Positive visitor industry numbers for January combined with news that Hawaii’s scheduled air seat capacity is expected to climb 7.7 percent in 2012 over last year marked the start of what could prove to be a strong year for state tourism.
The Hawaii Tourism Authority reported Thursday that visitors from all major markets rose for all islands last month. Total spending increased 13.9 percent to $1.345 billion and surpassed tourist industry expectations.
"This may be the best January ever," said David Uchiyama, HTA vice president of brand management. "We’re off to a good start in all markets. A favorable currency exchange rate was a factor in our success, but reaching our air seat inventory this month helped us overall, and it will help us going forward."
AIR SEATS ON THE RISE
Scheduled airline seat capacity projected for Hawaii this year and the percent change from a year ago:
|
2012 Projected |
2011 |
Pct. Change |
Domestic |
6,879,706 |
6,559,011 |
4.9% |
International |
3,105,940 |
2,716,811 |
14.3% |
U.S.West |
6,106,920 |
5,832,742 |
4.7% |
U.S. East |
772,786 |
726,269 |
6.4% |
Japan |
1,777,662 |
1,617,095 |
9.9% |
Canada |
354,946 |
319,051 |
11.3% |
Other Asia |
436,460 |
286,796 |
52.2% |
Oceania |
262,707 |
216,041 |
21.6% |
Other |
274,165 |
277,828 |
-1.3% |
Total |
9,985,646 |
9,275,822 |
7.7% |
|
Total visitor arrivals rose 7.7 percent to 643,616 in January, according to HTA statistics. Arrivals from markets like Australia, China and South Korea helped contribute to a 33.7 percent increase in the emerging market category, which accounted for 84,203 of the state’s January visitors. Arrivals from Hawaii’s core U.S. West market, which were mostly flat last year, rose 3.3 percent to 222,914. Visitors from the U.S. East, Hawaii’s more lucrative domestic market, rose 4.1 percent to 150,047. Visitors from Canada, Hawaii’s faster-growing North American market, grew 9 percent to 64,063. Arrivals from Japan, which is still recovering from last year’s devastating March 11 earthquake and tsunami, grew 3.9 percent to 108,625. Also, 13,764 visitors arrived by cruise ship last month, which represented a 22.7 percent increase from the year-ago January.
While per person, per day spending from the U.S. West fell 2.3 percent to $146.40, and per person, per day spending from the U.S. East dropped 1.5 percent to $182.50, all other major markets posted year-over-year January increases. On average, visitors to Hawaii in January 2012 spent 4.8 percent more per person, per day, bringing average daily spending to $192.20. Thanks in part to the strength of the yen, Japanese visitors spent $340.10 per person, per day, which was 18 percent more than they did last year and made them the month’s high spenders among major markets. Visitors from Canada increased their average daily spending by 5.4 percent to $169.
"The rise in spending is consistent with the double-digit rise in room rates in the hotel market as well, which saw rates rise about 12 percent for the year," said Joseph Toy, president and CEO of hotel consultancy Hospitality Advisors LLC. "The momentum has carried over into the first quarter, and we clearly see that in the hotel market as well."
Shari Chang, senior vice president of sales, marketing and revenue management for Aston Hotels & Resorts, which operates eight hotels in Waikiki and 25 throughout the state, said hoteliers are cautiously optimistic.
While a mild winter for the mainland slowed the booking pace, Chang said the first quarter looks nice and the second quarter is filling up.
"We have a good pace right now," she said, "but we’re not so confident as to say that it will be a banner year. Everyone is concerned with the world economy."
Still, HTA’s forecast that 2012 will bring a 7.7 percent increase in airlift to Hawaii could boost visitor industry spirits.
"As an island state, airlift and access is essential for a thriving tourism economy," said Mike McCartney, HTA’s president and CEO. "The addition of 700,000 more seats into our state represents our collective efforts with industry partners to stimulate demand to the Hawaiian Islands."
With total scheduled seats reaching nearly 10 million, the HTA expects capacity to the state in 2012 could hit 98 percent of peak 2007 levels by year-end. HTA estimates are based on airline schedules.
Driven by expansion from Alaska Airlines and Hawaiian Airlines, scheduled seats from the U.S. West are expected to rise 4.7 percent, the HTA said. In addition, Hawaii’s domestic market could realize a 6.4 percent gain in U.S. East capacity as a result of Hawaiian Airlines’ launch of nonstop flights from New York and United Airlines’ launch of service from Washington, D.C. The HTA also expects nonstop seats from Air Canada and WestJet could increase seats from Canada to Hawaii by 11.3 percent.
While service from North America is expected to strengthen, the HTA expects most of the growth in Hawaii’s 2012 capacity to come from the Asia-Pacific.
"We were pleased to see increases across all of our major market areas, with the strongest showing in the Other Asia market (China and South Korea), up 52.2 percent and providing close to 150,000 additional air seats," McCartney said. "Despite the recent shutdown of Air Australia, the Oceania region (Australia and New Zealand) will also see significant growth, up 21.6 percent over last year, thanks to Hawaiian Airlines, Jetstar and Air New Zealand increasing their capacity to Hawaii."
Anticipated year-over-year gains of 47.4 percent from South Korea and 173.7 percent from China will help push capacity from the region to a 10-year high and make "Other Asia" Hawaii’s fastest-growing region for air seats in 2012, the HTA said.