August’s gains give tourism hope for fall

Hawaii’s peak summer tourist season is coming to a close, but visitor traffic is holding its own into fall.

A total of 725,642 tourists came to the islands in August, and they spent about $1.19 billion, the Hawaii Tourism Authority reported Thursday. The 14.6 percent rise in spending and the 11 percent gain in arrivals were augmented by a 15 percent increase in air seats this August as compared with the same month last year.

"It’s the best year that I’ve seen in Hawaii in the 25 years that I’ve been here," said Jerry Gibson, area vice president, Hilton Hawaii, and managing director of Hilton Hawaiian Village. "From January to summer, tourism has resulted in very consistent schedules, and that’s been a good thing for all of our teams at the different hotels." 

Arrivals in August were up on all islands, and total spending was up across the state except for Molokai and Lanai. Arrivals and spending from most major markets increased, including the U.S. West, the U.S. East, Japan and cruise ships, and from emerging markets like Taiwan, China, Korea, Australia, New Zealand, Europe and Latin America.

For the first eight months of 2012, total arrivals grew 10 percent to 5.38 million visitors. Total air seats grew 6.9 percent during this period. Year-to-date spending through August also was up 20 percent to $9.59 billion, which translates into about $1.04 billion in state tax revenue.

"Right now we are expecting 7.8 million visitors (this year) if we stay on track, and on the spend side we’re projected to hit $14 billion," said Mike Murray, Hawaii Visitors and Convention Bureau vice president of sales and marketing for corporate meetings and incentives. "If that happens, this would be the best year ever for tourism."

So far so good, said Jerry Westenhaver, general manager of the Hyatt Regency Waikiki Beach Resort and Spa. The weak U.S. dollar, the perception that Hawaii is a safe place, and the relative stability of fuel prices continued to boost international arrivals, Westenhaver said.

"Business from Japan has remained steady, Australia has discovered Hawaii and there is a lot of potential from Korea," he said.

Since Korea was issued visa waiver status in 2008, Hawaii has become "honeymoon express," Westenhaver said.

"The Korea market just keeps doubling, and it’s one of those markets that you want to watch because it has a lot of potential to grow," he said.

Frequent visitors Sue and Will Wilson of Auckland, New Zealand, said a strong currency and more air travel choices are increasing Hawaii’s popularity for New Zealand visitors. HTA reported that Oceania air seats climbed 33.7 percent from last August, boosted by additional service from Sydney and Auckland.

"We’ve got Australia’s Gold Coast to go to as well, but it’s not warm enough in our wintertime," Sue Wilson said. "Hawaii is just brilliant."

The couple, vacationing with their 13-year-old grandson Devon on this trip, said that they’re planning a full schedule to reacquaint him with Hawaii.

"He was last here when he was 4," Will Wilson said. "We’ll take him to Pearl Harbor and do a Robert’s tour."

As Hawaii heads into the traditionally slower fall tourism period, the momentum is expected to continue with increased air service and festivals and events, said HTA President and CEO Mike McCartney.

"While we expect continued growth, we anticipate less significant increases in the fourth quarter and as compared to the year-over-year increases reported during the first eight months of 2012," McCartney said.

However, coming events like the Hawaii International Film Festival, Ironman World Championships, Kona Coffee Cultural Festival, 20th Annual Slack Key Guitar Festival "Kauai Style" and Wai­lea Wine & Food Festival will continue to bolster tourism, he said.

"As fall seasons go, it’s a very solid performance," said David Carey, president and CEO of Outrigger Enterprises Group. "There’s a good balance between air seat supply and room supply, and that’s maintaining the vitality of the market." 

Hyatt Regency Waikiki Beach Resort and Spa is moving into fall without the occupancy drop that typically marks the shoulder season, Westenhaver said.

"Our occupancy is very strong, like it was in summer," he said. "There’s maybe a weak puka before the Christmas holidays, but that’s so far out that it could change. Even Thanksgiving, which is typically softer, is filling in nicely."

The trend is expected to continue, Carey said.

"Moving ahead to the first of next year, bookings already are looking solid."