In September 2021, the Hawaii Tourism Authority (HTA) began the evaluation process of the “Hawaii tourism destination brand marketing and management services for the United States major market area” request for proposal (RFP). I was asked to be part of the original evaluation committee and signed an attestation form that forbids me from disclosing any information on the evaluation process. There may be a time and place for me to comment on that later, but for now, I feel compelled to offer an informed point of view on how to resolve this matter in a way that is respectful and sensible.
In my 43-year tourism career, I worked in six unique areas of the industry, including HTA. Nearly 30 of those years were spent in Hawaii tourism. With that background in mind, I offer the following.
Nobody wants to say this out loud these days, but tourism is the largest single source of private capital for Hawaii’s economy. In 2019, the last “normal” pre-COVID year:
>> The state collected more than $600 million in transient accommodations tax (TAT) revenue and over half of that went to Hawaii’s general fund. Moving forward, all TAT revenue will go to the general fund meaning that in a few years, TAT revenue going to the general fund will be closer to $1 billion.
>> The tourism industry generated more than $2 billion in state tax revenue.
>> Tourism supported 216,000 jobs.
Tourism is fragile. We experience that fragility with every severe weather and geopolitical event that impacts travel, and most recently, a global pandemic.
The stakes of being late to recover from any major tourism downturn could not be higher, given the economic realities noted above.
Tourism is a web of hundreds of interconnected entities, and its complexity is immense. HTA needs a contractor who deeply understands the business of tourism and has long-standing industry relationships.
The word “marketing” has been erased from HTA’s vocabulary and replaced by “visitor education.” “Visitor education” is brand marketing. Some say that HTA has been marketing Hawaii in a “plastic” way. That is simply not true. And for those who say that Hawaii doesn’t need to market, I would say that there is nothing more important than taking ownership of the Hawaii brand (story), not for the purpose of selling something but to ensure that we attract the most well-aligned visitor as effectively and efficiently as possible. Destination brand marketing is a highly specialized skill and HTA needs contractors with world-class expertise. If a contractor is not meeting expectations, HTA can demand change through its review processes.
HTA’s strategic plan states: “ … marketing can only do so much if we neglect the very resources that draw visitors to Hawaii.” Every tourism leader I speak to shares that sentiment.
Trying to fit brand marketing and destination management into one RFP is problematic as each discipline requires very different expertise. Creating two separate RFPs that align with HTA’s four strategic pillars seems to be prudent.
The HTA pillars: natural resources; Hawaiian culture; community; brand marketing.
RFP requirements related to natural resources, Hawaiian culture and community pillars would fall within HTA’s destination management-focused programs, such as Kukula Ola and Aloha ‘Aina.
The brand marketing pillar requirements would be a separate RFP. HTA would ensure close alignment with contractors for the destination management programs mentioned above, especially Hawaiian culture.
Like the outrigger canoe, all contractors should hold paddles specific to their area of expertise with HTA as the steersman. There is enough work for all experts to play a critical role in Hawaii tourism and hopefully, we can find a way to do it while being collaborative and pono.
Karen Hughes’ 40-plus years in travel and tourism include senior leadership roles in Hawaii wholesale and global hotel industries, at the Hawaii Visitors and Convention Bureau ending in 2015 and most recently with HTA as vice president of marketing and product development ending in 2019.
