Posted on: Wednesday, July 28, 2004
June 'tremendous' for Hawai'i's tourism industry
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By Kelly Yamanouchi
Advertiser Staff Writer
The Hawai'i tourism industry enjoyed one of its best Junes on record last month, with visitor arrivals up 12.2 percent from a year ago, domestic arrivals at a record high and hotel occupancy at its best since June 1991.
"June was just a tremendous month," said David Carey, chief executive of Outrigger Enterprises Inc. "Summer's been great." Two reports were released yesterday on June's tourism industry performance — visitor arrivals and hotel occupancy — and both showed significant year-over-year growth.
An estimated 616,023 visitors came to Hawai'i in June, up from 549,229 in June 2003, as reported by the state Department of Business, Economic Development and Tourism.
Japanese visitor arrivals grew 46.2 percent in June over a lackluster period last year when Japanese were not traveling because of the war in Iraq and SARS.
Arrivals from the eastern United States grew by 11.9 percent, contributing to a total of 451,369 domestic arrivals in June, the highest of any June on record.
"It's a broad-based recovery in multiple markets, which is the first time that's happened in my memory," Carey said.
O'ahu had the largest increase in visitor arrivals, up 18.5 percent. The Big Island also had growth, with a 10.4 percent boost. But other islands posted declines, including Kaua'i (down 1.5 percent), Maui (down 4.5 percent), Moloka'i (down 23.6 percent) and Lana'i (down 24.5 percent).
For the year through June, visitor arrivals totaled 3.35 million, up 9.3 percent from the same period last year. Total visitor expenditures in the first half of the year came to $5 billion.
Hawai'i hotels were bustling in June, with an average statewide occupancy rate of 80.4 percent, the highest rate in any June since 1991. June occupancy was 10 percentage points higher than in June 2003, according to figures released by Hospitality Advisors LLC.
The lift in occupancy is the result of a combination of more demand for hotel rooms and a diminishing supply as several hotels convert to time-shares and condominiums, according to Hospitality Advisors.
The average daily hotel room rate increased to $151.78 in June, up from $142.45 in the year-ago month. That helped boost the statewide average revenue per available room, an indicator of financial performance in the hotel industry, to $122.03, from $100.35 in the same period a year ago.
The tourism industry has benefited from a stable U.S. economy, a boost in tourism marketing and a perception of Hawai'i as a relatively safe place. Those factors have fueled strength in travel from the Mainland, while the Japanese market has also bounced back as its economy improved.
Every island had increases in occupancy rates in June. Hotels were fullest on O'ahu, which had an 83.5 percent occupancy rate.
Statewide, every class of hotels from budget to luxury were fuller in June than they were a year ago.
It's shaping up to be a very good year for hotels. For the first six months of the year, the average statewide occupancy rate was 77.8 percent, up from 70.6 percent in the year-ago period. The average hotel room rate was $152, up from $147.04.
Room sales in the year through June increased 9.2 percent to 9.1 million rooms sold. That amounted to a record $1.386 billion in room revenue in the first half of the year, up 13 percent over the year-ago period.
"Not only have we seen record revenue, but we've seen record investment," as hotels have been sold to new owners, said Joseph Toy, president of Hospitality Advisors. That means more upgrades for hotels and access to new financial resources, he said.
The outlook for the rest of the summer and later in the year also looks positive, though year-over-year increases may not be as large because of recovery in the second half of last year, Carey said.
He said his main concern now is the stability of airlines such as Delta and United.
"You just sort of cross your fingers," he said.
The hotel survey compiled by Smith Travel Research with Hospitality Advisors averages more than 160 properties representing 50,300 rooms reporting, or 75 percent of all lodging properties with 20 rooms or more.
Reach Kelly Yamanouchi at kyamanouchi@honoluluadvertiser.com or 535-2470.
Not only are more people coming to the Islands, but they are spending more as well. Total visitor expenditures amounted to $943.4 million in June, up 14.7 percent over the same month last year.
