๐๐ Hawaiโi Convention Center Dey Look Sharp for Future Overseas Bookings
โฌ๏ธ Pidgin โฌ๏ธ โฌ๏ธ Black American Slang โฌ๏ธ English
Di Hawaiโi Convention Center dey hustle strong to make one of dia biggest revenue years since 1998, wen dem first open di doors. ๐ฐ
Teri Orton, wey be di big oga for di convention center, don yarn say dem dey aim to rake in about $24.1 million for gross revenue. Dis big money go include $1.4 million wey be interest income, but dem go still carry net loss of $1 million. Dis one still better pass di budget by $4.3 million. ๐ธ
“Even if we comot di $1.4 million wey be interest income, we still dey on track to make dis year financially solid pass wetin we bin expect, and e go even break record for revenue,” Orton talk. She talk say dis increase for money na combination of business wey spread for town and business wey come from outside, plus di growth for local business too. ๐
“We never reach where we dey before di pandemic. We dey do like 28 conventions each year, but dis fiscal year we dey look at 19, and next year go be about di same,” she talk. But she still dey confident say fiscal years 2024 and 2025 go dey bright. ๐
She talk say di center also dey on path to balance dia account for fiscal year 2024, wey go be di third year wey ASM Global don dey manage di convention center and e don dey show break-even or better results. She remember say for 2017, di center make net income pass $1.3 million and gross revenue over $17.5 million. For 2016, net income na $808,245 with gross revenue over $16.05 million.
“E sweet us well well when we balance di account because e mean say we no need state subsidy,” she add. ๐
Orton still talk say di center dey recover from di drop wey COVID-19 cause for big conventions and meetings. For di first 11 months of 2023, about 378,547 visitors enter Hawaii for meeting or convention or incentive trip. Dis number pass 28.4% from di same period for 2022. While conventions and incentive trips don increase by 34.9% and 42.1% respectively, corporate meetings go down small by 2.6%.
Even though di “citywides” don reduce, she talk say di return on investment for di center dey better. For November, she yarn say for every dollar wey dem spend, di center dey return $20.63 to di state, compare to $5.40 for December 2022. ๐น
Orton talk say di center na for support business wey dey come from outside, wey dey fill hotel rooms. She talk say na always di focus of di center to handle business wey dey come from outside Hawaii. But she talk say sometimes business dey go up and down because of recession, pandemic, and other wahala like economy for U.S. and other countries.
“ASM Global, wey dey run di building, don change strategy small for short-term business to help balance di expense and make sure di state subsidy no too much,” Orton talk. “We don create new market segments to make sure say business dey flow for di center even when overseas business no dey.”
For example, she mention indoor sports events like volleyball, basketball, futsal; festivals like di Okinawan Festival and Hawaii Food and Wine Festival; di Honolulu Marathon; concerts; and weddings. All dis dey help increase business for di center. ๐๐๐ถ๐
“Ten years ago when ASM Global start to manage di convention center, e dey make like $4 million annually from local business, but now e don reach record high of more than $10 million,” she talk.
Now, di main focus na to increase di “citywides”. Orton talk say one big event wey dey come for fiscal year 2024 na FestPAC, di 13th Festival of Pacific Arts & Culture, wey go celebrate dia 50th anniversary for Hawaii from June 6 to 16. She talk say di center go be di main venue for di event, wey dem expect say e go bring like 2,500 delegates from 28 nations and attract about 100,000 attendees. ๐บ๐
“FestPAC go big well well for us. Di Festival Village & Marketplace, where each nation go show dia culture, go dey here,” she talk. “Each nation go bring like 100 delegates, and plenty other people go come support. We hope say e go bring small conferences wey go allow us share best practices.”
Orton yarn say Hawaii group business don get boost since di state host di Asia-Pacific Economic Cooperation for 2011 and di IUCN World Conservation Congress for 2016.
But she talk say di pace report from di Hawaii Visitors and Convention Bureau show say future get challenge as Hawaii meeting, convention, and incentive market dey go enter 2026 and beyond.
She talk say as of November, di report show only three sure citywides for 2026, with only six for 2027, two for 2028 and one for 2029.
“Normally, we suppose dey for double digits,” Orton talk. She add say di drop for booking pace dey show di effect of pandemic and labour shortage for di sales force wey dey sell Hawaii group business travel.
