Posted on: Sunday, September 28, 2003
Repeat visitors growing share of Hawai'i tourism — but mixed bag
By Kelly Yamanouchi
Advertiser Staff Writer
'We love Hawai'i. It's beautiful," said Liz Pelt, 58, who has been to Hawai'i five times before. She and her husband visit every two years.
"There's always something to see," Mike Pelt said.
Repeat visitors like the Pelts are increasingly important for the state's $10 billion tourism industry.
For the year through August, 62.9 percent of visitors flying into Hawai'i were repeaters, up from 59 percent in 1999.
"The repeat market is certainly important, because that represents a very strong backbone of the industry," said Joseph Toy, president of hotel consultancy Hospitality Advisors LLC. "The repeat market represents stability."
But tourism executives say repeat visitors are a mixed blessing. Although they're dependable, Hawai'i can't rely on them forever. And there is continuing debate about how their spending differs from first-timers'.
"We want a balance. We know we like repeat visitors," said Frank Haas, marketing director at the Hawai'i Tourism Authority. "But your long-term growth depends on continuing to get new visitors."
Aston Hotels and Resorts President Kelvin Bloom questions the state's heavy reliance on tourists who come often.
"Sooner or later you're going to run out of repeat visitors, because they just perish," Bloom said. "That is definitely worrisome."
That's why many tourism businesses focus on attracting new customers. The hope is to turn them into loyal customers who will return to Hawai'i again and again.
Brand loyalty is, after all, a much-sought-after advantage — and Hawai'i has it in spades. But there are plenty of potential customers who have not been to Hawai'i, as a recent study commissioned by the tourism authority shows.
Among travelers from the eastern part of the United States, about 37 percent have visited Hawai'i; from the West, about 65 percent. Among Japanese international travelers, about 60 percent have been to Hawai'i.
The most important goal is to attract new first-time visitors "who will become the
repeaters of the future," said Les Enderton, executive director of the O'ahu Visitors Bureau and interim president of the Hawai'i Visitors & Convention Bureau.
Whether first-timers spend more than repeaters is not clear. While newbies will take in attractions such as the Polynesian Cultural Center, the repeat visitor who has done that will be savvier about spending money. Experienced Hawai'i tourists are more likely to look for vacation deals, for example.
That was true for the Pelts. They had planned to go to Vancouver, but two and a half weeks before their vacation, "We said, hey, instead of going to Canada, let's see if we can go to Hawai'i," Mike Pelt said. They spent a little bit more, but they thought it was worth it.
On the other hand, while first-timers may be in their 20s and staying in a moderate-priced hotel room, by the time they return they may be more inclined to stay in more expensive accommodations.
Return visitors also tend to visit a Neighbor Island and might stay in a less expensive condo or time-share unit.
Ultimately, repeat visitors tend to find a place they prefer, said Stan Brown, area vice president for Marriott.
One thing is clear: As with any business, from cigarette makers to computer operating system developers, it makes sense to attract new customers when they're young.
Hawai'i has a particular competitive advantage in that regard, being a favorite place to honeymoon. Couples think of the Islands as their special place and want to return time and again.
Honeymooners Jason and Laurie Halverson, both 34 and from South St. Paul, Minn., fit that profile.
"I want to come back," Laurie said. "I think it would make a good anniversary trip." Next time, the couple plan to go to Maui.
Higher-than-average satisfaction is another of Hawai'i's competitive advantages. Among Japanese international travelers who have been to Hawai'i, for example, about 59 percent want to return. That's higher than the 46 percent rate for all Japanese international travelers.
The increase in repeat visitors is pushing Hawai'i's tourism industry to add new activities, develop niche markets such as eco-tourism and extol the virtues of the different islands.
The tourism industry also is promoting cultural activities such as the ever-evolving events at the Aloha Festivals.
The message is "OK, you've been here before — let me tell you about the new things," Enderton said. "Even those of us who have lived here most of our life still have things that we have yet to do."
As he sums it up: "It's really a repeat visitor's paradise."
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
Mike and Liz Pelt from Portland, Ore., count themselves among Hawai'i's frequent island visitors, and they plan to keep coming back.
Repeat visitors also are less costly to attract. "If you've got one 'customer' and you do well, then you have them for life and you're not constantly spending marketing dollars for new folks," said Brown. He said it's 10 times more expensive to find a new customer than to retain an old one by keeping them satisfied.
