2017 ANNUAL REPORT

TO THE HAWAIlsquoI STATE LEGISLATURE

Message from the PresidentCEO and Board Chair 2 Hawailsquoi Tourism Authority Board of Directors 3 2017 Improving Tourism for Hawailsquoirsquos Future 4-5 Overview of the Hawailsquoi Tourism Authority 6 Measures of Success 7 Transient Accommodations Tax Collections 8-9 Hawailsquoi Tourism Authority Fiscal Year 2017 Actuals 10 Hawailsquoi Convention Center Fiscal Year 2017 Actuals 10 Goal 1 Improve the Integrity of the Destination 11

Hawaiian Culture 12-13 Kāhea Harbor Greetings 13

Natural Resources 14-15 Product Development 16-17

Goal 2 Ensure Stable Economic Benefits 18 Brand Management PlanMajor Market Management 19 Olsquoahu 20 Maui County 21

Kaualsquoi 22 Island of Hawailsquoi 23 United States 24 Japan 25 Canada 26 Oceania 27 Korea 28 China 29

Taiwan 30 Hong Kong 30 Southeast Asia 31 Europe 31 Business Destination Management 32 2017-18 Events Listing 33-34 OnlineWebsite Projects 35

Goal 3 Elevate Hawailsquoirsquos Value Perception 36 Native Hawaiian Festivals 37 Major Festivals and Signature Events 38 Sports Marketing 39 Brand Development Projects 40 Access (Air and Cruise) 41 Career Development 42 Safety and Security 43 Tourism Research and Planning 44

Goal 4 Strengthen HTArsquos Reputation 45 Communications 46 Global Tourism Summit 47-49 Hawailsquoi Visitor Statistics 50-53 Statewide and By Island 50-51 Global Source Markets 52-53

Brand Experience Program Listings 54-55 ProgramProject Contract Listing 56 The HTA Team Supporting Hawailsquoirsquos Tourism Industry 57

1

Aloha kākou

We began 2017 hopeful Hawailsquoiʻs tourism industry could replicate thesuccess of 2016 which saw the highest totals ever recorded for visitorspending ($1591 billion) generated state tax revenue ($186 billion)and visitor arrivals (893 million)

Another measure of success vital to the statersquos economic health and families throughout the Hawaiian Islands were the 194000 jobs supported by tourismin 2016 also the highest total ever

Entering 2017 economists projected Hawailsquoirsquos visitor spending and arrivalswould increase incrementally at best but that growth could also flatten

In light of these predictions we urged our Global Marketing Team to aggressively and creatively reaffirm theappeal of Hawailsquoirsquos brand to potential travelers Our view is that Hawailsquoi must always strive to strengthen our share ofthe global travel market

Fortunately Hawailsquoi tourism exceeded all expectations in 2017 The state realized its sixth straight year of record-high totalsfor visitor spending generated state tax revenue and arrivals This is welcome news to families statewide who depend ontourism for their livelihoods

Hawailsquoi travel demand from our largest source markets ndash the US mainland Japan and Canada ndash have driven tourismrsquos success in2017 Travel from both the US West and US East markets has been robust while Japan and Canada rebounded strongly afterbeing down in recent years

Air service to Hawailsquoi from markets on both sides of the Pacific is at its highest and poised to grow even more as we enter 2018with the introduction of new flights from Delta Air Lines Virgin America United Airlines and Scoot in December

A major benefit to Hawailsquoi travel this past year was reopening the Ellison Onizuka Kona International Airport at Keāhole as asecond international port of entry for carriers This has proven to be an economic boon to the island of Hawailsquoi and the stateoverall fueled by the introduction of nonstop flights between Tokyo and Kona by Hawaiian Airlines and Japan Airlines

While Hawailsquoi is fortunate tourism is thriving we recognize the concerns community members have about its effect on thestatersquos quality of life Responsible tourism is key to Hawailsquoirsquos tourism future but is a subject requiring all stakeholders ndashthe public sector private businesses and residents ndash to collaborate on solutions that are realistic fair and do not undulyhinder our statersquos leading industry

Thus encouraging a balanced and holistic approach to managing tourism is a primary objective of the Hawailsquoi Tourism AuthorityIt was the focus of our successful Global Tourism Summit in September and the motivation for HTA awarding $33 million to 128nonprofits this past year to help preserve Hawaiian culture protect Hawailsquoirsquos natural resources and share community traditions

We are grateful for your support of Hawailsquoirsquos tourism industry and consequently the businesses and families statewidewho rely on its success

With warmest aloha

2

George D Szigeti L Richard Fried Jr HTA President and CEO HTA Board Chair

HAWAIlsquo I TOURIS M AUT HO RIT Y BOARD OF DIRECTO RS

L Richard Fried Jr Chair Founding Partner Cronin Fried Sekiya Kekina and FairbanksAttorneys At Law

City and County of Honolulu

Craig G Nakamura Vice Chair Partner Carlsmith Ball LLP County of Maui

Fred Atkins Managing Partner Kaualsquoi Kilohana Partners County of Kaualsquoi

Sean P Dee Executive Vice President Chief Marketing Officer Outrigger Enterprises Group

At-Large

Gerald De Mello Professor Emeritus Hawailsquoi Community College County of Hawailsquoi

Donna Domingo President ILWU Local 142 At-Large

George Kam Ambassador of Aloha At-Large

Kulsquouipo Kumukahi Hawaiian Culture Manager Hyatt Regency Waikiki Beach Resort and Spa

At-Large

Sherry Menor-McNamara President and CEO Chamber of Commerce Hawaii At-Large

Kelly Sanders Area Managing Director Marriott Hotels and Resorts Waikiki

At-Large

Denise Hayashi Yamaguchi President and CEO Denise Hayashi Consulting LLC At-Large

3

2017 IMPROVING TOURISM FOR HAWAIlsquo I rsquoS F UTURE

The US plays Germany at Mauirsquos11-12

FEBRoyal Lahaina Resort in a Fed Cupwomenrsquos tennis match brought toHawailsquoi by HTA It marks the firsttime the same state hosts Fed Cupmatches in consecutive years

JUNE HTA contributes FEB The Hawailsquoi Convention 5 $250000 to Center debuts its new sports restore the Ala

courts hosting a womenrsquos18-20

Wai watershed in volleyball tournament support of Māmalawith teams from the Bay and Waikīkī US mainland and MARCH- Stakeholder meetingsHawailsquoi APRIL with cultural advisors

are convened statewide to discuss the perpetuation of JUNE Hōkūlelsquoa and its Hawaiian culture 17 crew are welcomed

HTA awards $33 million to home with a joyousFEB27 support 128 nonprofit groups APRIL HTA collaborates with celebration upon

perpetuating Hawaiian culture 19 the State Department completing theirprotecting Hawailsquoirsquos natural of Health to advise the three-year Mālamaresources and sharing public on preventing Honua Worldwide community events in 2017 rat lungworm disease Voyage

Jan Feb March April May June

and HTA team up A380 aircraft set to is presented to HTA is the premierfor Hawailsquoi Night at begin service to HTA for being sponsor of thethe STAPLES Center Honolulu in spring 2019

JAN The NBArsquos Los MARCH6 design for its AirbusANA selects a honu-inspired MAY The Hawailsquoi Green JUNE

Angeles Clippers Business Award 4 17 20-22

energy VERGE Hawailsquoi in Los Angeles efficient and 2017 Asia Pacific to promote reducing Clean EnergyHTA issues two research travel to the MARCH waste with Summit with studies assessing the9Hawaiian its 2016 a major focusimpact of alternativeIslands Hawailsquoi Tourism on responsibleaccommodations Conference tourismin Hawailsquoi

HTA welcomes JUNE AirAsia X Southeast MAYMARCH Four research studies Sherry Menor- 28 Asiarsquos first low-cost 19

launches

JAN HTA releases Hawailsquoirsquos 2016 16 on the profiles McNamara carrier servingvisitor statistics with final preferences and Hawailsquoipresident and30 totals showing record highs sentiments of LGBT CEO of the in visitor spending ($1591 travelers from the four weeklyChamber of billion) generated state US Canada China flights betweenCommerce Hawaii tax revenue ($186 billion) and Australia Malaysia andand Kelly Sandersand visitor arrivals (893 Honolulu with a relating to area managingmillion) stopover in Osaka Hawailsquoi are director of Marriott

issued by HTA Japan Hotels and Resorts Waikiki to its board of directors

4

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

Message from the PresidentCEO and Board Chair 2 Hawailsquoi Tourism Authority Board of Directors 3 2017 Improving Tourism for Hawailsquoirsquos Future 4-5 Overview of the Hawailsquoi Tourism Authority 6 Measures of Success 7 Transient Accommodations Tax Collections 8-9 Hawailsquoi Tourism Authority Fiscal Year 2017 Actuals 10 Hawailsquoi Convention Center Fiscal Year 2017 Actuals 10 Goal 1 Improve the Integrity of the Destination 11

Hawaiian Culture 12-13 Kāhea Harbor Greetings 13

Natural Resources 14-15 Product Development 16-17

Goal 2 Ensure Stable Economic Benefits 18 Brand Management PlanMajor Market Management 19 Olsquoahu 20 Maui County 21

Kaualsquoi 22 Island of Hawailsquoi 23 United States 24 Japan 25 Canada 26 Oceania 27 Korea 28 China 29

Taiwan 30 Hong Kong 30 Southeast Asia 31 Europe 31 Business Destination Management 32 2017-18 Events Listing 33-34 OnlineWebsite Projects 35

Goal 3 Elevate Hawailsquoirsquos Value Perception 36 Native Hawaiian Festivals 37 Major Festivals and Signature Events 38 Sports Marketing 39 Brand Development Projects 40 Access (Air and Cruise) 41 Career Development 42 Safety and Security 43 Tourism Research and Planning 44

Goal 4 Strengthen HTArsquos Reputation 45 Communications 46 Global Tourism Summit 47-49 Hawailsquoi Visitor Statistics 50-53 Statewide and By Island 50-51 Global Source Markets 52-53

Brand Experience Program Listings 54-55 ProgramProject Contract Listing 56 The HTA Team Supporting Hawailsquoirsquos Tourism Industry 57

1

Aloha kākou

We began 2017 hopeful Hawailsquoiʻs tourism industry could replicate thesuccess of 2016 which saw the highest totals ever recorded for visitorspending ($1591 billion) generated state tax revenue ($186 billion)and visitor arrivals (893 million)

Another measure of success vital to the statersquos economic health and families throughout the Hawaiian Islands were the 194000 jobs supported by tourismin 2016 also the highest total ever

Entering 2017 economists projected Hawailsquoirsquos visitor spending and arrivalswould increase incrementally at best but that growth could also flatten

In light of these predictions we urged our Global Marketing Team to aggressively and creatively reaffirm theappeal of Hawailsquoirsquos brand to potential travelers Our view is that Hawailsquoi must always strive to strengthen our share ofthe global travel market

Fortunately Hawailsquoi tourism exceeded all expectations in 2017 The state realized its sixth straight year of record-high totalsfor visitor spending generated state tax revenue and arrivals This is welcome news to families statewide who depend ontourism for their livelihoods

Hawailsquoi travel demand from our largest source markets ndash the US mainland Japan and Canada ndash have driven tourismrsquos success in2017 Travel from both the US West and US East markets has been robust while Japan and Canada rebounded strongly afterbeing down in recent years

Air service to Hawailsquoi from markets on both sides of the Pacific is at its highest and poised to grow even more as we enter 2018with the introduction of new flights from Delta Air Lines Virgin America United Airlines and Scoot in December

A major benefit to Hawailsquoi travel this past year was reopening the Ellison Onizuka Kona International Airport at Keāhole as asecond international port of entry for carriers This has proven to be an economic boon to the island of Hawailsquoi and the stateoverall fueled by the introduction of nonstop flights between Tokyo and Kona by Hawaiian Airlines and Japan Airlines

While Hawailsquoi is fortunate tourism is thriving we recognize the concerns community members have about its effect on thestatersquos quality of life Responsible tourism is key to Hawailsquoirsquos tourism future but is a subject requiring all stakeholders ndashthe public sector private businesses and residents ndash to collaborate on solutions that are realistic fair and do not undulyhinder our statersquos leading industry

Thus encouraging a balanced and holistic approach to managing tourism is a primary objective of the Hawailsquoi Tourism AuthorityIt was the focus of our successful Global Tourism Summit in September and the motivation for HTA awarding $33 million to 128nonprofits this past year to help preserve Hawaiian culture protect Hawailsquoirsquos natural resources and share community traditions

We are grateful for your support of Hawailsquoirsquos tourism industry and consequently the businesses and families statewidewho rely on its success

With warmest aloha

2

George D Szigeti L Richard Fried Jr HTA President and CEO HTA Board Chair

HAWAIlsquo I TOURIS M AUT HO RIT Y BOARD OF DIRECTO RS

L Richard Fried Jr Chair Founding Partner Cronin Fried Sekiya Kekina and FairbanksAttorneys At Law

City and County of Honolulu

Craig G Nakamura Vice Chair Partner Carlsmith Ball LLP County of Maui

Fred Atkins Managing Partner Kaualsquoi Kilohana Partners County of Kaualsquoi

Sean P Dee Executive Vice President Chief Marketing Officer Outrigger Enterprises Group

At-Large

Gerald De Mello Professor Emeritus Hawailsquoi Community College County of Hawailsquoi

Donna Domingo President ILWU Local 142 At-Large

George Kam Ambassador of Aloha At-Large

Kulsquouipo Kumukahi Hawaiian Culture Manager Hyatt Regency Waikiki Beach Resort and Spa

At-Large

Sherry Menor-McNamara President and CEO Chamber of Commerce Hawaii At-Large

Kelly Sanders Area Managing Director Marriott Hotels and Resorts Waikiki

At-Large

Denise Hayashi Yamaguchi President and CEO Denise Hayashi Consulting LLC At-Large

3

2017 IMPROVING TOURISM FOR HAWAIlsquo I rsquoS F UTURE

The US plays Germany at Mauirsquos11-12

FEBRoyal Lahaina Resort in a Fed Cupwomenrsquos tennis match brought toHawailsquoi by HTA It marks the firsttime the same state hosts Fed Cupmatches in consecutive years

JUNE HTA contributes FEB The Hawailsquoi Convention 5 $250000 to Center debuts its new sports restore the Ala

courts hosting a womenrsquos18-20

Wai watershed in volleyball tournament support of Māmalawith teams from the Bay and Waikīkī US mainland and MARCH- Stakeholder meetingsHawailsquoi APRIL with cultural advisors

are convened statewide to discuss the perpetuation of JUNE Hōkūlelsquoa and its Hawaiian culture 17 crew are welcomed

HTA awards $33 million to home with a joyousFEB27 support 128 nonprofit groups APRIL HTA collaborates with celebration upon

perpetuating Hawaiian culture 19 the State Department completing theirprotecting Hawailsquoirsquos natural of Health to advise the three-year Mālamaresources and sharing public on preventing Honua Worldwide community events in 2017 rat lungworm disease Voyage

Jan Feb March April May June

and HTA team up A380 aircraft set to is presented to HTA is the premierfor Hawailsquoi Night at begin service to HTA for being sponsor of thethe STAPLES Center Honolulu in spring 2019

JAN The NBArsquos Los MARCH6 design for its AirbusANA selects a honu-inspired MAY The Hawailsquoi Green JUNE

Angeles Clippers Business Award 4 17 20-22

energy VERGE Hawailsquoi in Los Angeles efficient and 2017 Asia Pacific to promote reducing Clean EnergyHTA issues two research travel to the MARCH waste with Summit with studies assessing the9Hawaiian its 2016 a major focusimpact of alternativeIslands Hawailsquoi Tourism on responsibleaccommodations Conference tourismin Hawailsquoi

HTA welcomes JUNE AirAsia X Southeast MAYMARCH Four research studies Sherry Menor- 28 Asiarsquos first low-cost 19

launches

JAN HTA releases Hawailsquoirsquos 2016 16 on the profiles McNamara carrier servingvisitor statistics with final preferences and Hawailsquoipresident and30 totals showing record highs sentiments of LGBT CEO of the in visitor spending ($1591 travelers from the four weeklyChamber of billion) generated state US Canada China flights betweenCommerce Hawaii tax revenue ($186 billion) and Australia Malaysia andand Kelly Sandersand visitor arrivals (893 Honolulu with a relating to area managingmillion) stopover in Osaka Hawailsquoi are director of Marriott

issued by HTA Japan Hotels and Resorts Waikiki to its board of directors

4

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

Aloha kākou

We began 2017 hopeful Hawailsquoiʻs tourism industry could replicate thesuccess of 2016 which saw the highest totals ever recorded for visitorspending ($1591 billion) generated state tax revenue ($186 billion)and visitor arrivals (893 million)

Another measure of success vital to the statersquos economic health and families throughout the Hawaiian Islands were the 194000 jobs supported by tourismin 2016 also the highest total ever

Entering 2017 economists projected Hawailsquoirsquos visitor spending and arrivalswould increase incrementally at best but that growth could also flatten

In light of these predictions we urged our Global Marketing Team to aggressively and creatively reaffirm theappeal of Hawailsquoirsquos brand to potential travelers Our view is that Hawailsquoi must always strive to strengthen our share ofthe global travel market

Fortunately Hawailsquoi tourism exceeded all expectations in 2017 The state realized its sixth straight year of record-high totalsfor visitor spending generated state tax revenue and arrivals This is welcome news to families statewide who depend ontourism for their livelihoods

Hawailsquoi travel demand from our largest source markets ndash the US mainland Japan and Canada ndash have driven tourismrsquos success in2017 Travel from both the US West and US East markets has been robust while Japan and Canada rebounded strongly afterbeing down in recent years

Air service to Hawailsquoi from markets on both sides of the Pacific is at its highest and poised to grow even more as we enter 2018with the introduction of new flights from Delta Air Lines Virgin America United Airlines and Scoot in December

A major benefit to Hawailsquoi travel this past year was reopening the Ellison Onizuka Kona International Airport at Keāhole as asecond international port of entry for carriers This has proven to be an economic boon to the island of Hawailsquoi and the stateoverall fueled by the introduction of nonstop flights between Tokyo and Kona by Hawaiian Airlines and Japan Airlines

While Hawailsquoi is fortunate tourism is thriving we recognize the concerns community members have about its effect on thestatersquos quality of life Responsible tourism is key to Hawailsquoirsquos tourism future but is a subject requiring all stakeholders ndashthe public sector private businesses and residents ndash to collaborate on solutions that are realistic fair and do not undulyhinder our statersquos leading industry

Thus encouraging a balanced and holistic approach to managing tourism is a primary objective of the Hawailsquoi Tourism AuthorityIt was the focus of our successful Global Tourism Summit in September and the motivation for HTA awarding $33 million to 128nonprofits this past year to help preserve Hawaiian culture protect Hawailsquoirsquos natural resources and share community traditions

We are grateful for your support of Hawailsquoirsquos tourism industry and consequently the businesses and families statewidewho rely on its success

With warmest aloha

2

George D Szigeti L Richard Fried Jr HTA President and CEO HTA Board Chair

HAWAIlsquo I TOURIS M AUT HO RIT Y BOARD OF DIRECTO RS

L Richard Fried Jr Chair Founding Partner Cronin Fried Sekiya Kekina and FairbanksAttorneys At Law

City and County of Honolulu

Craig G Nakamura Vice Chair Partner Carlsmith Ball LLP County of Maui

Fred Atkins Managing Partner Kaualsquoi Kilohana Partners County of Kaualsquoi

Sean P Dee Executive Vice President Chief Marketing Officer Outrigger Enterprises Group

At-Large

Gerald De Mello Professor Emeritus Hawailsquoi Community College County of Hawailsquoi

Donna Domingo President ILWU Local 142 At-Large

George Kam Ambassador of Aloha At-Large

Kulsquouipo Kumukahi Hawaiian Culture Manager Hyatt Regency Waikiki Beach Resort and Spa

At-Large

Sherry Menor-McNamara President and CEO Chamber of Commerce Hawaii At-Large

Kelly Sanders Area Managing Director Marriott Hotels and Resorts Waikiki

At-Large

Denise Hayashi Yamaguchi President and CEO Denise Hayashi Consulting LLC At-Large

3

2017 IMPROVING TOURISM FOR HAWAIlsquo I rsquoS F UTURE

The US plays Germany at Mauirsquos11-12

FEBRoyal Lahaina Resort in a Fed Cupwomenrsquos tennis match brought toHawailsquoi by HTA It marks the firsttime the same state hosts Fed Cupmatches in consecutive years

JUNE HTA contributes FEB The Hawailsquoi Convention 5 $250000 to Center debuts its new sports restore the Ala

courts hosting a womenrsquos18-20

Wai watershed in volleyball tournament support of Māmalawith teams from the Bay and Waikīkī US mainland and MARCH- Stakeholder meetingsHawailsquoi APRIL with cultural advisors

are convened statewide to discuss the perpetuation of JUNE Hōkūlelsquoa and its Hawaiian culture 17 crew are welcomed

HTA awards $33 million to home with a joyousFEB27 support 128 nonprofit groups APRIL HTA collaborates with celebration upon

perpetuating Hawaiian culture 19 the State Department completing theirprotecting Hawailsquoirsquos natural of Health to advise the three-year Mālamaresources and sharing public on preventing Honua Worldwide community events in 2017 rat lungworm disease Voyage

Jan Feb March April May June

and HTA team up A380 aircraft set to is presented to HTA is the premierfor Hawailsquoi Night at begin service to HTA for being sponsor of thethe STAPLES Center Honolulu in spring 2019

JAN The NBArsquos Los MARCH6 design for its AirbusANA selects a honu-inspired MAY The Hawailsquoi Green JUNE

Angeles Clippers Business Award 4 17 20-22

energy VERGE Hawailsquoi in Los Angeles efficient and 2017 Asia Pacific to promote reducing Clean EnergyHTA issues two research travel to the MARCH waste with Summit with studies assessing the9Hawaiian its 2016 a major focusimpact of alternativeIslands Hawailsquoi Tourism on responsibleaccommodations Conference tourismin Hawailsquoi

