Tourism off 2%
through Nov.

Once again, Asia
takes the blame

Star-Bulletin staff

Hawaii's top industry entered the last month of 1998 in negative territory as the latest visitor count figures showed a drop in arrivals for November and the year to date.

Last month, a total of 524,190 visitors came to Hawaii, a drop of 3.1 percent from 540,850 in November 1997, according to yesterday's report from the Hawaii Visitors & Convention Bureau and the state Department of Economic Development and Tourism.

For the first 11 months of 1998, the report shows, 6.17 million tourists came to the isles, a 2 percent drop from nearly 6.3 million arrivals in the same period last year.

The decline last month and for the year was blamed largely on the slump in tourists from Asia, especially Japan. According to the report, eastbound arrivals dropped 11.9 percent last month -- 188,110 vs. 213,550 in November 1997 -- and 10.4 percent for the first 11 months -- 2.3 million vs. 2.5 million a year ago.

November was the twelve straight month of declining arrivals from the Asia-Pacific region, the report noted.

"Economic difficulties throughout Asia have more than taken their toll on Hawaii's eastbound visitor counts," Tony Vericella, president and chief executive of the HVCB, said in the report. "Looking ahead, while we do not expect the market to turn itself around overnight, we do believe that eastbound arrivals will perform better in 1999 than they did this year."

Fortunately for Hawaii, the U.S. mainland's strong economy has provided a counterbalance to Asia's woes. Westbound tourists, primarily from the mainland and Canada, continued to boost Hawaii's tourism industry, rising 2.7 percent in November -- 336,080 vs. 327,300 in November 1997 -- and 3.8 percent for the year through November -- 3.88 million vs. 3.74 million a year ago.

The state and HVCB found other positive statistics to highlight in their monthly report, including:

The average length of stay was 8.65 days in November, up 4.2 percent from 8.3 days in November 1997. And the average length of stay was up 2.5 percent for the first 11 months of the year. The industry considers this a critical statistic because the longer tourists stay, the more they spend.

Because of the longer stays and the increased westbound traffic, the average daily census -- the average number of visitors in Hawaii on any given day -- rose 1 percent in November and was up 0.5 percent for the first 11 months.

Three islands -- Kauai, Lanai and the Big Island -- saw an increase in traffic last month. "Year-to-date, Big Island arrivals remain ahead by 5.7 percent, outpacing all other islands in the state," Seiji Naya, DBEDT's director, said in the report. "The strong visitor performance has meant growth in jobs for the Big Island." Kauai was the only other island in positive territory for arrivals in the first 11 months of 1998, up 2.9 percent from last year.

Still, the news was bad for Oahu, the state's top visitor destination. Arrivals to Oahu fell 5.6 percent last month -- to 365,810 from 387,700 in November 1997 -- and were down 5.5 percent for the year to date, the report shows.

Oahu has been especially hit hard by Asia's economic crisis. Many Japanese tourists, who generally have shorter stays but spend more per day than their mainland counterparts, often travel only to Oahu.

"HVCB and all its island chapters understand and support the need to focus on rebuilding Oahu," Vericella said.

Maui's visitor count fell 1.7 percent last month and was off 0.3 percent so far in 1998 while Molokai, the state's least visited island, had a 9.2 percent drop last month and was off 18 percent in the first 11 months of 1998. Lanai arrivals, although up 18.2 percent last month, were down 13.1 percent for the year.

Likewise, two important niche markets also were lower.

The report said first-time visitors fell 4.1 percent in November and were down 2.1 percent for the year to date. First-timers account for about 41 percent of total arrivals. Also, there were 15.4 percent fewer honeymooners last month, primarily due to the drop in eastbound visitors. For the first 11 months of 1998, the honeymoon market was down 1.8 percent.

The state and HVCB said they will be stepping up efforts to market the islands in the Pacific Northwest and Canada this winter. Vericella also noted that the HVCB is preparing for an eventual turnaround in Asia's recession-plagued economies. The bureau plans to launch an extensive TV and print advertising campaign in Japan starting next month.