The September 11th attack
Waikiki tourism up, but sales lag

By Susan Hooper and Frank Cho
Advertiser Staff Writers

Esitimoa Lotaki carved tikis at a stand in front of the International Market Place yesterday. The stand has been selling more merchandise since tourism began picking up after the attacks on the Mainland, but business is still off. Photos by Richard Ambo • The Honolulu Advertiser

"For us right now, it's really, really slow," Tamonte, 39, a manager with C & K Beachboy Service, said while sitting on the edge of a chaise lounge in the shade at Waikiki Beach yesterday. "Usually, I'll be in the water half a day — four to five hours. Now, it's just one hour a day."

It has been four weeks since terrorists hijacked U.S. commercial jetliners and flew them into the World Trade Center and the Pentagon, killing thousands. The attacks crippled Hawai'i's tourism business and caused the layoffs of more than 11,000 people, most of them in the visitor industry, as hotels, restaurants, stores and attractions trimmed staff to match plummeting revenues.

And nowhere has the lack of business been more visible than in Waikiki, which was repeatedly described as a ghost town in the week immediately following the attacks. The famed resort's normally bustling streets and beaches were all but deserted, with hotels and restaurants welcoming less than half their usual number of customers.

Yesterday, there were considerably more tourists on Waikiki's broad sidewalks and sunny beachfront than in the week after the attacks. And several Waikiki business operators said their fortunes had improved somewhat in the past several days. But all said business remains below pre-attack levels, and some said they feared the U.S.-led air strikes against Afghanistan that began Sunday would be one more reason for would-be travelers to stay home.

"Everybody's worried," said Lupe Kanongataa, as her brother-in-law, Esitimoa Lotaki, sat working on tiki carvings at their stand in the International Market Place.

Still, Kanongataa said, their sales have picked up since the dramatic downturn in the days after the attack. Now, they may average $200 to $300 a day in sales, whereas in mid-September they were selling only between $15 and $80 of merchandise a day.

"It's better, because now there are more people coming," she said. But even with the recent improvement in customer traffic, sales are still below their best pre-attack levels of $300 to $500 a day, she said.

Janet Chang, manager of Royal Sports sportswear shop in the Royal Hawaiian Shopping Center, said business in her store was down by 50 percent shortly after the attacks. Business has since improved, but is still about 30 percent off pre-attack levels.

"Since last week, we kind of picked up a little bit," she said. "Tourists feel kind of safe to travel. But compared to before (Sept. 11th), it's still really bad."

Yesterday, many Waikiki hotels said their occupancy rates are at their highest levels since the Sept. 11 attacks, but that has come at the cost of lower average daily room rates as they try to lure guests with special package deals.

"I think people are seeing the signs (of improved business) and optimism is circulating," said David Uchiyama, regional director of communications for Starwood Hotels & Resorts.

Sun Microsystems conventioneers leave the Hawai'i Convention Center for an afternoon off following a morning session. About 3,000 Sun employees, convention staff and spouses are in town for three days.

Marc Resorts, which represents 20 properties and 3,000 hotel rooms statewide, said it has recovered from below 20 percent occupancy following the attacks to around 70 percent.

Aston Hotels & Resorts Hawaii said it has seen a resurgence in visitors filling empty hotel rooms. But like most hotels, Aston said residents taking advantage of cheap rates are what is pumping up the occupancy numbers.

At Marc Resorts, for example, residents made up just 7 percent of guests in September before the attacks. So far in October, they account for about 17 percent of guests.

"Despite what appears to be kind of a comeback, this is still a serious situation. We need to continue to be very vigilant in getting tourists to return and selling Hawai'i as a destination," said Kelvin Bloom, chief operating officer of Aston Hotels & Resorts Hawaii.

Business remains significantly off for DFS Hawaii, where duty-free sales have improved since the attack, when they were down 80 percent. But sales still remain down about 50 percent in Waikiki and close to 40 percent for non-duty free items.

"This is a function of Japanese arrivals. They are only beginning to inch back up and are still very, very weak," said Sharon Weiner, group vice president for DFS Hawaii.

Things are a little brighter at the Hawaii Convention Center, where General Manager Joe Davis said business has been steady, with only a few events canceling, and others expressing interest.

Still, for many businesses, concerns remain.

Toby Hazel, who does psychic readings in The Enchanted Tree House in the International Market Place, said her business was off 85 percent shortly after the attacks and has since improved marginally. But, she said, she still has lost 50 percent to 60 percent of the business she had a year ago. And she worries about what's ahead.

"When something drops, even for half a month, and then you slowly bleed to death for another six weeks, it takes almost a whole year to recoup that," she said.