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RECAP 2014 January-December

YTD Dec 2014 Visitor Arrivals

2013 Visitor Arrivals

% change

Australia 313,054 305,063 +2.6%New Zealand 63,650 50,505 +26.0%Total Oceania 376,704 355,568 +5.9%

HTO are very happy to see Oceania visitors continued to flock to Hawai‘i in high numbers during 2014. 376,704 Aussies and Kiwis visited Hawai‘i last year, a 5.9% increase compared to 2013. This was despite a slight seasonal decrease in airlift in 2014.

While the island of O‘ahu received the largest share of Oceania visitors (342,717), Maui has seen growth (73,744 visitors) and Hawai‘i Island (58,939 visitors) and Kaua‘i (31,777 visitors) continue to be popular choices.

YEAR TO DATE 2015 January-February

YTD Feb 2015 Visitor Arrivals

2014Visitor Arrivals

% change

Australia 48,033 41,602 +15.5%New Zealand 6,422 5,218 +23.1%Total Oceania 54,455 46,820 +16.3%

The Australian market has seen recent increases in air capacity to Hawai‘i with Hawaiian Airlines new A330 aircraft ex. BNE, Jetstar new service ex. BNE and changed to 787 Dreamliner’s ex. SYD and Qantas new A330 aircraft and increased 3 to 5 services per week ex. SYD.

It is pleasing to see that consumer demand has been fulfilled and this additional airlift has been met with growth in visitors to Hawai‘i in the first two months of the year.

We’ve had a fantastic start to 2015, from celebrating the 100th year anniversary of Duke Kahanomoku’s visit to Australia, to working alongside the anchors Sunrise, Australia’s number one breakfast show, as they broadcast live from the Duke Kahanamoku Lagoon in Waikiki!

The first three months of the year are always very important with February and March being key booking months for Oceania travellers. The HTO team were out in force representing Hawai‘i at the Visit USA Expo’s, Flight Centre Travel Expo’s and the Asia-Pacific Incentives and Meetings Expo (AIME).

We also engaged our key partners in several co-operative marketing campaigns to ensure a strong impact was made in the marketplace. Packages to the Hawaiian Islands were being advertised across travel agency shop fronts, print ads in the weekend papers and on our industry partner websites.

This Quarter 1 Update will give you an overview of the activities we have recently undertaken and touch on what lies ahead in the coming months. We hope you have had an equally successful year to date and are noticing more and more Aussie and Kiwi visitors coming your way!

Me ke aloha pumehana (With warm aloha),Ashlee GaleaCountry Manager Australia, Hawai‘i Tourism Oceaniaagalea@hawaiitourism.com.au

Hawai‘i TOURISM OCEANIA UPDATEQ1 RePORT

OCEANIA VISITOR STATISTICS

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INDUSTRY NEWS

MARKET UPDATE

Australia

• During January the Australian dollar fell to its lowest level in more than five years against the U.S. dollar and is currently trading around US$0.76. The falling dollar is welcomed by the country’s major economic players including the government, Reserve Bank and Treasury. A lower dollar should help the economy transition away from mining-related activity towards non-mining economic activity but it may have an impact on overseas holidays with the reduction of Australians spending power abroad.

• The good news is that all airlines ex. Australia to Hawai‘i are providing great, competitive airfares. It hasn’t been uncommon to see Jetstar advertising a lead-in price of AU$575 return SYD/MEL/BNE-HNL (although this price doesn’t include luggage or a meal) and Hawaiian Airlines from AU$800 return SYD/BNE-HNL. These airfare prices are certainly helping to off-set the currency exchange, helping to lower the overall holiday price.

• Qantas is making improvements to its Honolulu services with schedule changes to improve arrival and departure times in Honolulu. The new times will open up more onward connections to other Hawaiian Islands, and will also facilitate a fifth weekly service to operate on Mondays during peak seasons, from 7 Sep–19 Oct ‘15 and 30 Nov ‘15–25 Jan ‘16.

