jumped over 20 points in 2017

• Canadians are spending on travel!

Competing DestinationsWestern Canadians escaping winter• California, Arizona, Nevada, MexicoEastern Canadians escaping winter• Florida, Mexico, Cuba, Dominican Republic, Jamaica and other

Caribbean destinations

In 2017• 23.2 million visits to the U.S. for leisure, a 3.2% increase• 5.5 million visits to Europe, a 7.2% increase• 3.0 million visits to Asia & the South Pacific, a 7.6% increase• 4.5 million visits to the Caribbean, Mexico, and Central America, a

5.3% increase

Hawai‘i’s Percentage of OutboundCanadians are traveling!• 30.7 million overnight trips in 2017 to the U.S. and other

destinations, an increase of 5.6%• 23.2 million trips were for leisure• 3.2% increase in leisure travel to the U.S. vs. 2016• Travel to U.S. accounted for 61% of outbound leisure trips in 2017

compared to 70% during the peak travel year of 2013*

Hawai‘i ranks as the 7th most visited state by Canadians,** but accounts for only 2.3% of all U.S. leisure trips.*

*Conference Board of Canada **2016 Statistics Canada – all visits – FL, NY, WA, CA, NV, MI, HI

Canadian Travelers to Hawai‘i2017 Total Arrivals 518,051Total Visitor Expenditures $1,032,700,000Total Visitor Days 6,451,673Average Length of Stay 12.45 DaysPer Person per Day Spending $160Per Person per Trip Spending $1,993

Total Arrivals increased by 10.4% vs. 2016

2018 Forecasted Arrivals 530,738 (+2.4%)

All – DBEDT/HTA 2017 – Canada Statistics

What are Canadian Travelers looking for?• Most Canadians are still very price sensitive, they shop around• Value for money – All-inclusive for sun-seekers• Accessibility – Employed Canadians think in weeks of vacation (travel time is

a factor)• Multiple Accommodation Options

HTCAN to continue to reinforce... Unique Culture & Experiences Friendly & Welcoming Safe & Sustainable

Package Price ComparisonCanadians love all-inclusive!• 90% of all winter Caribbean/Mexico

visits are to Cuba, Dominican Republic, Jamaica, Mexico

• Average 2017 flight + 7 day resort price was $1,550 USD all-in, a decrease of 5.4% vs. 2016*

*Conference Board of Canada - December 2017 Package Pricing Monitor Report

Hawai‘i average of first 20 properties on OTA for Mar 17-24, flights + accommodation = $1,597

0

500

1000

1500

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3500

Cuba DR Mexico Jamaica Hawai‘i

EstimatedTransportation, Meals,Beverages, Activities

7 Day All InclusiveAverage per person

Airlift from Canada2017 Recap• 0.3% increase in airlift between WestJet & Air

Canada• Load factors increased to 82.8% from 75.7% in

2016

Moving Forward...• Nov 2017 to Apr 2018 – WJ & AC increasing

capacity by 17k seats• WestJet 223k and Air Canada 133k for 2018• No planned increase for remainder of year

Anticipated 7 5% increase in visitors for Winter

Airlift from Canada

• Fuel prices expected to hold or increase slightly

• Air Canada Vacations seeing more seats going to shared accommodation (Airbnb), but planes still filling

• WestJet adding flight to Maui, increasing to daily through summer 2018, but not anticipating a significant overall change

• Partners expressed concern that as air and hotel prices rise, Hawai‘i’s competitiveness with other sun destinations is further challenged

Improving arrivals of high yield visitorsRefine Positioning• Affluent Targeting – less price sensitive• Flexible schedule travelers (retirees)• Canadian Snowbirds made 1.72 million U.S.

trips in 2016• Since 2011, Snowbird trips up an average

annual rate of 9.7%• 47% of Snowbird trips are for over 60 days

• Take market share from Florida, Arizona, Nevada, Mexico, etc.

How we bring partners togetherContests • TV driven contests featuring prizing

from air and hotel partnersPromotions• Zoomer Media live radio remotes –

hotel, attractions, air partnerTradeshows• WestJet Vacations Product Expos –

multiple hotel partnersAloha Canada Sales Mission• Hotels/resorts, air partner, Tour

Operators, Visitor Bureaus

Opportunities to partnerFAMs

– Travel Trade & MediaEducation

– Webinars & TrainingConsumer Promotions

– On and Offline media, contest support, etc.Consumer & Trade Shows

– Romance/Wedding, Travel, Zoomers (50+)

Aloha Canada Sales MissionToronto, Vancouver, Edmonton - Oct 23-25

– Accommodation, Attractions, Tour Operators, Visitor Bureaus

– Over 450 Selected Travel Agents in 2017

Innovative Approaches for 2018*National Editorial, Advertising and Digital program in the Globe and Mail – Canada’s most influential business newspaper.

Multi-platform media program including magazine, digital and trade show presence plus live radio broadcast from Honolulu.

Consumer tie-in with Canada’s national cinema chain in conjunction with June release of Jurassic World 2.

*Pending HTA Approval

Innovative Approaches for 2018*Toronto Raptor Game Activation

• WOWing a crowd of 20k and impacting a national audience

• Generating excitement, database building• Tour Operator as Sales Partner• Social Media Blitz

Train with Canada’s Top Ironman in Hawai‘i!• Contest, Promotion, Social Media, etc.• Channeled through retailer with 80+ locations• Influencing Canada’s running/athletic

community, an active, affluent, traveling segment*Pending HTA Approval

Best Practice Approaches for 2018Incorporating Travel Trade Media into Agent FAMs

• Increasing FAM impact exponentially• National in printed Agent publication to 22k• “Live” social media content on Facebook, Instagram,

Twitter• Extends reach and engagement• Keeps digital archive of activity• Provides access to resources and inspires Agent

curiosity• Significant value for all supporting partners

2018 MediaThemed TV Promotions

Gotta Love Hawaii (W Network – National Coverage)History Channel and H2 (theme to be determined)28,000,000+ TV Impressions (Adults 25-54)

Additional Brand Sell Support (Fall)Vancouver, Calgary, Edmonton, Toronto

Primary Magazine Circulation700,000+

Radio Impressions (Adults 25 to 54)Vancouver, Calgary, Edmonton, Toronto10,000,000+

Promotion #1“You Gotta Love Hawai‘i Contest”

BS – Brand Sell

2018 Media Activity

2018 Digital Marketing StrategyAugment and reinforce travel intention by producing engaging content that is educational and impactful.

• Inspire travel enthusiasts• Showcase the breadth of the Hawai‘i travel

experience• Educate on rich culture and heritage

Secondary audience layer to be applied based on content:

• Family, Arts & Culture, Adventure Travel, Romance, Luxury

MICE Overview

Soon to close...• Jan 2019 – Education – Maui – Approx. 992 RN• July 2020 – Insurance – Maui & O‘ahu – Approx. 800 RN• Oct/Nov 2020 – Government – O‘ahu – Approx. 1,740 RN• Decision pending. All groups only assessing Hawai‘i.

Future Opportunities...• Apr & Sept 2020 – Financial & Medical – Maui & O‘ahu - Approx.

3,500 RN• Decision pending. Aiming to close within 3 months.

MICE OverviewHurdles for 2019 & 2020 business• Inquiries and RFP’s are being generated• Planners watching currency. A dip would have an

impact• Planners watching for political decision making

that could effect access for employees

Overcoming Hurdles• Continue opposition to any restrictive U.S. entry

policies• Keeping up with the volume of RFPs!

MAHALO, MERCI, THANK YOU!