HTA welcomes JUNE AirAsia X Southeast MAYMARCH Four research studies Sherry Menor- 28 Asiarsquos first low-cost 19

launches

JAN HTA releases Hawailsquoirsquos 2016 16 on the profiles McNamara carrier servingvisitor statistics with final preferences and Hawailsquoipresident and30 totals showing record highs sentiments of LGBT CEO of the in visitor spending ($1591 travelers from the four weeklyChamber of billion) generated state US Canada China flights betweenCommerce Hawaii tax revenue ($186 billion) and Australia Malaysia andand Kelly Sandersand visitor arrivals (893 Honolulu with a relating to area managingmillion) stopover in Osaka Hawailsquoi are director of Marriott

issued by HTA Japan Hotels and Resorts Waikiki to its board of directors

4

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

HAWAIlsquo I TOURIS M AUT HO RIT Y BOARD OF DIRECTO RS

L Richard Fried Jr Chair Founding Partner Cronin Fried Sekiya Kekina and FairbanksAttorneys At Law

City and County of Honolulu

Craig G Nakamura Vice Chair Partner Carlsmith Ball LLP County of Maui

Fred Atkins Managing Partner Kaualsquoi Kilohana Partners County of Kaualsquoi

Sean P Dee Executive Vice President Chief Marketing Officer Outrigger Enterprises Group

At-Large

Gerald De Mello Professor Emeritus Hawailsquoi Community College County of Hawailsquoi

Donna Domingo President ILWU Local 142 At-Large

George Kam Ambassador of Aloha At-Large

Kulsquouipo Kumukahi Hawaiian Culture Manager Hyatt Regency Waikiki Beach Resort and Spa

At-Large

Sherry Menor-McNamara President and CEO Chamber of Commerce Hawaii At-Large

Kelly Sanders Area Managing Director Marriott Hotels and Resorts Waikiki

At-Large

Denise Hayashi Yamaguchi President and CEO Denise Hayashi Consulting LLC At-Large

3

2017 IMPROVING TOURISM FOR HAWAIlsquo I rsquoS F UTURE

The US plays Germany at Mauirsquos11-12

FEBRoyal Lahaina Resort in a Fed Cupwomenrsquos tennis match brought toHawailsquoi by HTA It marks the firsttime the same state hosts Fed Cupmatches in consecutive years

JUNE HTA contributes FEB The Hawailsquoi Convention 5 $250000 to Center debuts its new sports restore the Ala

courts hosting a womenrsquos18-20

Wai watershed in volleyball tournament support of Māmalawith teams from the Bay and Waikīkī US mainland and MARCH- Stakeholder meetingsHawailsquoi APRIL with cultural advisors

are convened statewide to discuss the perpetuation of JUNE Hōkūlelsquoa and its Hawaiian culture 17 crew are welcomed

HTA awards $33 million to home with a joyousFEB27 support 128 nonprofit groups APRIL HTA collaborates with celebration upon

perpetuating Hawaiian culture 19 the State Department completing theirprotecting Hawailsquoirsquos natural of Health to advise the three-year Mālamaresources and sharing public on preventing Honua Worldwide community events in 2017 rat lungworm disease Voyage

Jan Feb March April May June

and HTA team up A380 aircraft set to is presented to HTA is the premierfor Hawailsquoi Night at begin service to HTA for being sponsor of thethe STAPLES Center Honolulu in spring 2019

JAN The NBArsquos Los MARCH6 design for its AirbusANA selects a honu-inspired MAY The Hawailsquoi Green JUNE

Angeles Clippers Business Award 4 17 20-22

energy VERGE Hawailsquoi in Los Angeles efficient and 2017 Asia Pacific to promote reducing Clean EnergyHTA issues two research travel to the MARCH waste with Summit with studies assessing the9Hawaiian its 2016 a major focusimpact of alternativeIslands Hawailsquoi Tourism on responsibleaccommodations Conference tourismin Hawailsquoi

HTA welcomes JUNE AirAsia X Southeast MAYMARCH Four research studies Sherry Menor- 28 Asiarsquos first low-cost 19

launches

JAN HTA releases Hawailsquoirsquos 2016 16 on the profiles McNamara carrier servingvisitor statistics with final preferences and Hawailsquoipresident and30 totals showing record highs sentiments of LGBT CEO of the in visitor spending ($1591 travelers from the four weeklyChamber of billion) generated state US Canada China flights betweenCommerce Hawaii tax revenue ($186 billion) and Australia Malaysia andand Kelly Sandersand visitor arrivals (893 Honolulu with a relating to area managingmillion) stopover in Osaka Hawailsquoi are director of Marriott

issued by HTA Japan Hotels and Resorts Waikiki to its board of directors

4

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

2017 IMPROVING TOURISM FOR HAWAIlsquo I rsquoS F UTURE

The US plays Germany at Mauirsquos11-12

FEBRoyal Lahaina Resort in a Fed Cupwomenrsquos tennis match brought toHawailsquoi by HTA It marks the firsttime the same state hosts Fed Cupmatches in consecutive years

JUNE HTA contributes FEB The Hawailsquoi Convention 5 $250000 to Center debuts its new sports restore the Ala

courts hosting a womenrsquos18-20

Wai watershed in volleyball tournament support of Māmalawith teams from the Bay and Waikīkī US mainland and MARCH- Stakeholder meetingsHawailsquoi APRIL with cultural advisors

are convened statewide to discuss the perpetuation of JUNE Hōkūlelsquoa and its Hawaiian culture 17 crew are welcomed

HTA awards $33 million to home with a joyousFEB27 support 128 nonprofit groups APRIL HTA collaborates with celebration upon

perpetuating Hawaiian culture 19 the State Department completing theirprotecting Hawailsquoirsquos natural of Health to advise the three-year Mālamaresources and sharing public on preventing Honua Worldwide community events in 2017 rat lungworm disease Voyage

Jan Feb March April May June

and HTA team up A380 aircraft set to is presented to HTA is the premierfor Hawailsquoi Night at begin service to HTA for being sponsor of thethe STAPLES Center Honolulu in spring 2019

JAN The NBArsquos Los MARCH6 design for its AirbusANA selects a honu-inspired MAY The Hawailsquoi Green JUNE

Angeles Clippers Business Award 4 17 20-22

energy VERGE Hawailsquoi in Los Angeles efficient and 2017 Asia Pacific to promote reducing Clean EnergyHTA issues two research travel to the MARCH waste with Summit with studies assessing the9Hawaiian its 2016 a major focusimpact of alternativeIslands Hawailsquoi Tourism on responsibleaccommodations Conference tourismin Hawailsquoi

HTA welcomes JUNE AirAsia X Southeast MAYMARCH Four research studies Sherry Menor- 28 Asiarsquos first low-cost 19

launches

JAN HTA releases Hawailsquoirsquos 2016 16 on the profiles McNamara carrier servingvisitor statistics with final preferences and Hawailsquoipresident and30 totals showing record highs sentiments of LGBT CEO of the in visitor spending ($1591 travelers from the four weeklyChamber of billion) generated state US Canada China flights betweenCommerce Hawaii tax revenue ($186 billion) and Australia Malaysia andand Kelly Sandersand visitor arrivals (893 Honolulu with a relating to area managingmillion) stopover in Osaka Hawailsquoi are director of Marriott

issued by HTA Japan Hotels and Resorts Waikiki to its board of directors

4

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

The past year was filled with achievements special events and notable announcements that helped strengthen tourism and promised that Hawailsquoirsquos leading industry will continue to improve for the benefit of residents communities and businesses statewide

DEC Virgin America launchesBelow are some highlights from 2017 daily nonstop flights14 between San Francisco

and Kona

DEC Scoot launches service between Singapore and19 Honolulu offering four

weekly flights whichinclude a stopoverin Osaka Japan

OCT HTA awards $35 million to DEC United Airlines expands its

10 support 124 nonprofit groups 20 seat capacity to Hawailsquoiby 20 percentperpetuating Hawaiian cultureadding moreprotecting Hawailsquoirsquos natural

resources and sharing community nonstop flights to theAUG HTA introduces the events in 2018 neighbor islands from Los

17 revamped GoHawaiicom Angeles San Franciscowebsite offering users Chicago and Denver mobile-friendly immersive OCT Southwest Airlines announces its multimedia content 11 intention to offer flights between DEC Delta Airlines launches experiences and featuring the US mainland and Hawailsquoi daily nonstop flights21

with ticket sales expected to between Seattle art and music begin in 2018 Hawaiian language chants

and Līhulsquoe

July Aug Sep Oct Nov Dec

SEP The Native Hawaiian Hospitality NOV HTA appointsAssociation marks its 20th Jennifer Chun 9 20anniversary as the lead advocate director of its for Hawaiian culture in the tourism Tourism Research industry Division

SEP Japan Airlines relaunches nonstop NOV HTArsquos Tourism Research Division daily flights between Tokyo and begins publishing the monthly 15 28Kona on the island Hawailsquoi Hotel Performance of Hawailsquoi after a Report providingseven-year key statistics andabsence analysis for hotel

stays statewideSEP HTA presents the Global Tourism and by island

Summit with a focus on responsible county 19-21 tourism More than 1800 participantsfrom 18 countries attend with support from 49 sponsors

SEP The Los Angeles Clippers begin theirtraining camp in Honolulu culminating25 in two preseason games against theToronto Raptors on October 1 and 3The Clippers also donate a new computerlab to the students of Stevenson Middle School in Honolulu

5

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

OVERVIEW OF THE HAWAIlsquoI TOURISM AUTHORITY

The Hawailsquoi Tourism Authority was established in 1998 through a legislative act to serve as the statersquos lead agency supporting tourismHawailsquoirsquos largest industry This same act also established the Tourism Special Fund which utilizes a set percentage of Transient Accommodations Tax (TAT)collections assessed on hotels vacation rentals and other accommodations to fund HTArsquos marketing initiatives in support of Hawailsquoirsquos tourism industry Among its responsibilities HTA is charged with

bull Meeting the goals of its Five-Year Strategic Plan covering the years 2016 through 2020 bull Setting tourism policy and direction from a statewide perspective bull Developing and overseeing implementation of the statersquos tourism marketing plans and programs bull Supporting programs and initiatives perpetuating the Hawaiian culture protecting Hawailsquoirsquos natural resourcesand presenting community festivals and events statewide

bull Managing programs and activities to sustain a healthy tourism economy for the state bull Coordinating tourism-related research planning and promotional outreach activities with stakeholdersin the public and private sectors

bull Encouraging distribution of visitors throughout the Hawaiian Islands to achieve an improved balance of capacity statewide bull Fostering greater collaboration with other state agencies

OPERATIONS HTA is administratively attached to the Hawailsquoi State Department of Business Economic Development and Tourism (DBEDT)HTArsquos president and chief executive officer reports directly to HTArsquos board of directors and is responsible for assisting the boardin its responsibility to fulfill the mandates of Chapter 201B of the Hawailsquoi Revised Statutes

6

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

MEASURES OF SUCCESS

The Hawailsquoi Tourism Authority Five-Year Strategic Plan covering the years 2016 to 2020 serves as the guide for achieving short- and long-term goals of success based on research data market intelligence input from stakeholders and collaboration with industry associationsThe following targets are proposed as a benchmark to measure HTArsquos success in realizing the goals of the strategic plan

PROPOSED PROPOSED 3-YEAR TARGET 5-YEAR TARGET

GOAL MEASURE OF SUCCESS RECENT VALUE(S) (2018) (2020)

Improve the Integrity of the Destination

Percentage of residents who agree that tourism has brought more benefits than problems

2002 77 2005 71 2006 74 2007 71

75 80

Source 2009 78 HTA Resident Sentiment Survey 2010 80

2012 67 2014 64 2015 66 2017 63

Ensure Stable Economic Benefits

Real (inflation-adjusted) Gross Domestic Product generated by visitor-related expenditures

2005 $1182B 2006 $1213B 2007 $1190B 2008 $1086B

$1275B $1328B

Source 2009 $890B DBEDTREAD (2009 = 100) 2010 $957B

2011 $1024B 2012 $1186B 2013 $1186B 2014 $1194B 2015 $1180B 2016 $1215B

Elevate Hawailsquoirsquos Value Perception

Percentage of potential visitors considering a trip to Hawailsquoi

LATE 2017 US West 50 US East 30

US West 50 US East 24

US West 52 US East 26

Source HTA Marketing Canada 44 Canada 38 Canada 40 Effectiveness Study Japan 41 Japan 34 Japan 34

Strengthen HTArsquos Reputation

Percentage of organizations in the tourism industry that recognize HTA as a leader

Measure does not exist yet

Baseline + 10 of the difference between baseline and 100

Baseline + 25 of the difference between baseline and 100

Source Survey under development (Example If baseline (Example

is 50 target is 55) If baseline is 50 target is 625)

7

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

TRANSIENT ACCOMMODATIONS TAX COLLECTIONS

The collection of the Transient Accommodations Tax (TAT) and distribution of its revenues help strengthen the statersquos economy while alsosupporting public services provided by the four island counties that enhance the quality of life for residents statewide The TAT revenues are utilized by the City and County of Honolulu Maui County County of Hawailsquoi and County of Kaualsquoi for essential purposesincluding public education public safety infrastructure improvements and maintenance of park facilities In fiscal year (FY) 2017 TAT collections totaled $5084 million an increase of 138 percent compared to the $4468 million collected in FY2016 The statersquos General Fund received $2924 million in TAT revenues in FY 2017 The allocation of TAT revenues to the Tourism Special Fund and Convention Center Enterprise Special Fund was $82 million and $265million respectively in FY 2017 A total of $103 million in TAT revenues was allocated to be shared by the four island counties In addition $3 million was distributed to theHawailsquoi State Department of Land and Natural Resources and $15 million to the Turtle Bay Conservation Easement Special Fund

FY 2016 TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Turtle BayConservation Easement Fund

$15

Tourism Special Fund$820

General Fund $2338

FY 2017

General Fund $2924

8

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

TRANSIENT ACCOMMODATIONS TAX ($ MIL) PROJECTED

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

City and County of Honolulu 410 410 454 454 454 454

Maui County 212 212 234 234 234 234

County of Hawailsquoi 173 173 192 192 192 192

County of Kaualsquoi 135 135 149 149 149 149

PERCENTAGE OF TAT REVENUES DISTRIBUTED BY COUNTY CITY AND COUNTY

OF HONOLULU MAUI COUNTY COUNTY OF HAWAIlsquoI COUNTY OF KAUAlsquoI

441 228 186 145

TAT DISTRIBUTION ($ MIL) FY 2018 PROJECTED TAT DISTRIBUTION ($ MIL)

Convention Center Enterprise Special Fund

$265

Counties $1030

Department of Land and Natural Resources

$30

Turtle Bay

Tourism Special Fund$820

Conservation Easement Fund $15

Convention Center Enterprise Special Fund

$265

Counties $1030

Tourism Special Fund$820

General Fund $3299

Turtle Bay Department of Land and Conservation Easement Fund Natural Resources

$15 $30

9

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

HAWAIlsquoI TOURISM AUTHORITY (HTA) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Tourism Special Fund Investment Pool InterestMiscellaneous Receipts

$ 82000 195

TOTAL REVENUES $ 82195 APPROPRIATIONS

FY 2017 $ 87298 TOTAL APPROPRIATIONS $ 87298 HTA EXPENDITURES

Maintaining Brand Brand Experience Brand Management Communications

$ 4642 8425 59500 649

Tourism Research 2046 Governance 3679

TOTAL HTA EXPENDITURES $ 78941

Hawaiian culture is intertwined throughout all areas of HTA activity

HAWAIlsquoI CONVENTION CENTER (HCC) Fiscal Year (FY) 2017 Actuals ($000)

REVENUES TAT Deposits ndash Convention Center Enterprise Special Fund $ 26500 Convention Center Operations 10288 Transfer from Tourism Special Fund for Convention Center

Sales and Marketing 5069 Investment Pool InterestMiscellaneous Receipts 68

TOTAL REVENUES $ 41925 APPROPRIATIONS

FY 2017 $ 54029 TOTAL APPROPRIATIONS $ 54029 HCC EXPENDITURES

Convention Center Facility OperationsOperator Costs Governance (includes convention center insurance)

Convention Center Sales and Marketing Convention Center Repair and Maintenance Total Expenditures Prior to Payments on Obligation to

State Department of Budget and Finance Payments on Obligation to State Department of Budget and Finance

$ 10721 583

5069 5100

$ 21473 $ 20000

TOTAL HCC EXPENDITURES $ 41473

10

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

IMPROVE THE INTEGRITY OF THE DESTINATION

Holsquoi hou i ka mole Return to the taproot

Just as the taproot is the sourceof life for the healthy tree withstrong branches that spread wideso too is Hawaiian culture and the natural environment the source of life for Hawailsquoirsquos tourism future They must always benurtured to flourish

11

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

HAWAIIAN CULTURE

Native Hawaiian culture is the heart of our Islands and the root of HTArsquos mission in marketing Hawailsquoi The spirit and significance of the Native Hawaiian culture is integrated into every element of HTArsquos programs to support Hawailsquoi and its people There continues to be a renaissance in Hawaiian language usage and practitioners of Native Hawaiian culture within the tourism industryHTA is committed to supporting programs perpetuating the integrity of the Native Hawaiian culture through unique and genuine visitorexperiences that differentiate Hawailsquoi from other destinations worldwide

2017 HIGHLIGHTS bull Provided $13 million in funding through the Kūkulu Ola Program to support 31 community projects statewide perpetuating

Hawaiian culture HTA also increased total funding of the program by $24000 for the year and brought management of theprojects in-house to enhance relationships with awardees

bull Honored the Polynesian Voyaging Society and Mālama Honua Worldwide Voyage at the Global Tourism Summitrsquos Tourism LegacyAwards Luncheon for sharing their message of aloha preserving native cultures and protecting natural resources with people inmore than 150 ports in 23 countries and territories during voyaging canoe Hōkūlelsquoarsquos three-year around-the-world expedition

bull Expanded HTArsquos longstanding relationship with the Native Hawaiian Hospitality Association to strengthen the bridge betweenthe Hawaiian community and tourism industry through training education and outreach

bull Executed a partnership with Hawailsquoi Investment Ready to facilitate and enhance the capacity of 12 Hawailsquoi-based socialenterprises in the tourism sector

bull Conducted Malsquoemalsquoe Program training in international markets to foster a deeper appreciation of Hawailsquoirsquos rich heritage and history bull Supported the authentic display of Native Hawaiian culture arts and entertainment in various trade shows and sales missions

worldwide through practitioners performers and trainers from all islands bull Continued to integrate lsquoōlelo Hawailsquoi (Hawaiian language) into HTArsquos daily business to support its status as an official state

language HTArsquos monthly board meeting agenda is posted in both Hawaiian and English

2018 FOCUS bull Conduct focus group meetings statewide with cultural stakeholders to assess the needs of the Hawaiian community as it

pertains to tourism and HTArsquos focus on Hawaiian culture programs bull Continue to improve the implementation of events highlighting Native Hawaiian heritage and develop a more refined

marketing plan for cultural festivals statewide bull Increase dialogue with Hawaiian cultural practitioners and seek their input on how HTA and the tourism industry can advance

the goal of improving the integrity of the destination

12

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

KA- HEA HARBOR GREETINGS

HTA partnered with the Kaualsquoi Office of Economic Development Lahaina Town Action Committee Destination Hilo and Destination KonaCoast to implement the Kāhea cruise ship greeting program at Hawailsquoi harbors The Kāhea program showcases Hawailsquoirsquos Aloha Spiritand contributes to ensuring a positive first and last impression of the Islands for cruise visitors

2017 HIGHLIGHTS bull Continued activities greeting cruise ship visitors at Nāwiliwili Lahaina Hilo and Kona harbors including Hawaiian entertainment

and cultural demonstrations

2018 FOCUS bull Expanding the Kāhea program to Honolulu Harbor Hawailsquoirsquos most visited port of entry

13

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

NATURAL RESOURCES

The natural resources found throughout the Hawaiian Islands are some of the most precious in the world located in Earthrsquos most unparalleledenvironments and among Hawailsquoirsquos greatest assets as a travel destination HTA supports a variety of environmental programs and initiativesin partnership with communities statewide ndash as well as federal state and county agencies ndash to protect Hawailsquoirsquos natural resources today andpreserve them for future generations

2017 HIGHLIGHTS bull Provided $12 million in funding through the Aloha lsquoĀina Program to support 30 community projects statewide in their efforts to

protect and preserve Hawailsquoirsquos natural environment HTA also increased total funding of the program by $185000 for the year andbrought management of the projects in-house to enhance its relationships with awardees

bull Established a partnership with the State Department of Land and Natural Resources (DLNR) to continue inter-departmentalcollaboration focused on educating visitors and residents about the importance of protecting Hawailsquoirsquos natural resources Publicoutreach included sponsoring television specials creating environmental guide map displays and showing videos in hotel roomsand on airlines with advice on how to best preserve Hawailsquoirsquos resources for future generations

bull Funded the Ala Wai Watershed Collaborative to support the planning and implementation of a regional plan and financingmechanism to improve the health of the watershed flowing into Waikīkī and Māmala Bay

bull Funded and improved the implementation of the Hawailsquoi Ecotourism Associationrsquos Sustainable Tourism Certification Programto recognize tour and activity operators statewide committed to supporting the ideals of protecting the environment ThroughSeptember 49 operators statewide collectively sharing environmentally conscious tour and activity experiences with more than23 million guests had been certified

2018 FOCUS bull Enhance HTArsquos partnership with DLNR to provide insight on specific areas needing attention and amplify messaging about

safety while visiting Hawailsquoi and being a responsible visitor bull Continue supporting the Hawailsquoi Ecotourism Association in certifying tour operators committed to sustainability and integrating

their activities into HTArsquos global marketing efforts bull Implement a program to assist with the protection and management of cultural and natural resource sites by recognizing them

with state national or world heritage designations

14

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

15

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

16

PRODUCT DEVELOPMENT

HTA is dedicated to supporting the establishment of distinct and memorable experiences in communities statewide for residents andvisitors to enjoy To fulfill this initiative HTA assists industry partners and community stakeholders in developing new products andcultivating existing programs to enhance Hawailsquoirsquos brand and convey the range of unique festivals and events offered on all islands HTArsquos product development efforts are steered by its Guiding Principles Inspired by Hawailsquoirsquos natural environment world-renowned hospitality and Aloha Spirit the HTA honors and perpetuates the Native Hawaiian and multicultural traditions that support Hawailsquoirsquos island communities HTA continues to invest in Hawailsquoirsquos people places and culture to ensure the Hawaiian Islands remain a uniquely special place to live work and visit

