Tapping into gay tourism in Waikiki

By Kelly Yamanouchi
Advertiser Staff Writer

Greg Betlan and Marc Carignan are aiming their gay-friendly Waikiki guest house at affluent travelers. Jeff Widener • The Honolulu Advertiser

Next month, Carignan, a former Silicon Valley executive, will open Ha'aheo Waikiki, a guest house on Cartwright Road with seven two-bedroom suites, catering to gay and lesbian travelers. He bought the $1.5 million apartment building earlier this year and converted it to a guest house.

Carignan says he's surprised there isn't a larger gay tourism industry here. He estimates there are as many as 190,000 gay travelers to Hawai'i annually.

"That's very compelling," he said. "Hawai'i is a great gay destination because people are very tolerant and accepting."

Gay men and women are an ideal market for tourism because they are less likely to be married with kids, are often able to travel throughout the year and often have more disposable income.

The gay travel market in North America is a $55 billion industry, said Robert Wilson, executive director of the International Gay & Lesbian Travel Association, which lists 12 businesses in Hawai'i as members, including gay and gay-friendly guest houses and tour operators.

The gay market is "extremely loyal and quite affluent," Wilson said.

Jack Law, who owns Hula's Bar & Lei Stand, said the gay market helps boost the tourism industry by diversifying it.

"With Waikiki, you've got to keep it new and fresh and keep it going," Law said. "If you don't have that mix, it's going to get stale real quick. I think it's the diversity that keeps it interesting."

The niche market is important to some travelers because vacationing can intersect with personal life in uncomfortable ways. In a hotel, for example, gay travelers may feel awkward if they are second-guessed at the front desk for booking a room with one bed.

The guest house is Carignan's first business. After quitting as a vice president at Interwoven, a Web software maker, Carignan moved to Hawai'i earlier this year with his life and business partner, Greg Betlan.

Carignan said that if he and his partner walk down Kalakaua Avenue holding hands, they do get a reaction. "We've tried it once — I'm certain it won't go unnoticed."

"That's part of a reality even in a very tolerant place like Hawai'i," Carignan said. "Given that, there really is a need for this kind of offering."

Carignan plans to target more affluent gay people, over the age of 30 traveling as couples or with friends, to fill the suites starting at $225 a night. He expects about 70 percent to 80 percent of his customers will be gay or lesbian.

"We make very clear when people book with us that we are a gay property, but we welcome anyone who is comfortable with that environment," Carignan said.

Ha'aheo, which means "pride" in Hawaiian, will compete with the Cabana at Waikiki, a gay hotel with 15 rooms across the street.

David Tobias, marketing director at the Cabana, said there are enough gay travelers for both properties, which are close to such gay hot spots as Queen's Surf Beach and Hula's.

Pacific Ocean Holidays owner Joshua Kay, who sells Hawai'i travel packages to gay travelers, said his customers are looking for accommodations catering to the gay population. In fact, he says, many expect to find gay resorts here, "but that just doesn't exist in Hawai'i."

Reach Kelly Yamanouchi at 535-2470 or kyamanouchi@honoluluadvertiser.com.