StarBulletin.com

Visitor arrivals plummet


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POSTED: Friday, September 26, 2008

The state's visitor arrivals plunged in August, particularly for the prized U.S. West market, though tourism officials say the worst is yet to come. The August visitor count fell a staggering 17.4 percent to 608,392, though the biggest decline was seen in the U.S. West segment, which plummeted 24.2 percent in the wake of a mortgage crisis that has hit California in particular the hardest. “;This is a serious situation that will affect a significant number of jobs, not only in hotels but other restaurants, activities and providers of service,”; said David Carey, president and chief executive of Outrigger Enterprises Group. “;Whether you like it or not, if the hotels don't do well, nobody else has a chance.”;  However, Hawaii has not hit the bottom yet, according to local economists and tourism officials, who expect September's downturn to beat the double-digit declines in travelers in most segments last month. U.S. East arrivals dropped 16.5 percent and Japan was down 13.9 percent while Canada, which has fewer visitors, rose 8.5 percent. Domestic travelers totaled 433,162, down 20.4 percent, while the international visitor count was 173,180, an 8.3 percent drop. Outrigger's bookings last week alone “;went through the floor,”; off 30 percent to 40 percent year-over-year—the lowest since the post-Sept. 11, 2001, levels, Carey said. Among the major islands, Oahu's visitor count was down 18.1 percent to 378,846; Kauai was down 25 percent to 92,366; Maui plunged 20.9 percent to 183,445; and the Big Island fell 22.9 percent to 119,944. “;It had to do with the mortgage crisis, fuel prices, everything that's impacting every- thing right now—it's all pre-Wall Street challenges,”; said Marsha Wienert, state tourism liaison. “;It is some of the biggest challenges we have faced in a very long time.”; Hotels aren't the only ones feeling the affects of a massive slowdown in the state's lead industry. A number of longtime establishments, including Compadres Bar & Grill, will shut down today after 24 years in business, citing declining sales due to a severe drop in tourism, which has affected spending for many of its local customers. Air visitor expenditures fell 17.6 percent, or $206.9 million year-over-year, to $970.7 million, resulting from lower daily spending, down 3.1 percent to $174 per person. Meanwhile, total visitor days for air and cruise visitors were down 15.2 percent compared to same month last year, though the average length of stay rose 2.7 percent to 9.2 days. August's downturn comes amid a major upheaval among Wall Street's biggest players and uncertainty of whether the federal government's proposed $700 billion bailout of bad debt will heal the financial turbulence.