Visitor arrivals and visitor spending to Hawaii posted increases in June, the first month both categories have been up since November.
However, the rise wasn’t high enough to break the year-to-date trend of more visitors coming to Hawaii and spending less while they are here. Until now arrivals had been growing since February 2017, but tourism spending had been falling for seven months.
According to visitor statistics released Tuesday by the Hawaii Tourism Authority, visitor spending statewide rose nearly 3% to $1.6 billion compared with the same month a year ago. The results were due to higher spending from Hawaii’s core U.S. West market and its second-largest market, the U.S. East. Still, June visitor spending fell from Japan, Hawaii’s top international market; the mature Canadian market; and from foreign markets outside of Japan and Canada.
Visitor arrivals last month increased by more than 6% to 951,628 visitors. More visitors came from North America, but they dropped from international markets. On any given day more than 279,087 visitors were in Hawaii — that’s up nearly 3% from June 2018.
June results were strong in part because they were being measured against the period in 2018 when softening began to occur due to flooding and heightened eruptive activity at Kilauea Volcano.
Jack Richards, president and CEO of Pleasant Holidays, said those issues seem to have carried over into 2019, which so far has had weak demand.
“Hawaii has been very difficult for us in 2018 and 2019,” Richards said. “People remember what happened last year, and some of those issues have lingered, so they are taking a break from Hawaii and going to places like Mexico, which is really coming back and can play with the rates right now during their off-peak season.”
For the first half of the year, visitor spending fell 2% to nearly $8.9 billion, while arrivals increased more than 4% to nearly 5.2 million visitors. Arrivals during the first six months rose from most major markets.
Through June the U.S. West was the only major market area that posted spending gains. HTA said daily spending dipped to $196 per person, a more than 3% decline that was partially due to decreases in lodging and transportation costs.
Joseph Toy, president and CEO of Hospitality Advisors LLC, said transportation costs have become more favorable to travelers due to low oil prices and increased capacity in the market. In the first half of this year, HTA reported that total trans-Pacific air seats statewide rose nearly 2% to almost 6.8 million.
Toy said lodging costs might have fallen due to consumer intolerance for the multiyear ramp-up of higher prices, the return of hotel lodging supply that had been off the market, and the proliferation of vacation rentals.
“These factors have certainly helped create very competitive pricing strategies,” Toy said.
Richards said the good news is that it looks like Hawaii tourism will come out of its weaker-demand period next year.
“We’re already up double digits in 2020,” he said.
ON THE MOVE
The Prince Waikiki has appointed Joshua Hargrove as the resort’s new general manager. He has 14 years of hospitality experience, including having recently served as a hotel manager at The Westin Kaanapali Ocean Resort Villas in Lahaina. Hargrove’s background also spans working various positions at hotels such as The Royal Hawaiian, The Modern Honolulu and The Sheraton Keauhou Bay Resort & Spa in Kona.
Rehab Hospital of the Pacific has announced that Dr. Shari Oshiro was appointed as chief medical director, as of July 16. She is a specialist in physical rehabilitation and medicine, with experience in providing outpatient and inpatient services as well as has a strong background and interest in program management and development. Oshiro has 12 years of specialized experience working with Rehab’s patients, including having previously served as a medical director of the Stroke Rehabilitation and Amputee Rehabilitation programs.