2017 HIGHLIGHTS bull Provided more than $33 million in funding to support 128 community-based projects to perpetuate Hawaiian culture

preserve natural resources and share community festivals and events through HTArsquos Kūkulu Ola Aloha lsquoĀina and Community Enrichment programs

bull Provided sponsorship support to 31 sports events statewide an increase of four events over 2016 bull Enhanced visitor enjoyment of the Hawaiian Islands by supporting festivals and events showcasing the range of unique experiences

available statewide including multicultural celebrations environmental beauty culinary offerings community traditions and sports bull Provided support to elevate public awareness and build attendance at HTA-sponsored festivals and events through workshops

marketing and communications outreach by HTArsquos Global Marketing Team

2018 FOCUS bull Continuing to follow the direction of HTArsquos Five-Year Strategic Plan (2016-20) and Guiding Principles by bolstering the Hawailsquoi

visitor experience through marketing and implementing of resources in support of tourism industry partners and communitystakeholders

bull Continuing to improve the quality of existing festivals and events while also encouraging the development of new products andexperiences that enhance the allure of the Hawaiian Islands

bull Encouraging collaboration among tourism industry partners to develop new products events programs and experiences fortravelers to enjoy in the Hawaiian Islands

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

17

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

ENSURE STABLE ECONOMIC BENEFITS

lsquoAlsquoohe lsquoauwalsquoa palsquoa i ka hālau i ka mālie No canoes remain in the sheds in calm weather

Hawailsquoi tourism is most successful when all stakeholders collaborate partnerand collectively work for the commonpurpose of feeding the communityEveryone fishes together

18

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

BRAND MANAGEMENT PLAN

The Brand Management Plan outlines the objectives strategies actions and evaluation approach that HTA will undertake to achieve the goalswithin its Five-Year Strategic Plan This Brand Management Plan frames HTArsquos efforts for 2017 to

bull Address the needs of Hawailsquoirsquos tourism industry bull Improve the continuity and flow of business bull Maintain the momentum of Hawailsquoirsquos top economic engine

Initially Hawailsquoi Revised Statutes Section HRS 201B-6 required HTA to prepare a tourism marketing plan as a single comprehensivedocument including in the plan its brand management efforts target markets performance goals and targets and guidelines for programsimplemented through contracts with destination marketing organizations During the 2014 legislative session amendments were made to the statute for clarity and organization of the chapter which called forreplacing ldquomarketing and promotionrdquo with ldquobrand managementrdquo where appropriate As a result HTA prepares an annual Brand ManagementPlan which includes detailed execution plans for brand marketing ndash including the individual brand management plans by major market areandash as well as execution plans for HTArsquos brand experience communications and research programs It also presents an operational plan that organizes HTA for success HTArsquos programs in the Brand Management Plan are aligned under the following areas 1) Awareness conviction and access 2) Unique and memorable experiences 3) Knowledge and collaboration 4) Strategic oversight and governance

This structure enhances the efficiencies of HTArsquos management creates stronger emphasis on thecore areas by grouping related programsensures that communications and tourism research are incorporated into all programareas and integrates Hawaiian culture intoall HTA initiatives

MAJOR MARKET MANAGEMENT Hawailsquoirsquos tourism industry continued to drive the statersquos economic success in 2017 with record high totals for visitor spending generatedtax revenue and visitor arrivals for a sixth straight year HTArsquos Major Market Management program promotes travel demand for the Hawaiian Islands through collaborations with industry partnersstatewide and in key global markets HTArsquos primary objective is to maintain tourismrsquos growth on a positive trajectory to ensure economicstability for the state and support an industry that is the leading provider of jobs for Hawailsquoi residents Travel to the Hawaiian Islands in 2017 was promoted in 10 major market areas by HTArsquos Global Marketing Team comprised of HawailsquoiTourism United States Hawailsquoi Tourism Japan Hawailsquoi Tourism Canada Hawailsquoi Tourism Oceania (Australia and New Zealand)Hawailsquoi Tourism Korea Hawailsquoi Tourism China Hawailsquoi Tourism Taiwan Hawailsquoi Tourism Hong Kong Hawailsquoi Tourism Southeast Asia(Malaysia Singapore Indonesia and Thailand) and Hawailsquoi Tourism Europe (United Kingdom Germany Switzerland France and Italy) HTArsquos Global Marketing Team is charged with developing strategic programs to promote travel to the Hawaiian Islands in their respectivemarkets These programs encompass public relations advertising promotions travel trade MCI (meetings conventions and incentives)marketing education and training stakeholder communications and industry partner relations

BRAND MAINTENANCE

PROGRAMS

COMMUNICATIONS TOURISM RESEARCH

HAWAIIAN CULTURE

BRAND EXPERIENCE PROGRAMS

BRAND MANAGEMENT

PROGRAMS

19

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

OlsquoAHU

Olsquoahu attracts significantly more visitors than any of the other islands of Hawailsquoi Through September Olsquoahu drew 4264304 visitors a 42 percentsame-period increase over 2016 The islandrsquos visitor count comprised 61 percent of Hawailsquoirsquos total 7017268 visitors during the same period The bulk of Olsquoahursquos visitors came from three markets with travelers from the US West comprising 288 percent Japan 264 percent and the USEast 208 percent of total visitors to the island Olsquoahursquos next four largest visitor source markets were Australia at 55 percent Korea at 41 percentCanada at 37 percent and China at 28 percent Visitor spending on Olsquoahu through September was $573 billion a 59 percent increase over the same period in 2016 supported by a 2 percentincrease in average daily spending to more than $198 per visitor

AIR ACCESS Total trans-Pacific air seats provided by carriers serving Olsquoahu from 46 domestic andinternational markets was 6090900 seats through September similar to the same periodin 2016 Olsquoahursquos air seats represented 66 percent of total air seats serving the state Of the total air seats serving Olsquoahu through September 3475491 seats were from domesticmarkets (down 12 percent from the same period in 2016) with 2615409 seats frominternational markets (up 13 percent) Air service to Olsquoahu in 2017 benefited from Hawaiian Airlines adding four weekly flightsbetween Tokyo Japan and Honolulu in December 2016 and the launch of four weekly flightsfrom AirAsia X between Kuala Lumpur Malaysia and Honolulu including a stopover in OsakaJapan in June In addition air carrier Scoot launched four weekly flights between Singapore and Honoluluincluding a stopover in Osaka in December

COMMUNITY SUPPORT HTA supported 35 nonprofit organizations on Olsquoahu committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to 11 Kūkulu Ola Program recipients 10 Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

OlsquoAHU 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 27 $310000 14 $203331 - - 2 $107000 Signature Incubator Program - - 3 $80000 - - 2 $70000 Kundashkulu Ola 15 $529252 11 $485039 6 $256268 2 $140000 Major Festivals 4 $468000 3 $401000 1 $300000 1 $300000 Native Hawaiian Festivals 2 $150000 2 $105000 3 $600000 3 $520000 Aloha lsquoA ndash ina 7 $167000 10 $286000 - - 2 $167963 Safety and Security 1 $288000 1 $318000 4 $150000 3 $271000 Sports Events 13 $7010000dagger 11 $2537000 1 $132000 3 $65000 Other Brand Experience Programs 4 $666000 1 $100000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3503167 $3437345 - - - -

20 TOTAL HTA PROGRAM FUNDING $13091419 $7952715 $2573268 $1866963 Does not Include Honolulu Marathon Oahu and Maui only dagger Includes a $5 million fee to support hosting the NFL Pro Bowl

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

MAUI COUNTY

Through September Maui reported growth in both visitor spending and arrivals At $355 billion visitor spending was up38 percent from the same period in 2016 with visitor arrivals up 32 percent to 2055771 Molokalsquoi achieved a 108 percent increase in visitor spending over the same period to $249 million despite a decreasein visitor arrivals down 49 percent to 42726 Lānalsquoi experienced a same period 67 percent decrease in visitor spending to $584 million while recording a small increasein visitor arrivals up 14 percent to 47815 Maui drew 776 percent of its total visitor count from the US mainland with nearly half coming from the US West market(494 percent) and the remainder from the US East market (282 percent) Canada contributed 89 percent of Mauirsquos visitorswith Australia and Europe producing 22 percent each and Japan 21 percent

AIR ACCESS Through September total trans-Pacific air seats serving Maui was 1756157 seats (down07 percent from the same period in 2016) with 91 percent of these from the US mainland(down 03 percent to 1606502) and the rest from Canada (down 47 percent to 149655) Mauirsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattleand Bellingham Washington Calgary and Edmonton Alberta and Vancouver BritishColumbia Canada Chicago Illinois Dallas Texas Denver Colorado Los Angeles SanDiego San Jose Sacramento San Francisco and Oakland California Phoenix ArizonaPortland Oregon and Salt Lake City Utah In December United Airlines expanded its Maui air service adding more nonstop flightsyear-round from Chicago Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 38 nonprofit organizations in Maui County committed to perpetuatingHawaiian culture preserving natural resources and celebrating community traditionsFunding was provided to nine Kūkulu Ola Program recipients nine Aloha lsquoĀina Program recipients and 20 Community Enrichment Program recipients

MAUI COUNTY 2016

NO OF PROGRAMS AMOUNT

2017 NO OF

PROGRAMS AMOUNT

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

Community Enrichment Program 22 $324000 20 $259000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 7 $189480 9 $234326 6 $256268 2 $140000 Major Festivals 1 $105000 1 $75000 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoA ndash ina 12 $323500 9 $354604 - - 2 $167963 Safety and Security 1 $46000 1 $46000 4 $150000 3 $271000 Sports Events 4 $625000 6 $770000 1 $132000 3 $65000 Other Brand Experience Programs 2 $40000 2 $38000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $3088379 $3039372 - - - -Molokalsquoi Visitors Association $278177 $148844 - - - -Destination Lānalsquoi $163544 $155774 - - - -TOTAL HTA PROGRAM FUNDING $5183080 $5155920 $2573268 $1866963 Oahu and Maui only 21

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

KAUAlsquoI

Kaualsquoi maintained strong and steady growth in visitor spending through September supported by increases in visitor arrivals andaverage daily spending Visitor spending was $139 billion up 101 percent over the same period in 2016 with visitor arrivals up73 percent to 963752 and average daily spending up 47 percent to $193 per visitor Through September 82 percent of Kaualsquoirsquos total visitor arrivals were from the US mainland the highest percentage of all islandsstatewide Additionally Kaualsquoi attracted the highest per island percentage of travelers from both the US West and US East marketsat 511 percent and 309 percent of total arrivals respectively Arrivals from Canada in the same period accounted for 54 percent of Kaualsquoirsquos total visitors followed by Europe at 27 percentAustralia at 25 percent and Japan at 19 percent

AIR ACCESS Total trans-Pacific air seats serving Kaualsquoi was 558158 seats through September up 31percent from the same period in 2016 with the vast majority of these seats coming fromUS mainland markets (up 33 percent to 538166) and the remaining balance fromCanada (down 17 percent to 19992) Kaualsquoirsquos air service in 2017 included nonstop flights from Dallas Texas Denver ColoradoLos Angeles San Jose San Diego San Francisco and Oakland California Phoenix ArizonaPortland Oregon Seattle Washington and Vancouver British Columbia Canada In December Delta Air Lines launched daily nonstop flights between Seattle and LīhulsquoeUnited Airlines expanded its Kaualsquoi air service that month as well adding more year-roundnonstop daily flights from Denver Los Angeles and San Francisco

COMMUNITY SUPPORT HTA supported 22 nonprofit organizations on Kaualsquoi committed to perpetuating Hawaiianculture preserving natural resources and celebrating community traditions Funding wasprovided to two Kūkulu Ola Program recipients six Aloha lsquoĀina Program recipients and 14 Community Enrichment Program recipients

2016 2017 STATEWIDE 2016 STATEWIDE 2017 KAUAlsquoI NO OF NO OF NO OF NO OF

PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT PROGRAMS AMOUNT

Community Enrichment Program 25 $350000 14 $240000 - - 2 $107000 Signature Incubator Program - - 1 $35000 - - 2 $70000 Kundashkulu Ola 2 $40000 2 $75000 6 $256268 2 $140000 Major Festivals 1 $63000 1 $63500 1 $300000 1 $300000 Native Hawaiian Festivals - - - - 3 $600000 3 $520000 Aloha lsquoAndashina 5 $105000 6 $218500 - - 2 $167963 Safety and Security 1 $53000 1 $53000 4 $150000 3 $271000 Sports Events 1 $25000 1 $30000 1 $132000 3 $65000 Other Brand Experience Programs 1 $20000 1 $20000 2 $810000 - -Career Development - - - - 3 $325000 3 $226000 Visitor Bureau Funding and Other Direct Investments $2643047 $2788466 - - - -

22 TOTAL HTA PROGRAM FUNDING $3299047 $3523466 $2573268 $1866963 Oahu and Maui only

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

ISLAND OF HAWAIlsquoI

The island of Hawailsquoi recorded the highest rate of growth in year-over-year visitor spending and arrivals among all of the islands statewidethrough September supported by an increase in nonstop flights from Japan and the US mainland The island achieved double-digit increases in visitor spending up 164 percent to $178 billion and visitor arrivals up 135 percent to1316865 compared to the same period in 2016 Average daily spending also increased 47 percent to more than $185 per visitor Of the island of Hawailsquoirsquos total visitor count 401 percent were from the US West 275 percent from the US East and 103 percent fromJapan Following these markets were Canada at 56 percent China at 33 percent and Australia and Europe with 31 percent each

AIR ACCESS Total transndashPacific air seats serving the island of Hawailsquoi through September was 760530seats up 113 percent from the same period in 2016 Of that total air seats to the EllisonOnizuka Kona International Airport at Keāhole numbered 725570 (up 116 percent) andair seats to the Hilo International Airport numbered 34960 (up 61 percent) Konarsquos air service in 2017 included nonstop flights from Anchorage Alaska Seattle andBellingham Washington Dallas Texas Denver Colorado Los Angeles San Jose SanDiego Oakland and San Francisco California Phoenix Arizona Portland Oregon TokyoJapan and Vancouver British Columbia Canada Hilo was serviced by nonstop flights fromLos Angeles In December Virgin America launched daily nonstop flights between San Francisco andKona United Airlines expanded its Kona air service that month as well adding more year-round nonstop daily flights from Denver Los Angeles and San Francisco and increasing toyear-round daily nonstop flights between Los Angeles and Hilo

COMMUNITY SUPPORT HTA supported 23 nonprofit organizations on the island of Hawailsquoi committed toperpetuating Hawaiian culture preserving natural resources and celebrating communitytraditions Funding was provided to seven Kūkulu Ola Program recipients three Aloha lsquoĀina Program recipients and 13 Community Enrichment Program recipients

ISLAND OF HAWAIlsquoI Community Enrichment Program Signature Incubator Program Kundashkulu Ola Major Festivals Native Hawaiian Festivals Aloha lsquoAndashina Safety and Security Sports Events Other Brand Experience Programs Career Development

TOTAL HTA PROGRAM FUNDING $4200488 $4544609 $2573268 $1866963 Visitor Bureau Funding and Other Direct Investments

Oahu and Maui only

2016 NO OF

PROGRAMS AMOUNT

17 $310000 - -5 $125000 1 $63500 1 $50000 8 $238500 1 $138000 3 $600000 2 $50000 - -

$2625488

2017 NO OF

PROGRAMS AMOUNT

13 $275000 1 $35000 7 $230000 1 $63500 1 $50000 3 $122761 1 $138000 4 $630000 3 $113000 - -

$2887348

STATEWIDE 2016 NO OF

PROGRAMS AMOUNT

- -- -6 $256268 1 $300000 3 $600000 - -4 $150000 1 $132000 2 $810000 3 $325000 - -

STATEWIDE 2017 NO OF

PROGRAMS AMOUNT

2 $107000 2 $70000 2 $140000 1 $300000 3 $520000 2 $167963 3 $271000 3 $65000 - -3 $226000 - -

23

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

24

UNITED STATES

The US mainland is Hawailsquoirsquos largest source market for visitors accounting formore than 60 percent of total visitors to the Hawaiian Islands Results from boththe US West and US East markets were strong through September The US West market generated 2864784 visitor arrivals (up 44 percent from2016) and $46 billion in visitor spending (up 105 percent) while the US Eastmarket generated 1535934 visitor arrivals (up 57 percent) and $327 billionin visitor spending (up 104 percent) Hawailsquoi Tourism United States (HTUSA) continued to target the avid travelerand added a new target audience ndash avid explorers which are typicallymillennial travelers

2017 HIGHLIGHTS bull Four new television commercials continued HTUSArsquos highly successful

run of the LetHawaiiHappen Journeys campaign on Travel Channeland HGTV and in high-end movie theaters in top markets

bull Crafted a three-year strategic approach to further develop theNew York City market and change its existing brand perceptionsof Hawailsquoi by sharing the Islandsrsquo culture contemporary cuisineand soft-adventure activities

bull Grew Hawailsquoirsquos social media reach to 2 million Facebook followers and 220000 Instagram followers all regularly presented withposts on their feeds spotlighting Hawailsquoirsquos allure

bull Received honors from TravelAge West for Hawailsquoi as the US destination with the highest client satisfaction and for HTUSA as the US tourismboard providing the best travel agent support

bull Served as principal sponsor of the 24th annual Incentive ResearchFoundation Education Invitational Event attendees execute millions of dollars in incentive programs annually HTUSA intends to capturesome of these future business opportunities for Hawailsquoi

2018 FOCUS bull Initiating the second year of a three-year New York City promotional

and marketing campaign for Hawailsquoi targeting the avid explorer bull Continuing to refine the LetHawaiiHappen Journeys campaign

to include more storytelling connecting the target audience withlocal experiences and spreading the Hawailsquoi message throughconsumer advertising communications and the travel trade

bull Maintaining efforts to generate meetings conventions and incentivesleads and assist hotel partners with conversions to bookings Tacticswill include working with planners improving presentation tools andcontent marketing and using incentives to generate business

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

JAPAN

Japan is Hawailsquoirsquos largest international travel market comprising 17 percentof total visitor arrivals to the state Nonstop air service from Japan to Hawailsquoiincreased significantly in 2017 in particular to the island of Hawailsquoi due tothe re-establishment of the Ellison Onizuka Kona International Airport atKeāhole as a second international port of entry As a result Hawaiian Airlines introduced three weekly flights betweenTokyorsquos Haneda Airport and Kona in December 2016 (with flights on theweekrsquos other four days between Haneda and Honolulu) In SeptemberJapan Airlines relaunched daily service between Tokyorsquos Narita InternationalAirport and Kona after a seven-year absence Air service from Japan further expanded with the June launch of flights fromAirAsia X Southeast Asiarsquos first low-cost carrier serving Hawailsquoi AirAsia Xrsquosfour weekly flights between Kuala Lumpur Malaysia and Honolulu includea stopover in Osaka Also originating from Southeast Asia air carrier Scootincluded a stopover in Osaka with its launch of four weekly flights betweenSingapore and Honolulu in December With this increase in available air seats visitor arrivals from Japan throughSeptember increased 67 percent to 1175174 with visitor spending upby 11 percent to $168 billion compared to the same period in 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Japan (HTJ) launched the successful Gohoubi (reward)

Hawailsquoi campaign which targeted four traveler segments active seniorcouples friends and three-generation families

bull Introduced the new Hawailsquoi marketing initiative VEBOSS a cross-platformpromotion featuring virtual reality videos events books and socialmedia outreach to entice Japan millennials

bull Extensively marketed the island of Hawailsquoi as a second internationalport of entry in support of new nonstop flights from Tokyorsquos Naritaand Haneda airports

bull Organized the Hawailsquoi Expo in Japan HTJrsquos largest consumer sales eventwhich showcased 55 Hawailsquoi tourism industry partners to more than17000 participants

bull Collaborated with three leading companies ndash McDonaldrsquos Lawsonand Gusto ndash on the Loco Moco All-Stars campaign promoting Hawailsquoithrough loco moco-themed products

2018 FOCUS bull Attract more first-time visitors to Hawailsquoi with sales promotions

focused in regional cities bull Promote travel to the neighbor islands with emphasis on the

island of Hawailsquoi in support of the new nonstop flights fromNarita and Haneda airports

bull Continue to collaborate with the Aloha Program Satellite Officesin the development of niche tour products

25

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

26

CANADA

Canada is Hawailsquoirsquos second largest international market and fourth largest sourcemarket overall for visitors Weakness in the Canadian economy and devaluationof the Canadian dollar in recent years have impacted travel bookings to HawailsquoiIn 2016 this resulted in decreases in visitor spending (down 9 percent) visitorarrivals (down 65 percent) and total visitor days (down 73 percent) To reverse this decline HTA sought out for the first time a dedicated marketingcontractor for the Canada market via a request-for-proposal process VoXInternational of Ontario Canada was awarded the contract and given aggressivetargets to regain market share beginning with 2017 Through September increases have been reported in visitor spending(up 98 percent to $7488 million) and visitor arrivals (up 96 percent to367655) in Hawailsquoi compared to the same period in 2016

2017 HIGHLIGHTS bull Coordinated the Aloha Canada Sales Mission comprised of travel-trade

events featuring destination training and Hawailsquoi entertainment inToronto Calgary and Vancouver

bull Filmed a week of programming in Hawailsquoi with the popular entertainmentnews TV series Entertainment Tonight Canada spotlighting five islands and covering key destination themes

bull Implemented a two-month National Geographic Television initiativewhich featured a contest promotion with 30-second brand and15-second promotional commercials

bull Supported 22 top-tier journalists from major publications on theirvisits to Hawailsquoi which ultimately resulted in 198 destination articlesfeaturing the Hawaiian Islands

bull Secured 10 MCI decision makers to participate in the ExperienceAloha Business Exchange which produced three new requests forproposals and commitments for 7730 room nights

2018 FOCUS bull Utilize a comprehensive approach to train and inform Canada travel

agents and trade decision makers to increase front-line confidence inchoosing Hawailsquoi as a destination

bull Incorporate key learning and current data to refine the target Canadamedia audience through niche and focused opportunities

bull Continue the momentum of 2017 while enhancing tactical efforts toincrease length of stay multi-island visitation and spending amongtravelers to Hawailsquoi from Canada

