HD TV Changeover

Aloha Kakou:

While 49 states will be switching from analog to high definition television in February, Hawaii's switch will come a month earlier.

Maui's analog television transmitters are located at the summit of Haleakala, where the uau, or dark rumped petrel, an endangered species of bird, begins to nest in February.

By disconnecting the summit analog transmitters at noon Jan. 15, contractors will have two or three weeks to remove the antennas before the ground burrowing birds begin their nesting season.

With the switchover coming so close behind the Christmas season, the supply of televisions on Maui may be in very short supply on Maui in January and February. If the sets you have in your unit cease functioning, it may not be possible to buy suitable replacements in a timely manner. You may wish to talk to Kanani or Leamar to make sure you have up-to-date televisions so you aren't caught with your unit out of order since it has no working television.

http://mauinews.com/page/content.detail/id/509834.html

How do we Attract New Visitors?

Aloha Kakou:

Visitors to Maui in October were fewer this year than last. They also spent about $2 less per day, according this article in today's Maui News.

Visitor numbers to Maui are only as high as they are due to timeshares. Timeshare owners have been paying for their trip all year and are reluctant to miss their week on the Valley Isle. Occupancies at hotel properties are lower than those for the island as a whole.

The bright spots are the increase in Canadian visitors as well as an increase in air seats from Japan, Taiwan and Korea.

Marsha Weinart, Hawaii's Tourism Liaison, says that while the number of repeat visitors remains strong, it is the attraction of new tourists to Maui that is lagging.

So, what do you think? While repeat visitors return to Maui, what needs to be done to attract a new generation of guests? Has Maui as a destination lost its appeal to anyone who hasn't been here before?

http://mauinews.com/page/content.detail/id/511612.html?nav=10

Dr. Kelley's Message

Aloha Kakou:

Below is Dr. Kelley's message to the Outrigger staff as printed in the last Saturday Briefing, Outrigger's weekly newsletter.

In case you do not know, Dr. Richard Kelley is the son of Roy and Estelle Kelley, the founders of the Outrigger company. His message is one of optimism and action in these difficult times. While I have reprinted the entire message, I have highlighted the salient points.

Jump-Starting Economic Recovery

It is Thursday evening. As I sit down to write my weekly message to the Outrigger ‘ohana, the news is grim. The Dow Jones Industrial Average closed today at 7,552, the lowest in five years. The S&P 500 dropped to 752, the lowest since 1997. Leroy Laney, consulting economist to First Hawaiian Bank, predicts that visitor arrivals for Hawaii will be down 9 percent this year and will drop 5 percent more next year. Across the nation and all around the Hawaiian Islands, people are being laid off or having their hours cut back.

As I have mentioned before, in spite of the troubled times we face, I have great confidence in the future of our nation, our state, and our company. Our people have always found a way to get through and recover from recessions and even depressions. I have seen this personally many times over my nearly 75 years on earth.

Obviously, I was too young to understand what was going on during the Great Depression of the 1930s. However, those years did have a profound impact on how our founders, Roy and Estelle Kelley, lived and approached business. I am sure it influenced my life, and some of the lessons my parents learned are built into the DNA of our company, the Outrigger Enterprises Group, as it exists today.

It is interesting that one of America’s great industrialists, John D. Rockefeller, had the same confidence. According to historian Stanley K. Schultz, during the darkest days of the Great Depression, Rockefeller said, "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."

History proved Rockefeller right, and I trust it will soon justify my own confidence. In the meantime, we cannot sit around and wring our hands saying "Woe is me." More than ever, business, government, and labor must work together to address our problems and start on the road to recovery.

Jean-Claude Baumgarten, President and CEO of the World Travel & Tourism Council, endorses this approach. He recently addressed the World Travel Market’s Global Economic Forum and said, "Although severe, this crisis cannot be compared with past crises due to events such as 9/11, SARS, or even the Gulf War. Today, people still want to travel, and, once the recovery starts, there is likely to be a huge pent-up demand.