“Because labour cost, utilities and other expenses for building don increase, e dey hard to keep our bottom line positive without di support of overseas business,” she talk.
HCC dey also manage $145 million for repairs and maintenance projects, wey no include di $64 million rooftop repair, Orton talk.
Still, she dey optimistic say di center and Hawaii Visitors and Convention Bureau go turn current challenges to opportunities.
“We still dey recover from di pandemic, but we dey begin see positive things,” Orton talk.
For start, she talk say di center dey see more inquiries and bookings for citywide events from associations and meetings for three- to five-year window.
“Before, na seven to 10 years ahead we dey book. So di booking window don short small. E good for us because we need short-term business,” she talk.
Plus, she talk say e get “more movement for site inspections for potential business wey fit consider us among dia top three cities wey dem go choose from. We dey start to see more queries for Hawaii.”
Orton talk say e dey show say more people dey ready to meet face-to-face again and virtual meetings, wey gain popularity during COVID-19, dey go back seat.
She talk say di return of di Japanese market don also help boost arrivals for di incentive market.
“Our first repeat Japanese-based group Daito come back dis year,” Orton talk. “We host 2,000-plus delegates for banquet dinner wey happen in two waves, total of 4,000-plus from Japan. Dis na good sign say dis market go soon come back.”
Orton talk say di center dey see one of di highest conversion rates for turning tentative bookings to definites for di 2024-to-2027 period.
Another new development na di buy of ASM Global by Legends, wey get many top sports brands like Dallas Cowboys, Real Madrid, and others as clients.
“The acquisition go happen over di next six months,” she talk.
Ron Bension, ASM Global president and CEO, talk say, “We happy to join Legends, wey share our client-first approach and dey help us meet our goal to give our partners seamless experience while dem dey grow dia business. Our clients go benefit from Legends’ strong services, innovation, technology, and global partnerships wey, combined with ASM Global’s venue management and content and event booking expertise, go give our clients better local solutions and advanced technology to achieve outstanding fan experiences and improve venue owner results.”
Keith Vieira, principal of KV & Associates, Hospitality Consulting, talk say ASM Global don work hard to bring HCC out of di pandemic-related lull and say Legends get reputation as good operator. But he talk say HCC need state Legislature support to fully recover di market, wey dey always bring back business.
“Once pandemic hit, budget cut and dem sack some people wey dey sell di convention center. Na di challenge of yearly budget wey dey need state Legislature support without long-term funding plans,” Vieira talk. “Di big-group business market na one market we suppose pursue during downturn. But we stop (booking) because we no get enough sales people.”
Jerry Gibson, president of di Hawaiโi Hotel Alliance, talk say di convention center success dey important for visitor industry.
“Dem don do well to book short-term business. Right now we dey worry about di pace of citywides,” Gibson talk. “Citywides dey fill different gaps at different times. We build our business base from these conventions, wey help us plan for next year budget season.”
Group travelers dey important because dem dey spend pass leisure travelers, e talk.
“Di big groups dey bring plenty banquet and catering business, wey dey help our bottom line and give our workers hours,” Gibson talk.
E add say high percentage of group travelers dey bring friends and family come for pre- and post-trips and dem dey return to Hawaii for holiday.
“E dey market wey get plenty potential to give back,” e talk. ๐ด๐๐ฅ๐ผ
NOW IN BLACK AMERICAN SLANG
Hawaiโi Convention Center Gearing Up for Major Overseas Moves ๐๐
Yo, check it โ the Hawaiโi Convention Center is aiming to hit it big, like one of their best years since they first opened up back in ’98. ๐ฐ
Teri Orton, who’s running the show over there, is talking about pulling in a cool $24.1 million in gross revenue. That’s including a sweet $1.4 million in interest income, but they’re still looking at a net loss of a mil. Yet, that’s still way less than what they budgeted for โ a whole $4.3 million less. ๐ธ
“Even if you take out that $1.4 million from interest, we’re still on track for a year that’s financially tight, beating our budget and setting new records in revenue,” Orton said. She’s saying this cash flow boost is a mix of local hustle and overseas business. ๐
“We ain’t back to where we were before COVID hit us. We used to handle like 28 conventions a year, but now we’re down to 19, and it’s looking like it’ll stay that way next year too,” she shared. But she’s still feeling good about 2024 and 2025. ๐
Orton’s also saying the center’s on the path to breaking even by fiscal year 2024. This would be the third year since ASM Global took over, and they’ve been hitting either break-even or positive. Back in 2017, they made over $1.3 million in net income, and in 2016, they pulled in $808,245.
