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The Honolulu Advertiser
Posted on: Thursday, November 30, 2006

Earthquakes rattled tourism market?

By Lynda Arakawa
Advertiser Staff Writer

Hawai'i tourism arrivals fell 4.2 percent in October as pictures of earthquake-damaged buildings and hotels without power were broadcast worldwide.

The Oct. 15 earthquakes and blackout that followed may have hurt an already softening visitor market, according to travel executives. A decline in convention bookings and slower growth in the economy has put a dent in arrival numbers that could stretch into the first quarter of next year, they say.

"The earthquake impact contributed to it but wasn't necessarily a key contributor," said Starwood Hotels & Resorts spokesman David Uchiyama. An overall softening of the market and the lack of available airline seats also played a role in the decline, Uchiyama said.

Even with the drop in October visitors, the state is only 0.3 percent below last year's record pace for arrivals through the first 10 months of the year.

"The Oct. 15 earthquake may have had a short-term impact on visitor activity for the month, but we are optimistic that the visitor industry will continue to remain strong," said state tourism liaison Marsha Wienert.

News of the earthquakes with magnitudes of 6.7 and 6.0 concerned some travelers.

"Some people at home didn't want us to go," said Australian resident Lorraine Ridgway, who was in Waikiki this week with her friend Jan Thomson. "They were apprehensive because they heard of an earthquake here."

The drop in arrivals last month drove total visitor spending down by 0.4 percent to $949 million.

Many hotels reported little impact from the earthquakes.

The quakes didn't have much effect on Pleasant Holiday's business, said spokesman Ken Phillips.

"It didn't really make an impact at all," Phillips said. He said the company's revenue for October travel was up — in part because of higher prices — but that the number of customers was flat compared with last year. He agreed that the market is softening but expects revenue for the year to be higher than last year.

"First quarter (of next year) particularly is slowing," he said. "But it's not just in Hawai'i. We're seeing it in other destinations as well."

Following the earthquakes, Outrigger Enterprises Group saw a dip in booking pace for three days but quickly recovered, said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises Group. He also said there is a "little bit of softening of demand."

"Not a lot, but the last 30 months or so we've been on an absolute record pace," he said. "So when you say a softening of demand, or a little bit down from prior year, it's not necessarily a bad thing. ... We still feel that the market is very, very strong."

The number of visitors from the U.S. West in October grew 2.2 percent while U.S. East visitor arrivals fell 4.1 percent. Japanese arrivals, which have been falling all year, dropped 11.4 percent. Canadian visitor arrivals grew 1.1 percent.

O'ahu and Maui saw drops in visitor arrivals of 4.9 percent and 1.4 percent, respectively. Other islands hosted more tourists compared with October last year.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.

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