FL MORRIS / FMORRIS@STARBULLETIN.COM The Summit cruise ship was moored in Honolulu Harbor in May. Some isle retailers say their sales are still down despite a 53 percent increase of cruise visitors the first half of this year.

Cruise visitors up
but sales don’t follow

Retail sellers say they see more
visitors but receipts are still down

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By Tim Ruel
truel@starbulletin.com

Bigger cruise ships contributed to a 53 percent increase in passengers cruising the islands in the first half of the year, but some port retailers say their sales did not do so well.

"I saw the increase, but the amount that they spent in my store was about 40 percent less," said Ron Imanaka, manager of Black Pearl Gallery at Aloha Tower Marketplace.

He attributes the drop in spending to price-conscious visitors stung by the U.S. recession and the events of Sept. 11.

In announcing the cruise figures yesterday, the state Department of Business, Economic Development & Tourism had a positive tone. "It is another sign of resilience in our visitor industry and testimony to Hawaii's reputation as an attractive visitor destination," said Seiji Naya, department director.

A total of 118,515 passengers cruised the islands between January and June, up considerably from 77,385 passengers in the same period last year, the state said. Of the passengers, 85 percent came from the U.S. mainland, 5.8 percent were from Canada, 3 percent were local residents and 2 percent came from Europe.

The industry marks a small but growing segment of Hawaii's tourism-based economy, which has relied primarily on the airlines for several decades. Cruise passengers made up 3.8 percent of the 3.1 million total visitors who came to Hawaii in the first half of the year, according to state statistics.

The actual number of cruise trips, 67, was smaller than last year's 75. Larger ships accounted for the rise in passengers, the state said.

Some Hawaii retailers that cater to cruisers say they were hit hard by Sept. 11 and the immediate slowdown in tourism.

Trinh Toyofuku, owner of Hawaiian Wear Etc. at Aloha Tower, said her sales of made-in-Hawaii print clothing dropped 60 percent after the attacks.

Making matters worse for Black Pearl Gallery, the landmark Aloha Tower observation deck closed, taking away more business, Imanaka said.

But there was a silver lining. Hawaii's only interisland cruiser, American Classic Voyages, declared bankruptcy, and its two ships, the SS Independence and MS Patriot, stopped sailing. The massive 2,200-passenger Norwegian Star took over the interisland market in December with its weekly cruises, and visitor traffic has been picking up, retailers said.

"They seem to be fully loaded," said Grant Phifer, owner of Coconut Calabash, a gift store located close to Kauai's Nawiliwili Harbor.

Sales were bad early in the year for Black Pearl Gallery, but things started looking up in June when the Aloha Tower observation deck reopened, Imanaka said. Plus, the Norwegian Star carries a port lecturer who can tell people about his store before they step off the ship. "I think now it's all turning around," Imanaka said.

Hawaiian Wear's sales started to improve in December but have not recovered completely, Toyofuku said.

People simply are not spending as much. Making things more difficult, Japanese arrivals to Hawaii are down 20 percent this year. Only a year ago, Hawaiian Wear got half its business from Japanese tourists, and the other half came from cruise customers. Now, the store relies on cruises for 70 percent of its business, while 20 percent comes from walk-in customers and only 10 percent comes from the Japanese.

Japanese, by far, spend the most in Hawaii, at an average of $271 per person per day, including lodging.

The average cruise visitor spent about $91 per person per day while on shore, the state said.

"We're trying to put out a lot of advertising, discount coupons, things like that just to attract customers," Toyofuku said. She is looking forward to the return of foreign cruise ships next month. Currently, business is only good on Sundays, when the Norwegian Star comes to Aloha Tower, Toyofuku said.

"I'd be a lot happier if we had three to four cruise ships a week," said Phifer of Coconut Calabash, located at Kauai's Harbor Mall.

Visitor spending often depends on the type of cruise ship customer, he said. Tourists who buy a cheap cruise tend to be cheap with retail purchases, Phifer said. "It's very unpredictable out of the cruise ships," he said.