Conferences, Conventions Will Take Longer To Get better As State Sees Indicators Of Tourism Returning

Visitors are slowly returning to the islands as restrictions gradually ease and more people are given a vaccine. While vacation travel is making a comeback, conferences and meetings will take longer to recover.

Prior to the pandemic, Hawaii’s tourism industry generated $ 17.8 billion annually for the state’s economy. Nearly $ 1 billion of that came from the meeting, convention, and incentive markets – also known as MCI.

“Meetings, as we define it in Hawaii, are fewer than 250 attendees – traditionally mostly corporate,” said John Reyes, principal seller of MCI markets for the Hawaii Tourism Authority.

He says conventions are events with more than 250 participants and are usually tied to an association or other industry organization.

Incentives are relatively new to the state. This market is generally about companies that reward employees with a trip for exceeding their sales or marketing goals.

“Usually it’s a six-day plus event where the company hosts those people who have done a good job within their product lines and takes them to places like Hawaii,” Reyes said. “Often it is in sales or marketing where people qualify for themselves and their families to go on a reward trip. And Hawaii is very popular in our market for incentive businesses.”

The advantages of MCI visitors

As with vacation travel, these activities in the tourism markets have been suspended due to the pandemic.

Although MCI markets account for 5% of total tourism sales, these markets are important to the industries that rely on visitors. American Hotel and Lodging Association president Chip Rogers was in Hawaii in early May to promote the association’s security protocols to protect employees and visitors. He emphasized the importance of meetings and congresses for the hotel industry.

“The reality is that this industry must have business travelers, meetings and conferences if we are to survive,” he said.

MCI markets are also important to HTA’s vision for the future of tourism in the state. In recent years there has been a concerted focus on creating and implementing a more sustainable tourism model in the state. Local lawmakers and residents have been critical of how the agency manages the industry – due to a number of record years in visitor arrivals and revenue.

Former HTA President and CEO Chris Tatum stepped into the role in 2018 with a plan to change the course of the agency – one that was focused on attracting wealthier visitors and maximizing visitor spend.

Tatum reversed that plan, saying the agency should focus on attracting visitors who are responsible and respectful of the state’s culture and natural resources. He also emphasized supporting efforts to preserve and educate visitors about Hawaiian native culture and protect natural resources.

The agency’s current President and CEO, John de Fries, has so far stuck to this vision.

According to Reyes, visitors from the MCI markets are a good example of the type of visitor HTA wants in the future.

“There has been a lot of discussion in Hawaii about attracting the ‘right kind’ of visitors – professional, organized, etc. So you are very responsible visitor,” he said.

“While it only accounts for 5% of the market, I think it gives us the opportunity to expand more of these types of visitors as we move forward in Hawaii and in tourism.”

A slower recovery

If the state sees signs of a return from vacation travel, it will take longer for events to recover – especially since meetings and conventions take years to plan.

Reyes said 2020 should be the best year for the Hawaii Convention Center.

“We literally had to cancel 14 groups. However, we were lucky enough to rebook some of them in the years to come.”

Reyes says there are more encouraging signs. The more people are vaccinated and the security protocols are improved, the more trust businesses and visitors will become in travel.

“We’re starting to see a restart or reset of meetings, conventions and incentives in the fourth quarter of 2021. And really, all of 2022 looks strong for our industry.”

Reyes believes there may be a chance for some local events and conventions to be held at the convention center later this year.

However, he does not expect the MCI markets to fully recover for at least five years.