• The proportion of Australian holidaymakers who booked their last trip on the internet increased 39% to 45% over the last five years, according to Roy Morgan Research. This research also shows that travel agents remain the most popular mechanism when booking overseas holidays.

• Expedia announced the purchase of Orbitz, after recently taking over Australian OTA Wotif. Australia’s Top 10 internet agencies (in terms of traffic) are below *based on Dec ‘14 stats: Webjet, Wotif.com, Expedia, Flight Centre, Skyscanner, Lastminute.com.au (owned by Wotif.com), au.edreams.com, STA Travel, FareCompare and BIOjet.

• Tablet devices are now in half of all households in Australia while 7 in 10 Australians over the age of 16 already own a smartphone. Online advertising expenditure has now surpassed all other media. In 2003, $236 million was spent on digital advertising in its totality. A decade later, online advertising has reached $4 billion – equating to 28 percent share of total advertising in 2013. This expenditure was fuelled by the continued explosion in online consumer behavior, most notably with video content online, social media and mobile device usage. There are now 17.5 million Australians who spent $14.9 billion online and more than 285 hours of their time every year.

New Zealand

• The currency is the big talking point at the moment. The New Zealand dollar has dropped about 10 cents against the U.S. dollar over the last couple of months. It now sits around US$0.73. The NZD has strengthened considerably against AUD.

• The U.S Department of Commerce statistics were released during the month for visitations from Jan-Sep ‘14. And it was all great news for the New Zealand market, with an increase of 21.8% YOY. Total for Jan-Sep reached 200,000 and is on track for a record year. Hawai‘i has definitely contributed to this with a similar YTD increase through Nov for arrivals from New Zealand climbing 23.5% to 57,188 visitors.

Darragh presents at the Spring Marketing Update

On the 11th of March David Uchiyama and HTA’s Marketing Partners presented their Spring Marketing Update for each of their respective areas.

Darragh Walshe presented on behalf of Hawai‘i Tourism Oceania, if you missed this update please click on the link below to view the presentation: www.hawaiitourismauthority.org/about-hta/hta-events/spring-marketing-update-2015/

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Discover Hawaii Guide Launched (Feb)

HTO’s key Hawai‘i destination guide for Oceania travel trade. 11,000 copies of the guide are distributed to Travel Agents at the Visit USA Expo’s, Aloha DownUnder road show and all face-to-face travel trade training sessions. It is also available on our Go Hawaii AU/NZ websites and receives 25,800+ views per year. 48 advertisers supported our Discover Hawai‘i Guide, a great year in terms of support. Thank you to all our partners involved. View the guide online here: Discover Hawai‘i Guide.

Visit USA Seminars SYD, BNE, MEL, AKL, WLG (14-24 Feb)

HTO attended the Visit USA Seminars during February. Over 1,700 agents in total attended the expo in Australia and New Zealand for destination and wholesaler information. HTO had a themed stand providing agents with Hawai‘i brochures and information including the new Discover Hawaii Guide and Mahalo Month flyers. With the increase in air seats from Brisbane, it was a great opportunity to connect with a huge number of Queensland travel agents.

HTO You Tube Hawaii Island Training Webinar

HTO and BIVB have uploaded a new Hawai‘i Island webinar to our YouTube Channel to encourage travel professionals to learn more about this special island. The module runs for a short 15-minutes and provides the basics on Hawai‘i Island, information on key attractions, activities and the latest updates. The module is presented by Deanna Isbister from the Big Island Visitors Bureau and can be viewed at http://youtu.be/Ppg-ai3cNK0.

TRADE ACTIVITIES

Travel Associates National Annual Staff Conference (13-15 Feb)

HTO attended this conference in the Hunter Valley, one of a select group of 20 travel companies to be invited from Australia and overseas. The audience consisted of 200 of the most experienced and knowledgeable Travel Associate consultants, from 47 businesses across Australia and New Zealand. The conference hosted a product bazaar where HTO presented to consultants over five sessions. It was a fantastic opportunity to educate and build relationships with Travel Associates consultants and all of their marketing and product team. HTO are bidding on hosting this luxury retail group in Hawai‘i for two future conferences in Nov 15 and Feb 16, and hope to “win” Hawai‘i as the destination.

