However, higher room rates compensated the hotels for the dip in traffic and some areas of the state did better than others, according to the latest monthly report from the accounting and visitor industry consulting firm PKF-Hawaii.
"The slight decrease in occupancy in August was the fourth consecutive month of decreasing occupancy," said Ernest Watari, PKF-Hawaii chairman and chief executive officer.
"However, for the year statewide occupancy is slightly higher than last year and room rates continue to grow," he said.
"The Big Island had a strong summer, due in part to the recently introduced direct air service from Japan," Watari said. Japan Airlines began running three flights a week from Tokyo to Kona in June.
The Big Island showed an average occupancy of 73.76 percent last month, up from 62.46 percent in the year-earlier month. The Kohala Coast area got a particular boost, with occupancy jumping to 84.55 percent last month, from 67.65 percent in August 1995.
The beachfront hotels in Waikiki had the best occupancy in the state, 88.51 percent last month, but that was a dip from 90.34 percent a year earlier. Waikiki as a whole had occupancy of 86.8 percent, down from 90.36 percent in August 1995.
Maui's occupancy was flat at 79.73 percent, compared with 80.84 percent a year earlier. On Kauai, hotel occupancy increased to 75.59 percent, from 71.94 percent in August 1995.
The statewide average room rate in August was $131.82, up 8.3 percent from $121.73 in the previous August.