Isle hotel occupancy
continues decline

February saw the 10th
consecutive month of lower rates,
a report shows

By Russ Lynch
Star-Bulletin

February occupancy in Hawaii's hotels and resort condominiums was down from last year for the tenth consecutive month, with condominiums hit worse than hotels.

Statewide average occupancy for all types of tourist accommodations was 83.3 percent, down 1.9 percentage points from 85.2 percent in the previous February, according to the monthly report by the accounting and management consulting firm PKF-Hawaii. Hotels came in at 84.2 percent, down 1.6 points, and condominiums averaged 79.3 percent full, down 3 percentage points.

"The February statistics are indicative of the continued softening of the market, primarily due to the ripple effects of the Asian economic flu," Ernie Wa-tari, chairman and chief executive of PKF-Hawaii, said today.

"Luckily for Hawaii, we have not been hit as hard as some of the other Asia-dependent destinations (such as Australia and New Zealand) where they are experiencing double-digit decreases in tourism," Watari said.

Apparently saving the day for Hawaii is an increase in arrivals from the mainland.

The Hawaii Visitors & Convention Bureau issued a research report yesterday showing that Hawaii travel increased in the 12 months through January, from each of the 11 major mainland metropolitan areas where the HVCB advertised last year.

Increases ranged from a modest 1.9 percent in the New York area to 30.1 percent in traffic from Houston, where Continental Airlines resumed nonstop service to Hawaii in August.

PKF-Hawaii's report showed that room rates increased 3.7 percent to a statewide average daily rate of $146.46 in February.

An island-by-island check showed that occupancy was up on the Big Island (81.9 percent from 81.2 percent) and Molokai (64.4 percent from 62.4 percent) but down on Oahu, Maui and Kauai.

Oahu occupancy last month averaged 86.6 percent, down from 88.9 percent in the year-earlier month. Maui was at 81.7 percent, down from 83.7 percent, and Kauai occupancy of 70.2 percent was down from 71 percent.