Hotels snap
occupancy losing streak

And room rates soar 8.2 percent
above last year

By Russ Lynch
Star-Bulletin

After 10 months of declines, statewide hotel occupancy improved slightly last month compared with March 1996 figures, the accounting and consulting firm PKF-Hawaii said today.

The statewide average occupancy level last month was 79.4 percent, compared with 79.1 percent in the previous March.

The increase was accompanied by an 8.2 percent increase in room rates, to a statewide average of $141.44 a day, from $130.76 in March 1996.

The Big Island showed the best improvement, with an increase of nearly 10 percentage points in occupancy -- 73.8 percent last month compared with 63.7 percent in March 1996 -- coupled with a 16.8 percent increase in the island's average daily room rate, $153.48 compared with $131.38.

PKF-Hawaii, which has monitored hotel performance for the tourist industry since 1972, said room rates were up on all islands except Molokai. Its figures show the Big Island's strong occupancy increase and a small occupancy rise on Oahu were enough to counter declines on other islands.

"It is very encouraging to see statewide occupancy increase for the first time in nearly a year," said Ernie Watari, PKF-Hawaii chairman and chief executive. "Waikiki also achieved an occupancy increase for the first time in 11 months, which could be an indication of a stronger eastbound market."

Japanese visitors, who make up the majority of eastbound travelers, tend to stay overnight mostly on Oahu. And with shorter stays than the mainlanders, Japanese tourists don't find time to make much more than day trips to neighbor islands. The Hawaii Visitors & Convention Bureau has yet to report its tourist volume survey results for March.

PKF-Hawaii said Waikiki had an occupancy level of 83.1 percent last month, up from 82.7 percent the previous March. Waikiki's March average room rate of $126.09 was up 7 percent from $117.83 a year earlier.

Maui's occupancy slipped to 80.4 percent, from 83.3 percent a year earlier, but Maui's average room rate of $170.72 last month was up 7.3 percent from $159.17 in March of last year. Kauai occupancy last month was 69.2 percent, down from 73.6 percent, and the Kauai room rate was $154.07, up 4.2 percent from $147.90.

Molokai occupancy slipped to 46 percent, from 49.7 percent, and its average room rate declined slightly to $79.14 from $79.73.

The highest rates were on the Kohala Coast of the Big Island, where the average daily rate in March was $213.90, up 15.4 percent from $185.34 in March 1996.

Waikiki properties away from the beach and without their own restaurants still had the lowest rates, averaging $72.91 a day last month, but that was a 4.2 percent increase from $69.92 a year earlier.