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The Honolulu Advertiser
Posted on: Friday, July 5, 2002

Car travel driving tourism's recovery

By Gary Gentile
Associated Press

LOS ANGELES — Although tourism across the country this summer is expected to continue its gradual recovery from the devastating impact of the Sept. 11 terrorist attacks, people are definitely traveling differently.

"More people are driving and people have basically doubled the amount they are willing to drive to avoid the hassle of airports," said Ed McWilliams of D.K. Shifflet & Assoc. Ltd., which has polled 2,400 frequent travelers nationwide every week or so since October.

The survey has found that people are willing to drive as much as eight hours to avoid the hassles and delays prompted by heightened security at airports.

That's twice as long as they were willing to drive before Sept. 11.

The trend is worrisome for Hawai'i, with the lengthy flights travelers must take to reach the Islands.

But local hotel and industry officials say they continue to see strong demand, with hotel occupancy rates in some cases recovering to pre-Sept. 11 levels and bookings remaining steady.

Weekly hotel occupancy reports by local consulting firm Hospitality Advisors LLC have shown several recent gains over the same times last year.

And a recent report by lodging consultancy PKF-Hawaii showed hotel occupancy statewide posted the best monthly increase in more than a year — reaching 69.2 percent in May, compared with 68.5 percent in May 2001.

Still, officials note that the occupancy gains are coming at a cost to the industry.

According to Hospitality Advisors, statewide revenue per available room was $98.33, down from $112 the same time last year.

For May, the average daily room rate was $143.57, down from $149.26 the same month last year.

But room rates could start a gradual recovery for local hotels, as analysts nationwide say the sheer number of tourists traveling this year should be close to last summer's level — although not all sectors will recover equally.

Hotels, they say, will likely see an uneven recovery as travelers trim spending, and spend more time visiting family members and campgrounds.

"The recovery has been driven by leisure travelers," said Peter Yesawich, president of Yesawich, Pepperdine & Brown, a marketing services firm. "Business travel demand flatlined last November and has not recovered."

Vermont tourism officials are expecting bookings at inns and lodges to be on par with last year, while campground reservations are running ahead of previous levels, a reflection of the trend toward more family travel.

"Traditionally at the state parks, when the economy is down a little, people pick a less-expensive way of vacation," said Larry Simino, director of state parks.

People are also choosing to spend their time off with loved ones.

"Especially after last fall, people seem to be doing more family things," said Diane Konrady of the Vermont Department of Tourism and Marketing.

In California, campgrounds saw an immediate 20 percent jump in reservations after Sept. 11, an indication that people who otherwise might have planned out-of-state trips had decided to stay close to home. Bed and breakfast inns in the state's wine country and other locales are also seeing an increase in guests.

In New York City, tourism officials are expecting hotel occupancy rates to be only 2 percent lower than last summer.

And in Orlando, Fla., theme parks expect robust attendance.

"The theme parks are doing better than last year and that says something after 9/11," said Bob Gault, president and CEO of Universal Orlando. "Groups that don't want to fly aren't hesitating about jumping in a car and driving. We're seeing a lot of drive traffic so far."