The Hawaii Tourism Authority has issued six new contracts worth $6.6 million to market the state to major visitor source nations in 2016.
The agency, which was established in 1998 to manage tourism, this week hired new contractors in South Korea, China and Europe. It will retain its contractors in Oceania and Taiwan. The agency also hired a new contractor for the Southeast Asia market.
AVIAREPS Korea will be paid $1.4 million, the same amount the previous contractor, iConnect Communications, was paid to market to South Korea. The HTA is spending $600,000 more on its new $2 million contract with BrandStory Asia to market to China. Hills Balfour was selected to market to Europe and issued an $800,000 contract, which is $5o0,000 more than what the previous contractor was given. AVIAREPS Southeast Asia also has been hired for $200,000 to focus primarily on the countries of Singapore and Malaysia, and secondarily Thailand and Indonesia.
The Walshe Group, which has been working with the HTA since 2004, will continue to represent the state in Oceania with a contract worth $2 million, up $400,000 from its year-ago $1.6 million. JWI Marketing, which the HTA hired to market to Taiwan in 2014, will continue marketing to that nation for $200,000, which represents a $100,000 reduction in marketing funds.
The changes mark the first time in more than a decade that the HTA has changed its European contractor. AVIAREPS Tourism has marketed Hawaii to Europeans since 2004. The authority also elected to break ties with Travel Link Marketing, which had represented Hawaii’s tourism interests in China since 2014. Although Korean marketer iConnect Communications has worked with the HTA since only 2015, the authority elected to go in another direction.
HTA forecast that in 2016 European expenditures will grow 4 percent to $397.8 million. Arrivals also are expected to rise 2 percent to nearly 200,000 visitors. Demand is expected to be driven by economic growth in the United Kingdom and Germany, said Daniel Nahoopii, HTA director of tourism research.
Despite a slower economic pace in China, the HTA has forecast that in 2016 growth will continue from China. Overall spending is expected to rise 9.1 percent to nearly $490 million, while arrivals are forecast to rise 7 percent to 185,007 visitors.
The HTA also anticipates stronger 2016 results from South Korea. Spending is expected to rise 8 percent to $388 million, and arrivals are forecast to grow 6 percent to 187,461 visitors. Nahoopii said midweek flight load factor and yields continue to be a concern. However, the start of low-cost-carrier Jin Air this month is expected to spur greater demand.
After a year of strong growth, the HTA expects Oceania to continue the momentum at a slower pace. New Zealand and Australia are anticipated to see arrivals grow 1.5 percent to 413,175 and spending increase by 3.5 percent to nearly $1.1 billion.
Arrivals from Taiwan are forecast to fall 1.4 percent to 16,541 in 2016, while spending is expected to stay flat at $30.2 million.