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

OCEANIA

Visitor arrivals from Oceania ndash comprising Australia and New Zealand ndash remainedflat through September at 291500 compared to the same period in 2016 Of thattotal 512 percent of arrivals were first-time visitors Notably travel from Oceaniato the island of Hawailsquoi increased 174 percent and to Kaualsquoi by 103 percent Both average length of stay (958 days) and total visitor days (28 million)increased slightly through September However average daily spending declinedby 47 percent to more than $271 per visitor contributing to a 4 percent drop intotal visitor spending to $7585 million Air seat capacity from both Sydney and Auckland to Hawailsquoi increased throughSeptember by 38 percent and 32 percent respectively Still total capacity fromthe Oceania market declined 84 percent due to Jetstar Airways suspending itsservice from Brisbane to Honolulu in October 2016

2017 HIGHLIGHTS bull Hawailsquoi Tourism Oceania (HTO) organized the Aloha Down Under

Workshops which facilitated 24 Hawailsquoi industry partners meetingwith more than 800 travel agents in Australia and New Zealand fordestination information training sessions

bull Showcased Hawailsquoi on several of Oceaniarsquos leading TV breakfast news programs and shows including Australiarsquos Sunrise and Today Show and New Zealandrsquos Karena amp Kaseyrsquos Foreign Flavours and The Cafeacute

bull Initiated two major integrated consumer campaigns ndash the largest byHTO to date ndash which included touchpoints across digital and social mediaplatforms traditional media television and a cooperative campaign

bull Hosted the Flight Centre Global Gathering in July which was attendedby more than 3000 top-selling wholesale and retail travel agents fromAustralia and New Zealand The Hawailsquoi gathering of Oceaniarsquos largesttravel group provided an impressive showcase of the Islands and alsooffered agents a range of strategies and opportunities for marketingHawailsquoi to their clients

2018 FOCUS bull Keeping an ldquoalways-onrdquo approach to marketing ensuring Hawailsquoi

branding messaging and campaign activity are a constant in theOceania market

bull Strengthening and elevating Hawailsquoirsquos brand image and enhancingpromotion of experiences across the Hawaiian Islands

bull Working closely with industry partners to develop a range ofintegrated marketing activities ensuring efforts achieve maximumreturn on investment

bull Initiating a strong consumer direct-marketing strategy leveragingHTOrsquos digital assets including its blog large subscriber databaseand highly engaged social media channels

27

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

28

KOREA

Through September Hawailsquoi drew 178382 visitors from Korea ndash a decline of26 percent attributed to Jin Air suspending its flights between Seoul andHonolulu for several weeks in the spring for maintenance Of total arrivals from Korea 98 percent traveled to Olsquoahu 19 percent to Maui10 percent to the island of Hawailsquoi and 4 percent to Kaualsquoi First-time visitorsaccounted for 821 percent of total arrivals Asiana Airlines increased its flights between Seoul and Honolulu to dailyservice in October adding 6000 seats to accommodate demand during Korearsquos peak winter travel season

2017 HIGHLIGHTS bull Hawailsquoi Tourism Korea (HTK) developed a television project with

South Korea travel company HanaTour and cable network JTBC topromote Hawailsquoi as a honeymoon destination The episodes ndashfilmed on Olsquoahu and the island of Hawailsquoi ndash aired in July producing$2 million in publicity value

bull Organized the Connect to Aloha Hawailsquoi Travel Mission in SeoulGwangju and Busan with participation from 17 partners and26 Hawailsquoi delegates The Hawailsquoi contingent conducted businesswith more than 300 travel agencies and 150 consumers

bull Executed the 2017 Meet Hawailsquoi MCI VIP Weekend in Seoul in Julywhich attracted 60 industry partners including key corporate clienteleairline and hotel partners

bull Participated in HITS 2017 Korearsquos largest travel show which attractedmore than 100000 attendees HTK coordinated the June travel showrsquos Hawailsquoi Pavilion which generated more than 5000 online and offlinebookings representing a 49 percent increase in sales compared to 2016

2018 FOCUS bull Developing niche target markets by conducting key promotions

including - Neighbor island promotions to encourage multi-island visits - Edu-tour promotions focused on sustainability - A ldquoHawailsquoi-politanrdquo Dual City promotion co-op with United Statesdestination marketing organizations (DMOs)

bull Leveraging celebrity promotions through television shows andtourism ambassador appointments

bull Expanding the AlohaEverywhere social media campaign byadding an Instagram element and continuing to provide supportfor cultural events

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

CHINA

Through September travelers from China engaged in average dailyspending of $329 while in Hawailsquoi the highest of all of the statersquosvisitor markets Still year-over-year arrivals from China were down 9 percent to 122425visitors partially due to concerns about the US travel ban visa situationand political environment which created a ldquowait-and-seerdquo sentiment amongmany potential travelers Notably travel demand from Chinarsquos second- and third-tier cities is growingrapidly providing Hawailsquoi with new markets to attract visitors

2017 HIGHLIGHTS bull Organized the Camp Aloha 2017 China Sales Missions in Beijing

Shanghai Xirsquoan and Hong Kong which facilitated 25 Hawailsquoi industrypartners meeting with more than 400 travel wholesalers touroperators retail agents and MCI planners

bull Launched the Romance in Excess promotion featuring the Hawailsquoiwedding of Taiwanese actress and singer Ady An Yi-xuan The eventgenerated 333 million page views on Chinese social media websiteSina Weibo was featured on 185 broadcast print digital and socialmedia channels and generated $72 million in publicity value

bull Introduced Chinese author entrepreneur and social media influencerWang Xiao as the 2017 China Ambassador for the Happy Healthy Hawailsquoipromotion Wangrsquos Hawailsquoi visit reached 125 million social mediafollowers and generated more than $2 million in publicity value

bull Launched a new partnership with online travel agency and rentalwebsite Zuzuchecom for self-drive Hawailsquoi vacation products topower leisure bookings Zuzuche also showcased adventures andactivities to enjoy in Hawailsquoi

2018 FOCUS bull Build on the momentum of Happy Healthy Hawailsquoi promotions and

continue to execute consumer campaigns with the same overarchingtheme to further leverage and optimize in-market resources

bull For first-tier cities focus on leisure product education anddevelopment aimed at generating in-depth and single-destinationHawailsquoi itineraries

bull For second-tier cities focus on increasing the Hawaiian Islandsrsquoinclusion in US itineraries offered by travel wholesalers touroperators and retail agencies organizing packages for groupsor customized tours

29

30

TAIWAN Through September Hawailsquoi visitor arrivals from Taiwan increased 19 percentto 14324 visitors over the same period in 2016 The state continues to face stiffcompetition in the market from short-haul destinations in Asia However interestfrom MCI groups increased with the October introduction of China Airlinesrsquo new Airbus A350 aircraft for its Taipei-Honolulu air service 2017 HIGHLIGHTS

bull Hawailsquoi Tourism Taiwan initiated a social media campaign Best HawailsquoiCouple promoting the Islands as an LGBT-friendly destination The campaigngenerated more than 657300 impressionswith a publicity value of $464519

bull Collaborated with Taiwanese TV program iWalker Moving Kitchen to showcase Hawailsquoi regional cuisine and island beauty over five episodes reaching morethan 5 million viewers and generating a publicity value exceeding $3 million

bull Partnered with KAYAK Leica and well-known Taiwan influencers the MogisFamily to promote the Islands by sharing video of the familyrsquos Hawailsquoivacation via social media channels The campaign generated more than861570 impressions with a publicity value of $508326

2018 FOCUS bull Collaborating with China Airlines on maintaining a sustainable load factor forits Hawailsquoi flights particularly during off-peak periods

bull Increasing efforts to prospect leads for incentive group business bull Utilizing social media and digital channels to promote Hawailsquoi

HONG KONG One of Asiarsquos top air-travel hubs Hong Kong provides access to Chinarsquos 120 million residents in the Pearl River Delta Region Additionally Hong Kong is a highlysought-after source market for outbound travelers as its residents averaged127 trips per person in 2016 Since its opening in mid-2016 the Hawailsquoi TourismHong Kong (HTHK) office has mobilized key travel-trade partners to build Hawailsquoibrand awareness and travel demand through cooperative campaigns 2017 HIGHLIGHTS

bull HTHK partnered with travel services provider Travel Expert for the AlohaRoadshow to reach more than 200000 potential Hawailsquoi visitors

bull Partnered with U Magazine and Skypost on three Hawailsquoi-based episodes ofcelebrity Aunt Ha-wairsquos TV travel series The episodes which showcased theHawaiian Islands reached more than 15 million viewers

bull Launched a two-week advertising campaign on the three main train linesof Mass Transit Railway featuring 56 posters with iconic Hawailsquoi imageryThe campaign reached an estimated 4589400 passengers daily

2018 FOCUS bull Promote the Enjoy Travel With a Conscience initiative highlighting eco-friendlyattractions and activities travelers can enjoy in Hawailsquoi

bull Launch emotionally connected campaigns elevating awareness aboutHawaiʻirsquos brand among targeted lifestyle segments

bull Inspire LGBT travelers to visit the Hawaiian Islands by working with Hawailsquoistakeholders and Hong Kong wholesalers to develop new product offerings

SOUTHEAST ASIA Hawailsquoi visitor arrivals from the Southeast Asia market ndash which includes MalaysiaSingapore Indonesia and Thailand ndash through September increased 286 percentto 20794 visitors over the same period in 2016 The outlook for growth in themarket continues to be favorable supported by AirAsia Xrsquos Kuala Lumpur-Osaka-Honolulu service which launched in June and the introduction of air carrier Scootrsquos Singapore-Osaka-Honolulu service in December 2017 HIGHLIGHTS

bull Hawailsquoi Tourism Southeast Asia partnered with Apple Vacations to showcaseHawailsquoi on LED displays in Kuala Lumpur for five weeks prior to the cityrsquosMATTA Fair Expo generating more than 85000 impressions

bull Conducted the Aloha Sales Mission in Kuala Lumpur with participation frommore than 100 in-market media and travel-trade industry professionals

bull Implemented the Hawailsquoi Dream Come True social media campaign reachingmore than 200000 people via 7500 social engagements over multiple channels

2018 FOCUS bull Collaborate with airlines to bolster travel demand and help support a healthyload factor for their flights to Olsquoahu

bull Increase direct consumer outreach and marketing campaigns to elevateHawailsquoirsquos brand

bull Cultivate Hawailsquoi experts with year-round workshops and in-depth onlinetraining programs

EUROPE Hawailsquoi Tourism Europe promotes Hawailsquoi to travelers from the United KingdomGermany France Switzerland and Scandinavia Through September visitors fromEurope totaled 106359 ndash a year-over-year decline of 4 percent However Europeantravelers stayed an average of 13 days the lengthiest of the statersquos visitor marketsOf total arrivals from Europe 73 percent traveled to Olsquoahu 43 percent to Maui38 percent to the island of Hawailsquoi and 24 percent to Kaualsquoi 2017 HIGHLIGHTS

bull Implemented the multifaceted Hawailsquoi Through a Lens marketing campaignin the United Kingdom and Germany

bull Worked extensively with key trade partners and new operators to educatefront-line staff and promoted Hawailsquoi at key European tradeshows

bull Initiated a press trip program that has generated 22 million impressionsin the United Kingdom and 600000 impressions in Germany Additionally15 individual media trips to the Hawaiian Islands were coordinated

2018 FOCUS bull Launching an integrated digital consumer campaign with Hawailsquoi local heroeshighlighting the Islandsrsquo diversity culture sustainability and natural beauty

bull Implementing an online marketing campaign with travel guidebook publisherLonely Planet during Germanyrsquos peak booking season

bull Continuing training educating and conducting of sales calls with travel-tradepersonnel and media while increasing exposure for Hawailsquoi through socialmedia and public relations

31

BUSINESS DESTINATION MANAGEMENT

Meet Hawailsquoi is a collaborative effort of HTA the Hawailsquoi Convention Center and HTArsquos Global Marketing Team to market the Hawaiian Islandsas a world-class destination for meetings conventions and incentive (MCI) programs HTA established Hawailsquoi Tourism Global MCI in 2017 tooversee this market segment develop strategies and implement programs to generate new MCI business opportunities including citywidemeetings for the Hawailsquoi Convention Center Through September MCI visitors to Hawailsquoi declined slightly (down 06 percent to 374709) compared to the same period in 2016 withmore visitors attending conventions (up 15 percent to 185974) and corporate meetings (up 87 percent to 68756) but fewer taking partin incentive trips (down 8 percent to 132144)

2017 HIGHLIGHTS bull Launched the inaugural Experience Aloha Business Exchange on the island of Hawailsquoi HTArsquos Global Marketing Team hosted

90 international meeting planners for an experiential tour and business conference Fifty MCI stakeholders provided supportand met with the planners Tours to Maui Olsquoahu and Kaualsquoi were also organized

bull Organized the Spring Update Educational Tour and Fall Hawailsquoi Citywide Forum programs that targeted citywide prospectsActivities included site inspections of the Hawailsquoi Convention Center and Waikīkī hotels meetings with satisfied clientsand interaction with community leaders through the lsquoElele program

bull Elevated Hawailsquoirsquos profile in targeted vertical markets with new creative approaches To attract science-based meetings theHawailsquoi Convention Center engaged the Council of Engineering and Scientific Society Executives by hosting breakfast for theCEO meeting and lunch for all delegates Also the Hawailsquoi Convention Center exhibited to 22000 scientists at the AmericanGeophysical Union Convention and hosted a reception at the American Medical Association Convention

2018 FOCUS 2016 HAWAIlsquoI CONVENTION CENTER AND HAWAIlsquoI TOURISM UNITED STATES ROOM PRODUCTION bull Capitalize on the strength of HTArsquos integrated

global MCI sales team to develop creativemarketing approaches and strategic initiativesto improve productivity

bull Continue biannual meetings with key industrysales and marketing leaders to discuss high-levelmarketing strategies

bull Commence the Hawailsquoi Convention Center Customer Advisory Board

bull Continue monthly Alu Like Mai (ldquoWork Togetherrdquo) meetings during which hotel sellers and the HawailsquoiConvention Center carefully review initiatives anddetermine approaches to build the sales pipeline andsecure more business

205000 200000

195000 190000

185000 180000

175000 170000

165000

99 OF GOAL

108 OF GOAL

CITYWIDE SINGLE PROPERTY

202550

180700

199639

194467

GOAL ACTUAL

32

2017 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

SCCM Annual Congress 2017 12017 12517 5800 2656478 SCCM Annual Congress 2017 overflow 12017 12517 1000 458013 International Group 2017 2717 2717 1000 458013 AAU Volleyball Honolulu Grand Prix 2017 21717 22017 1000 458013 ASLO Meeting 2017 22517 3317 2000 916027 Honolulu Festival 2017 31017 31217 5500 2519074 HIM 2017 31617 31817 600 274808 ISMRM 25th Scientific Meeting and Exhibition 42117 42817 6100 2793882 International Group 2017 5417 5417 300 137404 International Society for Laboratory Hematology 2017 5417 5617 1200 549616 Honolulu Ekiden and Music 2017 52017 52017 1000 458013 Global Games 2017 52017 52117 1000 458013 Shinnyo-en Hawaii 2017 52817 52817 2000 916027 International Group 2017 53017 53017 200 91603 IEEE MTT-S International Microwave Symposium 2017 6317 6917 10000 4580134 NAFCU annual Conference and Solutions Expo 2017 61117 61617 1300 595417 Aloha International Piano Festival 2017 61617 62417 300 137404 AVID 2017 61917 62117 700 320609 Plant Biology 2017 62217 62817 1800 824424 Jam On It Pacific Rim Championships 2017 63017 7217 1800 824424 International Group 2017 71017 71017 400 183205 Domestic Corporate Group 2017 71517 71517 3500 1603047 IEEE CVPR 2017 71917 72717 4500 2061060 International Group 2017 8917 81117 3000 1374040 Domestic Corporate Group 2017 92917 10517 1200 549616 Domestic Corporate Group 2017 101617 101717 3000 1374040 Homeaway Summit 2017 11617 11717 700 320609 AMA Interim Meeting of the House of Delegates 2017 11617 111517 3000 1374040 Applied Materials Sales Training 112217 113017 1000 458013 Domestic Group 2017 12217 12617 1400 641219 Honolulu Marathon Expo 2017 12717 121117 17500 8015234 International Group 2017 121017 121217 650 297709 12th IEEE International Conference on Power Electronics and Drive 121217 121517 300 137404 Hoops in Hawaii Holiday Classic 121617 122017 500 229007 Total Definite Bookings for 2017 34 Events 85250 $39045639

33

2018 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

AAU Volleyball Honolulu Grand Prix 2018 21618 21918 1000 458013 HIM 2018 31518 31718 600 274808 AACSB International Conference and Annual Meeting (ICAM) 2018 42018 42418 1500 687020 ARVO Annual Meeting 2018 42518 5318 10300 4717538 AAPD Annual Session 52218 52818 3000 1374040 Asia Oceania Geosciences Society (AOGS) Symposium 2018 6318 6918 2000 916027 YBOA International Basketball Tournament 61718 62318 1500 687020 40th annual Conference of the IEEE Engineering in Medicine and Biology Society 71618 72118 3000 1374040 ADA 2018 101218 102418 25000 11450335 Second annual Art Hawaii International 102718 11518 10000 4580134 Pac Futsal 2018 112718 12218 800 366411 Total Definite Bookings for 2018 11 Events 58700 $26885386

34

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

SOUTHEAST ASIA Hawailsquoi visitor arrivals from the Southeast Asia market ndash which includes MalaysiaSingapore Indonesia and Thailand ndash through September increased 286 percentto 20794 visitors over the same period in 2016 The outlook for growth in themarket continues to be favorable supported by AirAsia Xrsquos Kuala Lumpur-Osaka-Honolulu service which launched in June and the introduction of air carrier Scootrsquos Singapore-Osaka-Honolulu service in December 2017 HIGHLIGHTS

bull Hawailsquoi Tourism Southeast Asia partnered with Apple Vacations to showcaseHawailsquoi on LED displays in Kuala Lumpur for five weeks prior to the cityrsquosMATTA Fair Expo generating more than 85000 impressions

bull Conducted the Aloha Sales Mission in Kuala Lumpur with participation frommore than 100 in-market media and travel-trade industry professionals

bull Implemented the Hawailsquoi Dream Come True social media campaign reachingmore than 200000 people via 7500 social engagements over multiple channels

2018 FOCUS bull Collaborate with airlines to bolster travel demand and help support a healthyload factor for their flights to Olsquoahu

bull Increase direct consumer outreach and marketing campaigns to elevateHawailsquoirsquos brand

bull Cultivate Hawailsquoi experts with year-round workshops and in-depth onlinetraining programs

EUROPE Hawailsquoi Tourism Europe promotes Hawailsquoi to travelers from the United KingdomGermany France Switzerland and Scandinavia Through September visitors fromEurope totaled 106359 ndash a year-over-year decline of 4 percent However Europeantravelers stayed an average of 13 days the lengthiest of the statersquos visitor marketsOf total arrivals from Europe 73 percent traveled to Olsquoahu 43 percent to Maui38 percent to the island of Hawailsquoi and 24 percent to Kaualsquoi 2017 HIGHLIGHTS

bull Implemented the multifaceted Hawailsquoi Through a Lens marketing campaignin the United Kingdom and Germany

bull Worked extensively with key trade partners and new operators to educatefront-line staff and promoted Hawailsquoi at key European tradeshows

bull Initiated a press trip program that has generated 22 million impressionsin the United Kingdom and 600000 impressions in Germany Additionally15 individual media trips to the Hawaiian Islands were coordinated

2018 FOCUS bull Launching an integrated digital consumer campaign with Hawailsquoi local heroeshighlighting the Islandsrsquo diversity culture sustainability and natural beauty

bull Implementing an online marketing campaign with travel guidebook publisherLonely Planet during Germanyrsquos peak booking season

bull Continuing training educating and conducting of sales calls with travel-tradepersonnel and media while increasing exposure for Hawailsquoi through socialmedia and public relations

31

BUSINESS DESTINATION MANAGEMENT

Meet Hawailsquoi is a collaborative effort of HTA the Hawailsquoi Convention Center and HTArsquos Global Marketing Team to market the Hawaiian Islandsas a world-class destination for meetings conventions and incentive (MCI) programs HTA established Hawailsquoi Tourism Global MCI in 2017 tooversee this market segment develop strategies and implement programs to generate new MCI business opportunities including citywidemeetings for the Hawailsquoi Convention Center Through September MCI visitors to Hawailsquoi declined slightly (down 06 percent to 374709) compared to the same period in 2016 withmore visitors attending conventions (up 15 percent to 185974) and corporate meetings (up 87 percent to 68756) but fewer taking partin incentive trips (down 8 percent to 132144)

2017 HIGHLIGHTS bull Launched the inaugural Experience Aloha Business Exchange on the island of Hawailsquoi HTArsquos Global Marketing Team hosted

90 international meeting planners for an experiential tour and business conference Fifty MCI stakeholders provided supportand met with the planners Tours to Maui Olsquoahu and Kaualsquoi were also organized

bull Organized the Spring Update Educational Tour and Fall Hawailsquoi Citywide Forum programs that targeted citywide prospectsActivities included site inspections of the Hawailsquoi Convention Center and Waikīkī hotels meetings with satisfied clientsand interaction with community leaders through the lsquoElele program

bull Elevated Hawailsquoirsquos profile in targeted vertical markets with new creative approaches To attract science-based meetings theHawailsquoi Convention Center engaged the Council of Engineering and Scientific Society Executives by hosting breakfast for theCEO meeting and lunch for all delegates Also the Hawailsquoi Convention Center exhibited to 22000 scientists at the AmericanGeophysical Union Convention and hosted a reception at the American Medical Association Convention

