Tourism losses near $1 billion in 2001

By Katherine Nichols
Advertiser Staff Writer

Hawai'i's tourism industry may have taken a $1 billion hit last year because of the sagging economy and the Sept. 11 terrorist attacks, according to preliminary visitor expenditure figures.

Estimated visitor spending in 2001 was $10.06 billion — down from the record of $10.9 billion the year before, Rick Humphreys, executive director of the Hawaii Tourism Authority, said yesterday during testimony before the Senate Tourism and Intergovernmental Affairs committee.

But officials said yesterday that final visitor-spending calculations may show a figure below $10 billion.

The number of visitors to Hawai'i dropped last year by 600,000 from the year before as travelers stayed away in the grim security, political and economic climate after Sept. 11.

The estimates dovetail with visitor arrival figures released last week by the state that showed a 9.1 percent drop in visitors to Hawai'i last year. The drop has been a significant drag on the economy.

Thousands of workers have lost their jobs or seen their incomes cut; several companies have declared bankruptcy and ceased operations since the Sept. 11 attacks. The state Department of Business, Economic Development and Tourism predicts that consistent improvement won't occur before the second quarter of this year. Full recovery — to pre-Sept. 11 levels — may not be reached until the last half of 2003.

Visitor expenditures are also expected to rebound to earlier peak levels by 2003. The target for visitor spending this year, Humphreys said, is $10.35 billion.