Hawaiian Hospitality Group Sees Major Revenue Opportunity for New Acquisition Within Oahu’s $5.1 Billion Tourism
Market PR Newswire “Press Releases US – English “
HALEIWA, Hawaii , Oct. 19 /PRNewswire/ — Hawaiian Hospitality Group, Inc. (Pink Sheets: HHGI), a growing provider of sustainable land use solutions and event services, is pursuing a significant opportunity to increase revenue by providing unique submarine tours of Hawaii ‘s underwater ecosystems. Newly acquired Submersible Technical Services LLC will offer unforgettable diving experiences to visitors to the island of Oahu where more than 4 million visitors spent $5.1 billion last year.
Hawaiian Hospitality Group successfully closed the acquisition of Submersible Technical Services on September 15, 2010 . Submersible will operate as a wholly owned subsidiary providing tours of Hawaii ‘s breathtaking marine ecosystems in state-of-the-art submersible vessels. Submersible is a development-stage company engaged in the design, manufacture and operation of personal, one to three person submersible vehicles for diving, fishing and sightseeing excursions.
According to the Hawaii Tourism Authority’s 2009 Annual Visitor Research Report released October 1, 2010 , visitors to the Hawaiian Islands spent $9.9 billion in 2009. Oahu accounts for more than half of Hawaii ‘s tourism revenue. Of the nearly $10 billion generated, $5.11 billion was spent on Oahu . Oahu hosted 4,119,517 tourists last year.
Hawaii has demonstrated clear signs that the economy has started to recover, according to the State Department of Business , Economic Development & Tourism (DBEDT). In its Quarterly Statistical and Economic Report released August 19, 2010 , DBEDT asserts the most encouraging signs of recovery were in tourism. The total number of visitors arriving by air to Hawaii continued the upturn experienced since the third quarter of 2009 by posting a 7.1% increase in the second quarter of 2010 over the same quarter of 2009. Other visitor metrics such as the average daily visitor census and visitor spending were all positive compared with 2009. Visitor spending increased 10.4% in second quarter this year, the largest growth of visitor spending since the third quarter of 2005.
Submersible Technical Services will operate within the Sightseeing Boats subset of the Water Passenger Transportation industry. According to Dun & Bradstreet , the average business in this $148.8 million market has annual sales of $900,000 ( Dun & Bradstreet , Industry Data for SIC 4489, August 2010 ).
Hawaiian Hospitality Group ‘s primary business is operation of Loulu Palm Estate , a popular venue for weddings and events on Oahu ‘s North Shore . Loulu Palm Estate began operations in 2009 as a destination wedding site with immediate cashflow from venue fees and event services. Sales for the flagship property rose significantly this year and bookings for 2011 signal further increases.
Ms. Renee Leong , CEO of Hawaiian Hospitality Group , commented: “We are pleased to be able to expand our offerings to visitors of the Hawaiian Islands. The acquisition of Submersible Technical Services enables us to enter a largely untapped niche market and provide an unforgettable way to experience Oahu ‘s underwater vistas. We are seeing increasing signs of economic recovery and growth on the Islands and believe our newly acquired submarine tour business positions Hawaiian Hospitality Group for substantial increases in revenue and market share.”