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The number's above are only part of the picture aren't they ? Those numbers are only talking about property taxes.
The State also receives tax money via the Lodging Tax which is almost 14% of the $$ tourists spend on every hotel room rental.
Then the State also collects the GET tax on every $ tourists spend on everything else.
I would think the % of Hawaii's total state tax revenue is likely a pretty good share of the total revenue.
And I would hope as tourism and tourist spending increases, so should tax revenue to the State.
I'm new to owning in Hawaii but it seems the rebound in tourism & tourist spending should be good for the economy as a whole. But I'm no expert on Hawaii's economy and the benefit to the state of the tourism trade.
"To help draw new visitors, Hawaii's tourism authority spent about $6 million in 2011 to help airlines research and promote the most profitable routes to Hawaii. That is an increase from the $5 million the agency spent on airline routes in 2010 ".
Can anyone clarify what this is supposed to mean? Yes, I read it, but, HOW does "spending" 6 million "help airlines research and promote"...? First, airlines KNOW where Hawaii is located. "Profitable routes"? You FLY from where people want to depart FROM, to: Hawaii. Do they need an incentive additional to their profits IF they DO that? How does Hawaii using 6 million "help airlines"? WHY? Does Hawaii receive MORE BACK than the logical tourism dollars gotten when people come? So, airlines MAKE flight profits, and, Hawaii makes visitors' profits, the typical way ! WHY a NEED to spend 6 million MORE to achieve the OBVIOUS conclusions stated, by BOTH parties to DO it? Does Detroit receive a Federal or State huge sum to determine the "research and promote" aspect of building CARS? The point in this seems LUDICROUS, and money would have been better spent IN Hawaii on infrastructure and appeal to tourists that DO come! And, residents there already needing UPKEEP of crumbling all around the locations. If the money was a bribe or kickback to airlines, WHY? Capitalism operates on a free choice profit motive. GIVING tax money to private businesses that can function on their own dime, is wrong.
CHILL. No sense getting all twisted up over this, because it is accepted practice in the industry... devoting a small portion of the revenues generated to increasing those revenues. It's business analysis and business development, and it's normally money well spent.
In this instance, the chief objective seems to be to find ways to increase tourism travel from the US East Coast, which is far lower than tourism travel from the West Coast. And the analysis showed that more East Coast residents would vacation in Hawai'i IF they could get direct flights, rather than having to change planes in L.A., for example.
Then developing that idea further, they research which departure cities and what departure times would give the best revenue yields, to encourage the airlines to add flights.
Given how much money airlines have been losing the last few years they are unlikely to do such analysis on their own, so it seems a good investment for the state to make.
CHILL. No sense getting all twisted up over this, because it is accepted practice in the industry... devoting a small portion of the revenues generated to increasing those revenues. It's business analysis and business development, and it's normally money well spent.
In this instance, the chief objective seems to be to find ways to increase tourism travel from the US East Coast, which is far lower than tourism travel from the West Coast. And the analysis showed that more East Coast residents would vacation in Hawai'i IF they could get direct flights, rather than having to change planes in L.A., for example.
Then developing that idea further, they research which departure cities and what departure times would give the best revenue yields, to encourage the airlines to add flights.
Given how much money airlines have been losing the last few years they are unlikely to do such analysis on their own, so it seems a good investment for the state to make.
Appreciate the comments. However, I still maintain the money is wasted.
Deductive reasoning, awareness, and common sense cannot be purchased or subsidized. The phrase "you cannot FIX stupid, applies". Take the 6 million and more, and motivate tourists to come, and they will. Period.
"Come to Hawaii and your first TWO days are FREE" ! FREE buses to Diamondhead, Polynesian Culture center, and more"! (Be creative is the point here). Want to marry in Hawaii? The State will marry you FREE, and first TWO days of your honeymoon!
Not criticizing, but I know that often people accepting the "industry practice" as a basis for any method is widespread. However, it does not make it valid. Example is Wall Street and the housing defaults using smoke and mirrors.
There is another expression for those doing the same things over & over with the same results; insanity.
Last edited by Jeepers Creepers; 02-25-2012 at 12:09 PM..
Take the 6 million and more, and motivate tourists to come, and they will. Period.
Ahhh, but the trick is finding out WHAT will motivate tourists. If they are doing their job correctly, that is the question their research is designed to answer.
