However, room rates rose as occupancy declined, said PKF-Hawaii, an accounting and consulting firm that issued its monthly report yesterday.

"The rate increases are much higher than the corresponding decreases in occupancy," said Eric Kloninger, PKF-Hawaii manager.

The average Hawaii daily room rate last month was $127.57, up 9 percent from $116.94 in July 1995, according to PKF-Hawaii, which has monitored the state's lodging industry since 1972.

The figure that the hotel industry itself looks at most closely, revenue per available room, was substantially higher, he said, indicating that hotels are bringing in more money despite the occupancy decline. Each island reported July increases in revenue per available room, which counts money coming in from the rooms that the hotels had open.

The overall occupancy number reflects total income compared to the physical number of rooms in each property, even though some may have been closed.

The average statewide revenue per available room was $99.67 last month, up 5.4 percent from $94.55 in the previous July.

One high spot last month was the Big Island's Kohala Coast, where occupancy was up nearly 15 percent compared with the previous July, Kloninger said. The improved performance came despite an increase of 7.3 percent in the average room rate.

The result in that area was a 23.3 percent increase in revenue per available room, a substantial rise in the high-priced luxury resort area.

Kloninger said that Japan Airlines' direct flights to Kona from Tokyo, which started in early June, apparently helped.

The Kona Kohala Resort Association said yesterday that the area expects to get an additional boost in December when Korean Airlines expects to begin running three charter flights a week from Seoul to Kona. The flights could bring 200,000 people a year to the Big Island, the group said.

Despite the five months of decline, Oahu still had the highest occupancy in the state last month, 83.52 percent, but it was down from 88.66 in the previous July.

Oahu room rates were up 10.2 percent at a $115.67 average. The next busiest island, Maui, showed 74.61 percent occupancy, down from 77.89 percent. The average Maui room rate last month was $157.11, an 8.4 percent increase from July 1995.

Big Island occupancy, thanks to the Kona-Kohala boost, was 66.92 percent, up from 63.03 a year earlier. The average Big Island room rate was up 9.3 percent at $123.42.

Kauai had an occupancy level of 73.06 percent, up from 69.36 percent, with an average room rate of $136.66 last month, up 4.1 percent. Molokai's rate was 37.72, up from 32.16 with an average room rate of $70.49, down 4.6 percent.