"This is no time for governments to see Travel & Tourism as a cash cow – an easy source of much-needed revenues for the treasury’s coffers. Rather, governments should provide a supportive policy framework to help stimulate demand and ensure that Travel & Tourism continues to generate employment and alleviate poverty…. It will be beneficial for everyone – destinations, host communities, the industry, and consumers."

To make that concept work for Hawaii, here are a few suggestions:
1) Move as fast as possible on the selection of a new head of the Hawaii Tourism Administration. Former HTA head Rex Johnson resigned October 8. Unfortunately, finding his replacement is delayed by the need to first find an executive search firm through a government-mandated RFP (Request for Proposals). There has to be a way around this or at least to speed up the process. In the meantime, the HTA board needs to get things moving quickly. Tourism numbers continue to fall, and it is my impression that needed plans for next year’s advertising and marketing are not yet being implemented or revised to address the crisis we are facing.

2) Resist the temptation to cut state government tourism marketing funds. As the Legislature prepares for its next session in January, there will be many calls to "cut expenses." While that will have regrettable consequences, it is unavoidable. However, our legislators need to keep in mind that advertising and marketing are not actually expenses. They are, rather, an investment in jobs and economic well being for everyone in these islands. Unlike anything else that government does, money spent for advertising and marketing Hawaii as a visitor destination actually generates jobs and taxes. Every dollar spent to attract visitors to Hawaii brings back many more dollars to businesses of every kind. It preserves existing jobs and creates new ones. It generates tax revenues several times greater than the marketing investment. And the last time I checked, the multiplier effect was several-fold, further boosting the return on these marketing dollars. It is sad to have to cut worthwhile government programs, but the only hope we have of restoring these programs to their normal funding levels is to get Travel & Tourism back on track. Travel & Tourism directly provides about 25 percent of Hawaii’s Gross State Product, 25 percent of its tax revenues, and about 33 percent of its jobs. Investing in Travel & Tourism is the fastest road to economic recovery.

3) Finally, as several have suggested, I feel we should take advantage of the current "Obamamania." The first opportunity comes January 20 at the presidential inauguration. Representative Neil Abercrombie says, "Hawaii’s tourism industry needs to organize a massive show of aloha—especially while visitor arrivals are down and the local economy sputters. In the middle of the snow and cold of Washington, we need to work out something where Hawaii will be a very attractive feature of the inauguration. I expect them to do this, or the Hawaii Tourism Authority is going to be in need of a wholesale revision. Why they haven’t got on it already is beyond me." (Neil, see my first point for your answer.)

In addition to that, David Carey suggests that one of President Obama’s first priorities should be to make a promotional video inviting the world to come back to the United States for a visit. The impact would be enormous.

There are a number of good ways to do this, and I certainly hope it will happen. In fact, I had a dream about it the other night. Barack Obama is standing on the sands of Waikiki with Diamond Head, canoes, and surfers in the background. Dressed in an aloha shirt, he turns, looks into the camera, smiles, and in a deep, persuasive voice says, "There has been a huge change in America. You are more welcome than ever. Don’t worry about visas. We’ll make it easy for you to get here, and we’ll speed you through customs and immigration when you arrive. You’ll have a great time. We’ll make it happen. Yes we can!"

Then I woke up. But does this really have to be just a dream? Yes we CAN make it happen!

Go Hawaiian Islands

Aloha Kakou:

This listing for the Outrigger Maui Eldorado was just posted on go-hawaiian-islands.com's website.

Go-Hawaiian-Islands.com is an online travel agency that specializes in retail travel.

http://www.go-hawaiian-islands.com/Outrigger-Maui-Eldorado

Maui News Economic Assessment

Aloha Kakou:

The Maui News has prepared an assessment of current economic conditions along with their forecast for 2009. Below is the link to the tourism sector section:

http://extras.mauinews.com/Maui%20Now/Pages13-16R.pdf

What other GMs are saying:

“We have definitely experienced a decline in tourism, but we are not stopping the move into new products. We will continue as much as we can.”
Michael Jokovich, General Manager, Hyatt Regency at Kaanapali

“Focus on the customer. The customer is looking for that escape more than ever . I think the customer’s idea of the value of a dollar is completely different from what it was six months ago. He treasures that dollar, he wants more value from that dollar.”
Craig Anderson, General Manager, Westin Maui

2008 and 2009 Hawaii Economic Projections

Aloha Kakou:

Both the Advertiser and the Star Bulletin reported this morning a 10% drop in tourist visits to Hawaii in 2008.

