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The Honolulu Advertiser
Posted on: Monday, July 28, 2008

OWN BACKYARD
Kama'aina deals grow as hotels feel the pinch

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Discounts at the Ohana Waikiki West, on Kuhio Avenue, include $15 per day of coupons at the Food Pantry market across the street, a deal residents like, the company says.

Ohana Hotels & Resorts photo

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Hawaii news photo - The Honolulu Advertiser

Guests can now enjoy free headsets, a $3 to $5 value, at the Imiloa Astronomy Center of Hawaii on the Big Island. The visitor industry is offering more kama'aina deals to make up for a decline in tourism.

Imiloa Astronomy Center of Hawaii

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Hawai'i hotels are turning to a market in their own backyard as they try to combat a dip in guests from the Mainland and Japan.

The properties, along with some visitor attractions, are turning up the number of discounts they offer to Hawai'i residents as they feel the pinch of a decline in tourism.

More so-called kama'aina rates are emerging each week as the visitor industry works to blunt the dip in summer visitor arrivals and try to stem a 10 to 30 percent drop in bookings for the fall.

Some hotels are offering discounts for food, spa services, or golf, even free groceries.

Even high-end Neighbor Island resorts are offering cheaper rates for July and August, normally a busy travel time.

"These are summer value packages, which you normally don't see," said Murray Towill, president of the Hawai'i Hotel and Lodging Association. "They're more substantial; they're a better value than they have been."

While some discounts for residents are available year-round, Hawai'i residents seemingly can find ads for more specials in newspaper ads, online promotions, on the radio and even in the movie theaters, between trailers. Some of the discounts and enhanced offerings also are available to visitors.

One of those pricier Maui properties now offering some deep discounts to local residents is The Westin Ka'anapali Ocean Resort Villas.

General Manager Gregg A. Lundberg points to specials at $199 to $209 a night for a room that sometimes during the peak summer season goes for $690 a night.

"We've always had specials," Lundberg said. "But we've got more available than we usually do."

The kama'aina VIP special rate requires proof of residency with a Hawai'i address in the form of a valid Hawai'i driver's license or Hawai'i state ID.

The package includes an upgrade to an island-view deluxe one-bedroom as well as early check-in and late check-out, 25 percent off breakfast, lunch and dinner at some restaurants and 10 percent discount on spa services. There also are golf discounts and 5 percent off Avis Rental cars.

Lundberg said the villas combine the hotel feel with some condo amenities such as a full-size refrigerator, kitchen and barbecue grills, so guests can cook full meals, including marinated meats that can be bought at the resort's market.

"You don't have to go anywhere else if you don't want to," he said. "We're a typical hotel room on steroids."

Lundberg said the hotel also lacks a resort fee, and does not charge for high-speed Internet or parking.

On Maui, Lundberg said Hawaii Superferry traffic also has picked up. "It is a lower-cost alternative," he said.

He's hopeful that bargain-savvy last-minute shoppers will keep coming to the resorts.

Kama'aina deals also are available at less expensive hotels. The "Castle Resorts & Hotels' Summer on Sale" promotion includes a room at the Maile Sky Court hotel in Waikiki at $78 per night with free daily continental breakfast.

Other deals promote ways to avoid extra airline baggage fees by touting condos with washers and dryers. They include Castle's Kamaole Sands in Kihei, Maui, at $125 per night for a one-bedroom, two-bath garden view condo,with a two-night minimum stay.

Outrigger Hotels & Resorts offers kama'aina rates year-round, according to Tom Wakita, director of sales & marketing for the chain's mid-priced Ohana Hotels & Resorts.

"It's a huge market for us," Wakita said, noting the market is often a reliable 10 percent of guests. Their home addresses might seem surprising: "90 percent of our kama'aina business for Waikiki comes from O'ahu," he said.

The other bonus in offering discounts to residents is the quick response, Wakita said. "It can boost your occupancy in three days. We can see the occupancy just climb."

Wakita said his company has tried some new twists in the past year, including a discount deal tie-in with the Hawaii Superferry and free groceries.

He said some discount rates at the Ohana Waikiki West include $15 per day of coupons at Food Pantry market, which is across the street.

Wakita said the coupons show that Mainland travelers tend to buy souvenirs while residents opt for chips and beer.

And he said that some of the high airfares keeping Mainland travelers from coming here also are keeping some residents here for reunions and other events they might have planned to celebrate out of state.

Aqua Hotels & Resorts recently unveiled a resident's deal for the Aqua Aloha Surf & Spa and Aqua Palms & Spa hotels until Aug. 31.

"For $89 per night, Hawai'i residents booking the 'Locals Only Special' receive a standard room at either hotel, with an upgrade available for an additional $1 per night," said Elizabeth Churchill, vice president of sales & marketing for Aqua Hotels & Resorts.

She said the kama'aina summer promotion represents a savings of up to 55 percent.

And sometimes the push to attract residents helps all the visitors. On the Big Island, guests who visit the Imiloa Astronomy Center of Hawaii now enjoy free audio headsets, a $3 to $5 value.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.