OTAs and Hotel Taxes

Aloha Kakou:

As municipalities see their tax revenues decrease due to myriad reasons connected with the economy, they are turning to On-line Travel Agencies (OTAs) to help make up the difference. OTAs pay taxes to the municipality based on the net (wholesale) rate. Cities are claiming OTAs should be paying those taxes based on the retail rate. Collecting these additional taxes from wholesalers was tried by the city of Honolulu about 5 years ago but the city was not successful.

Take a look at this article which discusses a number of aspects of hotel taxes. Also read about the difference in "taxes and fees" between OTAs on the same hotel room.

http://www.usatoday.com/travel/columnist/mcgee/2009-02-25-hotel-taxes_N.htm

Wendy's Skins on ESPN Saturday/Sunday

Aloha Kakou:

The 2009 Wendy's Champions Skins Game airs this coming Saturday and Sunday, February 28th & March 1st. The two 2 hour shows will air on ESPN at 9a.m. - 11a.m. Hawaiian Standard Time (2p.m. - 4 p.m. EST.) This is an opportunity to watch some challenging golf with golf greats Jack Nicklaus, Tom Watson, Gary Player, Bernard Langer, Fuzzy Zoeller, Ben Crenshaw, Greg Norman and Jay Haas in a unique alternate shot format.

When the tournament was played in January, the weather was outstanding and everyone's spirits were high. This tournament is a excellent showcase for Maui, Kaanapali and the Outrigger Maui Eldorado, especially now that temperatures are low and the snow is high in certain parts of the US and Canada. The 30 second vignettes will give you terrific visuals and a brief overview of what Ka'anapali has to offer as a self contained resort destination.

http://www.pgatour.com/tournaments/s550/ - don't look if you want to enjoy the suspense - the website reveals the ending!

Vacations Now a Guilty Pleasure

Aloha Kakou:

We've heard the classic excuses for not taking a vacation. Usually those reasons are some variation on the "no time, no money" theme. Guilt is not usually one of those excuses. Until now, that is. It seems some people are cutting back or downplaying their vacation plans because they feel guilty that they can afford a trip right now while others cannot. While we in Hawaii did see a variant of that after 9/11 when the Japanese felt it was not proper to visit the US following that catastrophe, usually westbound travellers harbor no such feelings. It seems, however, that the current economic crisis may have sensitized Americans, if the following article is to be believed.

http://www.cnn.com/2009/TRAVEL/02/24/economy.vacations/index.html

The Chinese May Not Be Coming, After All

Aloha Kakou:

Previously, I had mentioned that the state of Hawaii had high hopes that loosened restrictions on travel visas as well as increased lift would help to increase tourism by the Chinese.

Now, it seems, perhaps that was a bit optimistic.

Aside from the obvious economic issues, it seems that a lack of nonstop flights coupled with difficulties in receiving visas may be hampering that hoped-for visitor boom.

http://pacific.bizjournals.com/pacific/stories/2009/02/23/story2.html?b=1235365200^1782212

Last Week's R & O

Aloha Kakou:

According to Pacific Business News, both rates and occupancy (R&O) fell in 2009 when compared to the same period from 2008.

"Maui occupancy declined 8.1 percentage points to 76.8 percent, while room rates plunged 17.1 percent to $246, " said the article.

Take a look at the last paragraph for information about Hawaii vs. the rest of the US.

http://pacific.bizjournals.com/pacific/stories/2009/02/16/daily61.html

KYXY Promotion

Aloha Kakou:

Those of you who live in the San Diego area have probably already heard the Outrigger Maui Eldorado name mentioned on KYXY radio at frequency 96.5. This opportunity came about through the Kaanapali Beach Resort Association. We are giving away a four night stay to the lucky winner, who will be selected this Friday in exchange for the station's promotion of the resort.

Take a look at the KYXY web page for more details about this promotion.

http://www.kyxy.com/pages/3772450.php

MVB's Vancouver Visit

Aloha Kakou:

Follow the link to see a brief description of Maui Visitor Bureau's last North American stop, in Vancouver, BC. Nothing like winter weather to bring out the crowds to hear about Maui!

http://www.openjaw.com/onthetown/021709_OTT.php

Timeshare 101

Aloha Kakou:

This article about timeshares appeared on February 18 on foxnews.com. The article is kind of basic but it does give you a good overview of timeshares, discussing the differences between points, floating weeks and fixed weeks, without your having to attend a sales presentation!

http://www.foxnews.com/story/0,2933,494824,00.html

Contracts Sent!

Aloha Kakou:

The new Individual Agency Rental Agreements (IARA) went into the mail today. Hopefully, you'll receive your new contract early next week.

Please complete the last page, sign the contract and return in the enclosed envelope. Returning the IARA sooner rather than later is preferable so we can get this project wrapped up. As always, please let me know if you have any questions.

