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The Honolulu Advertiser
Posted on: Friday, May 18, 2007

Visitor lodgings see shift to 'condotels'

By Robbie Dingeman
Advertiser Staff Writer

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The 2006 Visitor Plant Inventory report is available on the DBEDT Web site at www.hawaii.gov

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The number of visitor accommodations statewide was little changed in 2006 from the previous year, but reflected another year of growth for nontraditional lodging such as condominium/hotels and time-share properties, according to the latest state statistics.

Hotel properties that were converted into "condotels" in 2006 included the 1,154-unit Ala Moana Hotel and the 262-unit Aqua Palms and Spa on O'ahu, the 345-unit Hilton Kaua'i Beach Resort, and the 135-unit Outrigger Aina Nalu on the island of Maui.

The 2006 Visitor Plant Inventory report showed a relatively stable year with a statewide decline of 0.8 percent according to the report released yesterday by the state Department of Business, Economic Development and Tourism.

The available pool of hotel rooms shrank 5.3 percent to 43,637, with declines reported on Kaua'i, O'ahu and Maui.

The number of condotel units in the market rose 13 percent to 17,235 units. There were increases on all the major islands.

Time-share units rose 5 percent to 7,271, with increases on O'ahu, Maui and Kaua'i.

State tourism liaison Marsha Wienert noted that the industry reported the information as of May of last year but she said it offered no big surprises.

"We all knew we were having increases in the time-share with some of the new properties that were built on Maui as with some of the conversion that was going on here," Wienert said.

"The slight decrease of 610 (overall) units across the state is just the result of adjustments in individual vacation units, apartments and other units responding to the rental and housing market in the state," she said.

And she sees more change coming: "We are already seeing increases in the number of available units as properties, previously under renovation and reconfiguration, return to service in 2007."

But Wienert said the trend shouldn't cause concern. "What we're seeing in the marketplace is really a good thing with diversified product for our visitors ," she said.

While visitors may be spending time in different types of accommodations, they are still coming to stay, despite some recent declines in arrivals, she said.

"The level of spending is about the same although they may spend their dollars a little differently," Wienert said.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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