Hotels show improvement
By John Duchemin
Advertiser Staff Writer
Key hotel numbers improved in October as occupancy, revenues and room rates rose from last fall, but the data still show Hawai'i hotels below peak capacity.
The state's occupancy rate in October was 68.5 percent, meaning a little more than two-thirds of hotel rooms were filled on the average day.
That is well above the 56.9 percent rate reported for October 2001, according to the monthly survey by Hospitality Advisors LLC. Occupancy in 2001 was exceptionally low after the Sept. 11 decline in visitor traffic, from which the state has not fully recovered.
"We certainly would expect some improvement when compared to October of last year, because October was really the first month that bore the full force of 9/11," said Hospitality Advisors president Joseph Toy. "Even though we see a recovery, it's still a weak recovery compared with prior years."
Room rates in October rose to $132.58, up $1 a day from $131.58 last year. Revenues per available room rose to $90.88, up from $74.93 the year earlier.
Despite the improvements, October occupancy and revenues lagged the levels of the late 1990s and 2000, when tourism peaked. Occupancy in October 1998, 1999 and 2000 was never below 70 percent, and per-room revenues were above $101 in 2000.
No growth in room rates has been a problem for the industry since 2001. A small yearly increase is typical in a healthy economy as hotels keep up with inflation and regular wage increases.
But many Hawai' hotels have been forced to steeply discount their rates to attract customers. Luxury hotels, for instance, charged less money in October — $202.58 per night — than in October 2001, when they charged $208.54.
The industry has been reluctant to rehire thousands of laid-off workers until revenues show significant long-term improvement.
O'ahu hotels improved more than on the Neighbor Islands, gaining significantly in occupancy and revenues.
The improvement partly reflects the fact that the island was more strongly hurt by post-9/11 declines, especially in Japanese visitors, who tend to visit Waikiki more than the Neighbor Islands.
Average occupancy was 69.1 percent at O'ahu hotels in October, up from 54 percent the previous October; Maui had 68.1 percent, up from 60.9 percent; the Big Island was at 62.4 percent, up from 50.7 percent; and Kaua'i had 75.6 percent, up from 71.2 percent in October 2001.
Average daily room rate was $110.96 on O'ahu, up from $109.68; $157.13 on Maui, up from $156.36; $157.96 on the Big Island, up from $154.30; and $151.24 on Kaua'i, up from $142.80.
Advertiser staff writer Kelly Yamanouchi contributed to this report.