Mahalo Month 2015 Trade Push (Dec-Mar)

HTO has finished promotion of Mahalo Month 2015, a HTA initiated campaign inviting Oceania travel industry professionals to experience Hawai‘i first-hand, by providing special rates and offers from Hawai‘i’s travel industry. Our campaign included flyers distributed at the Visit USA Expo’s, online advertising in Travel Daily and Travel Weekly. Each year over 1,000 Oceania travel agents register for the Mahalo Month program. Thank you to all of the partners in Hawai‘i that participate, it is much appreciated!

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CO-OPERATIVE MARKETING

Important Information: Must be booked by 13 Feb 15. Prices shown are a guide only, please contact one of our Holiday Champions for an exact quote on the dates you wish to travel and any conditions that may apply. Prices are per person and include airfares, all taxes, transfers & twin share accommodation (maximum 2 children per room). Hotel specials have varied travel dates, block-out dates & high season surcharges may apply, especially during school holidays. Prices are also subject to change without notice due to currency, tax fluctuations & fuel surcharges. #Free Interisland flight to Maui (OGG), Kona (KOA) & Kaua’i (LIH) must be booked in conjunction with Hawaiian Airlines special International airfare from Australia to Honolulu. Airfare is valid for select departure dates 28 Feb to 12 Dec 15, block-out dates apply. Photo courtesy of HTA/Tor Johnson & BIVB, Ethan Twedie. HT9489

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Hoot Holidays (AU) MyHawai‘i (AU) Escape Travel (AU)

Integral to HTO’s marketing plan is working in partnership with our key Oceania partners to drive Hawai‘i bookings through various integrated initiatives. The start of each year is a prime time for securing Hawai‘i holiday bookings, as Australians and New Zealanders look ahead and set their travel plans. HTO engaged in a high level of in-market promotion, examples outlined below.

Visit the Hawaiian Islands to discover amazing beauty, diversity, people and culture. With four main islands to choose from – Kaua‘i, O‘ahu, Maui and Hawai‘i, the Big Island; Hawai‘i has something for everyone.

Take to the air and witness the dramatic landscapes of Kaua‘i’s Napali Coast, be energised by O‘ahu, home to the cosmopolitan city of Honolulu and the bustling Waikiki Beach, hire a convertible and drive the Road to Hana, winding through Maui’s lush, tropical rainforests or watch as lava flows from the active Kilauea volcano on Hawai‘i, the Big Island. Hawai‘i has so much to offer the new or returning visitor.

Hawai‘i boasts a remarkable variety of luxurious accommodations to match any need or preference, from cliffside hotels and upscale luxury resorts to contemporary boutiques and beachfront cottages. Hawai’i’s hotels and resorts offer outstanding amenities including indulgent spas incorporating locally grown natural

ingredients, championship golf courses blessed with breathtaking scenery, exceptional shopping and world-class restaurants that blend Hawai‘i’s ethnic flavours and take advantage of the freshest island ingredients.

To add to the their appeal, many of Hawai‘i’s accommodations are inspired by traditional Hawaiian culture and are just steps from wide stretches of white sand beaches, possess direct ocean or mountain views and offer unforgettable activities and attractions nearby. Let the year-round warm weather, sounds of the ukulele and friendly people capture your imagination and heart as you enjoy the Aloha spirit of the Hawaiian Islands.

Here you’ll also find the perfect venue for a wedding or vow renewal, the ultimate escape for your honeymoon or the ideal setting for your special occasion. Discover why the islands are a favourite of presidents, royalty and celebrities. No matter where you stay, the rainbows, plumeria-scented air and smiles are absolutely free.