2018 FOCUS 2016 HAWAIlsquoI CONVENTION CENTER AND HAWAIlsquoI TOURISM UNITED STATES ROOM PRODUCTION bull Capitalize on the strength of HTArsquos integrated

global MCI sales team to develop creativemarketing approaches and strategic initiativesto improve productivity

bull Continue biannual meetings with key industrysales and marketing leaders to discuss high-levelmarketing strategies

bull Commence the Hawailsquoi Convention Center Customer Advisory Board

bull Continue monthly Alu Like Mai (ldquoWork Togetherrdquo) meetings during which hotel sellers and the HawailsquoiConvention Center carefully review initiatives anddetermine approaches to build the sales pipeline andsecure more business

205000 200000

195000 190000

185000 180000

175000 170000

165000

99 OF GOAL

108 OF GOAL

CITYWIDE SINGLE PROPERTY

202550

180700

199639

194467

GOAL ACTUAL

32

2017 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

SCCM Annual Congress 2017 12017 12517 5800 2656478 SCCM Annual Congress 2017 overflow 12017 12517 1000 458013 International Group 2017 2717 2717 1000 458013 AAU Volleyball Honolulu Grand Prix 2017 21717 22017 1000 458013 ASLO Meeting 2017 22517 3317 2000 916027 Honolulu Festival 2017 31017 31217 5500 2519074 HIM 2017 31617 31817 600 274808 ISMRM 25th Scientific Meeting and Exhibition 42117 42817 6100 2793882 International Group 2017 5417 5417 300 137404 International Society for Laboratory Hematology 2017 5417 5617 1200 549616 Honolulu Ekiden and Music 2017 52017 52017 1000 458013 Global Games 2017 52017 52117 1000 458013 Shinnyo-en Hawaii 2017 52817 52817 2000 916027 International Group 2017 53017 53017 200 91603 IEEE MTT-S International Microwave Symposium 2017 6317 6917 10000 4580134 NAFCU annual Conference and Solutions Expo 2017 61117 61617 1300 595417 Aloha International Piano Festival 2017 61617 62417 300 137404 AVID 2017 61917 62117 700 320609 Plant Biology 2017 62217 62817 1800 824424 Jam On It Pacific Rim Championships 2017 63017 7217 1800 824424 International Group 2017 71017 71017 400 183205 Domestic Corporate Group 2017 71517 71517 3500 1603047 IEEE CVPR 2017 71917 72717 4500 2061060 International Group 2017 8917 81117 3000 1374040 Domestic Corporate Group 2017 92917 10517 1200 549616 Domestic Corporate Group 2017 101617 101717 3000 1374040 Homeaway Summit 2017 11617 11717 700 320609 AMA Interim Meeting of the House of Delegates 2017 11617 111517 3000 1374040 Applied Materials Sales Training 112217 113017 1000 458013 Domestic Group 2017 12217 12617 1400 641219 Honolulu Marathon Expo 2017 12717 121117 17500 8015234 International Group 2017 121017 121217 650 297709 12th IEEE International Conference on Power Electronics and Drive 121217 121517 300 137404 Hoops in Hawaii Holiday Classic 121617 122017 500 229007 Total Definite Bookings for 2017 34 Events 85250 $39045639

33

2018 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

AAU Volleyball Honolulu Grand Prix 2018 21618 21918 1000 458013 HIM 2018 31518 31718 600 274808 AACSB International Conference and Annual Meeting (ICAM) 2018 42018 42418 1500 687020 ARVO Annual Meeting 2018 42518 5318 10300 4717538 AAPD Annual Session 52218 52818 3000 1374040 Asia Oceania Geosciences Society (AOGS) Symposium 2018 6318 6918 2000 916027 YBOA International Basketball Tournament 61718 62318 1500 687020 40th annual Conference of the IEEE Engineering in Medicine and Biology Society 71618 72118 3000 1374040 ADA 2018 101218 102418 25000 11450335 Second annual Art Hawaii International 102718 11518 10000 4580134 Pac Futsal 2018 112718 12218 800 366411 Total Definite Bookings for 2018 11 Events 58700 $26885386

34

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

BUSINESS DESTINATION MANAGEMENT

Meet Hawailsquoi is a collaborative effort of HTA the Hawailsquoi Convention Center and HTArsquos Global Marketing Team to market the Hawaiian Islandsas a world-class destination for meetings conventions and incentive (MCI) programs HTA established Hawailsquoi Tourism Global MCI in 2017 tooversee this market segment develop strategies and implement programs to generate new MCI business opportunities including citywidemeetings for the Hawailsquoi Convention Center Through September MCI visitors to Hawailsquoi declined slightly (down 06 percent to 374709) compared to the same period in 2016 withmore visitors attending conventions (up 15 percent to 185974) and corporate meetings (up 87 percent to 68756) but fewer taking partin incentive trips (down 8 percent to 132144)

2017 HIGHLIGHTS bull Launched the inaugural Experience Aloha Business Exchange on the island of Hawailsquoi HTArsquos Global Marketing Team hosted

90 international meeting planners for an experiential tour and business conference Fifty MCI stakeholders provided supportand met with the planners Tours to Maui Olsquoahu and Kaualsquoi were also organized

bull Organized the Spring Update Educational Tour and Fall Hawailsquoi Citywide Forum programs that targeted citywide prospectsActivities included site inspections of the Hawailsquoi Convention Center and Waikīkī hotels meetings with satisfied clientsand interaction with community leaders through the lsquoElele program

bull Elevated Hawailsquoirsquos profile in targeted vertical markets with new creative approaches To attract science-based meetings theHawailsquoi Convention Center engaged the Council of Engineering and Scientific Society Executives by hosting breakfast for theCEO meeting and lunch for all delegates Also the Hawailsquoi Convention Center exhibited to 22000 scientists at the AmericanGeophysical Union Convention and hosted a reception at the American Medical Association Convention

2018 FOCUS 2016 HAWAIlsquoI CONVENTION CENTER AND HAWAIlsquoI TOURISM UNITED STATES ROOM PRODUCTION bull Capitalize on the strength of HTArsquos integrated

global MCI sales team to develop creativemarketing approaches and strategic initiativesto improve productivity

bull Continue biannual meetings with key industrysales and marketing leaders to discuss high-levelmarketing strategies

bull Commence the Hawailsquoi Convention Center Customer Advisory Board

bull Continue monthly Alu Like Mai (ldquoWork Togetherrdquo) meetings during which hotel sellers and the HawailsquoiConvention Center carefully review initiatives anddetermine approaches to build the sales pipeline andsecure more business

205000 200000

195000 190000

185000 180000

175000 170000

165000

99 OF GOAL

108 OF GOAL

CITYWIDE SINGLE PROPERTY

202550

180700

199639

194467

GOAL ACTUAL

32

2017 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

SCCM Annual Congress 2017 12017 12517 5800 2656478 SCCM Annual Congress 2017 overflow 12017 12517 1000 458013 International Group 2017 2717 2717 1000 458013 AAU Volleyball Honolulu Grand Prix 2017 21717 22017 1000 458013 ASLO Meeting 2017 22517 3317 2000 916027 Honolulu Festival 2017 31017 31217 5500 2519074 HIM 2017 31617 31817 600 274808 ISMRM 25th Scientific Meeting and Exhibition 42117 42817 6100 2793882 International Group 2017 5417 5417 300 137404 International Society for Laboratory Hematology 2017 5417 5617 1200 549616 Honolulu Ekiden and Music 2017 52017 52017 1000 458013 Global Games 2017 52017 52117 1000 458013 Shinnyo-en Hawaii 2017 52817 52817 2000 916027 International Group 2017 53017 53017 200 91603 IEEE MTT-S International Microwave Symposium 2017 6317 6917 10000 4580134 NAFCU annual Conference and Solutions Expo 2017 61117 61617 1300 595417 Aloha International Piano Festival 2017 61617 62417 300 137404 AVID 2017 61917 62117 700 320609 Plant Biology 2017 62217 62817 1800 824424 Jam On It Pacific Rim Championships 2017 63017 7217 1800 824424 International Group 2017 71017 71017 400 183205 Domestic Corporate Group 2017 71517 71517 3500 1603047 IEEE CVPR 2017 71917 72717 4500 2061060 International Group 2017 8917 81117 3000 1374040 Domestic Corporate Group 2017 92917 10517 1200 549616 Domestic Corporate Group 2017 101617 101717 3000 1374040 Homeaway Summit 2017 11617 11717 700 320609 AMA Interim Meeting of the House of Delegates 2017 11617 111517 3000 1374040 Applied Materials Sales Training 112217 113017 1000 458013 Domestic Group 2017 12217 12617 1400 641219 Honolulu Marathon Expo 2017 12717 121117 17500 8015234 International Group 2017 121017 121217 650 297709 12th IEEE International Conference on Power Electronics and Drive 121217 121517 300 137404 Hoops in Hawaii Holiday Classic 121617 122017 500 229007 Total Definite Bookings for 2017 34 Events 85250 $39045639

33

2018 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

AAU Volleyball Honolulu Grand Prix 2018 21618 21918 1000 458013 HIM 2018 31518 31718 600 274808 AACSB International Conference and Annual Meeting (ICAM) 2018 42018 42418 1500 687020 ARVO Annual Meeting 2018 42518 5318 10300 4717538 AAPD Annual Session 52218 52818 3000 1374040 Asia Oceania Geosciences Society (AOGS) Symposium 2018 6318 6918 2000 916027 YBOA International Basketball Tournament 61718 62318 1500 687020 40th annual Conference of the IEEE Engineering in Medicine and Biology Society 71618 72118 3000 1374040 ADA 2018 101218 102418 25000 11450335 Second annual Art Hawaii International 102718 11518 10000 4580134 Pac Futsal 2018 112718 12218 800 366411 Total Definite Bookings for 2018 11 Events 58700 $26885386

34

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

2017 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

SCCM Annual Congress 2017 12017 12517 5800 2656478 SCCM Annual Congress 2017 overflow 12017 12517 1000 458013 International Group 2017 2717 2717 1000 458013 AAU Volleyball Honolulu Grand Prix 2017 21717 22017 1000 458013 ASLO Meeting 2017 22517 3317 2000 916027 Honolulu Festival 2017 31017 31217 5500 2519074 HIM 2017 31617 31817 600 274808 ISMRM 25th Scientific Meeting and Exhibition 42117 42817 6100 2793882 International Group 2017 5417 5417 300 137404 International Society for Laboratory Hematology 2017 5417 5617 1200 549616 Honolulu Ekiden and Music 2017 52017 52017 1000 458013 Global Games 2017 52017 52117 1000 458013 Shinnyo-en Hawaii 2017 52817 52817 2000 916027 International Group 2017 53017 53017 200 91603 IEEE MTT-S International Microwave Symposium 2017 6317 6917 10000 4580134 NAFCU annual Conference and Solutions Expo 2017 61117 61617 1300 595417 Aloha International Piano Festival 2017 61617 62417 300 137404 AVID 2017 61917 62117 700 320609 Plant Biology 2017 62217 62817 1800 824424 Jam On It Pacific Rim Championships 2017 63017 7217 1800 824424 International Group 2017 71017 71017 400 183205 Domestic Corporate Group 2017 71517 71517 3500 1603047 IEEE CVPR 2017 71917 72717 4500 2061060 International Group 2017 8917 81117 3000 1374040 Domestic Corporate Group 2017 92917 10517 1200 549616 Domestic Corporate Group 2017 101617 101717 3000 1374040 Homeaway Summit 2017 11617 11717 700 320609 AMA Interim Meeting of the House of Delegates 2017 11617 111517 3000 1374040 Applied Materials Sales Training 112217 113017 1000 458013 Domestic Group 2017 12217 12617 1400 641219 Honolulu Marathon Expo 2017 12717 121117 17500 8015234 International Group 2017 121017 121217 650 297709 12th IEEE International Conference on Power Electronics and Drive 121217 121517 300 137404 Hoops in Hawaii Holiday Classic 121617 122017 500 229007 Total Definite Bookings for 2017 34 Events 85250 $39045639

33

2018 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

AAU Volleyball Honolulu Grand Prix 2018 21618 21918 1000 458013 HIM 2018 31518 31718 600 274808 AACSB International Conference and Annual Meeting (ICAM) 2018 42018 42418 1500 687020 ARVO Annual Meeting 2018 42518 5318 10300 4717538 AAPD Annual Session 52218 52818 3000 1374040 Asia Oceania Geosciences Society (AOGS) Symposium 2018 6318 6918 2000 916027 YBOA International Basketball Tournament 61718 62318 1500 687020 40th annual Conference of the IEEE Engineering in Medicine and Biology Society 71618 72118 3000 1374040 ADA 2018 101218 102418 25000 11450335 Second annual Art Hawaii International 102718 11518 10000 4580134 Pac Futsal 2018 112718 12218 800 366411 Total Definite Bookings for 2018 11 Events 58700 $26885386

34

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

2018 EVENTS LISTING

EVENT NAME START END DELEGATES TAX REVENUE STATEWIDE ($)

AAU Volleyball Honolulu Grand Prix 2018 21618 21918 1000 458013 HIM 2018 31518 31718 600 274808 AACSB International Conference and Annual Meeting (ICAM) 2018 42018 42418 1500 687020 ARVO Annual Meeting 2018 42518 5318 10300 4717538 AAPD Annual Session 52218 52818 3000 1374040 Asia Oceania Geosciences Society (AOGS) Symposium 2018 6318 6918 2000 916027 YBOA International Basketball Tournament 61718 62318 1500 687020 40th annual Conference of the IEEE Engineering in Medicine and Biology Society 71618 72118 3000 1374040 ADA 2018 101218 102418 25000 11450335 Second annual Art Hawaii International 102718 11518 10000 4580134 Pac Futsal 2018 112718 12218 800 366411 Total Definite Bookings for 2018 11 Events 58700 $26885386

34

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

ONLINEWEBSITE PROJECTS

HTA continues to refine a digital marketing strategy that recognizes the shift by global travel consumers to more personalized forms ofsharing and the need for improved infrastructure and capacity to keep Hawailsquoi top-of-mind This mobile-first approach enhances the Hawailsquoivisitor experience pre- and post-arrival while also engaging local stakeholders HTA focuses on authentic digital content creation globaldigital platforms customized for multiple target markets and a comprehensive social media strategy aligned with Hawailsquoirsquos brand guidelines

2017 HIGHLIGHTS bull Overhauled the statersquos most important digital asset for reaching potential visitors GoHawaiicom to deliver immersive

sensory-rich multimedia content experiences transcending words and capturing the vibrancy of Hawailsquoi across all digitaldevices Hawaiian language chants art music and dance are being integrated throughout the site

bull Worked with the Global Marketing Team and Island Chapter Visitors Bureaus to implement a centralized global social mediamarketing program to maintain brand consistency This included the development of a social media content guidebookUser-generated content from social media platforms was also integrated into the new GoHawaiicom

bull Launched the WeShare Hawailsquoi mobile application to build a sustainable community engagement program encouragingthe sharing of stories through food As of September the program featured more than 100 curators and 400 recommendationsAdditionally Facebook Live events brought WeShare Hawailsquoi users and curators together for dialogue through culinary journeys

2018 FOCUS bull Continue to develop authentic fresh digital content harnessing assets created by residents visitors and influencers bull Continue to explore new technology channels and tools to drive brand awareness and online conversions targeting

Hawailsquoirsquos key audiences bull Continue to work with the Global Marketing Team and industry partners to develop robust online and digital programs

for each market

35

ELEVATE HAWAIlsquoIrsquoS VALUE PERCEPTION

Ke one laulsquoena a Kāne The rich fertile land of Kāne

Hawailsquoirsquos true beauty isdiscovered in its authenticitytimeless cultural legacytraditions and a way tolive life found nowhere else and a word no other destination can claim or copy Aloha

36

NATIVE HAWAIIAN FESTIVALS

HTA annually supports important and iconic Native Hawaiian festivals through its Major Festivals and Product Development programs Thesefestivals and others like them are vital to perpetuating Hawailsquoirsquos indigenous culture among residents of all ages and visitors who travel fromaround the world to experience the authenticity of the Hawaiian Islands Additionally HTA supports 31 Native Hawaiian cultural programs in communities statewide with funding through its Kūkulu Ola Program HTA is committed to supporting cultural practitioners musicians and artists who share its dedication to enhance widespread publicawareness of Hawailsquoirsquos native culture through a greater understanding of its significance to Hawailsquoirsquos future

2017 HIGHLIGHTS bull Continued as a major sponsor of Aloha Festivals and King Kamehameha Celebration events which bring residents and visitors

together in communities statewide bull Continued as a major sponsor of additional festivals showcasing Hawailsquoirsquos indigenous culture including the Prince Kūhiō

Celebration Prince Lot Hula Festival Merrie Monarch Festival Mele Mei and Nā Hōkū Hanohano Awards bull Sponsored numerous Hawaiian cultural festivals statewide celebrating Hawailsquoirsquos traditions in music and dance including

lsquoukulele kī hōlsquoalu (slack-key) guitar and steel guitar musicianship and hula

2018 FOCUS bull Continuing to increase public knowledge within the Islands and in markets worldwide about the importance of the Hawaiian

culture by supporting Native Hawaiian festivals bull Continuing to assist organizers of Native Hawaiian festivals in increasing public awareness and building attendance by providing

recommendations for planning executing and marketing of events as well as offering insights on sponsorship development bull Broadening awareness of Hawaiian culture among avid explorers and millennial travelers by soliciting support for a new statewide

Makahiki Games Festival

37

MAJOR FESTIVALS AND SIGNATURE EVENTS

HTA is committed to supporting major festivals and signature events highlighting the cultures people attributes and locations thatmake the Hawaiian Islands one of the best places in the world to live and visit These include cultural arts and culinary celebrations showcasing Hawailsquoirsquos heritage and resident pride in their communities andattracting visitors seeking authenticity in their travel experiences Most HTA-sponsored festivals and events are strategically held in off-peak travel months to support tourism industry partners byincreasing interest from potential visitors to book trips during these periods For a listing of major festivals and signature events sponsored by HTA visit GoHawaiicom

2017 HIGHLIGHTS bull POW WOW Hawailsquoi brought together more than 100 artists from the Islands and around the world to create one-of-a-kind

murals on walls and building facades throughout Honolulursquos Kakalsquoako District The weeklong event attracted residents andvisitors and included a concert featuring world-renowned DJ Steve Aoki

bull The 37th annual Hawaii International Film Festival drew filmmakers from North America the Asia-Pacific region and Hawailsquoishowcasing new films recognizing emerging cinema talent and facilitating dynamic cultural exchanges among attendees

bull The seventh annual Hawailsquoi Food and Wine Festival held on Olsquoahu Maui and the island of Hawailsquoi featured delicious and diverse cuisine and spirits from more than 100 internationally distinguished master chefs wine and spirit producers andculinary personalities

2018 FOCUS bull Collaborating with community leaders to develop events meeting HTArsquos criteria for major festivals and signature events and

in doing so further enhancing the Hawailsquoi experience for residents and visitors bull Sharing and celebrating the rich blend of cultures from the Asia-Pacific region and the Hawaiian Islands through music dance

and arts educational programs and special activities at the Honolulu Festival and Pan-Pacific Festival Throughout their multidayprogramming the festivals encourage a more informed appreciation of multiple cultural backgrounds

bull Continuing to deepen visitor interest in discovering more about the Hawailsquoi travel experience by showcasing its diverseappeal through festivals and events highlighting the uniqueness of the culture music arts and culinary traditions of theHawaiian Islands

38

NATIVE HAWAIIAN FESTIVALS

HTA annually supports important and iconic Native Hawaiian festivals through its Major Festivals and Product Development programs Thesefestivals and others like them are vital to perpetuating Hawailsquoirsquos indigenous culture among residents of all ages and visitors who travel fromaround the world to experience the authenticity of the Hawaiian Islands Additionally HTA supports 31 Native Hawaiian cultural programs in communities statewide with funding through its Kūkulu Ola Program HTA is committed to supporting cultural practitioners musicians and artists who share its dedication to enhance widespread publicawareness of Hawailsquoirsquos native culture through a greater understanding of its significance to Hawailsquoirsquos future

2017 HIGHLIGHTS bull Continued as a major sponsor of Aloha Festivals and King Kamehameha Celebration events which bring residents and visitors

together in communities statewide bull Continued as a major sponsor of additional festivals showcasing Hawailsquoirsquos indigenous culture including the Prince Kūhiō

Celebration Prince Lot Hula Festival Merrie Monarch Festival Mele Mei and Nā Hōkū Hanohano Awards bull Sponsored numerous Hawaiian cultural festivals statewide celebrating Hawailsquoirsquos traditions in music and dance including

lsquoukulele kī hōlsquoalu (slack-key) guitar and steel guitar musicianship and hula

2018 FOCUS bull Continuing to increase public knowledge within the Islands and in markets worldwide about the importance of the Hawaiian

culture by supporting Native Hawaiian festivals bull Continuing to assist organizers of Native Hawaiian festivals in increasing public awareness and building attendance by providing

recommendations for planning executing and marketing of events as well as offering insights on sponsorship development bull Broadening awareness of Hawaiian culture among avid explorers and millennial travelers by soliciting support for a new statewide

Makahiki Games Festival

37

MAJOR FESTIVALS AND SIGNATURE EVENTS

HTA is committed to supporting major festivals and signature events highlighting the cultures people attributes and locations thatmake the Hawaiian Islands one of the best places in the world to live and visit These include cultural arts and culinary celebrations showcasing Hawailsquoirsquos heritage and resident pride in their communities andattracting visitors seeking authenticity in their travel experiences Most HTA-sponsored festivals and events are strategically held in off-peak travel months to support tourism industry partners byincreasing interest from potential visitors to book trips during these periods For a listing of major festivals and signature events sponsored by HTA visit GoHawaiicom

2017 HIGHLIGHTS bull POW WOW Hawailsquoi brought together more than 100 artists from the Islands and around the world to create one-of-a-kind

murals on walls and building facades throughout Honolulursquos Kakalsquoako District The weeklong event attracted residents andvisitors and included a concert featuring world-renowned DJ Steve Aoki

bull The 37th annual Hawaii International Film Festival drew filmmakers from North America the Asia-Pacific region and Hawailsquoishowcasing new films recognizing emerging cinema talent and facilitating dynamic cultural exchanges among attendees

bull The seventh annual Hawailsquoi Food and Wine Festival held on Olsquoahu Maui and the island of Hawailsquoi featured delicious and diverse cuisine and spirits from more than 100 internationally distinguished master chefs wine and spirit producers andculinary personalities

