Visits to Hawai'i down 4.8%
By Glenn Scott
Advertiser Staff Writer
Even though more Californians are visiting Hawai'i this year, visits overall are declining from last year's record pace, state researchers said yesterday.
In the latest report on visitor arrivals, the state Department of Business, Economic Development & Tourism said total visits dropped in May by 4.8 percent from the same period last year.
Total arrivals from the Mainland, which accounts for about two-thirds of the market, were down by 3.6 percent to about 352,000 in May. International arrivals dropped by 7.1 percent to 176,000.
But in an example of how economics and ambitions have played out differently in select parts of the tourism market, visits from California bumped up 0.7 percent in May from a year earlier.
For the first five months of 2001, visits from California are up 7.3 percent.
Since California accounts for 23 percent — almost a quarter — of the the state's visitors, the recent gains underscore what some economists describe as a relatively steady flow of tourists to the Islands.
Indeed, the May results carry bittersweet implications. They reflect a gradually declining tourist count compared with last year's best-ever totals. In all, about 27,000 fewer people came to Hawai'i than in May 2000. But the 528,000 visitors this past May still account for the second-highest total for the month since the state started keeping records.
For the first five months of the year, visitor arrivals were down 1.4 percent from the same period last year.
The big question now is whether more months will follow with similar declines or whether May's nearly 5 percent drop will be comparatively the largest.
Economist Eugene Tian, branch chief of tourism research for the state agency, said the gap between 2000 and 2001 is likely to shrink as the year continues and as the Mainland economy begins to pick up speed.
"We expect the second half of the year will be getting better," he said.
It's possible that monthly arrival figures may show positive gains compared with 2000 in months toward the end of the year, he said.
Meanwhile, agency director Seiji Naya said the May figures fall within reasonable limits.
"Although we are disappointed by the monthly results," he said, "the year-to-date totals are very respectable, historically and economically speaking."
Even without growth in arrivals, some key industry players have seen revenue rise.
Hotels have raised their room rates dramatically, helping to offset declines in arrivals. Hotels and resort condominiums are making about $4 a room more than last year, according to market research firm PKF Hawai'i.
But other visitor-oriented businesses, including attractions, retail shops and some restaurants, have been hurt this year by a tourism decline coupled with other trends, such as the weakening Japanese yen.
Pat McCain, president of the Hawai'i Restaurant Association, said restaurants that rely on tourists have generally struggled the most this year.
"If you have a little bit of a local mix, you're stronger," he said. "The local people will keep you alive."
That same issue has come into play for retailers. DFS Hawai'i, one of the state's largest retailers, said this week it will close its 11,400-square-foot store at Whaler's Village on Maui.
Visitor statistics released yesterday help explain that move: Japanese visits to Maui were down by 15 percent in May to 17,770, although they remain 5 percent ahead of last year for the first five months of this year.
But trips directly from Japan to Maui, with no other Island stops, are down 32 percent for the year.
The tourism industry, of course, looks well beyond the raw data for arrivals. In the key category of total visitor days, the state saw a 4.4 percent drop in May compared with the same period last year. For the first five months of the year, visitor days are off by 1.6 percent.
Visitor days are calculated by multiplying the number of total visitors by their average length of stay, or 8.4 days in May and almost nine days for the year to date.
The May results generally support the comments of tourism industry leaders, who have warned recently that bookings have softened this year, especially in lucrative corporate-related travel and meetings.
Though trips from California were on the rise, travel from the eastern states dropped 7.2 percent in May compared with last year, and is down 3 percent for the year to date.
International visits declined despite the arrival of at least 3,000 people for the Asian Development Bank's annual meeting. Another 2,000 people were estimated to have come for the Shinnyoen Japanese cultural event. The number of Japanese tourists declined 7.6 percent for the month, to 130,000.
In other notable trends, Moloka'i was the only island to experience growth in total visits in May, up 23 percent to 5,318. Arrivals on O'ahu were down 3.6 percent; Maui, 7.3 percent; Big Island, 4.9 percent; and Kaua'i, 6.6 percent.
