Hawaii Tourism Latin America Webinars:

Mexico and Argentina

Learn more about these markets, consumer trends, how to work with the

travel trade, and other market updates….

MEXICO STATS

•President Enrique Peña Nieto •Next Elections Presidential: July 2018 Legislative: July 2015 •Nominal GDP USD 1.3 trillion •Total Trade/GDP 63% •Language: Spanish •Domestic economy proves stronger than expected •Mexico is the third largest economy in Latin America

COUNTRY OVERVIEW: MEXICO

Economic growth accelerated in the second half of 2014 and will continuing in 2015, driven by a US recovery, government spending on infrastructure. Inflation will come down to around three per cent and the peso is forecast to depreciate slightly. Mexico is an investment grade country supported by a stable macroeconomic environment, an improving business climate, and a healthy banking system. Criminal violence remains a major concern for the current administration and corruption is an issue that is being treated. Local and environmental opposition is also increasingly a factor for companies operating in the mining sector. The country’s small current account deficit is easily financed, while public debt levels are relatively low and foreign exchange reserves are near record levels. Structural reforms, that have begun to be implemented, particularly opening up the energy sector, could boost the country’s MLT growth prospects, competitiveness and creditworthiness.

Economic Outlook

Growth ► The Mexican economy is on a cyclical rebound and expanded at an annualized 4.2% q/q in the second quarter. The growth outlook is promising, supported by strengthening domestic demand, declining fiscal drag and growing investment; even the construction sector is showing signs of recovery. The Mexican central bank estimates that the economy will grow between 3.2% and 4.2% in 2015. The impact of major investments linked to reforms in energy, telecommunications and other sectors will begin to transform the real economy during the first half of 2015. The US economy, estimated to expand by 3.2% in 2015, remains a major driver of export sector revenue (the US receives 80% of Mexican exports), particularly in the auto sector.

Consumer Trends

Mexicans use to travel 5 to 7 times a year. Travel trends in Mexico are favorable to position Hawaii because region shows positive numbers in passengers travelling abroad year after year. Frequent leisure travelers are looking for new and more exotic destinations and travelers that look for those destinations in Latin America are not much affected in their travel behaviors in comparison with other segments that directly suffer impact of economic issues in the region. Booking window: 15 to 45 days in advance Hotel preference: 4 and 5 Stars Depending on segment and socio-demographic variables the final consumer will have its own preference to book considering the following alternatives: - Final consumer through OTAs - Final consumer through Travel Agency – Tour Operator BtoB + GDS and other online channels. - Final consumer to travel agency – traditional wholesaler – Tour Operator BtoB. - Final consumer – traditional wholesaler – Hawaii receptive Tour Operator

Mexico: Outbound tourists are expected to

increase their spending

Over the forecast period the number of outgoing tourists is expected to increase and in terms of spending, outbound tourists are expected to increase their spending over the forecast period by a 4% reaching USD$8 billion by 2018. México: Travel Trade Structure Traditional Travel Agents continue to remain at the cornerstone of the booking process with an overwhelming majority of the outbound trips. Top 3 Holiday Destination 2014 1 USA 2 Canada 3 Europe

Media Trends & Press Trips

In 2015, there will be an increase of 6 % internet penetration in LATAM. 75% of Mexican Internet users stop to look at online ads 83% of Mexican Internet users recall online ads 53% like to see ads in social media sites and 61% recall the ads they see on those social sites

2 press trips are scheduled for 2015 to invite 8 journalists from print, radio and broadcast outlets Dates are: Last week of February and First Week of April

Hawaii Tourism Latin America will focus 2015 strategy in spread the word of its multicultural attributes against other Polynesia destination and the great variety of activities and attractions the destination has to offer that is price value for a destination that is more than an “Exotic Beach”

Argentina Stats

•President Cristina Fernandez de Kirchner •Next Elections Presidential: October 2015 •Nominal GDP USD 609.9 billion •GDP Growth 2.9% •Language: Spanish •Argentina is one of the largest economies in South America.

