Occupancy Rates in Big Island Hawaii Reach Record Lows
Wednesday, July 22nd, 2009
Hawaii was once one of the most-visited travel destinations in the world, but recent statistics show a significant decrease in travel to the major islands in Hawaii, and record lows in occupancy rates at the major hotels and resorts. Smith Travel Research and the Hospitality Advisors of Hawaii have published the results of a survey that takes into account 158 properties that represent a significant portion of the hotel and resort industry on the Hawaiian Islands.According to a report published by the Associated Press on July 7, 2009, hotel occupancy rates fell 6.9 percentage points to 62 percent in May 2009, making it the worst May record for the hospitality industry since the late 1980s. Occupancy rates fell to below 50% on Big Island in May, and other destinations in Hawaii are experiencing similar drops. The island of Oahu reported the highest occupancy rates of all the islands, dropping only 3.6 percentage points. The average daily rate for all hotels fell to $166, which equates to a drop of $103 of revenue per room.
The state has been struggling with attracting tourists given the state of the economy, and has been offering discounted packages and other incentives to lure more travelers throughout the year. Still, many American and global travelers simply aren't booking exotic vacations to Hawaii. Some are trying to save money on travel and cutting out luxury expenses, while others are turning to more affordable destinations in the United States.
Hawaii vacation packages are now available at steep discounts from several travel operators across the country, and some hotels and resorts are offering extra incentives such as complimentary future stays, deluxe amenities and services at no extra cost, and free upgrades just to stimulate travel. However, experts report that the travel climate for Hawaii in 2010 still looks bleak.