Isle hotels less full in Dec.
A survey shows the impact of Asian woes
By Russ Lynch
Star-Bulletin
Occupancy in Hawaii's hotels and resort condominiums fell to 67.8 percent in December, according to a new survey, making it the eighth straight month in which occupancy dropped compared with the year-earlier month. PKF-Hawaii, a hospitality industry consulting firm, said last month's figure compares with 69.5 percent in December 1996 and was the worst December occupancy since the 67.4 percent level reported for December 1985.
"What started as a year of cautious optimism for the hotel industry has turned into another year of downturn coupled with the gloom prospects of an even worse year in 1998," PKF-Hawaii said in its report.
Economic problems in Asia could plummet Hawaii's economy into an even deeper recession, said Ernie Watari, PKF-Hawaii chairman and chief executive officer. "We are definitely starting to feel the impact of the Asian economic crisis," he said.
Oahu felt the brunt of the occupancy drop with a 74.41 rate, down more than 4 percentage points. All other islands had slight increases.
Room rates, on average, were up last month. The statewide average of $148.75 was 6.4 percent higher than the average of $139.75 posted in December 1996.
However, even the lowest-priced properties in the state, the hotels and condominiums in Waikiki that are away from the beach and don't have restaurants, showed an occupancy decline, to 72.7 percent from 78.1 percent in the year-earlier month. Room rates in those properties averaged $71.16 a night, up only slightly from $70.89 in December 1996.
One bright spot in the overall picture was the Kohala Coast of the Big Island, where occupancy climbed to 66.3 percent from 59.1 percent in December 1996 despite a 9.8 percent increase in the average room rate to $240.51, the highest room rate in the state.
Revenue per available room, which the industry considers an important statistic because it reflects the actual cash received, was up statewide by 3.8 percent to an average of $100.81, compared with $97.10 in December 1996.
