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The Honolulu Advertiser
Posted on: Tuesday, November 25, 2008

ARRIVALS STILL DECLINING
Tourism down again in October, by 13.5%

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

The International Market Place is a hub of visitor spending. But October visitors spent an average of $2 a day less than those who came last October. While tourism was down, it wasn't as big a fall as in recent months.

ADVERTISER LIBRARY PHOTO | September 2008

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Hawaii news photo - The Honolulu Advertiser

Marsha Wienert

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The number of visitors traveling to Hawai'i continued to decline in October, although at a slower pace than in recent months.

Visitor arrivals declined by 13.5 percent in October from the same month a year earlier, the smallest drop since May for Hawai'i's No. 1 industry, according to a report released yesterday by the state Department of Business, Economic Development and Tourism.

Average daily visitor spending fell to $189 per person from $191 last October.

DBEDT is forecasting a 10.1 percent decline in visitor arrivals this year, followed by a 1.9 percent drop in 2009. Arrivals aren't expected to turn positive until 2010, when an increase of 1.4 percent is projected.

State tourism liaison Marsha Wienert said "national and global economic conditions" continue to weigh on the local visitor industry, which has been hit by double-digit declines in arrivals since June.

"The results in October were pretty much what we expected," Wienert said.

However, the decline in visitor arrivals was the smallest since May, when they fell by 7.4 percent.

Among the top four visitor markets, arrivals from Canada rose 7.6 percent, rebounding from a 6 percent decline in September.

Arrivals from the U.S. west and east fell by 19.8 percent and 14.1 percent, respectively.

Although October 2008 arrivals from Japan fell 5.6 percent compared to last year, the decrease was less severe than the double-digit declines in each of the previous four months.

Wienert said the expectations are for continued weakness through the end of this calendar year.

November isn't shaping up to be as strong as the industry was hoping, she said.

Hotels still are taking reservations for the December holidays, which often are booked months ahead of time.

"There are rooms for Christmas and that's a little bit out of the ordinary," she said.

Wienert noted that the average length of stay by visitors rose to 9.06 days in October, compared with 8.91 days a year earlier.

She pointed to the renewed interest from Canada as a positive sign in the slumping visitor industry and to several other individual segments that appear to be rebounding.

"International visitors traveling to the Islands to attend a convention or corporate meeting increased 55 percent and 35.5 percent, respectively."

Other highlights:

  • A higher percentage of October visitors from the western U.S. stayed in time-share properties (17.1 percent of all western U.S. visitors) than in the same month last year (13.9 percent).

    More visitors from the eastern U.S. (11.5 percent of them) also stayed in time-share properties than did so last October (10 percent).

  • The Canadian market has been growing steadily since 2006, with increases in visitor arrivals in 31 of the last 34 months.

  • Daily spending by Japanese visitors rose from $306 per person to $322 this October, resulting in a 1.9 percent drop in total expenditures, compared with a 6.8 percent decline in visitor days and a 5.6 percent decrease in arrivals for the month.

  • In the first 10 months of 2008, 156,714 Japanese visitors came to honeymoon in the Islands, up 3.3 percent from year-to-date 2007.

  • All islands reported lower visitor expenditures last month than in October 2007.

    Despite a 13.3 percent drop in arrivals, total visitor expenditures on O'ahu declined only 5.1 percent to $448.7 million, because of higher daily spending (up 6.1 percent to $213 per person) by those who came last month.

    Total visitor spending decreased by 21.6 percent to $200.1 million on Maui, by 18.5 percent to $104.8 million on Hawai'i Island and by 18 percent to $83.2 million on Kaua'i.

  • Japanese arrivals on O'ahu surpassed U.S. west and U.S east arrivals in October.

  • Maui reported increased arrivals from Japan (up 9 percent) and Canada (up 10.5 percent) compared to October 2007.

  • Year-to-date, Japanese arrivals were lower on Kaua'i (down 25.8 percent), Maui (down 17.7 percent), Big Island (down 12.5 percent) and O'ahu (down 8.7 percent) compared to the first 10 months of 2007.

  • The decline in cruise visitors for October 2008 largely resulted from the departures of the Pride of Hawai'i (in February) and the Pride of Aloha (in mid-May).

  • For the first 10 months of 2008, a total of 221,072 visitors came by cruise ship or by air to board cruise ships, 47.8 percent fewer than in the same period last year.

    Visitor days for all cruise visitors fell 45.9 percent.

    Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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