Hawaii island’s rebound from Kilauea Volcano eruptions helps hotel numbers improve

COURTESY NATHAN KAM VIA ASSOCIATED PRESS / 2018

A glow from the eruption of the Kilauea volcano is seen over Pahoa on July 16, 2018. Hawaii’s hotel industry achieved improved performances in October from the year-earlier period as the Big Island bounced back from the lasting effects of the volcano eruptions.

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Hawaii’s hotel industry achieved improved performances in October from the year-earlier period as the Big Island bounced back from the lasting effects of the Kilauea Volcano eruptions of 2018.

Only Kauai failed to post improved numbers last month as it saw a drop-off in the three main categories.

Hotel occupancy across the state rose 2 percentage points to 79.1% while the average daily rate, or ADR, edged up 1.7% to $253.29 and revenue per available room, or RevPAR, rose 4.3% to $200.26, according to data released Thursday by the Hawaii Tourism Authority.

RevPAR is considered by many in the industry as a key measure of success, given that it’s the amount each hotelier gains per room regardless of its occupancy status.

Hotel room revenue statewide in October increased 3.8% to $333.8 million, which is $12.2 million higher than last year. Room demand was up 2.1% to 1.3 million rooms, with supply 0.5% lower compared with a year ago. Some hotel properties across the state were closed for renovation or had rooms out of service for renovation during the month.

Maui County, which has the highest room rates of any of the Hawaii counties, led the state in RevPAR at $250.66 (+9.9%) and ADR at $328.62 (+4.3%). Occupancy rose 3.9 percentage points to 76.3%.

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Oahu hotels also rose in all three categories. RevPAR rose 2.5% to $187.94, ADR increased 0.9% to $227.62 and occupancy was up 1.3 percentage points to 82.6%.

On Hawaii island, RevPAR jumped 12% to $177.19, ADR gained 2.6% to $239.20 and occupancy increased 6.2 percentage points to 74.1%. In May 2018 Kilauea Volcano began erupting in Lower Puna, which contributed to a downturn in the island’s visitors during the following months.

Kauai was the only major island that saw its numbers drop. RevPAR fell 10.3% to $177.19, ADR decreased 2.9% to $252.79 and occupancy fell 5.7 percentage points to 69.9%

HTA is not scheduled to release its visitor arrivals and spending data for October until later this month, but the hotel industry could get a boost through year-end from those two key tourism categories. On Tuesday the state Department of Business, Economic Development and Tourism forecast that arrivals and spending will set records for the eighth straight year.