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Hawaii a tough sell for Chinese business travel

BEIJING » "Junket" might be an English word, but the concept appears to be cross-cultural based on the observations of Chinese group travel sellers.

They say it’s sometimes hard to sell business trips to fun destinations like Hawaii and Las Vegas.

While there are no official Chinese government policies preventing business events in Hawaii or Las Vegas, companies have the perception that these trips have little or no practical value, said Ying Ming Qi, manager of the Meetings, Incentives and Conferences Department of the Outbound Travel Center for CITIC Travel Co. Ltd.

These destinations are popular with Chinese business travelers, but they have their own problems beyond the distance and the visa requirements, Qi said.

Hawaii is considered too far away and expensive to bring good returns on investment, while conducting business in Las Vegas casinos simply looks bad, she said.

In China the government always encourages companies to save money, said Chuang Liu, manager of the America Department for ETI Holidays and Byecity.com.

The Chinese government and companies have been scrutinizing business travel more closely since the end of 2008 when the global financial crisis hit, Qi said.

HAWAII HAS faced similar challenges closer to home. The state’s group business is just coming back from dramatic drops associated with the Lehman Bros. collapse, the Troubled Asset Relief Program bailouts and the subsequent public outcry regarding company travel.

HOW DO YOU SAY ‘JUNKET’ IN CHINESE?

While China’s meeting, convention and incentive traffic to Hawaii grew between 2007 and 2008, it has been trending down since the global financial crisis.

Year                MCI Arrivals
2007                   5,619
2008                   7,235
2009                   5,410
Jan-Sep 2010       4,358

Source: Hawaii Tourism Authority

AIG’s decision to hold a corporate meeting in Vegas after taking bailout money prompted criticism from taxpayers and government officials alike. Even President Barack Obama urged companies not to use federal bailout money to go to leisure destinations like Vegas. Hawaii, long considered the consummate leisure choice, suffered by association.

Though Hawaii has seen an improvement in small-business group bookings and inquiries, companies are still holding tight on the reins and urging employees not to go so far from home, said Shari Chang, senior vice president of sales, marketing and revenue management for Aston Hotels & Resorts.

China’s meeting, convention and incentive business dropped 25.2 percent from 2008 to 2009, according to data from the Hawaii Tourism Authority. The market, which only drew 4,358 visitors through September, also is likely to fall short of the 5,410 visitors it achieved last year.

Overall, Hawaii’s meetings, convention and events business fell 22.7 percent in September and 4.4 percent for the first nine months of the year, according to HTA.

One of the state’s strategies is to fill short-term booking windows with international incentive and conference travel from Asia, Chang said.

Continued improvements in the visa process and direct flights will improve Hawaii’s ability to attract China’s lucrative MICE market, Qi said.

International events like the American Psychiatric Association’s May conference are beneficial, too, since they provide international companies with an excuse to go to Hawaii on business, Chang said.

It’s not like they picked the location, she said.

THE ASIA-PACIFIC Economic Cooperation Economic Leaders’ Meeting, which will take place in Honolulu on Nov. 12 and 13, also should improve Hawaii’s image as an international business destination, Chang said.

The event will bring about 15,000 world government and business leaders and an entourage including support staff, security, media and friends and family to the isles. China is one of APEC’s 21 member economies.

If everything goes well, APEC will be a boost to Hawaii as an international business meeting destination, Chang said. The leaders will have been here and approved of the destination and will have seen what the visitor industry can do.

Obama’s presence at APEC could also bode well for Hawaii as he is popular with some Chinese visitors.

One of ETI’s most-booked U.S. tours is a 14-day-itinerary that visits Obama sites in Hawaii, Chicago and Boston, Liu said.

They want to see where he came from, he said.

Note: Star-Advertiser reporter Allison Schaefers recently traveled to China on an East-West Center Jefferson Fellowship.

 

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