 Bingo, we're back. 10 o'clock rock on a Friday. Wow exciting show. We have HTA here in force We have George George Cichetti, and he's the chief executive of the white tourism authority and we have Leslie dance who was the marketing director of Hawaii trip. What a treat to have you here guys. Thank you for coming down Thank you very much for having it's an honor privilege to be able to be here with you great So We'll talk more about exactly what you guys do there But the first order of business is talk about the tourism conference. It's coming up in September late September What's on what's on in store for us? Well in September 26 through the 30th. We are we're gonna have our annual white tourism Conference and we really changed it up this year J We went from a what was normally a one day kind of a day and a half of a Conference where it was very a lot who centric and we got up there talked about the numbers were up We're down. We decided through our travels these past 15 months that Hawaii is uniquely positioned to have a global tourism Conference that would have people coming in from North America It would have them coming in from Asia and we could all collaborate work together and see how we could continue to build our business Yeah, that's great. Um, this this requires a new approach though, doesn't it? I mean you recall this transformation of tourism What's the transformation and what do you have to do to make the transformation? Well, well, and I'm gonna have Leslie speak speak on some of the specifics but we decided that we're gonna make it instead of us coming in talking at you we're gonna come talk with you and We're gonna it's really gonna be an opportunity for our local businesses to for the first time really be able to Network with our global partners for the first time. We have 50 people from coming from China. That's that's new That's not not happened before we have over doing it in Mandarin aren't you? Yeah, I've worked weeks on my Mandarin if you just ask me anything But we're honored to have 50 people coming in from China. We have well over 200 from Japan It's really gonna be a global mark a marking program So we'll have over I think we have close to 60 tracks that we have set up for the week that will address everything from from technology to about some of the new Innovation that the team is you know, I really encourage them challenge them to ideate new innovation because the work that it's changing They're it's changing by the minute and you got to be with it. Yes, so good that you are You know the thing about you know about going global like this it requires another approach in marketing Doesn't it the product becomes different the approach becomes different the outreach is different Yes, we want to we want to be able to see show the world that we're leading in tourism that we've got the most innovative ideas and In respect and I think that this is going to continue to grow And we do have the about 60 tracks and then we have sessions within those tracks We talk about culinary tours and we talk about sports marketing We talk about we're gonna launch our new website as well as some virtual reality stuff So and each day is tied to a pillar of our strategic plan. So there's a rhyme and reason to everything we're doing It's different though. I mean it seems to me that from the time I started following this Which was right at that the convention center was built when the middle 90s and it's gone more global in recent years I think one important demarcation was a peck because a peck was big There were governments involved with a lot of people coming from with high expectations and the culture At least the tourism at the convention side seemed to be changing that and then we have we have about others too But we had the world conservation congress last week and this week and also building a culture of attracting people from far away And having them really have a good time having them stimulated in the intellectual process This is a real challenge. It's a lot different than a smaller national or local kind of conference And you have to build a new culture around the way you do that And that's it's really in line with what we're trying to do Jay, I mean if I could just step back leisure has always kind of been our Our key leisure and then number two is romance and they're both, you know Those things that we just continue to talk about and and those are the guys the the baby boomers and all that come back 5 10 15 20 years They've put us here and we we want to protect that but we have to ideate new innovation that's going to be prepared for the future and so You know going after millennials and going after that MCI business like you this recent conference We had it's still going on and tomorrow's the final it just shows that Hawaii can truly stage a world class serious world class Event and at the same time those 10,000 participants that came here for IUC and can enjoy Themselves when they're not at the conference. It's the best of both worlds So the MCI business is very important to us Internationally as the meetings conventions incentives and these meetings like the IUC and like APEC and Many others that we're bringing the convention center are extremely important. It's important to our our lodging partners Um, it's very important to them towards our segment of business as well Yeah, let's talk about tourism in general for a minute. It seems to me these large conferences have A number of effects. It's not just that they bring in people for that conference, but they make a statement about Hawaii Uh, we we become matured in the process would become a uh, I must be talking your language now You know, we have a brand that appeals to more people Because we have these these conferences going on and even if the people coming have nothing to do with the conference Still somehow the existence of the conference that the fact that we can pull it off really well Changes our appeal to other groups. A lot of our speakers are coming earlier staying late too because they want to enjoy the island So what does tourism look like these days george? Well, tourism is changing as I mentioned By by the minute, I mean if you look at the the the visitor industry worldwide has become much more global You see what technology is kind of throwing into it and I would just use a couple examples If you