“It’s a big deal when we break even ’cause that means we ain’t leaning on state subsidies,” she added. ๐
The center’s been bouncing back from the hit they took during COVID, with big conventions and meetings dipping. But in the first 11 months of 2023, they saw about 378,547 visitors coming to Hawaii for all these events. That’s up by 28.4% compared to 2022. While conventions and incentive trips were up by 34.9% and 42.1%, corporate meetings dipped a bit by 2.6%.
Even with the drop in “citywides” โ that’s what they call these big events that spread the love to multiple venues โ Orton’s saying their investment returns are looking up. In November, for every dollar spent, the center gave back $20.63 to the state, way more than the $5.40 in December 2022. ๐น
Orton’s stressing that the center was built for overseas business, filling up hotel rooms and such. That’s always gonna be their main thing. But she knows business can be up and down with recessions, pandemics, and other global issues.
“ASM Global, who’s running the building, switched up our strategy to include short-term business to help balance the books and keep the state subsidy low,” Orton explained. “Adding new types of events has been key in bringing in money when the overseas business ain’t strong.”
She’s talking about stuff like indoor sports events โ think volleyball, basketball, futsal; big festivals like the Okinawan Festival and Hawaii Food and Wine Festival; the Honolulu Marathon; concerts; and even weddings. All these are helping boost the center’s game. ๐๐๐ถ๐
“Just a decade ago, when ASM Global took over, we were making like $4 million a year from local business. Now, we’re hitting more than $10 million,” she said.
Now, the goal is to amp up the “citywides”. Orton’s excited about FestPAC, the 13th Festival of Pacific Arts & Culture, coming up in 2024. This event is gonna be huge โ it’s their 50th anniversary, and they’re expecting around 2,500 delegates from 28 nations, with a turnout of maybe 100,000 people. ๐บ๐
“FestPAC is gonna be a game-changer for us. We’ll have the Festival Village & Marketplace here, where every nation can show off their culture. We’re talking about 100 delegates per nation, plus all the folks coming to support. It could lead to more business and smaller conferences to share best practices.”
Orton also mentioned that hosting big events like the Asia-Pacific Economic Cooperation in 2011 and the IUCN World Conservation Congress in 2016 gave Hawaii’s group business a nice boost.
But she’s real about the challenges ahead, especially as they move into 2026 and beyond. The Hawaii Visitors and Convention Bureau’s report shows they’ve only got a few definite citywides booked for the coming years.
“Usually, we’d be looking at double digits,” Orton said, pointing out that the drop in bookings reflects the pandemic’s impact and a
shortage in their sales force.
“With labor costs, utilities, and other expenses, like fixing leaks, going up, it’s getting tougher to keep our financial game strong without the support of that overseas business,” she said.
The HCC’s also handling some major repair and maintenance projects, not even counting the $64 million needed for rooftop repairs.
Yet, Orton’s staying optimistic. They’re seeing more interest and bookings for citywide events from different groups and meetings, looking at a three- to five-year window now.
“The booking window used to be seven to 10 years out. It’s shorter now, which is great ’cause we need that short-term business,” she explained.
Plus, she’s noticing more interest in Hawaii as a top choice for big events.
“We’re seeing people ready to meet up in person again, leaving those virtual meetings behind. And the Japanese market’s bouncing back, which is a good sign for us,” Orton added.
She’s especially proud of their high conversion rate for turning tentative bookings into definite ones for 2024 to 2027.
Another big move is ASM Global’s acquisition by Legends, who’s got big names like the Dallas Cowboys, Real Madrid, and others under their belt.
“The deal’s gonna go down over the next six months,” she said.
Ron Bension, ASM Global’s president and CEO, said joining Legends is all about giving their partners a seamless experience and growing their businesses. “Our clients will benefit from Legends’ strong services, innovation, and global partnerships, combined with our expertise in venue management and event booking,” he stated.
Keith Vieira, a hospitality consultant, said ASM Global has been working hard post-pandemic, and Legends is known as a solid operator. But he pointed out that HCC needs the state Legislature’s support to fully bounce back.
