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The Honolulu Advertiser
Posted on: Thursday, January 29, 2004

Arrivals for 2003 nearly flat

By Kelly Yamanouchi
Advertiser Staff Writer

Hawai'i's No. 1 industry last year overcame the Iraq war and SARS to post visitor arrivals numbers essentially unchanged from the year before. With the momentum of a strong end of 2003, tourism executives are predicting 2004 will come close to a record number of visitors.

Hawai'i drew 6.35 million visitors in 2003 as Mainland tourists flowed into the Islands while the war with Iraq and SARS kept many international travelers at home.

"Once again the U.S. Mainland saved our 'okole in 2003," said Kelvin Bloom, president of Aston Hotels & Resorts. "Although we certainly experienced a decline in Japanese visitors year over year, I think it's encouraging that the steepness of the decline is beginning to flatten."

The 2003 tally comes in slightly below the 6.39 million visitors who came to Hawai'i in 2002, when post-Sept. 11 effects stunted travel in the first several months of the year. It also comes in just short of the state forecast for aTourism officials say economic indicators are positive and airline seats to Hawai'i from the Mainland are plentiful.

According to Gov. Linda Lingle's tourism liaison, Marsha Wienert, "the visitors from the U.S. West were c short of the state forecast for aTourism officials say economic indicators are positive and airline seats to Hawai'i from the Mainland are plentiful.

According to Gov. Linda Lingle's tourism liaison, Marsha Wienert, "the visitors from the U.S. West were c short of the state forecast for aTourism officials say economic indicators are positive and airline seats to Hawai'i from the Mainland are plentiful.

According to Gov. Linda Lingle's tourism liaison, Marsha Wienert, "the visitors from the U.S. West were clearly the backbone of our industry and all indicators show that domestic travel will continue this year at record levels."

The shifting balance in Hawai'i's tourism industry shows in the numbers last year — domestic arrivals were up 3.2 percent in 2003, while international arrivals fell 9 percent.

The islands of Maui, Moloka'i and Lana'i each had more visitors in 2003 than the previous year, while O'ahu, Kaua'i and the Big Island each saw declines in visitor arrivals. O'ahu draws by far the most visitors of any island but depends on a large share of Japanese visitors and posted a 4.9 percent decline in arrivals.

Last year ended with 580,176 visitors coming to Hawai'i in December, up 2.1 percent from the same month in 2002. That includes a 7.4 percent hike in domestic arrivals and a 6.8 percent drop in international arrivals.

The state said the count of domestic visitor days in December was the best on record and 8.8 percent above the same month in 2002.

A total of 1.32 million Japanese visitors came to Hawai'i in 2003, down 10.7 percent from 1.48 million in 2002. International travel, particularly from Japan, has been the key variable in Hawai'i's tourism industry because of its volatility.

The good news is declines in Japanese tourism began narrowing in the latter half of 2003, showing some recovery from double-digit drops earlier this year traced to the war with Iraq and the SARS outbreak.

"The trends have turned around after a two-year decline," said Stan Brown, Marriott's vice president in the Pacific Islands. "That's positive, but not to 2000 (levels), so we've certainly got a ways to go."

Forecasts for this year are bullish. Japanese tour wholesaler JTB expects overseas travel to increase 23.6 percent over last year. The University of Hawai'i Economic Research Organization is forecasting a 24 percent increase in Japanese arrivals for this year.

Economic growth and growing strength of the yen are expected to be positive influences on Japanese tourism this year, said Sumner La Croix, head of the economics department at the University of Hawai'i and a senior fellow at the East-West Center, who also expects 24 percent growth.

"It's such a large number because of course last year they were down so much ... That 24 percent revival (in Japanese arrivals), that's going to be a big deal," La Croix said. "I think we're going to see very strong tourism growth here during 2004 and that's really going to pump our economy up along with the construction sector boom."

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