Citing high airfares, the United Church of Christ canceled plans to hold a convention with about 3,000 participants in Honolulu in 2011.

The church's executive council made the decision on Sept. 3 because of "financial concerns including increased travel costs, up approximately 50 percent from just a year ago," according to the church's Web site.

Hawai'i visitor industry officials said late yesterday they hope to convince the church to reconsider.

Hawai'i Convention Center General Manager Joe Davis plans to coordinate a conference call today with officials from the United Church of Christ.

Hawai'i's visitor industry has been slumping in recent months with the number of visitor arrivals down and hotel occupancy declining, so any signal of more problems is taken seriously.

"We'll see if we can present a bold proposal to get them to re-think it," Davis said. "I think it's important enough for us to give it another good try."

Davis said recent declines in fuel prices have stabilized airfares that skyrocketed after the dual demise of Aloha and ATA airlines in March and April and the rise of crude oil to record levels earlier this year.

The church canceled the 2011 Honolulu plan because it expected airfares to continue to rise. The Rev. Jim Moos, chairman of the Church of Christ's executive council, said, "Of particular concern is the increased cost of air travel, a development which industry experts expect to worsen."

Edith Guffey, a UCC official in Cleveland who oversees planning for church conventions, said her ticket to visit Hawai'i last November was just a bit more than $600. Now it's $967.

"That's more than a 50 percent increase," she said. "We have no way of knowing what it will be in 2011."

The convention center's Davis said there has been no increase in cancellations of group bookings.

"We don't see it as a trend," Davis said.

Davis said the convention center is staying close to customers so they won't switch to other plans "dealing with anxieties as they come up."

And he said Hawai'i has been picking up other business from meetings planned over a shorter term. For example, he said, groups from Sun Microsystems and Best Western are coming in next month.

FIRST BIG LOSS

Hawai'i Tourism Authority President and CEO Rex Johnson said the state is aware of the church group's change in plans but hasn't heard of other groups canceling.

"This is the first large group that I've been made aware of that has decided to cancel," Johnson said.

But the state tourism agency takes the cancellation seriously, he said. "Given these economic times, we certainly don't like losing any business."

Hilton Hotels and Resorts also is hoping to change the decision after the church group booked an undisclosed number of rooms for the 2011 conference.

"We understand they wish to cancel, but we are still in discussions with them," said Jon Conching, Hilton Hawai'i's regional vice president for sales and marketing.

"We remain hopeful they'll reconsider and come to Hawai'i for their 2011 general synod," he said.

Conching said the Hilton — which gets a large amount of convention and conference business — has not experienced "any drop-off in groups due to higher airfares or airline closures."

Some smaller groups have decided against travel to the Neighbor Islands after airfares increased following Aloha Airline's closure in March, said Cheryl Williams, regional vice president of sales and marketing for Starwood Hotels and Resorts Hawaii and French Polynesia.

"We are also seeing a trend of customers holding off on signing contracts for 2009," she said.

But Williams said she is surprised that the group would be quoting airfare concerns three years out.

"We have seen positive trends on the airfares settling in to normal levels," Williams said.

STARWOOD INCENTIVES

Recently Starwood Hotels and Resorts Hawaii has been working to reduce the cost of its hotel packages to offset the cost of airfare and reduce the overall cost of the whole trip.

"It's much easier to justify Hawai'i and cost in air, when you really know what the per-person cost is and that it is fixed," Williams said.

The inclusive packages are designed to compete directly with Mexico and the Caribbean which market fixed-price all-inclusive destinations.

Williams said including some events, some meals, taxes and tips and resort fees has helped boost business.

Staff writer Mary Kaye Ritz contributed to this report.