“Once the pandemic hit, the budget was cut, and they had to let go of some sales staff. The big-group business market is key, especially during downturns, but we slowed down ’cause we didn’t have enough folks selling,” Vieira explained.
Jerry Gibson, president of the Hawaiโi Hotel Alliance, emphasized the convention center’s role in the visitor industry’s success.
“They’ve been on point with booking short-term business. But the pace of citywides is a concern. Those big events fill different needs at different times, and they’re the foundation of our business planning for the next year,” Gibson said.
He noted that group travelers are key ’cause they spend more and bring in a lot of catering and banquet business.
“A lot of these folks also bring their families and come back for vacations. It’s a market with lots of potential,” he concluded. ๐ด๐๐ฅ๐ผ
NOW IN ENGLISH
Hawaiโi Convention Center Sets Sights on Future Overseas Bookings ๐๐
The Hawaiโi Convention Center is on a roll, aiming for one of its most lucrative years since its doors opened in 1998. ๐ฐ
General Manager Teri Orton revealed that they’re targeting a whopping gross revenue of $24.1 million. This impressive figure includes $1.4 million in interest income, despite anticipating a net loss of $1 million. This loss is still a solid $4.3 million under the budget. ๐ธ
“Even after removing the $1.4 million of interest income, we’re on track for a financially robust year, surpassing our budget expectations and setting a new record in revenue,” Orton stated. She explained that this revenue surge is a mix of citywide and overseas business, coupled with an uptick in local dealings. ๐
“We’re not yet back to our pre-pandemic levels. Typically, we hosted about 28 conventions annually, but this fiscal year, we’re looking at 19, with next year projecting similar figures,” she said. However, she remains positive about the fiscal years 2024 and 2025. ๐
Orton also mentioned that the center is on its way to break even in fiscal year 2024, which would mark the third year under ASM Global’s management, showcasing either a break-even or positive bottom line. She recalled that in 2017, the center achieved a net income of over $1.3 million and a gross revenue exceeding $17.5 million. For 2016, the net income was $808,245 with gross revenue surpassing $16.05 million.
“It’s a significant achievement to break even because it means we don’t need state subsidies,” she added. ๐
Orton acknowledged that the center is still rebounding from the COVID-19 slump in large conventions and meetings. In the first 11 months of 2023, approximately 378,547 visitors to Hawaii attended a meeting, convention, or incentive trip. This number was up 28.4% from the same period in 2022. While conventions and incentive trips increased by 34.9% and 42.1%, respectively, corporate meetings saw a slight decrease of 2.6%.
Despite a downturn in “citywides” – industry jargon for large events that spread business across multiple venues – she noted that the centerโs return on investment figures are improving. In November, for every dollar spent, the center returned $20.63 to the state, a significant increase from $5.40 in December 2022. ๐น
Orton emphasized that the center was originally built to support offshore business, which fills hotel rooms. She noted that attracting business from outside Hawaii will always be the center’s primary focus. However, she acknowledged that business can fluctuate due to recessions, pandemics, and natural disasters, including the economy in the U.S. and internationally.
“ASM Global, the building operator, has diversified our strategic business plan to include short-term business, helping to offset expenses and minimize the state subsidy,” Orton stated. “Creating new market segments has helped generate revenue during times when offshore business was weak.”
For instance, she cited indoor sporting events like volleyball, basketball, and futsal; festivals like the Okinawan Festival and Hawaii Food and Wine Festival; the Honolulu Marathon; concerts; and weddings as contributors to the centerโs growing business. ๐๐๐ถ๐
“Ten years ago, when ASM Global took over the management, local business revenue was roughly $4 million annually. Now, itโs at a record high of more than $10 million,” she mentioned.
The focus now is on increasing “citywides”. Orton highlighted FestPAC, the 13th Festival of Pacific Arts & Culture, scheduled to celebrate its 50th anniversary in Hawaii from June 6 to 16, 2024. The center will be the main venue for the event, expected to bring about 2,500 delegates from 28 nations and attract up to 100,000 attendees. ๐บ๐
“FestPAC is going to be a major event for us. The Festival Village & Marketplace, where each nation can showcase their culture, will be right here,” she said. “With about 100 delegates per nation, plus other supporters, we’re hoping for spinoff business and opportunities for smaller conferences to share best practices.”
