Posted at 10:33 a.m., Wednesday, April 25, 2007
Fed report notes decline in local hotel occupancy
Advertiser Staff
Hawai'i's hotel occupancy rates were down during the spring break period keeping with trends established earlier in the year, and wages for residents with specialized skills continue to escalate, during a month and a half period that ended in mid-April.Those are among the findings of the Federal Reserve Bank of San Francisco in the latest of its "Beige Book" reports that are released eight times a year. The Twelfth Federal Reserve District includes the nine western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—Guam, American Samoa, and the Northern Mariana Islands.
It said the economy within the district expanded at a moderate pace during March through mid-April with price inflation easing in some industries and retailers reporting moderate sales gains. It said the housing market cooled in most areas, while commercial market real estate markets continued to pick up.
The bank noted there were areas where tight labor market conditions resulted in higher wage growth.
"Shortages continued for workers with specialized skills in various sectors and in areas with especially tight labor markets, notably Hawaii, Idaho, and Utah, keeping compensation growth rapid for these worker groups," the report said.
It also said most service providers saw robust demand with strong sales for food and beverage and health care services. It said travel and tourism was brisk in some key district locales but that "hotel occupancy rates in Hawaii during the spring break period were down relative to the very high levels of the past few years, continuing the trend towards lower occupancy rates established earlier this year."