Trite But True

Aloha Kakou:


This article appeared on the "McPaper's" website, focusing more national exposure on Hawaii's tourism downturn. Perhaps in a backhanded way, these articles may serve to stimulate business, although it will be a while before Hawaii is branded as a bargain destination.


Interesting how the byline is Lahaina, the article talks mostly about Maui but they use a photo of Waikiki. My favorite part is where they describe Kahana as "nearby" Wailea! I guess if you use the term nearby in a relative sense, meaning "on the same island", that would work. And that trite headline - well, that's why USAToday's nickname is McPaper!


http://www.usatoday.com/travel/destinations/2009-02-19-hawaii-tourism_N.htm?loc=interstitialskip

Bargain Travel

Aloha Kakou:

The subject of these two articles that appeared on MSNBC.com is "bargain travel". I'm seeing many similar articles, all with the idea that now is the best time in years to take that dream trip. Many articles specifically mention the great bargains that are available in Hawaii. Hopefully, these comments will get people to think that a Hawaii vacation is affordable and that they should pick up the phone and make those reservations.

Of course, the flip side is that we'll be dealing with the bargain-hunter mentality for years to come! Let's just get them in here now and we'll worry about that type of thinking should the time come.

http://www.msnbc.msn.com/id/29237075/
http://www.msnbc.msn.com/id/29236388/

I202 Renovations - Beautiful!

Aloha Kakou:

In unit I202, "Island Style" has a new meaning. Following a complete kitchen and bathroom renovation, the kitchen now has an island in place of the bar. The refrigerator has been moved and turned 90 degrees, with the air conditioning unit reinstalled above it. The counter surfaces are slab granite with a tumbled marble backsplash. A new valance was created and recessed can lights were installed along with new undercabinet task lighting. The custom cabinets are all plywood construction with a walnut finish and shaker-style doors. All new stainless steel appliances, door and drawer pulls and dressing room faucet hardware add a contemporary feeling to this beautifully updated unit. The look is at once updated and timeless. The work was done in about six weeks by JT & Associates; contact Leamar if you'd like to get more information on the contractor and his work. This is the same contractor that also did D108's kitchen and bath. Considering all of the work that went into these rooms, you'd be surprised how reasonable the cost is. Even though times are tough, we still have owners who are taking on these important renovations. Now is the time to do the work; contractors are looking for jobs to stay busy. Waiting until occupancy improves means more delay and higher cost. Consider doing those updates now.

Hawaii Coast Aerial Project

Aloha Kakou:

Brian Powers, a freelance photographer, has photographed all 2000 miles of coastline on Hawaii's main islands. This is the first time that anyone has undertaken this ambitious project.

The photos were all taken at 500 feet with his Nikon camera. For more cool images, check out his website at http://hawaiianimages.net. You can go all the way around each island just by clicking the left or right arrow.

Hawaii-Lincoln Connection

Aloha Kakou:

This being President's Day, I thought you might find interesting this article from February 12's Honolulu Advertiser. It talks about a personal letter sent to King Kamehameha V from Abraham Lincoln on the death of Kamehameha's younger brother, Kamehameha IV. The letter now resides in the Hawaii state archives.

I don't know about you, but my history lessons never included anything about Hawaii prior to statehood, so I always find these types of stories to be revelations.

http://www.honoluluadvertiser.com/article/20090212/NEWS01/902120361

Think You've Got Problems?

Aloha Kakou:

This Pacific nation of 32 atolls and one island is looking to relocate to higher ground. With the highest point in the entire nation at only 6 feet above sea level, Kiribati (formerly known as the Gilbert Islands) has already lost 2 atolls to rising seas and is concerned about the rest of it's tiny country.

http://www.starbulletin.com/news/20090210_Kiribati_mulls_buying_higher_ground.html

http://www.visit-kiribati.com/

The Word Is Spreading

Aloha Kakou:

Cheapflights.com has included Hawaii on its list of affordable destinations in 2009. It may be ignominious publicity but word is spreading that a Hawaii vacation costs much less this year.

http://marketing.cheapflights.com/travelnomics/2009_Destinations.pdf
http://pacific.bizjournals.com/pacific/stories/2009/02/09/daily15.html

More Welcome Publicity

Aloha Kakou:

Debbie Stone, features writer for the Woodinville Weekly, the Northlake News and the Valley View News, and her family stayed with us in early December. The newspapers serve a small town/suburban area northeast of Seattle. The article she wrote about Maui appears on the newspapers' website: http://www.nwnews.com/features/841-shed-your-cares-and-parka-and-head-to-maui-.html.

Reference to the Outrigger Maui Eldorado appears at the end, with a link to our website.

Squeezed From The Top

Aloha Kakou:

This clip is from February 9's TravelWeekly. Even the luxury resorts are offering free nights, free food and discounts mentioning 50%:

Shaindlin is Peter Shaindlin, COO of Halekulani Corp., operator of the eponymous Waikiki hotel, among others.