Argentina Economic Outlook

Argentina’s economy contracted 0.8% annually in the third quarter of last year following a flat growth in Q2. The contraction was mainly due to a sharp fall in private consumption, which hit a record low in Q3. Recent data suggest that the economy remains weak. Although economic activity increased somewhat in October 2014. Against the current political and economic backdrop, Argentina’s economic outlook is quite uncertain. For 2016, specialists sees the economy expanding 2.2%. HTLA will be oriented to closely monitor main indicators of the country economy and have interviews with travel partners to analyze possible impact of politics and economic decisions in travel industry

Consumer Trends

Travel Pattern (travelling abroad): 3 to 5 times Booking window: 45 days to 6 months in advance Argentine upscale market are looking for faraway destinations. -Not much price sensitive because visiting Hawaii would be an add on package to a current trip to the US West Coast -Hotel preference: 3, 4 and 5 Stars Argentinean travelers have same preference than Mexicans to book their travels: Depending on segment and socio-demographic variables the final consumer will have its own preference to book considering the following alternatives: - Final consumer through OTAs - Final consumer through Travel agency – Tour Operator BtoB + GDS and other online channels. - Final consumer to travel agency – traditional wholesaler – Tour Operator BtoB. - Final consumer – traditional wholesaler – Hawaii receptive Tour Operator

Competitive destinations for Mexico &

Argentina depend on segments :

- Honeymooners segment competitive destinations: French Polynesia - Upscale families and couples segment competitive destinations (Mexico Trips of 8/9 nights – Argentinean Trips 10/14 nights): O Price sensitive: Air ticket cost is what defines the competitive destination. Market will look at what other destinations they can achieve for the same cost. As a result: Europe appears as a hugh competitive destination. O Aspirational destinations (Upcoming exotic Destinations): Middle East is becoming a region where Mexicans start to search for information. Hawaii is an “aspirational” destination for the Latin American market. Even though Mexico has great Sun & Sea destinations in their country an exotic Beach can trigger demand.

Travel Trade / Promotions & Campaigns

- Participation in Tradeshows - In house Training & Webinars

- FAM Trips & Travel trade inquires -Packages and support in development

- Public Relations Campaigns to reach Final Consumers

- Social Media (Facebook).

Objective: Help top ten partners to evolve to sell the new Brand Position of Hawaii in the region and reach goals. Strategy: Support travel partner with tools, training, partnerships, internal motivation programs and funds, in case they reach stage 7, to position Hawaii internally and increase sales. Tactics: Keep contacts informed constantly through e-blast, social media, newsletters, Educational campaign, Mahalo Months offers, etc. to be always in the top of mind and offer Hawaii destination proactively to their clients.

Best Day, Maui Visitors & Convention Bureau and HTLA are deploying a campaign to promote Maui’s treasures and wonders. Campaign will be covered online and offline throughout Mexico and will be designed to position Maui as a unique and new option for travel. The campaign will reach final consumers through Internet ads giving content to be familiarized with the destination

The region will be full of opportunities in

2015...

...let’s take advantage of them!

Flight Connection from Latin America

Latin American Air companies in expansion…

One of the best options for direct flights between Latin America and

Hawaii would be through Mexico.

Scenario 2015: HTLA is working in conjunction with Aero México to

evaluate the options and opportunity to inaugurate a new route

between DF / Honolulu.

Latam Airlines is looking to expand its routes in 2016 and Hawaii will

be included in their consideration and process.

WTM 2015

The leading global event for the Latin American travel industry

WTM Latin America is the three day must-attend business-to-business (B2B) event which brings the world to Latin America and promotes Latin America to the world by creating personal and business opportunities that provide customers with quality contacts, content and communities. Hawaii’s participation will provide the destination a unique opportunity to meet, network, negotiate and conduct business with more than 15,000 international travel professionals. *Share your brochures with us!

Outlook for 2015

The insights here should give you a sense of the pulse of the region, and make a great starting point for you and your team to get innovating. *Promotional rates *Attack and Promote your need dates during mid and lower seasons *Direct contracts (If possible and according the best return of investment) *Share your properties and companies feature with us *Include Upgrades, Amenities or Breakfast in your rates

Q&A

Mahalo!