Experience Hawai‘ithe Aloha wayThe fresh, floral air energises you. The warm, tranquil waters refresh you. The breathtaking, natural beauty renews you. There’s no place on earth like Hawai‘i.

Hawaii

Travel Associates (AU) House of Travel (NZ)

Brand USA (AU) Air New Zealand (NZ)

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CONSUMER ACTIVITIES

Aloha Cocktail Party & Dukes Day Festival (8-10 Jan)

HTO were involved in Duke’s Day Festival, a series of events taking place on the Northern Beaches of Sydney to celebrate the 100th year anniversary of Duke Kahanamoku’s visit to Australia which ultimately ignited Australian surf culture.

The events commenced with a Gala Dinner attend by Australian and Hawaiian surfing legends, as well as the Premier of NSW. HTO were the key sponsor for the community Aloha Cocktail Party the following night, attended by 500 people. On the Saturday HTO had a stand at Freshwater Beach set up to talk to beach goers about travelling to Hawai‘i and promoting Dukes OceanFest holiday packages through Freestyle Holidays.

The feature of Saturday’s event was a special re-enactment of the surfing display from the Duke, from that day in January 1915. All in all it was a great activity to promote the relationship between our ocean loving countries. Coverage of the day was seen across all TV channels with De Soto’s impressive tandem re-enactment making the 6pm National evening news. The estimated editorial value of the TV and print exposure equated to over $4 million dollars.

Hawaii Family Guide “Win a Family Holiday” Social Media Competition

To celebrate the release of our new Family Hawai‘i Guide available to download online, HTO in conjunction with Hawaiian Airlines and Hilton Hawai‘i launched a competition giving away a dream Hawaiian family holiday to Oahu and Hawai‘i Island.

This competition highlighted the Hawaiian Islands as a perfect destination for a family holiday as well as promote downloading the new Family Hawai‘i Guide.

It was overall very successful with over 10,000 competition entries, another 2,500 new Facebook fans and 3,000 guide downloads.

Dukes OceanFest Social Media Competition (1-31 Jan)

HTO in conjunction with Hawaiian Airlines, Outrigger Resorts and Duke’s OceanFest launched a competition giving away a trip for two to Hawai‘i. The prize package included VIP tickets to Duke’s OceanFest in August. This campaign was aimed at creating more awareness of the Dukes OceanFest event and was run in conjunction with the Duke’s Day Festival.

It was overall very successful with over 10,000 competition entries and generated approximately 2,500 new Facebook fans.

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HTO were extremely pleased to be working with Australia’s number one TV breakfast show SUNRISE, Jetstar Airways, Flight Centre and Hilton Hawaiian Village Waikiki Beach Resort on this incredible promotional activity.

Hawai’i was the international destination secured to host a live outside broadcast (OB) of the SUNRISE program on location at the Hilton Hawaiian Village Waikiki Beach Resort from 9-13 March 2015 9am-12 noon (Hawaii time).

This fantastic opportunity enabled HTO to highlight the Hawaiian Islands to Sunrise’s weekly audience of 2.9 million viewers and stimulate immediate and future travel to Hawai’i through our retail partnership with Flight Centre. Holiday packages to the Hawaiian Islands were advertised daily on the TV program and initial results show that bookings during the OB week, and the week following were through the roof – surpassing all expectations!

The exposure from this show resulted in Hawai’i gaining an estimated airtime value of AU$4,485,960 per day ($22.5 million across the week)!

As part of this promotion, SUNRISE in close collaboration with HTO brought up 130 viewers, who flew Jetstar Airways, stayed at the Hilton Hawaiian Village and experienced a variety of activities on O’ahu.

To ensure the neighbour islands were incorporated in this promotion, there were 6 live weather crosses each morning after the news/sport from Maui (8-9 March), Hawai‘i Island (10 March) and O‘ahu (11-12 March). Kaua’i was included in an exclusive experience for the show’s anchors.

SWAY also assisted with this project and we thank them for their support.