see if you look at what air bnb and home away and uh alternative accommodations have have put in there It's it's based on technology. It's a platform. That's all it is It's it's worth what 80 billion dollars and they don't own hotel room. It's a platform that's based on demand So same thing with uber if you look at uber when it's done the transportation again It's it's technology And it's and they're worth 69 billion. They don't own a car So it's it's but it's based on demand people want these things So our challenge is how do we incorporate those business models technology and everything coming at us With our current model making sure that it's sort of the level the playing field is level making sure that The regulations are in place to make sure that everything, you know The health and safety and welfare of visitors using these is is there So those are those are your challenges and if we don't address those as well as address What are the needs of the millennials? What are they going to come here 15 years in a row? Probably not They like to come here and what they like is we're hearing is they want authenticity They want to come somewhere where off the beaten path. They go on their their their smartphone. They go Where are the locals eat? Where are the locals hike? Where are the locals swim? Which brings them out into the community. Yes Because if you look at our pillars of strength and it's it's um It's interesting I tell I tell my team because other people have asked me numerous times final cares from Jeju island or is China they go, george, how do you guys do it? You've had you want five years of record growth How do you guys do it? We're kind of like the benchmark of of tourism. We really are people look at us as How how do they get there? And so we don't divulge all our secrets Well, nobody's watching And I'm sure they won't get it from this show We won't but I would tell you that the the pillars that we really stand are embedded everything we do is the Hawaiian culture It's it's something that we obviously It's important to us. We not only do we recognize but it's important that we perpetuate it It's embedded in everything we do the aloha spirit the Hawaiian culture Um, and then the other thing is our natural resources We we think it's real important that we find the balance between our visitor industry and the respect of our local residents In the in our natural they are a natural resource. They are a natural resource. They are there are ambassadors We can't do this without them and we don't lose sight of that and that's not saying it's not without his challenges um, so that's real important and it's kind of uh It also embedded in our in our strategic plan. In fact, it's number one is protecting our natural resources Our oceans need to be clean our I could protect our coral reefs You know our rainforests on Maui and all the islands are it's important I love with the deal and our we help fund um A cleanup uh along the napoli coast to clean up the molly the napoli coast to get it back to its original You know Because we've got to present an image of hawaii as as being what what people romantically, you know remember it to be Namely clean and beautiful and romantic. Yeah, I applaud the deal and our for what they did out there. It was fantastic So how do you actually get the word out? You know there's first of all there's a lot of things happening here And we can talk about the news if you open the paper any day the news is likely to have an impact on tourism And we should all be aware of that, you know, we're not playing only to ourselves. We're playing to the world We're playing to our most important industry But how do you convey that message when you go out? What's the way you reach the world? Well, we have a great global marketing team based in every market that we are attracting visitors from So there are on the ground eyes and ears and we feed information to them and we look at platforms that can benefit multiple Areas like australia Japan, korea, china, hong kong southeast asia So we have you know really good people in really good places that help us spread the word Yeah, i'm sorry Yeah, and I would if I might add just locally one of our missions and going from an 800 person conference Is to go to a 2500 and hopefully three and then five make it a global conference that Part of the mission putting heads to the bed bringing people here to experience Hawaii is kind of widening our scope of Influence for the first time we're going to have it's always been very traditional Kind of brick and mortar, which is very important It's it's our foundation But as these new technologies come in the market and all of a sudden you have alternative accommodations You have time-sharers you have, you know, the traditional B&Bs that work in people like Foodlands and abc's Involved and have a voice in our industry and now widening the scope of of influence because the visitor industry impacts them It impacts not only the 200,000 that we employ it impacts Thousands hundreds of thousands below them that benefit by the visit the 8.6 million visitors that come here And we'll have it we have a village square which is central In the convention center and there's lots of booths with people like george was speaking about for the conference for the conference itself Yeah, and they and we also have a tech hub Where you can go experience the virtual reality and the new website and then we'll have a social media room Where people can sit and blog and do whatever they'd like to do And we have a stage in the round so it's going to be a real hub of activity For everybody a lot of people working on software, you know to support the tourism industry because we know more about it Than really any other place, you know the hotel operations your operation The numbers involved it begs for software, you know You know, I um, I Something you were looking to a minute ago. It's it's a multiple direction street. Whoops. We have a slide This is the app This is the app and I saw this in the materials prepared for the show and i'm fascinated with the app So while it's on the screen, can you tell us about the app? Well, the app is um designed for people attending the conference as soon as they register they get an opportunity to download the app They'll be able to use it from the audience for audience participation They'll