The Hawaii Tourism Authority has added Southeast Asia as a new market to take advantage of the region’s rapidly growing middle class as well as opportunities created by new connecting flights.
The state’s lead tourism agency hired AVIAREPS Southeast Asia earlier this month and has allocated $200,000 to develop a marketing plan for Singapore and Malaysia, Thailand and Indonesia. AVIAREPS Southeast Asia presented its plans to develop Hawaii’s newest market Tuesday at the HTA’s Winter Marketing Update.
HTA President and CEO George Szigeti said AVIAREPS Southeast Asia and HTA’s other marketing contractors will contribute to industry success in 2016 by helping mature markets grow and developing new ones that strengthen tourism on all islands and in all sectors.
“We want to constantly strive to reach those avid travelers, both those who have been here and love coming back, and especially those who have not yet come to Hawaii — the ‘never-beens,’” Szigeti said.
AVIAREPS Southeast Asia representatives Kelvin Ong and Isabelle Ng said Hawaii is well positioned to recruit travelers from Southeast Asia, which has a population of 486 million and a gross domestic product of $2.6 trillion. Travel to the U.S. from these countries still has a relatively small footprint, but Ong said there is growing interest, and visiting Hawaii requires a shorter flight than travel to the U.S. mainland.
The team will target young professionals in their 20s to 40s, honeymooners and couples, families, senior travelers, and group business travelers coming for meetings, conventions or incentives. They said Southeast Asian travelers are attracted to Hawaii’s ecotourism opportunities and perception as a safe destination with little political unrest. However, the region’s percentage of homeless residents and volcanic activities represent threats to growing the market. Another challenge is that many Southeast Asians lack in-depth knowledge of the destination.
A core part of the Hawaii marketing plan from AVIAREPS Southeast Asia is expanding access to the isles by encouraging United Airlines, China Airlines, Japan Airlines, Korean Air, Delta Air Lines and China Eastern Airlines to bolster their connecting offerings. The team also plans to capitalize on plans from AirAsia X, a low-cost carrier, to launch a Honolulu flight from Osaka, Japan, which potentially opens up feeder flights for 113 destinations.
“They are supposed to enter the market beginning the first quarter of 2016,” Ong said. “They’ll fly three times weekly carrying 377 passengers per flight on A330s. “
Ong called AirAsia X’s expected entry a “game changer.”
“Without proper accessibility there’s no demand. We will work closely to encourage startup of new flights,” he said.
The team also will work on improving convenient access to Hawaii. While Singaporean travelers have U.S. visa waiver status, visas are required for Thai, Indonesian and Malaysian travelers. Ng said there’s consideration of a U.S. visa waiver for Malaysia, which if approved would stimulate U.S. travel.
AVIAREPS Southeast Asia will launch a Hawaii Nurturing Future Talent Program to help young professionals develop knowledge and passion for Hawaii’s tourism industry. In November the marketer will bring the top three students to undergo on-the-job training at Hawaii businesses.
In June AVIAREPS Southeast Asia will hold a Hawaii meetings, conventions and incentives specialist workshop, which targets 80 organizations specializing in group business. The marketer also plans to start an Aloha Club, ensuring Malaysian members commit to advertising, promotion and marketing campaigns to develop itineraries highlighting the best of Hawaii’s six major islands.
In August the marketer will create synergies between events like the Hawaii Food &Wine Festival and the Malaysia International Gourmet Festival. In September it will attend the MATTA Fair Expo in Malaysia, which draws about 100,000 buyers daily. Additionally, AVIAREPS Southeast Asia is gearing up to represent Hawaii in October at the ITB Asia conference, which is considered Southeast Asia’s largest business-to-business trade show because it attracts about 10,300 delegates.
AVIAREPS Southeast Asia also plans to bring travel trade partners, including leading editors and journalists, to Hawaii for familiarization trips in April, May, October and November. Each trip will showcase Oahu and at least one other major island.
“The opportunity to broaden Hawaii’s reach is really exciting,” said Dave Erdman, president and CEO of PacRim Marketing Group Inc. &PRTech LLC. “AirAsia X is terrific news. It’s a long flight, but people will travel long distances to get to where they want to go.”
