Tourism in Hawaii is an $11 billion dollar industry and golf represents $1 billion of that, according to the state Department of Business, Economic Development and Tourism. And next week, some 88 million U.S. homes and people in more than
Tourism in Hawaii is an $11 billion dollar industry and golf represents $1 billion of that, according to the state Department of Business, Economic Development and Tourism. And next week, some 88 million U.S. homes and people in more than 100 countries will tune in to view this year’s PGA Grand Slam of Golf via the TNT network’s live broadcast from the 18-hole Poipu Bay Golf Course, sponsored by the Kaua‘i Hyatt Regency Kaua‘i Resort & Spa.
Hawaii – and Kaua‘i – stand to garner millions of dollars in free advertising via this event alone. The state was so sure of the economic ripple effect of golf events here that they budgeted $2.1 million to support all six PGA events this year.
The immediate effect of the Grand Slam alone – the final PGA event of the year – is tough to determine, but data suggests it has already had a big impact.
For example, unemployment claims here on Kaua‘i went from 541 for the week ending Nov. 5, to 460 for the week ending Saturday, Nov. 12. That’s a big jump, and a strong indication that people are back to work. Nearly 1,000 people are working at the Hyatt alone right now. “We usually bring on our full staff,” said Claire Morris-Dobie, director of public relations for the Hyatt Regency Kaua‘i Resort & Spa, where the event will be held for the eleventh consecutive year of its 12 year run in Hawaii.
“We’ve been very, very lucky to have had it for so many years running,” said Beth Tokioka, who heads up Kaua‘i’s Office of Economic Development. “I think it speaks to the enormous appeal of the destination, and to the great efforts of the partners in Poipu, the State, the County and the Kaua‘i Visitors Bureau, who work with PGA every year to make it a success.”
The four-day event is Kaua‘i’s ace up the sleeve this time a year, when Hawaii’s tourism industry as a whole typically hits what industry insiders call a “soft shoulder.”
“We’re at nearly full occupancy right now,” said Katy Britzmann, the Hyatt’s director of sales and marketing.
Indeed, all of Kaua‘i’s hotels have seen a surge in recent weeks. Occupancy rates went from 63.1 in the week ending Nov. 7 to 77.7 percent for the week ending Nov. 14 – a phenomenal 15 percent jump. That number will prove even higher next week, as overflow crowds and last-minute travelers scramble to find rooms at hotels other than the Hyatt.
The Hyatt will host at least 1,200 visitors at their resort over the next four days.
“And if they bring their kids, it could be nearer to 2,000,” Morris-Dobie said. Meanwhile, with an expected 3,000 to 5,000 attendees, the PGA Grand Slam definitely causes a surge in visitor activity all along the South Shore, from room booking to restaurants to car rentals, and activities such as surfing, kayaking and tours, says Margy Parker, executive director of the Poipu Beach Resort Association.
But it’s the television coverage that has the travel and leisure industry here excited. The two days of television coverage Nov. 23 and 24 will generate millions of dollars in free promotion.
“The television coverage is invaluable,” Morris-Dobie said. The deal between them, the state, the PGA and TNT assure four to six “bumper” spots highlighting the attractions of Kaua‘i and the Hyatt – the pools, the spas, the golfing and the surrounding beauty of Poipu.
At $600,000 to $800,000 per spot, figures Morris-Dobie, “It means anywhere from $2 to $3 million in exposure. And that’s something we couldn’t afford.” The TNT network has a more upscale demographic than many other stations, says Morris-Dobie, giving the Hyatt, and Kaua‘i, perfect placement at the right time.
Imagine millions of golf enthusiasts wistfully watching top-named professional golfers like 2004 Masters champion Phil Mickelson, U.S. Open champion Retief Goosen, British Open champion Todd Hamilton, and 2004 PGA Champ Vijay Singh strolling the sun-drenched greens and fairways of Poipu. “It results in images broadcast on national cable television for 3 to 4 hours two days in a row during east coast prime time, typically during a time of year that starts to become cool and rainy,” Parker said. “Next Tuesday, Detroit will have a high of 46 degrees and rain. Imagine how Kaua‘i will look on television to viewers in that region!”
That kind of promotion pays off months, even years, down the line, experts say. Consider that 52 percent of Hawaii’s visitors say that golf is very important when making decisions about travel to Hawaii. Even more, consider the numbers from a recent Hawaii Tourism Authority survey: 63 percent said they had golfed on their last trip to Hawaii; 51 percent said the top five courses could be found in Hawaii; the average golfer spends $553.05 per round of golf, including $157.07 for merchandise and $114.25 for food and beverage during golf.
How much more this year’s Grand Slam will generate in future golf tourism for Kaua‘i remains to be seen. The state next year will calculate the economic impact that all six events have had on Hawaii and determine their support accordingly. But Kauaians right now aren’t counting. They’re basking in the glory of being home to what is reputed to be the toughest PGA event there is, and where the winner gets a $1 million purse.
“You can’t put a dollar value on being the ‘home’ to such a significant event,” Tokioka says. “They keep coming back and we want them back for as long as we can have them.”
Grand Slam & Charity
For the first time in its 12 year run, a portion of ticket sales for the 2004 PGA Grand Slam of Golf will benefit local charities. Ticket buyers can select one of the following three organizations who will get 50 percent of the ticket price: Rotary Club of Poipu Beach, Kaua‘i Junior Golf Association, or Aloha Section PGA Charitable Foundation. “Other than jobs and revenue that’s created, the event also gives volunteers an opportunity to give back to the community and to have fun at the same time,” says Beth Tokioka, head of Kaua‘i’s Office of Economic Development.
“Students from the Academy of Hospitality and Tourism at Kaua‘i High School volunteer and get great hands on experience. Junior Golfers and golf enthusiasts get involved also. It’s a real boost to the entire community,” Tokioka said.
This annual PGA Grand Slam of Golf, taking place at Poipu Bay Golf Course, features the year’s four major champions in a 36- hole stroke-play event conducted over two days. A Pro Am tournament will take place on Monday, Nov. 22, followed by the event on Tuesday and Wednesday, Nov. 23-24.
Tickets are priced at $10 for the Pro Am, $20 for first round play, $20 for final round play, or $40 for season tickets covering all three days. Tickets are available through PGA of America at 1- 800-PGA-TCKT (742-8258) or (561) 624-7601. Buyers should indicate which of the three organizations they choose to be the beneficiary of their ticket purchase.