2018 FOCUS bull Collaborating with community leaders to develop events meeting HTArsquos criteria for major festivals and signature events and

in doing so further enhancing the Hawailsquoi experience for residents and visitors bull Sharing and celebrating the rich blend of cultures from the Asia-Pacific region and the Hawaiian Islands through music dance

and arts educational programs and special activities at the Honolulu Festival and Pan-Pacific Festival Throughout their multidayprogramming the festivals encourage a more informed appreciation of multiple cultural backgrounds

bull Continuing to deepen visitor interest in discovering more about the Hawailsquoi travel experience by showcasing its diverseappeal through festivals and events highlighting the uniqueness of the culture music arts and culinary traditions of theHawaiian Islands

38

MAJOR FESTIVALS AND SIGNATURE EVENTS

HTA is committed to supporting major festivals and signature events highlighting the cultures people attributes and locations thatmake the Hawaiian Islands one of the best places in the world to live and visit These include cultural arts and culinary celebrations showcasing Hawailsquoirsquos heritage and resident pride in their communities andattracting visitors seeking authenticity in their travel experiences Most HTA-sponsored festivals and events are strategically held in off-peak travel months to support tourism industry partners byincreasing interest from potential visitors to book trips during these periods For a listing of major festivals and signature events sponsored by HTA visit GoHawaiicom

2017 HIGHLIGHTS bull POW WOW Hawailsquoi brought together more than 100 artists from the Islands and around the world to create one-of-a-kind

murals on walls and building facades throughout Honolulursquos Kakalsquoako District The weeklong event attracted residents andvisitors and included a concert featuring world-renowned DJ Steve Aoki

bull The 37th annual Hawaii International Film Festival drew filmmakers from North America the Asia-Pacific region and Hawailsquoishowcasing new films recognizing emerging cinema talent and facilitating dynamic cultural exchanges among attendees

bull The seventh annual Hawailsquoi Food and Wine Festival held on Olsquoahu Maui and the island of Hawailsquoi featured delicious and diverse cuisine and spirits from more than 100 internationally distinguished master chefs wine and spirit producers andculinary personalities

2018 FOCUS bull Collaborating with community leaders to develop events meeting HTArsquos criteria for major festivals and signature events and

in doing so further enhancing the Hawailsquoi experience for residents and visitors bull Sharing and celebrating the rich blend of cultures from the Asia-Pacific region and the Hawaiian Islands through music dance

and arts educational programs and special activities at the Honolulu Festival and Pan-Pacific Festival Throughout their multidayprogramming the festivals encourage a more informed appreciation of multiple cultural backgrounds

bull Continuing to deepen visitor interest in discovering more about the Hawailsquoi travel experience by showcasing its diverseappeal through festivals and events highlighting the uniqueness of the culture music arts and culinary traditions of theHawaiian Islands

38

SPORTS MARKETING

HTA supports a strong portfolio of sports events throughout the Hawaiian Islands that bolsters the statersquos economy generates worldwideTV exposure and reinforces Hawailsquoirsquos brand image HTArsquos objectives are to utilize sports as a catalyst to drive travel demand and ensure tax dollars are spent responsibly with a goal ofelevating Hawailsquoi as a premier sports destination Its overall strategy is attracting and funding sports events that deliver maximum benefitto Hawailsquoi and its residents

2017 HIGHLIGHTS bull Sponsored 31 diverse sports events statewide including the PGA Tourrsquos Sony Open in Hawailsquoi the LPGArsquos LOTTE Championship

Dukersquos OceanFest the Queen Lililsquouokalani Canoe Race the IRONMAN World Championship triathlon the XTERRA WorldChampionship the Honolulu Marathon the Hawailsquoi Bowl college football game and the Hawaiian Airlines Diamond HeadClassic college basketball tournament

bull Established a comprehensive marketing partnership with the NBArsquos Los Angeles Clippers featuring Hawailsquoi travel promotionsduring the 2016-17 regular season and culminating with the teamrsquos training camp and two pre-season games against theToronto Raptors held in Honolulu before the start of the 2017-18 season

bull Extended HTArsquos sponsorship support of the Womenrsquos Tennis Associationrsquos (WTA) Hawailsquoi Open to three years through 2019Hawailsquoirsquos only WTA tournament the Hawailsquoi Open features 32 world-ranked players competing in singles and doubles matcheswhich are broadcast to TV audiences worldwide

bull Introduced new sports courts for the Hawailsquoi Convention Center configurable to simultaneously stage up to 28 volleyballor badminton matches 18 high school basketball games or 11 futsal (indoor soccer) matches A regulation NBA- andNCAA-approved basketball court with a solid wood floor was also acquired

2018 FOCUS bull Continuing to update the sports marketing strategy and support sports events that help drive visitor traffic from all major

markets ndash especially during off-peak travel periods ndash and are broadcast to TV audiences in domestic and international markets bull Attracting potential travelers and generating TV exposure to reach a broader range of audiences by expanding Hawailsquoirsquos

sports portfolio to include new types of competitive events such as soccer rugby and beach volleyball bull Expanding the Hawailsquoi Convention Centerrsquos brand as a host site for various sports events including volleyball basketball

futsal and badminton tournaments attracting athletes teams and their supporters from markets worldwide ndash in particulardeveloping travel markets in Asia

39

BRAND DEVELOPMENT PROJECTS

HTArsquos brand development initiatives support the marketing of Hawailsquoi tourism through programs designed to raise awareness among travelconsumers about the unmatched appeal and diverse offerings of the Hawaiian Islands Most initiatives target travel trade and hospitalityproviders offering support and resources to enhance their business objectives in the Hawaiian Islands

2017 HIGHLIGHTS bull Implemented the Experiences of Hawailsquoi campaign ndash a post-arrival marketing campaign highlighting HTA-supported events andprojects through print in-room television and free Wi-Fi in resort areas

bull Held meetings with key stakeholders in March to increase dialogue and support between HTArsquos Global Marketing Team and industry stakeholders on Olsquoahu and Kaualsquoi

bull Organized Hawailsquoirsquos marketing exhibition at the US Travel Associationrsquos annual IPW Marketplace in Washington DC in Junepromoting the Hawaiian Islands to international travelers with support from Hawailsquoi Tourism Europe Hawailsquoi Tourism OceaniaHawailsquoi Tourism Canada Hawailsquoi Tourism China Hawailsquoi Tourism Hong Kong the Island Chapter Visitors Bureaus and AnthologyMarketing Group The HTA-led contingent met with more than 190 global tour operators and 40 media and hosted a specialnetworking event for international tour operator and airline representatives to interact with Hawailsquoi industry partners

2018 FOCUS bull Continuing to showcase the diversity of the Hawaiian Islands by highlighting HTA-supported events and projects throughthe Experiences of Hawailsquoi campaign

bull Presenting the Spring Marketing Update to inform the tourism industry on Hawailsquoirsquos global marketing initiatives and hostingstakeholder meetings on Olsquoahu Maui and the island of Hawailsquoi

bull Establishing a strong Hawailsquoi presence to support the marketing of international travel to the Hawaiian Islands at the US TravelAssociationrsquos 2018 IPW Marketplace set for Denver Colorado in May

40

AIR ACCESS Air access is critical to the statersquos tourism economy and essential to the quality of life that Hawailsquoi residents enjoy including their travel to theUS mainland and international destinations HTA is vigilant in its focus on maintaining strong air access

2017 HIGHLIGHTS bull Developed cooperative marketing campaigns to bolster demand withinkey strategic markets

bull Supported the June launch of AirAsia X flights between Kuala Lumpur Malaysiaand Honolulu The carrierrsquos four weekly flights include a stopover in Osaka Japansupporting travel demand from that region

bull Welcomed new andor expanded air access from the following carriers - Japan Airlines which relaunched flights between Tokyo and Kona in

September after a seven-year absence - United Airlines which increased its capacity to the neighbor islands by 20

percent with flights from Chicago Denver Los Angeles and San Franciscolaunched in December

- Delta Air Lines which launched daily flights between Seattle and Līhulsquoein December

- Virgin America which launched daily flights between San Francisco andKona in December

- Scoot which in December launched four weekly flights between Singapore and Honolulu that include a stopover in Osaka bull Hosted the third annual Airline Summit to educate airline partners on the value of Hawailsquoi as a travel destination bull Worked with Hawaiian Airlines Japan Airlines and tourism stakeholders to support new international service to Kona

2018 FOCUS bull Further development and diversification of new airline routes serving the US mainland and Southeast Asia bull Collaborate with airline partners to support the absorption of increased seat capacity bull Collaborate with the State Department of Transportation to prepare for service from ANArsquos new Airbus A380 in 2019

CRUISE ACCESS Cruise ships offer visitors an alternative means of experiencing the Hawaiian IslandsHTA continues to work with its consultant Access Cruise Inc to develop cruise linebusiness for Hawailsquoi

2017 HIGHLIGHTS bull Hosted the second annual Cruise Executive Summit attended by top leadersfrom Crystal Cruises Princess Cruises Holland America Group SilverseaCruises Royal Caribbean International Disney Cruise Line and The WorldResidences at Sea

bull Welcomed several inaugural callings with new vessels including the first portcall to Lānalsquoi by Seabourn Cruise Line in November

2018 FOCUS bull Hosting the third annual Cruise Executive Summit bull Continuing to develop cruise ship access and diversifying the portfolio ofcruise lines serving Hawailsquoi

41

CAREER DEVELOPMENT HTA continues to collaborate with educational organizations and businesses in encouraging Hawailsquoi high school students to pursue careersin travel and tourism Additionally HTA partners with training providers to offer workshops and certification programs enhancing the qualityof knowledge skills and service levels of employees working in the tourism industry

2017 HIGHLIGHTS bull Supported the sixth annual LEI (Leadership Exploration Inspiration) Program on Maui Olsquoahu Kaualsquoi and the island of Hawailsquoi in

April with participation from more than 800 students from 37 high schools statewide Support was provided by 96 college studentmentors 110 community volunteers 28 hotels and 100 businesses

bull Offered Hawailsquoi high school- and college-age students opportunities to participate in the 2017 Global Tourism Summit highlightedby a student debate competition with 18 teams participating Other student activities included a Pacific Asia Travel Associationstudent forum and opportunities to network with tourism professionals and volunteer for events

bull Provided information on standards and content in support of Tour Guide Certification and Customer Service Certification programsoffered by Kapilsquoolani Community College The certification programs were offered during the 2017 Global Tourism Summit

2018 FOCUS bull Continue to support quality programs promoting future career pathways in tourism bull Continue to support certification programs helping ensure tourism industry professionals are well-trained and can deliver

on the brand experience bull Continue to collaborate with educational institutions and industry stakeholders on workforce development

42

SAFETY AND SECURITY

HTA is committed to assisting organizations responsible for keeping Hawailsquoi safe and secure Under Hawailsquoi Revised Statute 237D-65 (6) (2)HTA is required to spend one-half percent of the Tourism Special Fund on safety and security initiatives The HTA-funded Visitor AssistanceProgram provides assistance resources and aloha to visitors in need statewide

2017 HIGHLIGHTS bull Through September HTArsquos Visitor Assistance Program responded to 1156 cases and assisted 2592 visitors who were victims

of a crime or needed support during their Hawailsquoi stay Services utilized included assistance with hotel and airline bookingsproviding meal coupons and replacing lost identification

bull Teamed with certified lifeguards in all four Hawailsquoi counties to support the Junior Lifeguard Program which provided2000 youths with training to enhance their ocean safety awareness and teach them first aid and water-rescue skills

bull Supported the 2017 State of Hawailsquoi Drowning Prevention and Ocean Safety Conference held in July Participants includedlifeguards public health and injury prevention practitioners ocean activities operators government and elected officialsand visitor industry leaders

2018 FOCUS bull Continuing to support the Visitor Assistance Program in all four counties bull Continuing to serve as the lead agency communicating to the tourism industry during crises bull Continuing to explore new outreach channels to deliver safety messages to visitors

43

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

BRAND DEVELOPMENT PROJECTS

HTArsquos brand development initiatives support the marketing of Hawailsquoi tourism through programs designed to raise awareness among travelconsumers about the unmatched appeal and diverse offerings of the Hawaiian Islands Most initiatives target travel trade and hospitalityproviders offering support and resources to enhance their business objectives in the Hawaiian Islands

2017 HIGHLIGHTS bull Implemented the Experiences of Hawailsquoi campaign ndash a post-arrival marketing campaign highlighting HTA-supported events andprojects through print in-room television and free Wi-Fi in resort areas

bull Held meetings with key stakeholders in March to increase dialogue and support between HTArsquos Global Marketing Team and industry stakeholders on Olsquoahu and Kaualsquoi

bull Organized Hawailsquoirsquos marketing exhibition at the US Travel Associationrsquos annual IPW Marketplace in Washington DC in Junepromoting the Hawaiian Islands to international travelers with support from Hawailsquoi Tourism Europe Hawailsquoi Tourism OceaniaHawailsquoi Tourism Canada Hawailsquoi Tourism China Hawailsquoi Tourism Hong Kong the Island Chapter Visitors Bureaus and AnthologyMarketing Group The HTA-led contingent met with more than 190 global tour operators and 40 media and hosted a specialnetworking event for international tour operator and airline representatives to interact with Hawailsquoi industry partners

2018 FOCUS bull Continuing to showcase the diversity of the Hawaiian Islands by highlighting HTA-supported events and projects throughthe Experiences of Hawailsquoi campaign

bull Presenting the Spring Marketing Update to inform the tourism industry on Hawailsquoirsquos global marketing initiatives and hostingstakeholder meetings on Olsquoahu Maui and the island of Hawailsquoi

bull Establishing a strong Hawailsquoi presence to support the marketing of international travel to the Hawaiian Islands at the US TravelAssociationrsquos 2018 IPW Marketplace set for Denver Colorado in May

40

AIR ACCESS Air access is critical to the statersquos tourism economy and essential to the quality of life that Hawailsquoi residents enjoy including their travel to theUS mainland and international destinations HTA is vigilant in its focus on maintaining strong air access

2017 HIGHLIGHTS bull Developed cooperative marketing campaigns to bolster demand withinkey strategic markets

bull Supported the June launch of AirAsia X flights between Kuala Lumpur Malaysiaand Honolulu The carrierrsquos four weekly flights include a stopover in Osaka Japansupporting travel demand from that region

bull Welcomed new andor expanded air access from the following carriers - Japan Airlines which relaunched flights between Tokyo and Kona in

September after a seven-year absence - United Airlines which increased its capacity to the neighbor islands by 20

percent with flights from Chicago Denver Los Angeles and San Franciscolaunched in December

- Delta Air Lines which launched daily flights between Seattle and Līhulsquoein December

- Virgin America which launched daily flights between San Francisco andKona in December

- Scoot which in December launched four weekly flights between Singapore and Honolulu that include a stopover in Osaka bull Hosted the third annual Airline Summit to educate airline partners on the value of Hawailsquoi as a travel destination bull Worked with Hawaiian Airlines Japan Airlines and tourism stakeholders to support new international service to Kona

2018 FOCUS bull Further development and diversification of new airline routes serving the US mainland and Southeast Asia bull Collaborate with airline partners to support the absorption of increased seat capacity bull Collaborate with the State Department of Transportation to prepare for service from ANArsquos new Airbus A380 in 2019

CRUISE ACCESS Cruise ships offer visitors an alternative means of experiencing the Hawaiian IslandsHTA continues to work with its consultant Access Cruise Inc to develop cruise linebusiness for Hawailsquoi

2017 HIGHLIGHTS bull Hosted the second annual Cruise Executive Summit attended by top leadersfrom Crystal Cruises Princess Cruises Holland America Group SilverseaCruises Royal Caribbean International Disney Cruise Line and The WorldResidences at Sea

bull Welcomed several inaugural callings with new vessels including the first portcall to Lānalsquoi by Seabourn Cruise Line in November

2018 FOCUS bull Hosting the third annual Cruise Executive Summit bull Continuing to develop cruise ship access and diversifying the portfolio ofcruise lines serving Hawailsquoi

41

CAREER DEVELOPMENT HTA continues to collaborate with educational organizations and businesses in encouraging Hawailsquoi high school students to pursue careersin travel and tourism Additionally HTA partners with training providers to offer workshops and certification programs enhancing the qualityof knowledge skills and service levels of employees working in the tourism industry

2017 HIGHLIGHTS bull Supported the sixth annual LEI (Leadership Exploration Inspiration) Program on Maui Olsquoahu Kaualsquoi and the island of Hawailsquoi in

April with participation from more than 800 students from 37 high schools statewide Support was provided by 96 college studentmentors 110 community volunteers 28 hotels and 100 businesses

bull Offered Hawailsquoi high school- and college-age students opportunities to participate in the 2017 Global Tourism Summit highlightedby a student debate competition with 18 teams participating Other student activities included a Pacific Asia Travel Associationstudent forum and opportunities to network with tourism professionals and volunteer for events

bull Provided information on standards and content in support of Tour Guide Certification and Customer Service Certification programsoffered by Kapilsquoolani Community College The certification programs were offered during the 2017 Global Tourism Summit

2018 FOCUS bull Continue to support quality programs promoting future career pathways in tourism bull Continue to support certification programs helping ensure tourism industry professionals are well-trained and can deliver

on the brand experience bull Continue to collaborate with educational institutions and industry stakeholders on workforce development

42

SAFETY AND SECURITY

HTA is committed to assisting organizations responsible for keeping Hawailsquoi safe and secure Under Hawailsquoi Revised Statute 237D-65 (6) (2)HTA is required to spend one-half percent of the Tourism Special Fund on safety and security initiatives The HTA-funded Visitor AssistanceProgram provides assistance resources and aloha to visitors in need statewide

2017 HIGHLIGHTS bull Through September HTArsquos Visitor Assistance Program responded to 1156 cases and assisted 2592 visitors who were victims

of a crime or needed support during their Hawailsquoi stay Services utilized included assistance with hotel and airline bookingsproviding meal coupons and replacing lost identification

bull Teamed with certified lifeguards in all four Hawailsquoi counties to support the Junior Lifeguard Program which provided2000 youths with training to enhance their ocean safety awareness and teach them first aid and water-rescue skills

bull Supported the 2017 State of Hawailsquoi Drowning Prevention and Ocean Safety Conference held in July Participants includedlifeguards public health and injury prevention practitioners ocean activities operators government and elected officialsand visitor industry leaders

2018 FOCUS bull Continuing to support the Visitor Assistance Program in all four counties bull Continuing to serve as the lead agency communicating to the tourism industry during crises bull Continuing to explore new outreach channels to deliver safety messages to visitors

43

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

AIR ACCESS Air access is critical to the statersquos tourism economy and essential to the quality of life that Hawailsquoi residents enjoy including their travel to theUS mainland and international destinations HTA is vigilant in its focus on maintaining strong air access

2017 HIGHLIGHTS bull Developed cooperative marketing campaigns to bolster demand withinkey strategic markets

bull Supported the June launch of AirAsia X flights between Kuala Lumpur Malaysiaand Honolulu The carrierrsquos four weekly flights include a stopover in Osaka Japansupporting travel demand from that region

bull Welcomed new andor expanded air access from the following carriers - Japan Airlines which relaunched flights between Tokyo and Kona in

September after a seven-year absence - United Airlines which increased its capacity to the neighbor islands by 20

percent with flights from Chicago Denver Los Angeles and San Franciscolaunched in December

- Delta Air Lines which launched daily flights between Seattle and Līhulsquoein December

- Virgin America which launched daily flights between San Francisco andKona in December

- Scoot which in December launched four weekly flights between Singapore and Honolulu that include a stopover in Osaka bull Hosted the third annual Airline Summit to educate airline partners on the value of Hawailsquoi as a travel destination bull Worked with Hawaiian Airlines Japan Airlines and tourism stakeholders to support new international service to Kona

2018 FOCUS bull Further development and diversification of new airline routes serving the US mainland and Southeast Asia bull Collaborate with airline partners to support the absorption of increased seat capacity bull Collaborate with the State Department of Transportation to prepare for service from ANArsquos new Airbus A380 in 2019

CRUISE ACCESS Cruise ships offer visitors an alternative means of experiencing the Hawaiian IslandsHTA continues to work with its consultant Access Cruise Inc to develop cruise linebusiness for Hawailsquoi

2017 HIGHLIGHTS bull Hosted the second annual Cruise Executive Summit attended by top leadersfrom Crystal Cruises Princess Cruises Holland America Group SilverseaCruises Royal Caribbean International Disney Cruise Line and The WorldResidences at Sea

bull Welcomed several inaugural callings with new vessels including the first portcall to Lānalsquoi by Seabourn Cruise Line in November

2018 FOCUS bull Hosting the third annual Cruise Executive Summit bull Continuing to develop cruise ship access and diversifying the portfolio ofcruise lines serving Hawailsquoi

41

CAREER DEVELOPMENT HTA continues to collaborate with educational organizations and businesses in encouraging Hawailsquoi high school students to pursue careersin travel and tourism Additionally HTA partners with training providers to offer workshops and certification programs enhancing the qualityof knowledge skills and service levels of employees working in the tourism industry

2017 HIGHLIGHTS bull Supported the sixth annual LEI (Leadership Exploration Inspiration) Program on Maui Olsquoahu Kaualsquoi and the island of Hawailsquoi in

April with participation from more than 800 students from 37 high schools statewide Support was provided by 96 college studentmentors 110 community volunteers 28 hotels and 100 businesses

bull Offered Hawailsquoi high school- and college-age students opportunities to participate in the 2017 Global Tourism Summit highlightedby a student debate competition with 18 teams participating Other student activities included a Pacific Asia Travel Associationstudent forum and opportunities to network with tourism professionals and volunteer for events

bull Provided information on standards and content in support of Tour Guide Certification and Customer Service Certification programsoffered by Kapilsquoolani Community College The certification programs were offered during the 2017 Global Tourism Summit

2018 FOCUS bull Continue to support quality programs promoting future career pathways in tourism bull Continue to support certification programs helping ensure tourism industry professionals are well-trained and can deliver

on the brand experience bull Continue to collaborate with educational institutions and industry stakeholders on workforce development