"Right now we're comparing (projections) to a very good year -- 2007 was a very good year," Pearl Imada Iboshi, the state's chief economist, said. "Next year we're only expecting the first three months of year to be bad ... after that we're expecting it to be relatively stable."


Only 3 bad months in 2009? If she's comparing 2009's projections to be stable vis-a-vis 2008, buckle your seatbelts, it's going to be a bumpy year.


http://www.honoluluadvertiser.com/article/20081119/NEWS01/811190399/1001


http://www.starbulletin.com/business/20081119_Hawaiis_visitor_count_expected_to_fall_101.html

Maui Gas Prices

Aloha Kakou:

Well, the good news is that the price of regular is now down to $3.32 on the West Side.

Let's cruise!

Off to Honolulu

Aloha Kakou:

As I will be in Honolulu the next few days, there will be no new blog entries this week.

I'll be attending a conference on Hawaii condominium law (you are so jealous, I know!). I'll be back on Monday.

To those of you faithful readers, thank you for your continuing support and readership.

First S Koreans Arrive With New Visas

Aloha Kakou:

The first group of Koreans to enter Hawaii under the new visa waiver arrived in Honolulu yesterday. Visitors from South Korea under the new program now need only a passport with a smart chip embedded in it.

While Waikiki will be the initial beneficiary of the relaxation of the visa rules, with any luck South Korean visitors will soon want to visit Maui as well.

http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=200881117056

Christmas Trees are Here!

Aloha Kakou:

The first shipment of refrigerated containers bearing fresh Christmas trees arrived in Hawaii today.

Yes, it isn't even Thanksgiving yet! But if you are celebrating Christmas mainland-style, now's the time to hele on down to your favorite Christmas tree stand.

If you prefer to do things more local, you can either:

1. get an artificial tree. You can leave that one up all year, and it never dries out!

or

2. get a live Norfolk Pine. That way, once Christmas is over, you can plant it in your yard and enjoy it for a long time.

or

3. do what we do and head Upcountry to Kula Botanical Gardens the Saturday after Thanksgiving. They are the only Christmas tree farm on Maui. While freshly cut Monterey Pines are your only choice of tree, Auntie Helen and Uncle Warren do have many sizes. With a little TLC, even on Maui you can get your Christmas tree to last the entire 12 days of Christmas!

http://www.kulabotanicalgarden.com/services.html

http://www.honoluluadvertiser.com/article/20081117/BREAKING01/81117090/0/RSS01

Aloha Kakou:

Scenes from the play "A Celebration of Life - The Ka'iulani Project" will be performed Saturday night from 6 to 8 pm at Lahaina United Methodist Church and on Saturday at St. John's Church in Keokea.

The play highlights the life and times of Princess Victoria Ka'iulani Cleghorn, who lived at the controversial time of the end of the Hawaiian monarchy. For more information, see the Maui News article:

http://mauinews.com/page/content.detail/id/510844.html?nav=12

2009 Tourism to Suffer

Aloha Kakou:

According to a recent report, the worldwide recession means tough times ahead for Hawaii tourism.

"All of Hawaii's tourism markets are going through recession at the same time," said University of Hawaii Economic Research Organization (UHERO) economist Byron Gangnes. "Unfortunately, there is no strong part of the world to market to right now."

http://www.starbulletin.com/business/20081114_uh_report_gloomy_about_isle_tourism.html

Sofa for Sale

Aloha Kakou:

We have an extra sleeper sofa that we'd like to offer to you. This sofa is brand new, has the 6" mattress, and has a commercial grade poly/cotton/acrylic upholstery. Why are we selling it? Because we're overstocked and need to make room now!

