For the year through August, statewide visitor arrivals totaled 4.67 million, up 8.6 percent from the same period last year.

But total visitor days were 2.1 percent lower than they were last August because of a shorter average length of stay, and total expenditures by visitors who came by air declined 3.7 percent to $919.8 million. However, visitor spending for the first eight months of the year was up 6.2 percent, totaling $6.9 billion.

For Larry Valle, owner of Big Kahuna Motorcycle Tours & Rentals in Waikiki, business last month was better than in previous years. His business rents motorcycles, mopeds, bicycles and beach gear.

"It feels like it's coming back like before 9/11," he said. "And according to my reservations, we're pretty booked up for the next few months."

Valle said some of his friends who work in the hotel industry "also tell me they're pretty booked up at the hotels."

Domestic arrivals by air in August rose 2 percent to 459,561 visitors, a new August record. International arrivals saw an even larger growth of 5.4 percent to 185,982.

But the average length of stay of domestic visitors statewide fell by 3.6 percent to 9.69 days. International visitors stayed an average of 7.39 days, an 8.5 percent decline. Total visitor expenditures also declined on every island except O'ahu, which saw a 3.5 percent increase.

Kelvin Bloom, president of Aston Hotels & Resorts, said while the decline needs to be looked into, "overall I think we have to be very pleased with our results."

"I'm not overly concerned because here we are eight months into 2004 and just about by any measurement the results we achieved this year have been outstanding," he said.

O'ahu and the Big Island saw growth in visitor arrivals, at 4.1 percent and 3.8 percent, respectively, while the other islands showed declines. Maui, Kaua'i and Lana'i showed declines of 0.4 percent, 1.1 percent and 14.5 percent, respectively. Moloka'i saw the largest decline at 26 percent.

Stan Brown, Marriott's vice president in the Pacific islands and Japan, said last month was "extremely strong" for the Marriott properties, which were virtually full all summer.

"You may see pockets of changes of length of stay, but we do see certainly some strength coming out of the eastern U.S. with some of the additional flights that have occurred," he said. "The western half of the United States continues to be strong ... and we also see a bit of a rebound out of Japan. So it was actually an extremely solid August for virtually all of our properties."

Japanese visitor arrivals in August grew by 6.6 percent compared to last year. The number of visitors from the U.S. West was up 1.6 percent, but arrivals from the U.S. East market were down by 2.3 percent.

Hawai'i hotels were busy last month, with an average statewide occupancy rate of 83.6 percent, up from 82.9 percent in August 2003.

It was the highest August occupancy since 1990, but the high rate partially reflects the diminishing hotel supply resulting from time-share and condominium conversions, according to Hospitality Advisors.

O'ahu's August occupancy rate was 85 percent, a 2.5 percentage-point increase over last year, while occupancy rates on the other islands fell.

The statewide average daily hotel room rate increased to $160.66 in August, up from $150.59 the same time a year ago.

"We've had a real exceptional year overall," said Joseph Toy, president of Hospitality Advisors.

Toy said Hawai'i has been a favored destination because of its exotic appeal and safety and also credited increased media exposure in film and television shows.

The hotel survey compiled by Smith Travel Research with Hospitality Advisors averages more than 150 properties representing 49,662 rooms reporting, or 76.5 percent of all lodging properties with 20 rooms or more in the state.