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The Honolulu Advertiser
Posted on: Wednesday, July 29, 2009

Hawaii tourism pocketed $882 million less so far this year


By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

There are fewer people strolling along Waikiki's Kalakaua Avenue these days as the number of visitors keeps falling.

Advertiser library photo

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The global economic decline and swine flu scare resulted in a nearly $900 million drop in money flowing into the Islands via the state's No. 1 industry during the first half of this year.

Visitor spending through June fell to $4.97 billion, a decline of $882.2 million, or 15.1 percent, from the same period a year earlier.

For the month of June, visitor spending fell to $843.9 million, a 16.1 percent decline from the same month a year earlier. The number of visitors arriving in Hawai'i also continued to slide, falling 5.2 percent to 550,421. That's the 16th consecutive month of decline in arrivals.

Average daily visitor spending fell to $156 per person from $180 per person in June 2008.

Japanese air arrivals declined 32.8 percent, the largest decrease in arrivals for the Japanese market since May 2003 when they fell 36.6 percent. With Japanese tending to be large spenders, a decline in their numbers causes a disproportionate decline in overall spending.

The one bright spot in June was air arrivals from the U.S. West, which increased for the second consecutive month, up 4.9 percent from a year earlier.

Arrivals from the U.S. East dropped 4 percent. Arrivals by air from Canada were 10.5 percent lower compared with June 2008.

Total visitor days in June 2009 fell 2.9 percent from the same month last year. The average length of stay increased slightly to 9.85 days from 9.61 days in June 2008. Total arrivals by air decreased 5.2 percent to 550,421 visitors, continuing a decline since March 2008. No visitors came to the islands by cruise ships in both June 2009 and 2008.

"June's results were not unexpected, as global economic conditions are continuing to affect Hawai'i's visitor industry and our economy," said state tourism liaison Marsha Wienert.

FEARS OF SWINE FLU

Fears of H1N1 influenza contributed to the large decrease in international travel, especially visitor arrivals from Japan, which plunged beginning in mid-May but have begun to recover in recent weeks.

"The growth in visitors from the U.S. West in June was very positive news and a result of very attractive travel packaging and increased marketing efforts in our base market," Wienert said.

Resort retailer DFS relies heavily on the high-spending Japanese visitor market which has slowed in recent years because of fuel surcharges, the economy and increased competition from closer tourist destinations.

DFS vice president Sharon Weiner — who also serves on the Hawai'i Tourism Authority — said she wasn't surprised by the June decline in arrivals for Japanese visitors because of the sudden impact of H1N1 flu from mid-May on.

"The thing that is more concerning is the spending patterns," Weiner said, and the lower spending in all markets.

"That's something we should do our best to improve," she said, but the best way to accomplish that remains "an enigma."

Keni Sumpter, director of sales at Doubletree Alana Hotel Waikiki, said his hotel relies heavily on business travel and has reduced rates to try to keep up occupancy during the global economic downturn.

"For us, it's been somewhat flat as far as our occupancy," Sumpter said, with a slight increase in occupancy numbers for June.

He expects more companies to send their employees to meetings and conferences for just five or six days rather than the 10-day trips of past years. He said the 29,000 people expected for Jehovah's Witnesses international convention in late November comes at a particularly welcome time.

"We're seeing people doing more videoconferencing," he said. "We definitely have our work cut out for ourselves."

HTA MARKETING PUSH

At HTA, president and chief executive officer Mike McCartney, said the state's lead tourism agency has allocated 86 percent of its budget to support marketing programs beginning in July 2009. He said the push will try to stimulate travel to the Islands, especially from two core markets — U.S. West and Japan.

McCartney said he's pleased to see the increase in arrivals from the U.S. West for the second month in a row.

"With heightened marketing efforts and scheduled blitzes on the West Coast and in the Pacific Northwest, we are hopeful that this trend will continue through the fall," he said.

And, he said, special marketing campaigns in Japan are starting to generate bookings.

"We have already begun to see some initial results with 23 extra flights added in July and August and eight additional flights added during 'silver week' in September to accommodate demand," McCartney said.

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