Aloha Kakou:

This article, from Hotels Magazine, explains how tight credit is affecting vacation ownership. While timeshare companies are still offering some in-house financing to consumers, of course the larger problem is the absence of funds needed to start or complete large construction projects.

Interestingly, it seems a sort of downward credit creep is now the norm: there is still interest in timeshare and fractional ownership but the people buying these types of properties are trading down. People who are interested in whole ownership but are unable to obtain financing are now looking at fractional ownership and those who were considering fractional ownership are now considering timeshares.

http://www.hotelsmag.com/article/CA6634029.html?nid=4334?nid=3457&rid=1080448300

December's Numbers, Maui Style

Aloha Kakou:

Here are two Maui News articles regarding the visitor industry and the economy on our island.

The first article, from Friday's paper restates some of what was mentioned in the Honolulu Advertiser's story from last Wednesday: Maui's December occupancy was down 14.4% from 2007 to 56.8%; Hawaii's December occupancy was down 10% from 2007 to 60.9%; and Rack rates dropped about $10 for 2008 vs. 2007. Overall, Joseph Toy called 2007's declines a "sickening plunge". I could not agree more!

The second article, from Saturday's Maui News, offers perhaps a ray of hope. "I'm pretty sure 2009 is the bottom," Paul Brewbaker said. Brewbaker is senior vice president and chief economist for Bank of Hawaii and I've mentioned his quotes before. Some of Brewbaker's positive notes: energy costs are down; airfares are down; and Hawaii hotel rates are "more competitively priced" (you get to decide whether that last one is plus or a minus!).


http://mauinews.com/page/content.detail/id/514537.html?nav=10
http://mauinews.com/page/content.detail/id/514595.html?nav=10

Maui Eldorado Listings

Aloha Kakou:

Just in case you were wondering what was for sale here and for how much, follow this link to the Maui Board site for Maui Eldorado listings. Currently there are 18 units for sale here, with prices ranging from $309,000 to $1,450,000.

http://www.ramaui.com/Results.php?MLS=&WhatPropType%5B%5D=Residential&WhatStartPrice=&WhatEndPrice=&WhatCondo%5B%5D=Maui+Eldorado+I&WhatCondo%5B%5D=Maui+Eldorado+II&WhatStartBed=&WhatEndBed=&WhatStartBath=&WhatEndBath=&WhatStartIntArea=&WhatEndIntArea=&WhatStartExtArea=&WhatEndExtArea=&WhatSortType1=ListPrice&WhatSortDirection1=ASC&WhatSortType2=&WhatSortDirection2=ASC&Task=Search

Outrigger Maui Eldorado In The News

Aloha Kakou:

Two weeks ago, we had Scott Sumner stay with us. Scott is the president of North Superior Publishing in Thunder Bay, Ontario. In exchange for staying with us, he published this article in the travel section of Thunder Bay Business February 2009, issue. This article will also appear in the May issue of NW Ontario Golfing News.

Getting golfers excited about the Outrigger Maui Eldorado is a positive thing - our golf course/ocean view location is just the thing for chilly golfers from northern climes! I would have hoped that he could have come up with a photo that was a little more indicative of the Outrigger Maui Eldorado, at least in the foreground!

http://www.golfingnews.ca/article/hawaii-offers-tremendous-vacation-experience-263.asp

December's Numbers

Aloha Kakou:

The Honolulu Advertiser today reported that Hawaii's occupancy for the month of December dropped to 60.9%, the lowest since December 2001's 57.4%.

The lowest-price budget properties and the highest-priced luxury properties were least affected, said Joseph Toy, Hospitality Advisors president and CEO. Those in the middle, like the Outrigger Maui Eldorado, were the hardest hit.

"Maui produced the state's highest average daily rates, at $302.88 for the month, compared with $292.65 the prior year, at an occupancy of 56.8 percent, which was 14.4 percentage points down compared with the prior December", according to the article.

http://www.honoluluadvertiser.com/article/20090204/NEWS01/902040392

A Bit of Airline History

Aloha Kakou:

While not dealing with Maui, I nonetheless found this article interesting about travel at the dawn of the jet age. "I'll have the lobster, please!"

http://www.nytimes.com/2009/01/26/nyregion/26american.html?_r=2

"Panic" Is Slightly Exaggerated, No?

Aloha Kakou:

While this article just briefly mentions Hawaii and Maui, the point is clear that there are bargains to be had for people who have money to travel.

There is no doubt that our ADR will be lower but we have experienced a strong uptick in February arrivals. Right now, we have 3 consecutive February days near 100% occupancy! As usual, though, everyone wants to come at the same time as everyone else. With any luck, some of the rest of February will fill in around those dates.

Check airfares from your favorite airport to OGG. I have seen fares as low as $300, round trip.

http://www.msnbc.msn.com/id/28881405/