To watch video snippets from the week, behind-the-scenes footage, photo snaps and more, visit the Sunrise Hawai‘i micro-site:https://au.tv.yahoo.com/sunrise/hawaii/

PUBLIC RELATIONS HIGHLIGHTS

SUNRISE viewer insights:• 2.9 million viewers per week • (1.8 million metro viewers and 1.1 million regional

viewers)• 239,000 Twitter followers• 707,000 Facebook fans• 4 million website impressions per month• 2 million website video streams per month

The Sunrise crew with and HTO’s Ashlee Galea and Janaya Birse Sunrise’s Kochie celebrates his birthday in Kaua‘i Live weather forcast from Hawai‘i Island

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UPCOMING ACTIVITIES

MCI UPDATE

• Stories of Hawai‘i Online Campaign (Mar-Apr)• Hōkūle‘a Activities with Auckland Maritime Museum

(Feb-Mar) • Melbourne Wholesaler Training Push (Apr)• Maui Training Webinar Launch (Apr)• Hawai‘i Romance Guide Launch (Apr)

• HotelClub Co-op Campaign (Apr-May)• Visit USA Expo’s in Hobart, Perth & Adelaide (Apr-May)• Aloha Down Under Workshops (11-15 May)• ALOHA Movie Promotion & Release (May)• MTA Travel Famil to Hawai‘i (May)• Month of Lei Promotion (May)

PARTNERSHIP OPPORTUNITIES

AIME 2015

HTO had sole presence at AIME 2015, due to our Meet Hawai‘i Roadshow scheduled for later in the year. Ashlee, Megan and Holly represented the Hawai‘i, we had a great show with 72 pre-scheduled appointments across the 2 days and just under 100 visitors to our stand. HTO gained additional exposure through PR and advertising opportunities including a full page ad in micenet AIME 2015 Feb/Mar edition, which was placed into 550 AIME hosted buyers bags and up to 3,000 registered AIME delegate satchels.

HTO handed out USB’s that included partner’s collateral and promoted our Meet Hawaii Roadshow via a “save the date” flyer. We were also thrilled to receive a nomination for “best stand design” and disappointed to lose to our stand contractor who was in the same nomination category!

The interest for MCI business to the Hawaiian Islands remains high. We are busily working through the follow up and will distribute leads accordingly.

Please visit our Hawaii Tradewinds Website to download the updated “Opportunities to Partner” document, available at the bottom of the homepage: https://sites.google.com/site/hawaiitradewinds/

HTO have a number of famil opportunities and require sponsorship of tours, activities and meals.

Infinity Holidays Reward Trip to O‘ahu & Hawai‘i Island (16-22 Aug 2015 - AU and 23-31 Aug - NZ): HTO are partnering with Infinity Holidays (Flight Centre’s in-house wholesaler) to bring 40 consultants (25 AU, 15 NZ) from their most improved stores, based on a 3-month incentive sales period, on a reward trip to the Hawaiian Islands visiting O‘ahu and Hawai‘i Island. To express your interest contact Charis (HTO AU) cricafuente@hawaiitourism.com.au or Megan (HTO NZ) mhornblow@hawaiitourism.co.nz

International Traveller “Insider’s Guide to Hawai‘i” Mini Mag (Jul-Aug): International Traveller and HTO are publishing an ‘Insider’s Guide to Hawai‘i’ Mini Magazine to be distributed in the Jul-Aug edition of International Traveller (500,000 reach incorporating the magazine circulation 35,000, their digital audience and exposure on Channel 9, ABC and 2GB). The mini magazine will be largely editorial based, but tied into a major digital campaign across www.internationaltravellermag.com assets. Average of 75,000 monthly impressions and a targeted database of 30,000+ opt-in subscribers.Digital opportunities include “Hot Hawai‘i Travel Deals” eDM and “Aloha Week” online display advertising. Digital opportunities start from AUD$250. To express your interest and for further information, contact Ashlee agalea@hawaiitourism.com.au