be able to check their schedules where they want you can communicate between each other at the conference itself So it's a really good Collaboration tool. Yeah as well and we we set the standard by doing it. Yeah, I was built that And I and I think the um, you know the thing about the conference you're doing late September It's more than just the professional conference. It's much more than that the leverage is obvious and huge So a travel agent comes from pedaluma california It's not that she's going to learn more about The industry or see the exhibits or rub shoulders and all that she's going to go back to pedaluma california And she's going to pedal hawaii, right exactly huge huge leverage that way Yeah, I mean and when you look at it, uh, and that's really really important that we continue to brand hawaii And and um and again with the hawaii culture the olahasa spirit the welcoming spirit. It's a safe clean welcoming environment hawaii is in demand right now and so Getting that awareness Is extremely important to us and as leslie had alluded to this conference is going to be so different that Every island is going to be able to come over and showcase its own unique experience and activities and farm to table We've not done that before it's been very oahu centric and now Maui, kawaii All have a lot their own. Yeah, they're all in the village square. They're gonna anchor it So that's going to be something completely new. So when we come back from this break I'd like to talk about the effect of the international market the new International marketplace and some of the other, you know a brick and mortar projects In waikiki and outside of waikiki and how they affect Not only tourism, but the secondary effects of tourism like buying condos that kind of thing So when we come back want to talk about, you know, how you flow all this out, you know into the economy Okay, we'll be right back That's uh, george sagetti and leslie danz from hda Aloha, I'm kawi lucas host of hawaii is my mainland every friday here on think tech hawaii I also have a blog of the same day at kawi lucas.com where you can see all of my past shows Join me this friday and every friday at 3 p.m. Aloha Hello, and i'm patrick bratton. Please join me for global connections every thursday at 1 p.m Where we talk with a variety of guests about various international Issues historical issues both here in hawaii and abroad range from security human rights Ethics and all sorts of other things. So please join me. I look forward to talking with you and seeing some of my guests Aloha everyone. I'm maria meran. I'm here to invite you to my bilingual. So viva hawaii on think tech hawaii Every other monday at 3 p.m. We are here to talk about news issues and events local and around the world Join me aloha Okay, we're back. We're live with george sagetti and leslie danz of a hawaii tourism authority talking about tourism talking about this big conference and doing it in september And and i'm trying to keep current on how they're doing and how they see us and how we see them and the world How they they all see us Okay, so you're talking to break about technology and the huge effect it has To show people that we are aware. We are current. We are cooking here Right, and this is a great statement to make you can't afford to do it any other way No, well our virtual reality, which i'm very very excited about is going to be you're going to start like in a google earth view And then you're going to go on a hang glider down in the clouds You're going to hear the wind and there's going to be some music and then you choose the island You want to land on it and then you'll be welcomed by a host from that island and you'll have a different experience on each island So it's really exciting So the other thing we were talking about in the break which i think is worth discussing here in the second part of our show is You know dealing with the community and that means dealing with the legislature It means dealing with the public and and reminding them because people forget, you know, you are the engine of our economy You guys are so important, you know to the future at well in the current You know economy in every way in our state people forget that it's all So much of it is derived from tourism. How do you do that? How do you make sure that the ledger the square building? You know remembers this every day in every session well, um It's extremely important I think part of our mission at the tourism authority is really to continue to Give good information and educate and be be very open transparent very You know open communication and so this year we're inviting all 76 of our legislators to come down And as well as our county council statewide to come down because they're key to it I mean they they we we need them every step of the way and they've been very very supportive But I also want them to see The many stakeholders and and really the challenges that we have that we're being attacked from so many big global I mean from countries coming after our business and none of this happens None of these successes of these past five years happened by accident. It takes really a team Uh, well, we may be the tip of the spear. It's real important that we have our lodging. We have our access We have our transportation all on board talking and collaborating together So i'm asking the legislators to please come down Join us come come come network with uh with these hardworking people and these businesses It's our economic engine and come see what we do and uh and vice versa Or just thank them for all that they do in support and uh support in the tourism authority Getting to the community of that's very very important because as the price of this As the experience rises, which it has Everything has to be shipped in here. And so everything has kind of gone up But as that all goes up, it's important that the experience that we have for these visitors goes up with it So we do support a lot of community events a lot of festivals and a lot of things that will the visitor come here And they'll go wow this hallow festival Because you want that to happen you want that to continue People to know that there's someone out there, you know, including from far away that cares about their cultural activities Yeah, exactly enhance the visitor experience enhance the visitor