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The Honolulu Advertiser
Posted on: Wednesday, August 1, 2001

Tourism on wane nationwide

Staff and News Services

Tourism growth in Hawai'i has slowed. But the state is not alone.

Las Vegas officials say the city's visitor attendance was flat for the first five months of this year despite new attractions. Among the latest changes, the Aladdin hotel-casino has been turned over to London Clubs International.

Associated Press

Nationwide, tourism is expected to grow by only 1 percent this year. Experts blame less spending by both business and leisure travelers and the slowing economy.

"In the business travel market, the higher-ups are telling people to be a little more careful with their money. It's not the free spending that we've had in the past," said Cathy Keefe, a spokeswoman for the Travel Industry Association of America. "In the leisure market, there's cost-cutting. People are staying with friends and relatives. They're driving instead of flying."

Nationwide, most major tourism indicators were down for the first five months of the year, according to the association. Airplane load factors were down 1.7 percent, and hotel and motel occupancy rates were down 2.2 percent.

On Monday, state researchers said the number of people visiting Hawai'i in the first half of the year slipped 1.5 percent compared with the first half of 2000, reflecting the effects of economic slowdowns in the United States and Japan.

The numbers also reflect the strength of the market in 2000, which was a banner year for Hawai'i tourism. This year's first half is the second-best on record.

In June, the number of visitors dropped 3.4 percent from the same time last year, according to the state Department of Business, Economic Development and Tourism, which released the monthly and six-month tourism statistics.

Other big tourist destinations are seeing the same slowdown.

Orlando, which saw a 10 percent increase in visitors in 1999, had 43.2 million visitors last year — an increase of only 1.6 percent from the previous year, according to figures released this week by the Orlando/Orange County Convention and Visitors Bureau.

That's the smallest increase since the bureau switched to its current data collection system in 1992, and the picture isn't expected to get any prettier in 2001.

Las Vegas' visitor attendance is flat for the first five months of this year, despite several new shows and attractions. Hotel and motel occupancy is down 1.7 percent when compared to the same time period as last year, although convention business remains strong.

In Los Angeles, hotel and motel occupancy rates are down 3.7 percent for the first five months of the year, the Los Angeles Convention and Visitors Bureau said.

In San Francisco, the occupancy rate is down 9.7 percent.

New Orleans, however, has seen its hotel and motel occupancy rate jump to 73 percent during the first four months of 2001, compared to 70 percent at the same time last year.

In June, overnight stays at national parks were down 1.2 percent from the previous year.

Experts say the silver lining is that airlines and hotels have started slashing prices.

Yesterday, for example, Continental Airlines expanded its summer and fall fare sale that was announced last week for domestic routes that include Hawai'i, Alaska and Canada. Some sale fares available at Continental.com include Honolulu-Houston round-trip at $595, Honolulu-Newark at $660, and Honolulu-Los Angeles at $417. The fare sale was expanded yesterday to include international destinations, and online fare offers include Honolulu-Taipei at $247 one-way, based on round-trip purchase.

Other airlines have joined in the fare sales, with restrictions generally including a 14-day advance purchase, tickets purchased by Aug. 6 for travel by Dec. 16, and a minimum three-day stay.

"For the consumer, it pays to check around," Keefe said. "It's a consumer's market right now."

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