October occupancy
down 24%

Statewide, hotels were 59 percent
full last month, compared to
77 percent a year ago

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By Tim Ruel
truel@starbulletin.com

Hawaii hotels had another rough month in October, with rooms only 59 percent full on average, compared with 77.1 percent occupancy a year earlier -- a 23.5 percent drop, according to a survey of hotels.

At the same time, average daily room rates fell 1.9 percent to $137.60 from $140.29 in October 2000, according to the latest monthly survey from PKF Hawaii. The revenue per available room, considered a more accurate indicator of cash flow than posted room rates, fell 25 percent to $81.17 from $108.19.

Despite federal efforts to improve airport security, people are still hesitant to travel, said Ernie Watari, chairman and chief executive of PKF Hawaii. "In addition, with historical trends showing November and December as off-peak months, the low occupancies may continue for Hawaii's ailing visitor industry," he said.

In a month-to-month comparison, Hawaii's October occupancy was a slim improvement from 57.4 percent in September.

The effect of the drop-off hit all islands. In Waikiki, occupancy fell to 58.2 percent in October from 80.3 percent in the year-earlier.

The average Waikiki room rate dropped to $100.46 from $105.52.

On the Big Island's Kohala Coast, rooms were just under 50 percent occupied, compared with 73.7 percent. Room rates fell to $208 from $213.

For all of the Big Island, occupancy was down to 55 percent from 74 percent and room rates were at $155.90 compared with $164.79.

Maui had occupancy of 62.2 percent compared with 76.9 percent. Room rates rose slightly to $177.69 from $177.31, but because of the drop in occupancy, revenue per available room plunged 19 percent to $110.56 from $136.39.

On Kauai, occupancy fell to 63.5 percent from 73.2 percent, and average room rates slipped to $162.28 per night from $165.26. Molokai's occupancy fell to 38.8 percent, compared with 45 percent a year earlier. Room rates increased to $95.27 from $81.87.

The PKF results are based on a survey of 76 hotels and 56 resort condominiums.