Convention center
sees business improve

The Hawaii Convention Center is set to end 2004 on a strong note, its manager says, reducing its annual operating deficit to a projected $2.7 million from a projected $4.3 million.

"There's been about a 25 percent uptick in longer term bookings since 2000," said Joe Davis, general manager of the Hawaii Convention Center for SMG Hawaii. "More clients have chosen to book Hawaii nine to 12 years in advance."

For this year, SMG Hawaii will have brought 162,515 people to 39 events at the center. The events are projected to generate nearly 198,000 hotel room nights and more than $300 million in visitor spending and $25 million in taxes, he said.

The arrival of more than 3,500 meeting planners next month during the Professional Convention Management Association, Jan. 9-12 at the convention center, is expected help boost bookings in the coming years, Davis said.

While the convention center has been able to meet or exceed its annual target this year, future bookings have been a tougher sell, Davis said.

Only 25 out-of-state events are scheduled at the center for 2005, 15 for 2006 and 13 for 2007, he said.

Long-term booking patterns have picked up and the center has been able to meet its goals by filling in dips with short-term bookings from Japan, Davis said.

While the $350 million convention center, which opened in 1998, has earned accolades for beauty and service, it's still an underdog in the competitive business meetings and incentive market, where bookings are made six to eight years out, said Randy Tanaka, director of sales and marketing at the center.

Getting tourists to come to Hawaii for sun and sand isn't a tough sell, but it's harder to convince meeting planners and corporate travelers that the destination is just as suited to business, he said.

There's also an incredible plethora of meeting options available to planners who can freely negotiate favorable deals, Davis said.

"In the next five years, the equivalent of 35 Hawaii Convention Centers are being built in the United States," he said. "It's a buyer's market and meeting planners expect the finest experience possible."

To compete, SMG Hawaii has launched aggressive marketing campaigns. The center was featured in a direct mail campaign called "The Hawaii Advantage," at the end of June. Thousands of campaign brochures were mailed to key customers and ads focused on marketing Hawaii as a place to do business appeared in trade publications.

SMG Hawaii also launched a networking program, Hawaii Business Ambassadors, this year. The program, which designates local community members as envoys to assist in promoting meeting and convention business for Hawaii, has already achieved bookings, Davis said.

Center officials are hopeful that hosting the convention managers association will bring the decision-makers to Hawaii where they can see the marketing claims for themselves, he said.

The center spent $1 million to bring the conference, which SMG says is expected to generate $8.9 million in visitor spending and generate $741,000 in state tax revenues. The convention center is also running discount promotions to encourage large groups to book events. One promotion offers a 50 percent discount on facility rent and $50,000 in incentives to select new clients. Free facility rental is also available to clients who book for 2005-2008 during the January convention.

"We'll quickly make up our investment," Davis said, adding SMG has already netted two bookings and 20 tentative bookings as a result of the promotional offers.