experience I tell people it'd be one thing if we had an Eiffel tower that they could come to over either Or they had the golden gate bridge or they had, you know, the the Vatican We don't have any of that We have to find other ways to get people here to come here time and time again year after year And that's our secret. That's what we work on. That's our idea the new innovation make people welcome Make sure the experiences are all there make sure the resources are protected and finding that balance and uh, so that's our challenge You referred to challenges, uh, I mean a couple of times and I need to ask you, you know, what are the challenges? What do you worry about? I mentioned that everything in the newspaper somehow impacts tourism It impacts you, you know in your effort to make tourism better and better Um, what are the things that bother you? I mean there are things out there that are troublesome to the local population Are they troublesome to you too? Yeah, they really are. I'm from the private sector. I'm a businessman I'm not I'm not from the hotel side or political side. So the things that were me are just making sure we don't get complacent You know, I've always had the philosophy that when times are at its best Even when our brand private sector business is when you need to challenge your team to manage at its best Because when it goes down is too late. Now you're just putting on fire. So the just complacency making sure people aren't comfortable You know people come no matter what because that's not really the case There are other things there's world events going on that are out of our control And if you look at what's going on in europe it's far away far away that we can't do anything about it But will that will that resonate with visitors that are thinking about traveling me putting their hands in her pocket And maybe this year we're not going to go out this year those kind of things we can't control But for us not to at least look at them and say we need to you know, you've you've got world events You've got economic events. You've got I mean even mosquito change weather events Exactly mosquito-borne diseases. I'm I applaud the governor and the department of health what they're doing on fight the bite I think it's very important that we educate and we message to our local Our residents that there's things that we can do to control that And uh, but they know it's a game changer is things like zika. So we're always watching that and we again applaud the governor And department of health. We've been very active and in fact, we're flying out to Maui on Monday to address 200 people and that's one of our things is to talk about what we can do to To address fight the bite and be a part of it things like that we look at I don't lose sleep over it because I think my team is really Um, we're always thinking ahead. We want to be ahead of this thing. So to do that I mean, it's just you know because tourism and for that matter the brand of tourism is is is delicate fragile It's fragile in some ways Yeah, it could change overnight and who knows why and as you say it can't control some things So we have to be watching it all the time Absolutely j and that's one reason we're kind of trying to expand our voice when when I go see someone Like a paul casasa a bc's or jennai wall of food lines who have been Are going to be coming to our conference for the first time as well as other retailers Ask them, where would you be without the 8.6 million visitors coming here in the 15.2 billion? They spend in our economy Where would we be as a business if we had to rely on only the 1.3 residents and all of us are All of us benefit by this this visitor industry So what will the international market do international marketplace have as an effect, you know I mean my generation we used to go to wakiakina. It was like our backyard. It was like our neighbor But you know when big hotels and the prices change and the traffic congestion to get in there and all that harder Movie theaters went away and now it's not so often except for like, you know, like weddings And and you know adversaries and neat meals and good restaurants on but How can you bring the community into waki-ki? Is the international marketplace something that will do that other other projects like that? I um, you know, I kind of we sat on the sidelines and watched the the back and forth on that and we got both sides Keep it the way it was and then other ones. In fact, I talked I spoke to someone the other day That was very opposed to it and then when they went into it this opening They said, you know what they changed my mind. This really is nice in that We have to continue a look to to revitalize our product to keep up with the times and as much as you want to keep You know, I I just did an address to helo and I told helo. I said keep helo helo You know, that's a very good point, you know, keep helo helo because we need that authenticity We need that hawaii. It never does. But in waki-ki. That's a that's a different Visitor that wants to come in they want they want that that that's shopping experience and that you know, then So I I think what we see with the ritz-carlton coming going up I think is kind of revitalizing that coheo in that side, which needs it in and And then even the four seasons out at who will I I think that's going to be a plus because when we were in china The one thing I did here is that oh, we we we don't know enough about you But we understand you don't have any five star hotels and I I said no we do we have we have we have it all We have the whole gamut from people from popular price to to mid-range to You can go You know lanai for four seasons to hula life four seasons or any of our top five five star hotels So let's talk about the future for a minute Where's it going? You know throw everything in the pot all the vectors and factors and influences and possibilities Where is tourism? Where is hda going in the next five or ten years? What do you see continued growth? continued infrastructure Problems that will level it problems that will put it at risk. How do you feel it's going to go? You really want an answer for that one? You're good jay Yeah, you're really good I wouldn't be sitting if I didn't think this team could do a really good job And that was part of my thing coming in sessing part of my challenge coming