Orton mentioned that Hawaiiโs group business got a boost following the state hosting the Asia-Pacific Economic Cooperation in 2011 and the IUCN World Conservation Congress in 2016.
However, she noted that the pace report from the Hawaii Visitors and Convention Bureau indicates challenges ahead as Hawaiiโs meeting, convention, and incentive market moves into 2026 and beyond.
As of November, the report showed only three definite citywides for 2026, with just six scheduled for 2027, two for 2028, and one for 2029.
“Normally, we’d be in the double digits,” Orton said, explaining that the decline in booking pace reflects pandemic-related softening and labor shortages in the sales force that markets Hawaii group business travel.
“With the increase in labor costs, utilities, and other building-related expenses, including leak repairs and moisture mitigation, itโs challenging to maintain a positive financial bottom line without offshore business support,” she said.
The HCC is also managing $145 million in repairs and maintenance projects, excluding the $64 million rooftop repair, Orton mentioned.
Nevertheless, she remains optimistic that the center and Hawaii Visitors and Convention Bureau will transform current challenges into opportunities.
“We are still on the road to recovery from the pandemic, but we are beginning to see positive developments,” Orton said.
Initially, she noted an increase in inquiries and bookings for citywide events from associations and meetings within a three- to five-year window.
“Traditionally, booking was seven to 10 years out. So, the booking window has shortened, which is great for us as we need short-term business,” she explained.
Moreover, she observed “more traction in site inspections for prospective business that might consider us among their top three cities to select from. We are starting to see more queries coming in for Hawaii as one of the options.”
Orton also mentioned signs of people being ready to meet face-to-face again, with virtual meetings, popularized during COVID-19, taking a backseat.
The continued recovery of the Japanese market has also helped boost arrivals for the incentive market.
“Our return of our first repeat Japanese-based group, Daito, was this year,” Orton said. “We hosted 2,000-plus delegates for a banquet dinner in two waves, totaling over 4,000 from Japan. This is a promising sign that this market will return soon.”
Orton noted that the center is seeing one of its highest conversion rates for turning tentative bookings into definite ones for the 2024-to-2027 period.
Another development is the acquisition of ASM Global by Legends, whose client roster includes major sports brands such as the Dallas Cowboys, Real Madrid, SoFi Stadium, One World Observatory, FC Barcelona, University of Notre Dame, New York Yankees, and Ryder Cup, as well as leagues and properties such as the NFL, MLB, NASCAR, PGA of America, and FIFA World Cup.
“The acquisition will take place over the next six months,” she said.
Ron Bension, ASM Global president and CEO, stated, “Joining Legends, which shares our client-first approach, advances our goal of offering seamless experiences to our partners while growing their businesses. Our clients will benefit from Legendsโ robust services, innovation, technology, and global partnerships, combined with ASM Global’s venue management and event booking expertise, to provide locally tailored solutions and cutting-edge technologies for outstanding fan experiences and improved venue owner results.”
Keith Vieira, principal of KV & Associates, Hospitality Consulting, noted that ASM Global has worked diligently to bring HCC out of the pandemic-related slump, and Legends is known as a capable operator. However, he emphasized that HCC needs the state Legislature’s support to fully recover the market, which tends to be self-regenerative.
“Once the pandemic hit, the budget was cut, and they reduced the staff selling the convention center. That’s the challenge of having year-to-year budget requests from the state Legislature without multi-year funding plans,” Vieira said. “The large-group business market is one we should pursue during downturns. But bookings stopped because we didnโt have enough salespeople.”
Jerry Gibson, president of the Hawaiโi Hotel Alliance, stressed the convention center’s achievements as crucial to the success of the visitor industry.
“Theyโve done well in booking short-term business. Right now, we are concerned about the pace of citywides,” Gibson said. “Citywides fill different gaps at different times. We build our business base off these conventions, which helps us plan for next year’s budget season.”
He noted that group travelers are sought-after because they tend to spend more than leisure travelers.
“The big groups also bring in a lot of banquet and catering business, which helps our bottom line and provides our employees with hours,” Gibson said.
He added that a high percentage of group travelers often bring friends and family for pre- and post-trips and return to Hawaii for vacations.
“Itโs a market with a lot of potential to give back,” he concluded. ๐ด๐๐ฅ๐ผ
