July visitor arrivals reached an all-time high for Hawaii, keeping the state on track to approach the 10 million visitor mark by year’s end.
According to preliminary data from the Hawaii Tourism Authority, statewide arrivals in July rose more than 5 percent to 939,360. Visitor spending increased nearly 5 percent to about $1.7 billion. The gains came despite a pullback on Hawaii island linked to the Kilauea eruption that began in May.
July visitor arrivals lag on Hawaii island
Hawaii island was the only major island that did not see growth in July. Arrivals there fell nearly 13 percent to 153,906 and spending slipped just over 7 percent to $201 million. Visitor day trips dropped by almost 40 percent, and the island’s average daily census decreased more than 8 percent to 36,753 visitors.
United Airlines, the state’s largest carrier, reported approximately a 20 percent decline in passengers to Hilo and Kona due to the volcano. The airline reduced Hilo service from daily to five times per week and cut San Francisco to Kona service from three to two daily flights. United said bookings have improved as the eruption subsides and it will restore capacity as demand returns.
The Hawaii Tourism Authority released more than $2 million in emergency funds to promote travel to Hawaii island, said HTA President and CEO George Szigeti. He said he expects bookings to trend closer to the performance seen on Oahu, Maui County and Kauai.
Year-to-date growth remains solid for Hawaii visitor arrivals
Despite Hawaii island’s July dip, arrivals statewide for the first seven months of the year rose nearly 8 percent to 5.9 million, and spending climbed about 10 percent to more than $10.9 billion. Oahu, Maui, Kauai and Hawaii island all posted gains in arrivals and spending over the first seven months compared with the same period a year earlier.
The state Department of Business, Economic Development and Tourism projected that by year’s end, arrivals could rise more than 6 percent to 9.96 million, with visitor spending up more than 9 percent to nearly $18.5 billion. Jennifer Chun, HTA’s director of research, said the forecast issued in August preceded the hurricane but factored in some summer softness tied to the volcano.
Hurricane impacts and outlook
It is too soon to know how flooding on some islands and Hurricane Lane, which led to cancellations and softer future bookings, will affect year-end performance. The state economist estimated Hurricane Lane’s approach reduced passenger counts by 10,000, equating to about $18.6 million in lost spending, said Christine Hirasa, a spokeswoman for DBEDT. Visitors who canceled but later rebooked could offset some of that decline.
Mufi Hannemann, president and CEO of the Hawaii Lodging & Tourism Association, said cancellations related to Tropical Storm Lane occurred and that forward bookings are a concern. He said Hawaii must send a strong message that it is open for business to prevent prolonged softness.
Sean Dee, executive vice president and chief marketing officer at Outrigger Enterprises Group, said Lane pushed occupancy down about 10 to 15 percentage points over a two-week stretch. “We’re hoping that it comes back quickly,” he said.
Keith Vieira, principal of KV & Associates, Hospitality Consulting, said Lane’s impacts are unlikely to last as long as those from Kilauea. However, he cautioned that continued headlines about flooding and Hurricanes Miriam and Norman could prompt travelers to delay Hawaii trips. That could complicate recovery from Kilauea and diminish the benefit of the Sept. 22 reopening of portions of Hawai‘i Volcanoes National Park, the island’s top visitor attraction.
Some businesses are also still working through financial damage from the Kilauea eruption, including those assisted as recovery loans surpass $30 million in approvals. The reopening of Hawai‘i Volcanoes National Park is expected to be a key signal to visitors that the island remains a safe and attractive destination.
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