The original price on this couch was about $2000. I'm asking $1000 and I'd really like to sell it before the end of 2008 and Ernie yells at me (you know how accountants are!).

Survey Results

Aloha Kakou:

The results of the most recent survey are:

The primary issue facing Maui today is...

Water (or lack thereof) - 20%
Tourism (or lack thereof) - 40%
Growth/Planning - 20%
Real Estate Prices - 20%
Other - 0

You Can't Get More Southwest Than Hawaii

Aloha Kakou:

Southwest flying to Hawaii? It's the dream of every LUV-ophile. Today's Advertiser passes along the rumor that Southwest is considering coming here, either in person or in codeshare guise as they did previously with ATA.

http://www.honoluluadvertiser.com/apps/pbcs.dll/artikkel?Dato=20081111&Kategori=BREAKING03&Lopenr=81111029&Ref=AR&Show=0

And, in case you're wondering why they don't already fly here:

http://www.blogsouthwest.com/blog/why-no-southwest-to-hawaii

Hawaii Quarter Released

Aloha Kakou:

The last quarter in the 50 state series was released yesterday following a ceremony at Bishop Square in Honolulu.

Just in case you thought this was the end of the series, next year the mint is doing one for Washington DC and for each of the US's five territories.

http://www.starbulletin.com/news/20081111_Collectors_flip_for_state_commemorative_coin.html

Fresh off da Plane

Aloha Kakou:

FOB in Maui doesn't refer to a method of shipping. It means "fresh off the boat", or "newcomer", if you will. Malihini is the real Hawaiian word for a new arrival, despite what you may have heard! Or, if you're really up to date, you can say JOJ - "just off the jet".

You may want to check out the observations of Chris Hamilton, a relative newcomer to our island. Chris writes a semi-monthly blog for the Maui News and looks at things with an fresh view. Check out his "Hard Times in Paradise" entry for his take on the current economic situation.

http://mauinews.com/page/blogs.listAll/display/33.html

Tough Times Ahead

Aloha Kakou:

Wednesday, State Tourism Liaison Marsha Weinert and Terryl Vencl of the Maui Visitor's Bureau convened a meeting of tourism-related businesses in Lahaina to discuss the state of the tourism downturn on Maui.

Marsha Wienert says she is not confident at all about 2009. Advance bookings for the first quarter of 2009, normally a very busy season, look dismal.

Both women said that, while Maui has suffered some dark days in the past, the island always comes back better and stronger than ever due to the cadre of loyal vacationers that prefer to spend their downtime here.

http://mauinews.com/page/content.detail/id/510677.html?nav=10

Pleasant Deal

Aloha Kakou:

Pleasant Hawaii Vacations is featuring the Outrigger Maui Eldorado on their Hot Deals Maui webpage. We're the only condo property featured with the "condo" banner, even though Lahaina Shores is also listed - hey, I'm not complaining!

http://www.pleasantholidays.com/PleasantHolidaysWeb/Vacation-Deals-Hawaii-Maui.html

Island Wide Occupancy Drops For October

Aloha Kakou:

The Maui News today reported a 20% drop in occupancy for October, 2008, versus October, 2009. Hotel occupancy was 56.8% for the month, the largest drop of all the islands.

Interestingly, the last paragraph of the story adds some perspective: "Hawaii's third-quarter occupancy of 72.7 percent was fourth behind Los Angeles and Miami, its average daily rate of $205 was second, and its RevPAR of $149 was also second." So, even at at the state's current levels, we're still doing better than most other US destinations.

http://mauinews.com/page/content.detail/id/510583.html?nav=10

Liberty Travel Ad

Aloha Kakou:

This ad appeared in August in Newsday newspaper, one of the country's largest regional newspapers, serving Long Island and other parts of New York.

This is a co-op ad, meaning that Outrigger pays a share of the advertising cost along with Liberty Travel. Liberty Travel is one of our larger wholesale partners.

The Outrigger Maui Eldorado appears under the $1215 price heading. If you click on the ad, you'll be able to see a larger version.