Report shows Hawaii's visitor industry down

HONOLULU (KHNL) - A new report released by Hospitality Advisors shows Hawaii's visitor industry had a challenging first half of 2008.

According to the latest Hawaii Hotel Report, visitor arrivals were down 5.2% through year-to-date June.

The impact on hotels was cushioned by a decline in supply of 1.3% due to out of service hotel rooms undergoing renovation.  This led to a 0.9 percentage points decline in statewide occupancy.

Hawaii's total hotel room revenue increased by 1.5% for the first half of 2008, driven by 4.0 in ADR.  However, most of the ADR gain occurred during the winter season.

Maui occupancy rates fell the most, seeing nearly an 11% drop in visitors.

The Big Island has the state's lowest occupancy rate at 57%.

Total visitor expenditures dropped by 3.4% during this period, indicating that visitors spent more on their hotel rooms and less on other items during their stay.

Compared to other U.S. markets, Hawaii's hotels performed well for the first half of 2008.