Hawai'i hotel occupancy fell again in August, reflecting the statewide slump in the state's No. 1 industry, an industry group reported today.

Room demand fell across all islands during the month of August, with statewide occupancy dropping 6.6 percentage points to 74.4 percent for the month, according to a report from Hospitality Advisors LLC, an industry consulting firm.

The monthly occupancy rate is the lowest for any August since August 1998 when it was 74.3 percent. Revenue per available room — a key industry measure — also fell by 8.9 percent to $157.31 from the same month a year ago.

Drops in demand and revenue per available room were felt across all islands and classes of properties. The statewide average daily rate fell 0.9 percent to $211.34 for the month of August.

The statistics reflect a 17.3 percent plunge in August visitor arrivals reported earlier by the state Department of Business, Economic Development and Tourism.

The double-digit plummet and continuing decline in the state's No. 1 industry is fueling more worries about the economy.

The worst news came from a traditionally strong source of visitors — the U.S. West — which posted its biggest decline on record, down 24.2 percent, according to the August report.