42

SAFETY AND SECURITY

HTA is committed to assisting organizations responsible for keeping Hawailsquoi safe and secure Under Hawailsquoi Revised Statute 237D-65 (6) (2)HTA is required to spend one-half percent of the Tourism Special Fund on safety and security initiatives The HTA-funded Visitor AssistanceProgram provides assistance resources and aloha to visitors in need statewide

2017 HIGHLIGHTS bull Through September HTArsquos Visitor Assistance Program responded to 1156 cases and assisted 2592 visitors who were victims

of a crime or needed support during their Hawailsquoi stay Services utilized included assistance with hotel and airline bookingsproviding meal coupons and replacing lost identification

bull Teamed with certified lifeguards in all four Hawailsquoi counties to support the Junior Lifeguard Program which provided2000 youths with training to enhance their ocean safety awareness and teach them first aid and water-rescue skills

bull Supported the 2017 State of Hawailsquoi Drowning Prevention and Ocean Safety Conference held in July Participants includedlifeguards public health and injury prevention practitioners ocean activities operators government and elected officialsand visitor industry leaders

2018 FOCUS bull Continuing to support the Visitor Assistance Program in all four counties bull Continuing to serve as the lead agency communicating to the tourism industry during crises bull Continuing to explore new outreach channels to deliver safety messages to visitors

43

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

CAREER DEVELOPMENT HTA continues to collaborate with educational organizations and businesses in encouraging Hawailsquoi high school students to pursue careersin travel and tourism Additionally HTA partners with training providers to offer workshops and certification programs enhancing the qualityof knowledge skills and service levels of employees working in the tourism industry

2017 HIGHLIGHTS bull Supported the sixth annual LEI (Leadership Exploration Inspiration) Program on Maui Olsquoahu Kaualsquoi and the island of Hawailsquoi in

April with participation from more than 800 students from 37 high schools statewide Support was provided by 96 college studentmentors 110 community volunteers 28 hotels and 100 businesses

bull Offered Hawailsquoi high school- and college-age students opportunities to participate in the 2017 Global Tourism Summit highlightedby a student debate competition with 18 teams participating Other student activities included a Pacific Asia Travel Associationstudent forum and opportunities to network with tourism professionals and volunteer for events

bull Provided information on standards and content in support of Tour Guide Certification and Customer Service Certification programsoffered by Kapilsquoolani Community College The certification programs were offered during the 2017 Global Tourism Summit

2018 FOCUS bull Continue to support quality programs promoting future career pathways in tourism bull Continue to support certification programs helping ensure tourism industry professionals are well-trained and can deliver

on the brand experience bull Continue to collaborate with educational institutions and industry stakeholders on workforce development

42

SAFETY AND SECURITY

HTA is committed to assisting organizations responsible for keeping Hawailsquoi safe and secure Under Hawailsquoi Revised Statute 237D-65 (6) (2)HTA is required to spend one-half percent of the Tourism Special Fund on safety and security initiatives The HTA-funded Visitor AssistanceProgram provides assistance resources and aloha to visitors in need statewide

2017 HIGHLIGHTS bull Through September HTArsquos Visitor Assistance Program responded to 1156 cases and assisted 2592 visitors who were victims

of a crime or needed support during their Hawailsquoi stay Services utilized included assistance with hotel and airline bookingsproviding meal coupons and replacing lost identification

bull Teamed with certified lifeguards in all four Hawailsquoi counties to support the Junior Lifeguard Program which provided2000 youths with training to enhance their ocean safety awareness and teach them first aid and water-rescue skills

bull Supported the 2017 State of Hawailsquoi Drowning Prevention and Ocean Safety Conference held in July Participants includedlifeguards public health and injury prevention practitioners ocean activities operators government and elected officialsand visitor industry leaders

2018 FOCUS bull Continuing to support the Visitor Assistance Program in all four counties bull Continuing to serve as the lead agency communicating to the tourism industry during crises bull Continuing to explore new outreach channels to deliver safety messages to visitors

43

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

SAFETY AND SECURITY

HTA is committed to assisting organizations responsible for keeping Hawailsquoi safe and secure Under Hawailsquoi Revised Statute 237D-65 (6) (2)HTA is required to spend one-half percent of the Tourism Special Fund on safety and security initiatives The HTA-funded Visitor AssistanceProgram provides assistance resources and aloha to visitors in need statewide

2017 HIGHLIGHTS bull Through September HTArsquos Visitor Assistance Program responded to 1156 cases and assisted 2592 visitors who were victims

of a crime or needed support during their Hawailsquoi stay Services utilized included assistance with hotel and airline bookingsproviding meal coupons and replacing lost identification

bull Teamed with certified lifeguards in all four Hawailsquoi counties to support the Junior Lifeguard Program which provided2000 youths with training to enhance their ocean safety awareness and teach them first aid and water-rescue skills

bull Supported the 2017 State of Hawailsquoi Drowning Prevention and Ocean Safety Conference held in July Participants includedlifeguards public health and injury prevention practitioners ocean activities operators government and elected officialsand visitor industry leaders

2018 FOCUS bull Continuing to support the Visitor Assistance Program in all four counties bull Continuing to serve as the lead agency communicating to the tourism industry during crises bull Continuing to explore new outreach channels to deliver safety messages to visitors

43

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

TOURISM RESEARCH AND PLANNING

The availability and utilization of timely insightful visitor research is vital to Hawailsquoirsquos tourism industry stakeholders for making soundbusiness decisions Hawailsquoi tourism is in a very mature phase requiring continuous research and gathering of data to supplementknowledge for enhancing brand awareness improving product experiences maintaining competitive advantages against otherdestinations and strategically expanding into new markets HTArsquos Tourism Research Division ensures quality marketing research isavailable to educate tourism stakeholders and help empower them in making intelligent data-driven decisions

2017 HIGHLIGHTS bull Began publishing the monthly Hawailsquoi Hotel Performance Report featuring key statistical data and analysis including

occupancy average daily rate (ADR) and revenue per available room (RevPAR) for hotel stays on a statewide level andfor Olsquoahu Maui County Kaualsquoi and the island of Hawailsquoi

bull Consistently published the Monthly Visitor Statistics Report Airline Seat Outlook Report 2016 Annual Visitor Research Report 2016 Annual Visitor Satisfaction and Activities Report 2017 Annual Visitor Plant Inventory and quarterly timeshare reports

bull Issued findings of the 2017 Resident Sentiment Study bull Completed and published the State of Hawailsquoirsquos first-ever studies on LGBT travel with comprehensive findings presented

for the US Canada Mainland China Australia Taiwan and Japan markets bull Continued to monitor and evaluate HTArsquos signature festivals and events

CHANGES IMPLEMENTED bull Published monthly fact-sheet updates for Hawailsquoirsquos tourism industry and global markets bull Implemented tools to expand monthly reporting capabilities including the addition of reports for Molokalsquoi and Lānalsquoi and

expanded accommodations categories bull Relaunched the Research Advisory Committee to better understand the needs of HTArsquos research data users and seek their input

2018 FOCUS bull Refocusing the Visitor Satisfaction and Activity Study to include island-specific information useful to HTA stakeholders bull Begin publishing monthly characteristics reports for the Hong Kong and Southeast Asia markets bull Collaborate with the State Department of Business Economic Development and Tourism (DBEDT) on developing the data warehouse

PROGRAMS bull Calculation of Visitor Characteristics and Expenditures bull Evaluation and Performance Measures bull Estimation of Visitor Arrivals by Country by Month bull Marketing Research and Other Research bull Data Dissemination bull Tourism Strategic Plan and Brand Management Plan bull Infrastructure Research

PUBLICATION SECTION OF WEBSITE RELEASE DATE(S) Monthly Visitor Statistics and News Release Visitor Highlights By the last day of the following month Island Highlights Visitor Highlights By the last day of the following month Major Market Area Highlights and Fact Sheets Major Market Areas By the last day of the following month Hawailsquoi Hotel Performance Report Infrastructure Research By the last day of the following month Air Seat Outlook (3 months) Infrastructure Research By the last day of the month prior Annual Visitor Research Report Annual Visitor Research Annually in the fall Visitor Plant Inventory Visitor Plant Inventory Annually in December Quarterly Visitor Satisfaction Monitoring Report Visitor Satisfaction and Activity Quarterly Annual Visitor Satisfaction and Activities Report Visitor Satisfaction and Activity Annually in the fall Quarterly Timeshare Infrastructure Research Quarterly Marketing Effectiveness Study Marketing Research Spring Survey of Resident Sentiment Evaluation and Performance Measures Annually in December Daily Air Passenger Counts DBEDT By 3 pm each workday Tourism Forecast DBEDT Quarterly

44

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

STRENGTHEN HTArsquoS REPUTATION

He inoa lsquoala A fragrant name

Integrity Credibility HonorAll are qualities HTA adheres toin conducting its business andleading Hawailsquoi tourism forward

45

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

COMMUNICATIONS

HTA consistently keeps Hawailsquoirsquos tourism industry news media and the general public informed about its programs initiativesresearch and positions on key issues HTA achieves this communication outreach through issuance of news releases distribution of a monthly e-bulletin interactionwith news media public presentations statewide briefings to tourism stakeholders and major industry events The largest and mostnotable of these events are HTArsquos annual Spring Marketing Update and Global Tourism Summit in the fall

2017 HIGHLIGHTS bull Between January and November HTA developed and issued 48 news releases to tourism stakeholders news media and

members of the general public enrolled to receive its communication materials The news releases covered multiple topicsincluding HTArsquos stance on major issues potentially affecting tourism important industry announcements and marketing initiativesand Hawailsquoirsquos monthly visitor statistics The news releases can be found online at wwwHawaiiTourismAuthorityorg

bull Accommodated more than 300 requests from local and national journalists for interviews statements articles andorbackground information for media coverage

bull Enhanced the design and presentation of information in HTArsquos monthly e-bulletin newsletter which provides updates on Hawailsquoi tourism promotions being implemented by HTArsquos Global Marketing Team

bull Conducted meetings with tourism stakeholders statewide to seek community feedback on strategies for moving tourism forward bull Provided HTArsquos position and key information addressing high-profile issues potentially impacting Hawailsquoi travel demand

such as the proposed travel ban rat lungworm disease and the threat of missile attacks by North Korea to help deter the spreadof false information especially in markets outside of the Islands

2018 FOCUS bull Reinforcing the goals of HTArsquos Five-Year Strategic Plan (2016-20) and how HTArsquos marketing initiatives and public outreach

are aligned with the planrsquos vision for improving the future of Hawailsquoirsquos tourism industry bull Communicating to the public-at-large the benefits of a strong successful tourism industry to the statersquos economic foundation

and Hawailsquoirsquos quality of life bull Encouraging broad-based support among residents tourism providers and visitors for HTArsquos position on embracing responsible

tourism and its importance to Hawailsquoirsquos future success as a travel destination

46

GLOBAL TOURISM SUMMIT September 19-21 2017

For 2017 HTA changed the name of its annual gathering of thought leaders to the Global Tourism Summit to more accurately reflectHawailsquoirsquos emergence as a leader in international travel and tourism Responsible tourism and its importance to the industryrsquos sustainability for Hawailsquoi and destinations worldwide was the summitrsquos overall theme Sessions and highly regarded speakers from multiple disciplines covered a wide range of topics and trends important not only tothe industryrsquos future but Hawailsquoirsquos future as well including Hawaiian culture eco-tourism innovation and technology

47

2017 HIGHLIGHTS bull Drew more than 1800 attendees to the summit from 18 countries Additionally 49 corporate sponsors and 50 exhibitors

provided support for the summit bull Honored the Polynesian Voyaging Society and crew of the Hōkūlelsquoa voyaging canoe with HTArsquos highest honor the Tourism

Legacy Award for completing their historic three-year Mālama Honua Worldwide Voyage bull Secured four prominent speakers who made the following keynote presentations

- Billy Beane executive vice president of baseball operations for the Oakland Athletics who presented Moneyball The Art of Winning an Unfair Game

- Neil Everett ESPN SportsCenter anchor who presented Paying Aloha Forward How Hawailsquoi Saved My Life - Ted Allen author and Food Network personality who presented Food is EVERYTHING - Oacuteloumlf Yacuterr Atladoacutettir director general of the Icelandic Tourist Board who presented Holistic Tourism

bull Expanded the student debate competition to feature 18 high school teams in a round-robin tournament addressing the topic Resolved Tourism Helps to Preserve Culture Ten teams were from outside Hawailsquoi with two teams each from Japan and Hong Kongand one team each from China Taiwan Malaysia New Zealand Canada and the US mainland The eight remaining teams werefrom Hawailsquoi

bull Showcased 20 chefs from throughout the state at the Aloha Reception offering delegates an array of Hawailsquoi-themed dishesand cuisine to enjoy

2018 FOCUS bull Continue to evolve the Global Tourism Summit in 2018 to address issues and forward-looking topics vital to the future of tourism

in the Hawaiian Islands and globally The summit is set for October 1-3

48

49

HAWAIlsquoI VISITOR STATISTICS STATEWIDE AND BY ISLAND

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD STATEWIDE Visitor Expenditures Visitor Arrivals

$1591B 8934277

$1664Bdagger

9231424 +46 +33

$1256B 7017268

71 49

Per Person Per Day Spending Total Air Seatsdaggerdaggerdagger

$1969 12020545

$2002 12147992daggerdagger

+17 +11

$1998 9165745

24 08

OlsquoAHU 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $734B $573B 59 Visitor Arrivals 5447229 4264304 42 Per Person Per Day Spending $1986 $1983 2 Total Air Seatsdaggerdaggerdagger 8086040 6090900 -01

KAUAlsquoI 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $167B $139B 101 Visitor Arrivals 1187269 963752 73 Per Person Per Day Spending $1838 $1930 47 Total Air Seatsdaggerdaggerdagger 702222 558158 31

2016 FINAL 2017 YTD CHANGE YTD ISLAND OF HAWAIlsquoI Visitor Expenditures $209B $178B 164 Visitor Arrivals 1549943 1316865 135 Per Person Per Day Spending $1796 $1855 47 Total Air Seatsdaggerdaggerdagger 897451 760530 113

50

2016 FINAL 2017 YTD CHANGE YTD MAUI Visitor Expenditures $452B $355B 38 Visitor Arrivals 2634237 2055771 32 Per Person Per Day Spending $2109 $2164 16 Total Air Seatsdaggerdaggerdagger 2334832 1756157 -07

2016 FINAL 2017 YTD CHANGE YTD MOLOKAlsquoI Visitor Expenditures $329M $249M 108 Visitor Arrivals 58932 42726 -49 Per Person Per Day Spending $1152 $1238 150

2016 FINAL 2017 YTD CHANGE YTD LĀNAlsquoI Visitor Expenditures Visitor Arrivals

$917M 63024

$584M 47815

-67 14

Per Person Per Day Spending $4146 $3738 -38

January-September 2017 Change 2016 Final vs 2017 Forecast

51

Includes Supplemental Business Expenditures dagger Air and Cruise Only daggerdagger Does Not Include Charter Air Seats daggerdaggerdagger Source Scheduled Seats from Diio Schedules

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

2017 HIGHLIGHTS bull Drew more than 1800 attendees to the summit from 18 countries Additionally 49 corporate sponsors and 50 exhibitors

provided support for the summit bull Honored the Polynesian Voyaging Society and crew of the Hōkūlelsquoa voyaging canoe with HTArsquos highest honor the Tourism

Legacy Award for completing their historic three-year Mālama Honua Worldwide Voyage bull Secured four prominent speakers who made the following keynote presentations

- Billy Beane executive vice president of baseball operations for the Oakland Athletics who presented Moneyball The Art of Winning an Unfair Game

- Neil Everett ESPN SportsCenter anchor who presented Paying Aloha Forward How Hawailsquoi Saved My Life - Ted Allen author and Food Network personality who presented Food is EVERYTHING - Oacuteloumlf Yacuterr Atladoacutettir director general of the Icelandic Tourist Board who presented Holistic Tourism

bull Expanded the student debate competition to feature 18 high school teams in a round-robin tournament addressing the topic Resolved Tourism Helps to Preserve Culture Ten teams were from outside Hawailsquoi with two teams each from Japan and Hong Kongand one team each from China Taiwan Malaysia New Zealand Canada and the US mainland The eight remaining teams werefrom Hawailsquoi

bull Showcased 20 chefs from throughout the state at the Aloha Reception offering delegates an array of Hawailsquoi-themed dishesand cuisine to enjoy

2018 FOCUS bull Continue to evolve the Global Tourism Summit in 2018 to address issues and forward-looking topics vital to the future of tourism

in the Hawaiian Islands and globally The summit is set for October 1-3

48

49

HAWAIlsquoI VISITOR STATISTICS STATEWIDE AND BY ISLAND

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD STATEWIDE Visitor Expenditures Visitor Arrivals

$1591B 8934277

$1664Bdagger

9231424 +46 +33

$1256B 7017268

71 49

Per Person Per Day Spending Total Air Seatsdaggerdaggerdagger

$1969 12020545

$2002 12147992daggerdagger

+17 +11

$1998 9165745

24 08

OlsquoAHU 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $734B $573B 59 Visitor Arrivals 5447229 4264304 42 Per Person Per Day Spending $1986 $1983 2 Total Air Seatsdaggerdaggerdagger 8086040 6090900 -01

KAUAlsquoI 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $167B $139B 101 Visitor Arrivals 1187269 963752 73 Per Person Per Day Spending $1838 $1930 47 Total Air Seatsdaggerdaggerdagger 702222 558158 31

2016 FINAL 2017 YTD CHANGE YTD ISLAND OF HAWAIlsquoI Visitor Expenditures $209B $178B 164 Visitor Arrivals 1549943 1316865 135 Per Person Per Day Spending $1796 $1855 47 Total Air Seatsdaggerdaggerdagger 897451 760530 113

50

2016 FINAL 2017 YTD CHANGE YTD MAUI Visitor Expenditures $452B $355B 38 Visitor Arrivals 2634237 2055771 32 Per Person Per Day Spending $2109 $2164 16 Total Air Seatsdaggerdaggerdagger 2334832 1756157 -07

2016 FINAL 2017 YTD CHANGE YTD MOLOKAlsquoI Visitor Expenditures $329M $249M 108 Visitor Arrivals 58932 42726 -49 Per Person Per Day Spending $1152 $1238 150

2016 FINAL 2017 YTD CHANGE YTD LĀNAlsquoI Visitor Expenditures Visitor Arrivals

$917M 63024

$584M 47815

-67 14

Per Person Per Day Spending $4146 $3738 -38

January-September 2017 Change 2016 Final vs 2017 Forecast

51

Includes Supplemental Business Expenditures dagger Air and Cruise Only daggerdagger Does Not Include Charter Air Seats daggerdaggerdagger Source Scheduled Seats from Diio Schedules

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

49

HAWAIlsquoI VISITOR STATISTICS STATEWIDE AND BY ISLAND

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD STATEWIDE Visitor Expenditures Visitor Arrivals

$1591B 8934277

$1664Bdagger

9231424 +46 +33

$1256B 7017268

71 49

Per Person Per Day Spending Total Air Seatsdaggerdaggerdagger

$1969 12020545

$2002 12147992daggerdagger

+17 +11

$1998 9165745

24 08

OlsquoAHU 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $734B $573B 59 Visitor Arrivals 5447229 4264304 42 Per Person Per Day Spending $1986 $1983 2 Total Air Seatsdaggerdaggerdagger 8086040 6090900 -01

KAUAlsquoI 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $167B $139B 101 Visitor Arrivals 1187269 963752 73 Per Person Per Day Spending $1838 $1930 47 Total Air Seatsdaggerdaggerdagger 702222 558158 31

2016 FINAL 2017 YTD CHANGE YTD ISLAND OF HAWAIlsquoI Visitor Expenditures $209B $178B 164 Visitor Arrivals 1549943 1316865 135 Per Person Per Day Spending $1796 $1855 47 Total Air Seatsdaggerdaggerdagger 897451 760530 113

50

2016 FINAL 2017 YTD CHANGE YTD MAUI Visitor Expenditures $452B $355B 38 Visitor Arrivals 2634237 2055771 32 Per Person Per Day Spending $2109 $2164 16 Total Air Seatsdaggerdaggerdagger 2334832 1756157 -07

2016 FINAL 2017 YTD CHANGE YTD MOLOKAlsquoI Visitor Expenditures $329M $249M 108 Visitor Arrivals 58932 42726 -49 Per Person Per Day Spending $1152 $1238 150

2016 FINAL 2017 YTD CHANGE YTD LĀNAlsquoI Visitor Expenditures Visitor Arrivals

$917M 63024

$584M 47815

-67 14

Per Person Per Day Spending $4146 $3738 -38

January-September 2017 Change 2016 Final vs 2017 Forecast

51

Includes Supplemental Business Expenditures dagger Air and Cruise Only daggerdagger Does Not Include Charter Air Seats daggerdaggerdagger Source Scheduled Seats from Diio Schedules

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

HAWAIlsquoI VISITOR STATISTICS STATEWIDE AND BY ISLAND

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD STATEWIDE Visitor Expenditures Visitor Arrivals

$1591B 8934277

$1664Bdagger

9231424 +46 +33

$1256B 7017268

71 49

Per Person Per Day Spending Total Air Seatsdaggerdaggerdagger

$1969 12020545

$2002 12147992daggerdagger

+17 +11

$1998 9165745

24 08

OlsquoAHU 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $734B $573B 59 Visitor Arrivals 5447229 4264304 42 Per Person Per Day Spending $1986 $1983 2 Total Air Seatsdaggerdaggerdagger 8086040 6090900 -01

KAUAlsquoI 2016 FINAL 2017 YTD CHANGE YTD

Visitor Expenditures $167B $139B 101 Visitor Arrivals 1187269 963752 73 Per Person Per Day Spending $1838 $1930 47 Total Air Seatsdaggerdaggerdagger 702222 558158 31

2016 FINAL 2017 YTD CHANGE YTD ISLAND OF HAWAIlsquoI Visitor Expenditures $209B $178B 164 Visitor Arrivals 1549943 1316865 135 Per Person Per Day Spending $1796 $1855 47 Total Air Seatsdaggerdaggerdagger 897451 760530 113

50

2016 FINAL 2017 YTD CHANGE YTD MAUI Visitor Expenditures $452B $355B 38 Visitor Arrivals 2634237 2055771 32 Per Person Per Day Spending $2109 $2164 16 Total Air Seatsdaggerdaggerdagger 2334832 1756157 -07

