CRAIG T. KOJIMA / CKOJIMA@STARBULLETIN.COM
Tourists sunbathed, played and watched people yesterday on Waikiki Beach. Oahu hotels were slightly less full in January than the same time last year because of continuing losses of Japanese visitors. Hotel occupancy improved on Maui, Kauai and the Big Island.
Hotel room gains
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Hawaii's hotels and resort condominiums began the year fuller than they were a year ago, but a downturn in Japanese arrivals continues to hurt Oahu's occupancy levels.
Statewide occupancy rose 3.65 percent to 75.54 percent from 72.88 percent in January 2003, according to the latest monthly survey from PKF-Hawaii.
But a 9.4 percent decline in Japanese visitor arrivals in January took its toll on Oahu as occupancy levels on the island slipped to 76.20 percent from 77.07 percent. It was the only one of the five islands surveyed to report a decline.
In Waikiki, the occupancy level dropped to 76.46 percent from 77.43 percent although Waikiki properties off the beach and without restaurants posted the highest occupancy level of any statewide at 84.98 percent.
Economist Leroy Laney said he wasn't surprised by the numbers.
"It's kind of a continuation of what we've seen in the past," said Laney, chief economist at First Hawaiian Bank and a finance professor at Hawaii Pacific University. "Waikiki and Oahu, in general, tend to be affected more by the Japanese market, and the Japanese market continues to be weak. The mainland market has held up better and continues to be stronger."
U.S. West arrivals were up 0.8 percent in January from a year earlier while U.S. East arrivals rose 6.7 percent. Overall, total arrivals slipped 1 percent in January from January 2003.
All of the neighbor islands showed occupancy gains, with northern Kauai posting the biggest increase of any statewide region with a 34.33 percent rise to 70.28 percent from 52.32 percent a year earlier. For the entire Garden Island, occupancy increased to 73.68 percent from 63.92 percent.
An executive for Starwood Hotels & Resorts Worldwide Inc., which manages the Princeville Resort in north Kauai, said the facility enjoyed one of its best Januarys in history.
"We were able to increase groups and also grow individual travelers," said Keith Vierra, senior vice president and director of operations for Starwood, which owns or manages 15 properties in Hawaii. "February looks equally as good."
Vierra said tourists have changed what they want in a vacation destination since 9/11 and Kauai has been a beneficiary.
"People are more interested in environmental and spiritual bonding and in being more romantic," Vierra said. "In past years, it was more sun-and-surf-type customers. But since 9/11, there has been a major shift. People believe rain brings beautiful waterfalls and waterfalls bring back memories and special feelings."
Vierra said that bonding experienced has broadened the reasons for traveling.
"It's greatly helped Kauai because Kauai is a green island and is known more for its hiking and natural beauty rather than getting a tan on the beach," he said.
Among other islands, Maui had the fullest occupancy at 78.48 percent compared with 73.82 percent a year earlier. Molokai increased to 73.26 percent from 65.74 percent and the Big Island increased to 71.46 percent from 64.17 percent.
Laney said the statewide increase in occupancy is another sign that Hawaii's economy is rebounding. "Tourism is coming back and joining some of the other robust sectors of the Hawaii economy," he said.
"In 2002 and 2003, and going back prior to that, construction, lower interest rates, home sales and auto sales were the big underpinnings of the state economy. Tourism started to come back in '03 and we're starting to see that same kind of trend into '04."
The statewide average daily room rate increased in January to $159.39 from $158.23 a year ago with three of the islands, including Oahu, showing gains.
Oahu's average rate rose to $112.18 from $108.40, with the rate on Waikiki increasing to $113.96 from $110.72.
The Big Island's average rate increased to $204.91 from $203.69 and Molokai jumped to $97.78 from $86.77.
Maui, which has the highest average price, saw its daily rate fall to $218.14 from $225.21 and Kauai dropped to $156.66 from $166.31.
The statewide revenue per available room, a financial indicator for hotels, rose 4.4 percent to $120.40 in January from $115.32 a year earlier as all the islands showed increases. Maui rose to $171.20 from $166.20. The Big Island increased to $146.43 from $130.70. Kauai rose to $115.43 from $106.31.
Oahu grew to $85.48 from $83.55, with Waikiki increasing to $87.13 from $85.73. Molokai rose to $71.63 from $57.04.
