To Our Readers

By John Flanagan

Saturday, May 29, 1999

Europe envies
Hawaii tourism

LUIGI Garaio, a frequent Hawaii visitor and tourism professional based in Spain, sent us this interesting perspective: "When I read or hear the lamentation of the tourism industry in Hawaii, I have to laugh. From the point of view of a European, Hawaii has everything we miss. Holiday destinations in Europe have a season of three to five months, compared to Hawaii, where you have 12-month seasons."

It's true. As Hawaii Tourism Authority CEO Bob Fishman puts it, "Hawaii is the strongest brand in the world."

Garaio continues: "The average of occupancy of the hotels in Spain (during the peak five-months) is never more than 70 per cent, compared to Hawaii, where hotels reach an average of 92 percent (for 12 months)."

Hawaii occupancy rates actually have been in the mid 70s lately, with larger hotels holding just above 80 percent.

"Staff salaries and social contributions (taxes) are very high in Europe. People work a maximum of 45 hours a week, have the right to take every second weekend off and get five weeks' paid vacation. The average salary is seldom less than $3,000 a month. Compared to Hawaii's average salaries of $1,500 and one week of vacation every six months, this could seem absolutely unbelievable."

Few help-wanted ads list wages, but a cook's helper can start at $1,813 in Waikiki.

"Moreover, the prices in Europe aren't higher. The average hotel rate in a four-star house is $250 compared with $375 at the Sheraton Waikiki."

In fact, the Sheraton lists rooms from $215 to $425, but the average rate in Hawaii's "deluxe" hotels with more than 500 rooms is about $160 a night.

"Can anybody explain to me, how is it possible? For me, Hawaii is STILL a paradise for the entrepreneur. As an investor I cannot imagine any better conditions in the tourism industry. Or is there something I do not know?"

There's always something, amigo.

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John Flanagan is editor and publisher of the Star-Bulletin.
To reach him call 525-8612, fax to 523-8509, send
e-mail to publisher@starbulletin.com or write to
P.O. Box 3080, Honolulu, Hawaii 96802.