Hawaii Tourism Authority extends PGA contract to 2022

The PGA Tour and the Hawaii Tourism Authority signed a $2.1 million contract Tuesday extending their marketing partnership through 2022.

The renewal comes in the middle of the PGA’s opening calendar in Hawaii, which kicked off Thursday to Sunday with the Tournament of Champions on Maui, where Dustin Johnson won the event at Kapalua Resort’s Plantation Course.

This week 2017 FedExCup champion Justin Thomas is defending his title at the Sony Open, held at the Waialae Country Club.

On Monday the PGA Tour Champions, formerly the Senior PGA Tour, heads to Hawaii island’s Hualalai for the Mitsubishi Electric Championship, which runs through Jan. 20.

The stops in Hawaii are part of the more than 130 PGA Tour events, which PGA Tour Commissioner Jay Monahan said attract the world’s best golfers and are broadcast to more than 1 billion households in 226 nations.

HTA President and CEO George Szigeti said the PGA partnership will bring more tourists to Hawaii in 2018 and beyond, but its main value is expanding the islands’ advertising reach.

“It’s about three weeks of exposure for the Hawaiian Islands on Oahu, Maui and Hawaii island at a time when people in other parts of the world are watching their cars freeze over — that’s priceless,” Szigeti said.

Szigeti said the contract allows HTA to maximize its marketing returns by filming and broadcasting testimonials of golfers participating in island activities like stand-up paddling.

“We’ve already got about 70 of the new contract players signed up to talk about their experiences in the islands,” Szigeti said.

Szigeti said the addition of golfing to the Olympics last year has increased participation across all islands by younger players, who are bolstering the PGA partnership’s marketing value.

“Tiger Woods and Phil Mickelson never came to the Sony Open,” Szigeti said. “But we’ve got some of the top players in the world coming here now.”

Out of 32 top players on Maui, Szigeti said 26 stayed another week and came to the Sony.

“We’re seeing a change in culture with players like Justin Thomas, Jordan Spieth, Tony Finau and Daniel Berger — they are friends and competitors, and they know it’s important to engage with their fans,” Szigeti said.

Szigeti said another selling point for Hawaii on the PGA Tour is that it’s a strong conduit for the Asian market.

“Hideki Matsuyama is doing so well, and in the future we can build on that,” he said.

HTA’s investment represents a good chunk of its fiscal year 2018 $5.5 million sports budget. But Keith Vieira, principal at KV & Associates, Hospitality Consulting LLC, said the PGA is a “great fit ” for the Hawaii brand.

“The fact that we have lost some golf events in the past makes it imperative to keep these,” Vieira said.

Since 2001 the PGA Tour and HTA have worked to promote Hawaii’s $1 billion golf industry. Hawaii’s first PGA Tour tournament dates back to 1965, and Hawaii hosted its first PGA Tour Champions event in 1987 at the Royal Kaanapali Golf Club North Course.

This year’s Sony Open has packed Waikiki and the Kahala Hotel, which is adjacent to the Waialae Country Club, Szigeti said.

“I can’t begin to imagine the impact of beautiful Hawaii in New England now with temperatures diving below zero. I think if I were there, I would make my immediate booking to paradise. This is excellent marketing for our brand,” said Jerry Gibson, Hilton Hawaii area vice president.

The charitable-giving component also circulates dollars in the local community, Szigeti said.

Friends of Hawaii Charities distributed $1 million in charitable grants from proceeds raised at the 2017 Sony Open in Hawaii, said Corbett Kalama, president of the tournament’s charity sponsor Friends of Hawaii Charities. Over the last 20 years, the event has helped to generate over $17 million for more than 350 island nonprofit programs, Kalama said.