State pays
to grab gatheringUp to $1.6 million is going to help
support the American Society of
Association Executives meeting
The state is spending up to $1.6 million on a convention of potential conventioneers, money that was committed by the Hawaii Visitors & Convention Bureau to secure the so-called "Super Bowl of Conventions."
The American Society of Association Executives, which represents 10,000 other associations, kicks off its four-day annual meeting at the Hawaii Convention Center on Saturday. Expected attendance is about 3,500 people, including association executives and exhibitors, down from an initial expectation of 5,000 attendees.
The society's last event, in Denver, drew more than 5,800 attendees, which the organization says was one of its most successful conferences. Keynote speakers included actor James Earl Jones, otherwise known as the voice of Darth Vader.
Hawaii officials say the state funding has helped boost the Hawaii event, and will enable the state to show off its goods as a site for business meetings and conventions, an estimated $102.3 billion industry.
The society's annual meetings are booked through 2008: Minneapolis in 2004; Nashville, Tenn., in 2005; Boston in 2006; Chicago in 2007; and San Diego in 2008.
Frank Haas, tourism marketing director of the state Hawaii Tourism Authority, said, "Let me put it this way: This is a very important group of customers" that will lead to future business.
To secure ASAE's bid for this year, the Hawaii visitors bureau in 1999 committed between $1.4 million and $1.6 million to spend on the convention, Haas said. The bureau tapped into its so-called "marketing flexibility fund," state tourism marketing money set aside for grabbing important conventions from competing places.
The bureau did not need state approval for committing the funds, to avoid micromanagement.
The bureau's successor, SMG, requires permission from Rex Johnson, chief executive of the authority, to spend more than $200,000 from the $2 million flexibility fund.
State lawmakers forced the bureau out of marketing the $350 million convention center this year, and gave the job to SMG, of Philadelphia.
A host committee put together the details of how to spend the money on the ASAE event, Haas said. Perks include free rent at the convention center, worth about $160,000, as well as three major events during the session. The closing concert Tuesday night at the Waikiki Shell will have rhythm-and-blues group Kool & the Gang.
Other events include a welcome reception at Fort DeRussy in Waikiki on Saturday and a Monday night party at the USS Missouri.
The rent waiver for the convention center -- a normal privilege for an important event -- was approved by the state Convention Center Authority, a now-defunct agency replaced by the HTA.
State spending on the ASAE convention includes event promotion, such as a direct-mailing campaign, as well as support for the convention, Haas said.
Eight to 10 weeks ago, Hawaii tourism officials noticed slow bookings for the ASAE event, with projected attendance of only 2,500 to 2,600 people. SMG put together a telemarketing program and started calling ASAE members, resulting in another 600 registrations.
"It was well received," said Randy Tanaka, director of sales and marketing for SMG. "No other destination had ever done that."
The Hawaii visitors bureau, which is responsible for booking business events outside the convention center, said it coordinated 39 hotels to offer discounted rates to all attendees for stays before and after the convention. The bureau has also organized four-day neighbor island tours after the convention.
The number of people at the event is important in securing future business travel for Hawaii. ASAE claims that one in five of its executive delegates to an annual meeting will book their association's convention in the same city within five years.
Based on that, the upcoming ASAE meeting represents potentially $1.3 billion in future convention business in Honolulu.
Still, the devil will be in the follow-up marketing.
Another major convention pushed by the state was last year's World Travel Congress of the American Society of Travel Agents. The organization has claimed its host cities receive a 15 percent to 20 percent bump in travel in the years following the annual convention.
The event was initially expected to bring 6,000 attendees to Hawaii, but ended up bringing about 3,000.
The Hawaii visitors bureau, when asked about the outcome of the ASTA conference, said it's planning to do a survey of the attendees before the end of the year.
Hawaii's U.S. mainland arrivals are up 2.8 percent this year, not enough to make up for a 11.4 percent drop in international arrivals.