2016 FINAL 2017 YTD CHANGE YTD MOLOKAlsquoI Visitor Expenditures $329M $249M 108 Visitor Arrivals 58932 42726 -49 Per Person Per Day Spending $1152 $1238 150

2016 FINAL 2017 YTD CHANGE YTD LĀNAlsquoI Visitor Expenditures Visitor Arrivals

$917M 63024

$584M 47815

-67 14

Per Person Per Day Spending $4146 $3738 -38

January-September 2017 Change 2016 Final vs 2017 Forecast

51

Includes Supplemental Business Expenditures dagger Air and Cruise Only daggerdagger Does Not Include Charter Air Seats daggerdaggerdagger Source Scheduled Seats from Diio Schedules

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

2016 FINAL 2017 YTD CHANGE YTD MAUI Visitor Expenditures $452B $355B 38 Visitor Arrivals 2634237 2055771 32 Per Person Per Day Spending $2109 $2164 16 Total Air Seatsdaggerdaggerdagger 2334832 1756157 -07

2016 FINAL 2017 YTD CHANGE YTD MOLOKAlsquoI Visitor Expenditures $329M $249M 108 Visitor Arrivals 58932 42726 -49 Per Person Per Day Spending $1152 $1238 150

2016 FINAL 2017 YTD CHANGE YTD LĀNAlsquoI Visitor Expenditures Visitor Arrivals

$917M 63024

$584M 47815

-67 14

Per Person Per Day Spending $4146 $3738 -38

January-September 2017 Change 2016 Final vs 2017 Forecast

51

Includes Supplemental Business Expenditures dagger Air and Cruise Only daggerdagger Does Not Include Charter Air Seats daggerdaggerdagger Source Scheduled Seats from Diio Schedules

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

HAWAIlsquoI VISITOR STATISTICS GLOBAL SOURCE MARKETS

Source for All Tables Hawailsquoi Tourism Authority

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US WEST Visitor Expenditures Visitor Arrivals

$563B 3664150

$606B 3748097

76 23

$460B 2864784

105 44

Per Person Per Day Spending Total Air Seats

$1679 7324285

$1768 7332706

53 01

$1775 5497346

67 -13

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD US EAST Visitor Expenditures Visitor Arrivals

$389B 1892768

$416B 1960448

69 36

$327B 1535934

104 57

Per Person Per Day Spending Total Air Seats

$2017 923602

$2089 1008610

36 92

$2101 772805

53 124

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD JAPAN Visitor Expenditures Visitor Arrivals

$210B 1487979

$228B 1568750

89 54

$168B 1175174

11 67

Per Person Per Day Spending Total Air Seats

$2403 1835718

$2449 1986359

19 82

$2382 1506445

24 97

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CANADA Visitor Expenditures Visitor Arrivals

$9549M 469314

$104B 505127

89 76

$7488M 367655

98 96

Per Person Per Day Spending Total Air Seats

$1611 462845

$1635 462889

15 00

$1633 335379

20 -35

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD OCEANIA Visitor Expenditures Visitor Arrivals

$107B 390364

$102B 389953

-47 -01

$7585M 291500

-40 -02

Per Person Per Day Spending Total Air Seats

$2865 514641

$2717 483041

-52 -61

$2717 360884

-47 -84

52

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

Change 2016 Final vs 2017 Forecast January-September 2017

Source Scheduled Seats from Diio Schedules

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD KOREA Visitor Expenditures Visitor Arrivals

$5853M 257189

$5080M 244741

-132 -48

$3637M 178382

-113 -26

Per Person Per Day Spending Total Air Seats

$3164 375920

$2864 385274

-95 25

$2782 264872

-91 -55

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD CHINA Visitor Expenditures Visitor Arrivals

$4164M 164326

$3928M 158938

-57 -33

$3058M 122425

-100 -90

Per Person Per Day Spending Total Air Seats

$3847 166916

$3332 164084

-134 -17

$3286 123535

-146 -16

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD TAIWAN Visitor Expenditures Visitor Arrivals

$381M 18107

$372M 18535

-25 24

$285M 14324

-98 19

Per Person Per Day Spending Total Air Seats

$2649 32408

$2529 31186

-45 -38

$2574 22916

-94 -12

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD EUROPE Visitor Expenditures Visitor Arrivals

$3534M 143922

$3311M 140377

-63 -25

$2198M 106359

-185 -40

Per Person Per Day Spending $1899 $1773 -66 $1593 -159

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD SOUTHEAST ASIA Visitor Arrivals 21127 - - 20794 286

2016 FINAL 2017 FORECAST CHANGE 2017 YTD CHANGE YTD HONG KONG Visitor Arrivals 4511 - - 2962 -185

Note Hawailsquoi data related to visitor expenditures per person per day spending and total air seats is not available for the Southeast Asia and Hong Kong markets

53

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

BRAND EXPERIENCE PROGRAM LISTINGS

KŪKULU OLA PROGRAM

OlsquoAHU Bernice Pauahi Bishop MuseumHulia lsquoAno - Inspired Patterns Hawaiian Mission Houses Nani Ke Ao NeiA Music Series Hilsquoipaka LLC Nā Polsquoe Hana Nolsquoeau(Waimea Valley Visiting Artist Program) Holsquookualsquoāina Kūkuluhou Internship Program Kalihi-Pālama Culture and Arts Society IncQueen Lililsquouokalani Keiki Hula Competition Nālsquoālehu Theatre Hawaiian Music Masters Youth Outreach and Community Reinvestment Paepae o Helsquoeia Kū Hou Kuapā Searider Productions Foundation FamilyIngredients (Mālama-Themed Programming) The Estria Foundation Mele Murals Waimānalo Canoe Club Walsquoa Koa Restoration Waimānalo Market Co-opKa Mea lsquoAi Pono - A Wellness Initiative

MAUI COUNTY Hāna Arts Hāna Legends Hōlani Hāna Inc Holsquoomau I Ka Hale Kahiko Hui Nolsquoeau Visual Arts Center Art with Aloha 2017 Ka Honua Momona Ke Alaula lsquoOhana Workshops Lānalsquoi Culture and Heritage Center E lsquoIkeHou iā Lānalsquoi Cultural Literacy Initiative Ma Ka Hana Ka lsquoIke Hoi iā Hāloa Maui Arts and Cultural Center Celebrate Hawailsquoi Molokalsquoi Arts Center Inc Hawaiian Arts HA Program Nā Leo Pūlama O Maui Inc A LivingHawaiian Language - Itrsquos Our Kuleana

KAUAlsquoI Kumano I KeAla Ma Uka Eco-Village Experience National Tropical Botanical GardenE Holsquoi Hou O Hāloa Returning Lolsquoito Lāwalsquoi Ahupualsquoa

ISLAND OF HAWAIlsquoI Edith K Kanakalsquoole Foundation Hale Holsquookipa Hawailsquoi Forest Institute Ka Pilina Poina lsquoOle -Connection Not Forgotten Kohala Institute KI Tours - Kauhale Tours and Workshops

Laupāhoehoe Train Museum HawaiianCultural Center of Hāmākua Nā Kālai Walsquoa Hanauna Ola - Sustainingthe Generations Through Voyaging Pōhāhā I Ka Lani Mālama Nāpolsquoopolsquoo Pōhāhā I Ka Lani Hōlsquoola lā Koalsquoekea

VARIOUS Makauila Inc The Great Navigators ofIsland Earth Mana Maoli The Mana Mele Project

ALOHA lsquoĀINA PROGRAM

OlsquoAHU Kōkua Kalihi Valley Comprehensive FamilyServices Koa lsquoĀina Environmental Stewardship Project Hawailsquoi Forest Institute Honolulu Zoo Childrenrsquos Discovery Forest Hawailsquoi Marine Mammal Alliance Inc Stewardship of the Hawaiian Monk Seal Hikalsquoalani Holsquookanaka Mālama Na Honu Conservation and Preservation Project 2017 Maunalua Fishpond Heritage CenterKānewai Spring Preservation Pacific American Foundation Hawailsquoi Inc Kahuliau lsquoElua Surfrider Foundation Olsquoahu ChapterOcean Friendly Restaurants Hawailsquoi travel2change Aloha lsquoĀina Program Waimānalo Canoe Club Adopt a Park

MAUI COUNTY Hawailsquoi Wildlife Fund Holsquookipa HonuHolsquookuleana A Community-BasedEducational Outreach Ka Honua Momona Mālama I Nā Loko llsquoa O Molokalsquoi Ma Ka Hana Ka lsquoIke Building ProgramMālama Ka Waihona lsquoĀina O Hāna Maui Nui Botanical Gardens Inc Seed Storage of and Increased CommunityAccess to Traditional Hawaiian Plants Molokalsquoi Land Trust Habitat Improvementsfor Laysan Albatross at the Mokio Preserve Pacific Whale Foundation InformingEducating and Involving the Public inRestoration of Paniaka Wetlands Save Honolua Coalition Mālama Honolua Tri-Isle Resource Conservation and Development Council Inc Leeward HaleakalāWatershed Restoration Partnership

University of Hawailsquoi Office of ResearchServices Early Detection and Rapid Responseto Invasive Species Along Trails

KAUAlsquoI Kōkelsquoe Resource Conservation ProgramEcotourism Volunteers of Kōkelsquoe Kumano I Ke Ala Aloha lsquoĀina Restoration Project Tourism Improvements at MakauwahiCave Reserve National Tropical Botanical Garden Makingthe Canoe Garden Path ADA Accessible The Trust for Public Lands The Kuleana Lands of Waipā University of Hawailsquoi Office of ResearchServices Kiaimoku - Bridging the Gapbetween Communities and Conservation

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Community-LedInvasive Species Control Kalanihale lsquoĀina Momona PerpetuatingAbundant and Healthy Marine Resources The Marine Mammal Center Hawaiian Monk Seal Conservation and Education Program

VARIOUS The Nature Conservancy Protecting theHeart of Hawailsquoirsquos Natural Resources University of Hawailsquoi Rapid lsquoŌhilsquoa DeathSeed-Banking Intiative

COMMUNITY ENRICHMENT PROGRAM

OlsquoAHU City and County of Honolulu Department ofParks and Recreation Lei Day Celebration Hawailsquoi Book and Music Festival Hawailsquoi European Cinema Film Festival Hawailsquoi Forest Industry Association 2017Hawailsquoirsquos Woodshow Na Lalsquoau o Hawailsquoi Hawailsquoi Korean Chamber of Commerce 16th annual Korean Festival Hawaiian Mission Houses History Theatre Japanese Cultural Center of HawailsquoiNew Yearrsquos lsquoOhana FestivalShichi-Go-SanKeiki Kimono Dressing Kānelsquoohe Business GroupWindward Holsquoolaulelsquoa Kī Hōlsquoalu Foundation Inc 35th annual Hawaiian Slack Key Guitar Festival -Waikīkī Style Maui Jim Inc Maui Jim Ocean Racing Series 54

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

Olsquoahu Resource Conservation and Development Council Parade of Farms -Cultivating Community on theNorth Shore SJ Foundation 15th annual Waikīkī Spam Jam 47th annual lsquoUkulele Festival Hawailsquoi University of Hawailsquoi Office of ResearchServices Asia Pacific Dance Festival Waikīkī Community CenterDuke Kahanamoku Beach Challenge

MAUI COUNTY Aha Kukui o Molokalsquoi Molokalsquoi Canoe Festivals Kulāia Arts Education for Children GroupNinth annual Maui Steel Guitar Festival Arts Education for Children GroupJazz Maui East Meets West 2017 Hawaiian Kamalilsquoi Inc The Pailolo Challenge Hui Nolsquoeau Art Exhibitions 2017 Japanese Cultural Society of MauiMaui Matsuri A Japanese Festival Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Maui Style Kristie Wrigglesworth World Whale Day Maui Arts and Cultural Center Maui lsquoUkulele Festival Maui Arts and Cultural Center SchaeferInternational Gallery 2017 Visual ArtsExhibition Maui Bicycling League Love the WestMaui Greenway Day Maui Classical Music Festival 2017 Maui Historical Society Hale Hōlsquoikelsquoike atthe Bailey House E Pūlama Mau lā Maui Maui Jim Inc Maui Jim Ocean Racing Series Maui Pops Orchestra 2017 Nāpili Kai Foundation Kulsquou Pua Maelsquoole -Celebrating 50 Years Pailolo SUP Sports LLC Maui SUP Cup Lahaina Restoration Foundation Four Chinese Festivals Tri-Isle Resource Conservation and Development Council Inc Emma FardenSharpe Hula Festival Tri-Isle Resource Conservation and Development Council Inc WailukuFirst Friday USTA Hawailsquoi Pacific Section 2017 Tennis Championship of Maui

KAUAlsquoI Friends of the Festival of Lights Garden Island Arts Council E KanikapilaKākou 2017 - New Faces at EKK

Hanapēpē Economic Alliance Celebrating 20Years of Hanapēpē Art Night - All Year Long Hanapēpē Economic AllianceKaualsquoi Chocolate and Coffee Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Hui o Laka Eō E lsquoEmalani I Alakalsquoi 2017 Ka Hale Pono Inc Seventh annual Anahola Prince Kūhiō Day Celebration Ka lsquoImi Nalsquoauao O Hawailsquoi Nei Institute Heiva I Kaualsquoi 2017 Kapalsquoa Business Association Coconut Festival Kaualsquoi Economic Development BoardThe Keeper of the Culture E Ola Na Molsquoolelo Kaualsquoi Museum Association Ltd May Day Lei Contest Kaualsquoi Outrigger Association20th anniversary Nāpali Challenge Kaualsquoi Powwow Council 19th annual Kaualsquoi Powwow in Paradise Kī Hōlsquoalu Foundation Inc 26th annual Hawaiian Slack Key Guitar Festival -Kaualsquoi Style Mālie Foundation 2017 Hawaiian Cultural Events and Kaualsquoi Mokihana Festival Maui Jim Inc Maui Jim Ocean Racing Series National Tropical Botanical GardenRemains of the Rainbow Two Exhibitions of Rare Plant Photography Polsquoipū Beach Foundation New Yearrsquos Eve Celebration at Polsquoipū Beach Park Polsquoipū Beach FoundationPolsquoipū Food and Wine Festival Tasting Kaualsquoi LLC Tasting Kaualsquoi Food Tours

ISLAND OF HAWAIlsquoI Big Island Resource Conservation andDevelopment Council Kalsquoū Coffee Festival Endurance Events USA Mauna to Mauna Ultra Hāmākua Harvest Annual Farm Festival Hawailsquoi Institute for Music Enrichment and Learning Experiences Steel Guitar Festivals Second annual Hawailsquoi Island Festival of Birds Hawailsquoi Performing Arts FestivalMarketing Development Project HawaiiCon 2017 Kahilu Theatre Foundation second half of 36th presenting season first half of 37thpresenting season Kalani Honua Hawailsquoi Yoga Festival Kona Hawaiian Quilt Museum SocietyTropical Inspiration Quilt Show Kona Historical Society Hands on History atthe Kona Coffee Living History Farm

Peoples Advocacy for Trails Hawailsquoi (PATH)Expanding Awareness of Bikeshare -A Vehicle for Visitor Health Volcano Art Center Hula Arts at Kīlauea Zonta Club of Hilo Foundation Zonta Fashion Frenzy

SIGNATURE INCUBATOR PROGRAM

OlsquoAHU Honolulu Biennial Molokalsquoi 2 Olsquoahu Paddleboard World Championships Sunset Beach Pro

MAUI COUNTY Celebration of the Arts

KAUAlsquoI 2017 Waimea Town Celebration Heritage of Aloha Festival

ISLAND OF HAWAIlsquoI 25th annual Panalsquoewa Stampede Rodeo

STATEWIDE Maoli Arts Movement (Olsquoahu and Maui)

NATURAL RESOURCES ADVISORY GROUP Mark Fox The Nature Conservancy of Hawailsquoi

Tanya RubensteinDepartment of Land and Natural Resources

Annette Kalsquoohelauilsquoi Hawailsquoi Ecotourism Association

Vincent ShigekuniPBR Hawailsquoi and Associates Inc

T lsquoAulani Wilhelm Papahānaumokuākea Marine National Monument

Marti Townsend Sierra Club of Hawailsquoi

HAWAIlsquoI CULTURAL PROGRAM ADVISORY COUNCIL

Nālsquoālehu AnthonyPaliku - Documentary Films

Kainoa Daines Olsquoahu Visitors Bureau

Leona Māpuana KalimaHawaiian Cultural Consultant

Cheryl L Kalsquouhane-LupenuiThe Kohala Center

Debbie Nākanelua-Richards Hawaiian Airlines

55

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

PROGRAMPROJECT CONTRACT LISTING

CONTRACTS OVER $1 MILLION FOR THE LIFE OF THE CONTRACT

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc PGA Tour ndash CON 15020 PGA Tour Inc IRONMAN World Championship ndash CON 15061 World Triathlon Corporation Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd Watch with Aloha facial recognition application local drones footageand social media integration ndash CON 16065Travelscape LLC (dba Expedia Media Solutions)

China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau Canada external major market management ndash CON 17017VoX International Inc Japan external major market management ndash CON 17028 aLink LLC USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau

PROCUREMENT OVER $100000 FOR CALENDAR YEAR 2017

Korea external major market management ndash CON 15010I Plus Connect Communications (dba iConnect) Calculation of visitor characteristics and expenditures ndash CON 15011SMS Research and Marketing Services Inc Europe external major market management ndash CON 16023Hills Balfour Limited Oceania external major market management ndash CON 16024The Walshe Group Pty Ltd China external major market management ndash CON 16039The Happy Traveller LLC (dba Brandstory Inc PTE Ltd) Supplemental services related to management of research websites onlinemarketing and social media intellectual property data bank developmentservices and projects related to the 2016 Hawailsquoi Tourism Conference ndashCON 16071 Hawailsquoi Visitors and Convention Bureau Island Chapters support services ndash CON 17002Hawailsquoi Visitors and Convention Bureau LA Clippers ndash CON 17009 LA Clippers LLC Delta Hawailsquoi award rebates ndash CON 17012 Delta Air Lines Canada external major market management ndash CON 17017VoX International Inc Hawailsquoi Investment Ready ndash CON 17018 The Waipā Foundation USTA Fed Cup 2017 ndash CON 17021 USTA Hawailsquoi Pacific Section Global Social Media Program ndash CON 17023 Wahine Media 2016 Hawailsquoi Tourism Conference Executive Summit ndash CON 17027Hawailsquoi Visitors and Convention Bureau Japan external major market management ndash CON 17028 aLink LLC

USA external major market management ndash CON 17029Hawailsquoi Visitors and Convention Bureau Visitor Assistance Program Olsquoahu ndash CON 17031Visitor Aloha Society of Hawailsquoi Visitor Assistance Program island of Hawailsquoi ndash CON 17032Visitor Aloha Society of Hawailsquoi island of Hawailsquoi Public relations communication and outreach ndash CON 17036Anthology Marketing Group

Honolulu Festival ndash CON 17054 Honolulu Festival Foundation 38th annual Pan-Pacific Festival ndash CON 17055 Kintetsu International Hawaii Company Executive production of 2017 Global Tourism Summit ndash CON 17061Paragon Events Global Tourism Summit cost reimbursables ndash CON 17062 Paragon Events Hawaii International Film Festival ndash CON 17064 Hawaii International Film Festival Inc Hawailsquoi Food and Wine Festival ndash CON 17068 Hawailsquoi Food and Wine Festival Hawailsquoi BowlHawaiian Airlines Diamond Head Classic ndash CON 17088ESPN Productions Inc LOTTE Championship ndash CON 17187 Ladies Professional Golf Association Aloha Festivals ndash CON 17191 Aloha Week Hawailsquoi Inc (dba Aloha Festivals) Statewide Junior Lifeguard Program ndash CON 17208North Shore Lifeguard Association Design and Maintenance of HTA Website ndash CON 17214Anthology Marketing Group Ellison Onizuka Kona International Airport at Keāhole-Haneda Airport route ndashCON 17216 Hawaiian Airlines Inc Kūhiō Beach Hula Mound ndash CON 17217 Waikīkī Improvement Association Kuala Lumpur-Osaka-Honolulu route incentive program ndash CON 17222AirAsia X Berhad Mele Mei 2017 ndash CON 17223 Hawailsquoi Academy of Recording Arts Hawailsquoi air service development US market opportunities ndash CON 17226Hawailsquoi Visitors and Convention Bureau Customer service and tour guide certification ndash CON 17227University of Hawailsquoi Kapilsquoolani Community College Ala Wai Watershed Partnership 2017 ndash CON 17233Olsquoahu Economic Development Board Native Hawaiian Hospitality Association 2017 ndash CON 17234Native Hawaiian Hospitality Association

56

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

THE HTA TEAM SUPPORTING HAWAIlsquoIrsquoS TOURISM INDUSTRY

George D Szigeti President and Chief Executive Officer

Randy Baldemor Chief Operating Officer

Leslie Dance Vice President Marketing and Product Development

Marc Togashi Vice President Finance

Caroline Anderson Tourism Brand Manager

Maile Caravalho Finance Administrative Assistant

Charlene Chan Director of Communications

Jennifer Chun Director of Tourism Research

Minh-Chau Chun Tourism Research Manager

Jadie Goo Director of Marketing

Laci Goshi Tourism Brand Manager

Carole Hagihara Executive Assistant

Denise Kahalekulu Quality Assurance Administrative Assistant

Kalani Kalsquoanālsquoanā Director of Hawaiian Cultural Affairs

Lawrence Liu Tourism Research Statistician

Chika Miyauchi Tourism Brand Manager

Ronald Rodriguez Contracts Specialist

Chris Sadayasu Tourism Brand Manager

Michele Shiowaki Administrative Assistant

Noriko Sloan Operations Manager

Vengie Talaro Administrative Assistant

57

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA

Hawailsquoi Convention Center 1801 Kalākaua Avenue Honolulu Hawailsquoi 96815

kelepona tel (808) 973-2255 kahua palsquoa web hawaiitourismauthorityorg

Follow us on Twitter HawaiiHTA

Like us on Facebook wwwfacebookcomHawaiiHTA

Follow us on Instagram hawaiihta

Subscribe to our YouTube channel wwwyoutubecomHawaiiHTA