CINDY ELLEN RUSSELL / CRUSSELL@STARBULLETIN.COM
Hawaii welcomed a record 512,631 visitors from the U.S. mainland in August. Suzanne Filleul and Carol Coyle find a spot on the beach in front of Duke's in Waikiki.
|
|
Visitor spending up despite fall in arrivals
Hawaii's international arrivals dropped 6.2 percent in August, while domestic arrivals were flat
Fewer visitors came to Hawaii in August than during the same month last year, contributing to a drop in hotel occupancy. But the visitors who did come spent significantly more than their counterparts a year ago.
Total visitor arrivals dropped 1.2 percent last month to 688,817, as the flat domestic market couldn't compensate for a 6.2 percent drop in international arrivals, according to preliminary data released yesterday by the state Department of Business, Economic Development & Tourism.
Hawaii welcomed a record 512,631 visitors from the U.S. mainland in August. The state's 176,186 international arrivals contributed only 34 percent of the market.
Higher airfares, fuel charges and hotel room costs could have caused some foreign visitors to choose other destinations. The renovation and construction taking place in Hawaii's hotel industry also have cut the number of available rooms, making it more difficult for travelers to find accommodations.
Still, higher spending from Hawaii's domestic visitor market, especially travelers from the U.S. East, is in keeping with the state's push to measure visitor industry growth in terms of revenues rather than arrivals.
"The domestic market continues to be the foundation for the visitor industry's success," said the state's tourism liaison, Marsha Wienert. "We are very pleased with the continued growth in visitor spending and tourism's impact on the state's economy."
Despite a decline in total arrivals, overall performance of the state's visitor industry in August was boosted by higher spending. Contributing to the higher total spending was a 6.5 percent increase in average daily spending to $178 per person.
That boosted August's total visitor expenditures 3.5 percent to $1.1 billion. Year-to-date, total visitor spending has risen 4.5 percent to $8.1 billion.
Hawaii's hotel industry performance for August paralleled the visitor market, according to a separate report released late Wednesday.
The immediate outlook for Hawaii's hotel industry remains strong going into the first quarter of 2007, said Joseph Toy, president of Hospitality Advisors LLC, the company that publishes the monthly hotel report.
Though Hawaii's hotel industry continued to enjoy growth in room prices, overall occupancy declined slightly in August, the report said. Room revenue grossed $305 million in August, but the number of heads on beds declined by 1.9 percentage points to achieve a still-respectable statewide occupancy of 84.3 percent.
"After a prolonged industry slump during most of the 1990s and the recovery from the sharp drop after 9/11, it is actually quite amazing that we are seeing such strong room rates in 2006," Toy said. "However, as with the national travel market, the industry is showing signs of a moderate slowdown."
Oahu led all islands with an occupancy of 87.1 percent, which represented a 4.5 percentage point decline from the previous year. Average daily room rates on Oahu shot up 9.3 percent in August to $165.11 per night, upping revenue per available room by 3.9 percent.
Maui room prices, which shot up 13.1 percent to $266.27, led all islands. Wailea boasted the highest average daily room rates in the state, with rooms selling for an average of $430 a night.
Kauai's hotel occupancy downticked 0.6 percentage points to 82.2 percent; however, average daily room rates rose 6.4 percent to $202.47 in August. The Big Island also experienced a 0.6 percentage decline, but managed to increase average room rates by 8.8 percent to $199.58.
For the first eight months of 2006, Hawaii's visitor industry performance has been relatively flat. Total arrivals and visitor days during the period were up just 0.1 percent year-over-year.
Domestic arrivals increased 2.2 percent to a new eight-month record of 3,734,397 visitors, while international arrivals dropped 5.4 percent. Arrivals from Canada increased 9.5 percent, but Japanese arrivals decreased 8.6 percent compared to year-to-date 2005.