Howard's Business Report: Tourism Update - Hawaii News Now - KGMB and KHNL

Howard's Business Report: Tourism Update

HONOLULU (HawaiiNewsNow) - Joe Toy, CEO of Hospitality Advisors, joins us in studio with a new report out today which says hotel room revenue is way up for the whole first six months of the year.

It's a new record for the industry, something that we've been long waiting for given the incredible down turn that we've had. It's up 15% statewide. To some extent, it covers things like much higher electric bills and higher wages with the new contracts.

We're still are seeing revenue at higher expenses increasing. Five years ago, a hotel's electric bill was 4.5% of the revenue -- Now it's about 6.5%. We've also had almost 10, 15% increase in labor because of the new contracts.

Fullest fullest hotels are easily covering that, others still need more improvement.

If you're on the Big Island or Kauai, you've got a little bit more pressure there because the occupants haven't really rebounded as much. Certainly, Maui has been getting there. Somewhat property specific and somewhat location specific as to how you're doing.

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