Pro Bowl helped boost January hotel occupancy

By Kelly Yamanouchi
Advertiser Staff Writer

Hawai'i hotels saw some improvement in business in January, though the lodging industry is facing more problems since then.

Hotel occupancy statewide averaged 71.4 percent in January, up 6.6 percentage points compared with a much weaker January 2002, according to Hospitality Advisors LLC, which issued the report yesterday.

Hotels were helped by an influx of visitors in January for the NFL Pro Bowl and a 15.4 percent increase in Japanese visitor arrivals.

All islands had gains in hotel occupancy except for the Big Island. O'ahu had the biggest improvement at 73.7 percent occupancy, up 8.7 percentage points. Maui hotel occupancy increased to 73.1 percent, up 6.8 percentage points.

On the Big Island average occupancy was 64.2 percent, down from 65 percent a year ago.

The average daily rate paid for hotel rooms in Hawai'i was $148.10, up 4.7 percent. Average revenue per available room was $105.78, up sharply from $91.70 a year ago.

Upscale properties had a good January because of a 7.6 percent increase in higher-spending visitors from the U.S. East region and a 15.4 percent increase in Japanese visitors compared with last year.

Tourists from Canada also increased their visits by about 30 percent, helping to improve the state hotel economic picture.

However, Hospitality Advisor warned, "Hawai'i's hotel industry remains very fragile and susceptible to any military actions that may occur as a result of a potential war with Iraq."

Industry officials expect President Bush's comments yesterday that war may be imminent will have a dampening effect on hotel reservations.