Quote:
Originally Posted by Jeepers Creepers
"Come to Hawaii and your first TWO days are FREE" ! FREE buses to Diamondhead, Polynesian Culture center, and more"! (Be creative is the point here). Want to marry in Hawaii? The State will marry you FREE, and first TWO days of your honeymoon!
And to my point, NONE of those would motivated me, personally, to travel to Hawai'i instead of to a different destination when I lived on the East Coast. In addition, that kind of "Las Vegas" style promotion works best with a lower-end travel customer on a limited budget. On the other hand a direct flight that saves an overnight hotel stay and a change of planes in LA has appeal to all income levels.
My point is "Different strokes for different folks." The difference between professionals and highly opinionated amateurs, especially in the marketing business, is that pros do their research and make their decisions based on evidence, rather than just on personal biases. Marketing is a lot more complicated than most people seem to think.
The issues are due to preferences on flying, but direct flights still need fuel, and, FAA requirements on flights over 8 hours etc typically need a 3rd pilot backup. Many people have already chimed in to the industry that long flights depend on your desires. But 10 hour plus flight time, may be good or bad depending on the passenger, and amenities. The original point remains, that spending MILLIONS to gather already existing data is stupid. One method is simple enough:
Place a web site for passengers to indicate preferences on flights. Give choices and blanks for added "wants". The site will not cost MILLIONS, as spent 2010-2011 (11 million total) ! It gives DIRECT data from potential passengers.
Ellery Chun made the "Aloha shirt" in the 1930s and it became widely famous, particularly in the 1950s with faster transport planes. It was cheap, and an ideal symbol of Hawaii. It generated the Aloha Friday theme which is world wide now as TGIF . "Creative" and NOT at a cost of MILLIONS! It MADE money and did not require a "study". Today, Hawaii should consider
"Come to Hawaii, where Aloha Friday Lasts as LONG as you STAY" !
The original point remains, that spending MILLIONS to gather already existing data is stupid.
To clarify, I didn't say that was ALL they did, I just gave it as an example of the kind of thing they do. It's easy to take potshots at programs you are not personally involved with. Your understanding is limited, you have nothing at stake, it's easy to take facts out of context and poke fun at them. My own assessment is that they seem to do a pretty good job, and their information is clear and timely... something you cannot say of a LOT of states' economic development agencies.
The issues are due to preferences on flying, but direct flights still need fuel, and, FAA requirements on flights over 8 hours etc typically need a 3rd pilot backup. Many people have already chimed in to the industry that long flights depend on your desires. But 10 hour plus flight time, may be good or bad depending on the passenger, and amenities. The original point remains, that spending MILLIONS to gather already existing data is stupid. One method is simple enough:
Place a web site for passengers to indicate preferences on flights. Give choices and blanks for added "wants". The site will not cost MILLIONS, as spent 2010-2011 (11 million total) ! It gives DIRECT data from potential passengers.
Ellery Chun made the "Aloha shirt" in the 1930s and it became widely famous, particularly in the 1950s with faster transport planes. It was cheap, and an ideal symbol of Hawaii. It generated the Aloha Friday theme which is world wide now as TGIF . "Creative" and NOT at a cost of MILLIONS! It MADE money and did not require a "study". Today, Hawaii should consider
"Come to Hawaii, where Aloha Friday Lasts as LONG as you STAY" !
I think I already came up with that. Someone told me "It's Aloha Friday" and I said "Every day is Aloha Friday". Can I just patent that?
I think I already came up with that. Someone told me "It's Aloha Friday" and I said "Every day is Aloha Friday". Can I just patent that?
Can't patent it... it's not an invention, that "advances the art." A new machine to crack macadamia nuts might be patentable.
Can't trademark it... a trademark is a name, or a brand used for a product in business. Ellery Chun Trademarked "Aloha Shirt." That name was all he could legally protect, because the shirts had already been made and worn for years previous.
You might be able to register it as a Service Mark, which is the legal protection often sought for mottos used for services.
Of course it will cost you money to file for it, and more money for lawyers to defend it, without any guarantee you could ever make a dime from it...
I think I already came up with that. Someone told me "It's Aloha Friday" and I said "Every day is Aloha Friday". Can I just patent that?
Sounds good to me! If there is a IPO afterwards, sign me up ! LOL.
I am all for Hawaii doing well, and the more positives, the better! Maybe T-shirts on line?
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