Posted on: Tuesday, June 24, 2003

SARS was factor in hotel downturn in May

By Kelly Yamanouchi
Advertiser Staff Writer

The SARS virus took a toll on Hawai'i's tourism industry in May when average hotel occupancy in the state declined nearly 5 percent compared with a year ago.

Statewide, hotels were 66.2 percent full in May, down 4.9 percent compared with 69.7 percent occupancy in May 2002, according to PKF Hawaii LLP, which surveys 130 properties in Hawai'i, including 70 hotels and 60 condominiums.

The state's decline was led by an 11 percent drop in occupancy on O'ahu, which is hardest hit by the faltering Japanese tourism industry. O'ahu hotel occupancy averaged 65.2 percent, down from 73.3 percent a year ago.

"May definitely felt the negative impact from the SARS epidemic with visitors from Japan and throughout the Asian region drastically reducing travel," PKF chief executive Ernest Watari said in a statement. "On the brighter side, Hawai'i should see an upsurge in the upcoming month with flight arrivals and bookings already reflecting an increase."

The Big Island also had a decline in hotel occupancy to 57.7 percent, down slightly from 57.9 percent a year ago. But other islands fared better, with hotels on Maui (71.7 percent), Kaua'i (73.8 percent) and Moloka'i (49.6 percent) each posting higher occupancy levels than last year.

The average daily room rate that hotels charge customers stood at $140.19, a 3.1 percent increase from $136.04 in May 2002. The lowest room rates were on Moloka'i at $95.09 while the most expensive rooms were on Maui at $186.48.

For the year through May, hotel occupancy in the state averaged 73 percent, up 0.7 percent from the same period a year ago. Maui, Kaua'i and Moloka'i each posted increases for the first five months of the year, while O'ahu and the Big Island had declines.