Hawaii’s tourism industry had its best September, setting records for visitor arrivals and spending and keeping the state on track for a fifth consecutive year of gains.
Statewide visitor arrivals rose 3 percent to 666,605 in September, which marked the 20th straight month of year-over-year growth since February 2015, according to statistics released Thursday by the Hawaii Tourism Authority. Year-to-date arrivals growth was flat from Japan and decreased from Canada, a market that has experienced 12 consecutive months of visitor declines. However, arrivals rose from the U.S. East and West, and all other international markets.
Visitor spending in September increased just more than 10 percent to $1.2 billion, the fourth straight month of year-over-year gains. Through the first three quarters, Hawaii’s tourism industry generated $1.24 billion in state tax revenue, which is an increase of $43.6 million over last year, HTA President and CEO George Szigeti said in a statement.
“A strong September highlighted by new records for the month in visitor arrivals and spending means the first three quarters of 2016 was the best ever for our tourism industry, and keeps Hawaii ahead of pace to set new annual records,” Szigeti said.
HTA has targeted 2016 visitor arrivals to grow
2 percent to nearly 8.8 million and spending to grow
4 percent to $15.9 billion. Through the first nine months of the year, visitor arrivals rose almost 3 percent to nearly 6.7 million visitors. Visitor spending during the same period rose nearly 4 percent to $11.6 billion. If performance continues at this rate through year’s end, it will exceed last year’s record, and many visitor industry players expect the momentum will carry into 2017.
Jack Richards, president and CEO of Pleasant Holidays LLC, Hawaii’s largest wholesale travel seller, said September and October came in much better than expected, and November and December are anticipated to stay strong.
“We’re up double digits to Hawaii; it’s been at least since 2013 that we’ve been there,” he said. “I think 2017 will be even better than 2016. We are seeing strong bookings through June 2017.”
Richards said the booking window to Hawaii has elongated as more U.S. travelers choose safer, closer destinations.
“Some people are afraid of the Zika virus in the Caribbean and Mexico, especially honeymooners planning to get pregnant,” he said. “Others are concerned about terrorism in Europe.
“Hawaii is benefiting from the fact that you don’t need a passport and it’s a U.S. state. Also, airfares are very moderate and that’s helping drive the market.”
Richards said he’s also seeing more travelers to Hawaii booking upscale and luxury accommodations.
“For the past year and a half, the three-star-and-below inventory has not been selling as well as the higher-end inventory,” he said.
Keith Vieira, principal of KV &Associates Hospitality Consulting, said he expects continued run-up.
“I’m not seeing any clouds on the horizon. We’ve got a very balanced market. If any market in an area of the world is weaker, we’ve got another to offset it,” Vieira said.
Jerry Gibson, Hilton Hawaii area vice president, said it’s too early to tell whether Hawaii tourism will set more records next year, but so far, 2017 island bookings are outperforming the rest of the U.S.
“We have some tail winds in our favor,” Gibson said.