in sessing all the internal process and looking at the long term Short-term and long-term and and so these 15 months. We've been doing that putting together a really good team. That's that's really Innovation is top of mind for them making a difference top of mind with them We're trying to find that balance. We don't think people always ask me What's the capacity number and that's something that we don't really talk about Could I open the could we open the floodgates to China and have 10 million visitors coming here? Would that be compatible with our natural resources? Probably not So we try to really find the balance. We look at spend we look at We look at like I said the mci business that will bring meetings and conventions because they spend So it's really important that we find that balance. I even talked to Lodging teams and I say and I'll talk to them and say george. We don't have to have a record year We just need to know we're going to be kind of where we are because I think they're real happy with with the Past I mean 2016 was not supposed to be a really good year for us and 2016 is paying out to be a pretty good year And 17 look at knock on wood. You know, I'm going to always accentuate the positives, right? That's my Personality is to always kind of look at the the the glass half full and I think The long-term thing is we've just got to make sure that we keep in mind keep that balance And make sure that we always have that that we have our residents as partners We have access to I mean, it's really important that all the all the Trade partners are in this thing together. We're all paddling the canoe together And we also have to look at make encourage travel the neighbor islands Yes, I was going to ask you about the neighbor islands is so different now than owahu They look at different community all together. He said you got to keep helo helo Yes, it's so important because it offers a refreshing difference and cultural depth So we need to do that and I think it's a great marketing piece to say don't stop in owahu There's so much more to see what people do stop in owahu Kind of get them out to the neighbor islands So neighbor island access is one of the things that we continue to talk about and it's challenging right now But a neighbor island access is everywhere we travel between china, japan and where we go They go, how do we get to the neighbor islands because each island will have its own unique experience all the way from the lava Flowing into the ocean to the big island to the Jurassic park coastline of the polycos to the rainforest of mali. They all have unique An exciting and memory making experiences that we know that people will come back one year for wahu Maybe one year for mali maybe one year for koai. So there's that's kind of in our plan We need to reinforce that and encourage that Do you market each neighbor island separately trying to give each one a persona? Yes, we do each one has a different personality And we and we talk about that in all of our marketing materials And how we message things that we bring out that unique personality of each island So they all have their own, you know points. Yes, so you know favor one over the other, of course They're all our children trying to sell separate personalities They're all our children. They're all part of one big family I was going to say, you know HDA is much more than trade association or government agency You know because they you are the center of our economy and that's the way it is That's the total reality nobody can argue that And and you affect so many other aspects of our lives and our economy and so it puts a burden on you for sure You have a kind of fiduciary burden because you are the center But then the other thing and this is the more important thing is that you are us We are you we are together in this as you go when I say as general modus goes so you know as you go So we go And that's the message really that this conference That's why we're trying to get 2,500 people there maybe 3,000 because it is Our success is their success their success is ours. It's a team effort You know, it takes a team to live the dream, right? And I just want to get more stakeholders and more voice networking and You know working together and meeting one another. That's where this conference is about This isn't about us sitting up there for a day and a half saying, you know Korea's up percent this percent, you know, that's not what you can go on our website and get that We want this to be much more interactive George. Take take a look at that camera, right? The one in the middle there should ever read on it Okay, and tell tell the young people tell the millennials here in Hawaii why they should consider Join tourism industry becoming part of this what the opportunities offer them Well, I would tell you because the millennials now And everyone recognizes now I'll surpass the baby boomers in population the millennials are everyone's target The million the millennials for us are extremely important because Hawaii I what's what I what I see with the millennials is they want to go to places that look at their resources protect their resources And and they're willing to spend more to to destinations that do respect their their resources and put the appropriate Whatever it takes to make sure that they're protecting it. So I would ask the millennials to come over here and experience Hawaii The unique every island has its own unique experience We'll have the technology that they need to be interested in go on their smartphone They can go see where the locals eat they go see where the locals hike They're gonna see where the locals swim and dive and I think that's what's Attractive to the millennials. They don't want they're they're not tourist. They're not tourist They want to make their own postcards. They want to make they want to write their own agenda and that's what we offer in Hawaii And also the millennials that live here This is our home, right? And so, you know, let's promote our home together And I think that's the tourism industry is a big industry here in Hawaii People should respect it and want to work in there. So, thank you. That's uh, Leslie dance marketing director And also Jordy Sighetti the CEO of Hawaii tourism authority. We are honored to have you. We have a delightful day. Thank you. Thank you guys See you