But the Big Island and
Maui see increases

By Russ Lynch
Star-Bulletin

Asia's economic troubles and declining currencies took their toll on Hawaii tourism again last month, as May became the 13th consecutive month in which statewide hotel occupancies were below the year-earlier month.

There were some bright spots on the neighbor islands but the big-volume areas such as Waikiki did poorly, according to figures issued today by the hospitality industry consulting firm PKF-Hawaii Inc.

Waikiki, the most popular destination among the Japanese tourists, was particularly hard hit, recording the lowest May occupancy in at least 16 years, PKF-Hawaii's monthly report said.

Statewide occupancy fell nearly a percentage point to 66.99 percent, from the already-low level of 67.9 percent in May 1997.

Waikiki occupancy fell 4.3 percent to 68.3 percent, from 72.6 percent in May 1997.

The drop was even higher, 6.1 percentage points, in the beachfront hotels in Waikiki that have the highest room rates in the resort district. They reported in at 70.8 percent full, down from 76.9 percent in the year-earlier month.

"The May statistics continue to show the impact of the Asian meltdown," said Ernie Watari, PKF-Hawaii chairman and chief executive officer.

"This is the first time since 1985 for a month of May in which Waikiki's occupancy has dipped below to 70 percent level. May hotel occupancies in Waikiki are traditionally in the mid-70 percent to low-80 percent levels," Watari said.

Waikiki properties had to hold the line on rates to keep business coming.

The full-service hotels along the beach, which have been edging their rates up in the past year or more, averaged $151.26 a night last month, up only 1.4 percent from $149.10 in the previous May.

Other rates in Waikiki were flat.

One set of positive statistics came from the Big Island, which had its highest overall occupancy average for May since PKF began compiling the statewide hotel statistics in 1972.

The island averaged 67.6 percent compared with 58 percent in May 1997 and managed a 12.8 percent increase in the average room rate to $155.02 last month, compared with $137.42 in May 1997.

Maui did well too, with occupancy of 66 percent, up from a year-earlier level of 63.7 percent, and a 3.8 percent rise in the average room rate to $149.27, from $143.74 in the year-earlier month.

On Kauai, occupancy and room rates both slipped and Molokai reported lower occupancy and flat room rates.