Tourism sizzles, sees best month ever

Hawaii tourism celebrated its best month ever in July, but the fireworks continued into August, which was another boom month for the key state industry.

The end of summer brought solid year-over-year gains in monthly visitor arrivals and spending across all four major islands. Some 818,581 visitors traveled to Hawaii in August, a nearly 5 percent increase from August 2016, according to preliminary statistics released Thursday by the Hawaii Tourism Authority (HTA). Spending by these visitors rose just over 6 percent to nearly $1.4 billion.

Through the first eight months of the year, Hawaii welcomed 6.3 million visitors, who spent just over $11.3 billion. Year-to-date arrivals were up nearly 5 percent and year-to-date spending was up nearly 9 percent from the same period in 2016. Through August, tourism generated $1.3 billion in state tax revenue.

George Szigeti, HTA president and CEO, acknowledged that tourism has been on a tear.

“By comparison, when Hawaii was starting to emerge from the Great Recession in 2010, the tourism industry realized $11.01 billion in total visitor spending and generated $1.05 billion in State tax revenue for the entire year. With four months to go in 2017, our tourism industry has already surpassed both of the full-year totals from just seven years ago,” he said in a statement.

So far, 2017 is heading toward its sixth consecutive year of spending and arrivals gains. It’s been a good year for hotels, time-shares and the alternative accommodations industry.

“Hawaii in all areas is really doing well against other states,” Duane Vinson, vice president of industry data provider STR, said at HTA’s Global Tourism Conference, which was held Sept. 19-21 at the Hawai‘i Convention Center.

Joseph Toy, president and CEO of Hospitality Advisors LLC, said Hawaii’s hotel industry remains “vibrant with occupancy approximating 80 percent and an average daily rate of $200.”

Howard Nusbaum, president and CEO of the American Resort Development Association, told summit participants that Hawaii’s 94 resorts are the most sought in the U.S. time-share industry, of which they comprise 6 percent. According to a 2017 Ernst and Young study, the economic output of Hawaii’s time-share industry is $5.3 billion, and the industry generates $1.3 billion in local off-site consumer spending and $263 million in state and local taxes.

David Burden, Airbnb territory manager, said the company connected 694,800 Hawaii visitors with places to stay in the past year. The average daily rate increased nearly 8 percent to $169 per night.

The Department of Business, Economic Development and Tourism’s Aug. 11 forecast anticipates visitor spending will reach $16.8 billion this year when 290,000 more visitors arrive than last year, bringing the total to 9.2 million.

A recent resident sentiment survey, which polled 1,650 Hawaii residents between February and April, revealed mixed feelings toward tourism.

More residents credited the visitor industry with creating jobs as well as shopping and entertainment opportunities and festivals, sports and events than those who were surveyed in 2015, when the last sentiment poll was conducted. Respondents who agreed with the statement that “tourism has been mostly positive for you and your family” rose to 41 percent from 2015’s 40 percent.

However, more people said that tourism success has caused traffic problems and resulted in higher living costs. Fewer residents agreed that tourism helps sustain natural and cultural resources.