Hawaii gets a boost to the Max

Max Key posted pictures featuring his girlfriend Amelia Finlayson from his holiday in Hawaii.

Video by PM’s son hailed a great promotion as softer dollar hits island’s tourism appeal

Hawaiian tourism leaders say the fall in the Kiwi dollar against the US currency is making their job harder but the islands got a boost from Max Key's holiday video.

"It was great destinational promotion," said Darragh Walshe, country manager of Hawaii Tourism Oceania.

Max Key, son of Prime Minister and Tourism Minister John Key, last week posted a popular video with his girlfriend Amelia Finlayson, featuring scenic spots on the island of Maui.

Walshe said Hawaii had experienced rapid growth in visitors from New Zealand since capacity increased and air fares fell with the arrival of Hawaiian Airlines just over two years ago. The strong Kiwi dollar - which reached US88c last July - had also helped and about 63,000 New Zealanders visited Hawaii last year. However, the fall in the cross rate to around US65c had made New Zealanders planning holidays take note.

"It's been so dramatic over the last couple of months that a lot of them have stood back and said 'my gosh'," Walshe said.

However, air fares were on average about $500 lower than before Hawaiian started flying. The "goldilocks" level was about US70c against the greenback for Kiwi travellers. Walshe said his organisation was discussing room rates with hoteliers in Hawaii, pointing out the exchange rate movements.

"The message that we send up to Hawaii is not to get too greedy," Walshe said. "They're pretty good, I know some of the groups are negotiating with hotels in Hawaii in terms of getting that [room rate] level down, that's the one that really adds to the cost."

The islands are also trying to attract the meetings, incentives and conventions industry in the highly competitive Pacific Rim market which New Zealand is set to enter with a number of convention centres in the next five years.

Sales director of the Oahu Visitors Bureau Marie Watanabe said the business market often followed holidaymakers. "As the leisure market grows desire for the incentive market in Hawaii also grows."

Organised tours can help beat shifts in currency

Flight Centre says the lower kiwi dollar might have a "slight" impact for travellers on the ground in the United States but the overall impact on travel will be minimal.

Product general manager Sean Berenson said anyone planning a trip should consider an organised tour.

"Dependent on the level of inclusiveness, booking and paying ahead of time can mean that holidaymakers won't need to be concerned about the dollar falling and impacting on their budget for food, hotels, transport and activities," he said.

Falls against the pound, euro and Australian dollar had been less marked.

Berenson said air fares to the US were also more competitive.

A year ago a return fare from Auckland to Los Angeles ranged from $1299 to $1349. Fares were now $1199. Looking back even further, in 2010 a return fare to Los Angeles ranged from $1699 to $2159.

Westpac's senior market strategist Imre Speizer said yesterday the bank maintained its negative outlook for the kiwi against the US dollar, and expects the US65c level to give way during the next few weeks.

Three months from now the next major target area was US62c, a level which provided support during the middle of 2009.

The currency could be lower than US62c one year for now as New Zealand interest rates come down and those in the US go up, Westpac said.