HVCB Takes New Tack

Aloha Kakou:

With fewer tourists arriving in Hawaii, the Hawaii Visitor's and Convention Bureau (HVCB) has it's work cut out for it in attracting new business to the state. Currently, the HVCB is on a marketing blitz in key west coast cities. The group is also looking for ways to capture business from emerging tourism markets like China and Korea.

http://www.msnbc.msn.com/id/32595453/ns/travel-news/

Here's the website they mention in the article:

http://hawaii.gov/dbedt/info/energy/hcei/

Flight Centre Mention

Aloha Kakou:

Here's the page from our New Zealand wholesaler, Flight Centre, which mentions the Outrigger Maui Eldorado. The $2535 amount is in New Zealand dollars; the US equivalent is $1571.

Visitors Up, Spending Down

Aloha Kakou:

July was the first month since February 2008, where the number of visitors increased year over year. For Maui, July's increase was .7% That's the good news.

The bad news is that visitor spending for lodging, food and beverage and entertainment fell by 10% compared to last July.

Please see comments in the Honolulu Advertiser by David Carey, Outrigger Enterprises' president and CEO. "It feels like we bottomed. But it doesn't suggest that we've turned it up yet," he said.


http://mauinews.com/page/content.detail/id/522830.html?nav=10
http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20090827/NEWS01/908270363&s=d&page=#pluckcomments

Force Main Construction

Aloha Kakou:

Work continues on the new force main sewer line, connecting the Kaanapali pumping station to the main sewer line under Honoapiilani Highway. While it seems they've made record time progressing along Kekaa Drive, they are now stalled at the little road that connects Kekaa to the highway. Maui's ultra-hard blue rock and some unanticipated underground utilities seem to have complicated the work. Construction usually starts about 9 am and is finished by 4 pm. To date, we really have had no complaints from guests. With any luck, they'll be done by Friday (but that's what they said last week!).

K Building Painting

Aloha Kakou:

The K building is masked and painting has begun. They're also working on spalling, mostly on the walkway ceiling near K102-105 (that incessant hammering is about to drive me insane!). Fortunately, Outrigger Maui Eldorado guests are not affected since our units in this area are out of order.

Hawaiian Airlines Pilots Picket

Aloha Kakou:

Hawaiian Airlines pilots today began "informational picketing" at Honolulu International Airport. The pilots have been negotiating their contract with Hawaiian Airlines for the last two years. If a strike vote is approved, Hawaiian Airlines pilots could walk off the job September 10.

http://www.honoluluadvertiser.com/article/20090825/BREAKING03/90825018/Hawaiian+Airlines+pilots+out+picketing

L Building's Done - On To K

Aloha Kakou:

Painting in L building is basically finished, with just a few small details remaining. The painters have moved on to the first phase of K building (units 100/200-105/205). Next week's painting will be the lobby block, followed the week after by 106/206-113/213.

Aloha Kakou:

Check out this nice review of the Outrigger Maui Eldorado (Outstanding Value, Excellent Location for Family) on TripAdvisor.com. You'll see Ruby is prominently mentioned. Good job, Ruby!

http://www.tripadvisor.com/ShowUserReviews-g60634-d101371-r38419953-Outrigger_Maui_Eldorado-Lahaina_Maui_Hawaii.html#CHECK_RATES_CONT

Aloha Kakou:

Please view this video on "the new luxury". The premise is that luxury is no longer defined as a thing (by a brand name, for example) but by an experience. Luxury no longer means 500 thread count sheets or gold-plated faucets but instead refers to the memories or experiences that travelers had while they were our guests.

In the case of a hotel, the hotel's story helps to make those memories and experiences. The hotel's story needs to be consistent across all guest "touchpoints" (wherever the guest has interaction with the property, including advertising, personnel, the property amenities and infrastructure). The consistency of all of these areas creates the story, which then creates the guest's experience and memory.

What story does the Outrigger Maui Eldorado tell? Do we even have a story? Is this "new luxury" just a gimmick? How do we tell the story when guests seem to be all about the rate? Or are the guests so rate conscious because we don't have a story to tell?

http://vtv.vfmleonardo.com/the-new-luxury-experience-not-status/

July Continues Record Lows

Aloha Kakou:

Maui's July occupancy of 64% was down 9.6% from the already low occupancy of July, 2008. Maui's July ADR was down 13.3% due to hotels discounting room rates.

"Despite the steep discounting of room rates in the market, hotel occupancies during what normally would be our busy summer season are at record lows, and the impact on hotel revenues and Hawaii's tax base is tremendous," said Hospitality Advisors President Joseph Toy.

July was the fifth month in a row of record low occupancies.

http://www.honoluluadvertiser.com/article/20090821/NEWS01/908210361/Hawaii+hotels+suffer+5th+straight+month+of+record+low+occupancy
http://www.starbulletin.com/business/20090821_Isle_hotel_revenue_occupancy_decline.html

STATEHOOD!

Aloha Kakou:

Today marks the 50th anniversary of Hawaii's statehood. The two Honolulu newspapers created separate sections commemorating the event (see below links). Maui's statehood event occured last weekend at War Memorial Park in Wailuku and was rather sparsely attended. Instead of a feeling of celebration here, however, there is an unfortunate air of ennui as the state deliberately downplays the anniversary so as not to further raise the ire of Hawaiian separatists.

http://www.honoluluadvertiser.com/section/statehood

http://www.starbulletin.com/specialprojects/09/statehood/

L Building Painting

Aloha Kakou:

Painting on the L building continues today. It looks as though they've completed most of the light brown first floor and medium brown second floor work. Trim, handrails and unit doors have yet to be completed.

Hawaii Real Estate: Still Falling?

Aloha Kakou:

Some believe that the precipitous drop in the number of real estate sales from 2008 to 2009 means we've still got a ways to go before Hawaii real estate hits the bottom.

Hawaii has always lagged the mainland in real estate price adjustments, both when prices were falling and now when they're rising. We may still have some time before we see state-wide sales and price increases.

http://www.starbulletin.com/business/20090818_Hawaii_real_estate_market_to_fall_further_expert_says.html

L Building Masking

Aloha Kakou:

Avanti Painting has been masking the L building in preparation for painting. Outrigger units in the L building are out of order while non-rental guests have to live through the week-long process (note the lanai furniture still present at L105).

Thinking Ahead

Aloha Kakou:

Anniversaries are a natural point to recall the past and consider the future. With Hawaii's 50th anniversary of statehood upon us, here are two differing ideas about how Maui should approach the next 50 years.

http://mauinews.com/page/content.detail/id/522102.html?nav=9

http://www.mauitime.com/Articles-i-2009-08-06-70440.113117_Revisiting_the_Visitor_Industry_part_one.html

50 Years Of Doing Business In Hawaii

Aloha Kakou:

Please see this interesting and enjoyable series of interviews with some of Hawaii's businesspeople who were doing business in Hawaii in 1959. Hawaii was obviously a much different place 50 years ago!

http://pacific.bizjournals.com/pacific/stories/2009/08/17/focus12.html?b=1250481600^1941421

We Didn't Steal Them!

Aloha Kakou:

This is almost funny, from a hotel manager's perspective, that is! The saving grace about being at the Outrigger Maui Eldorado in Hawaii is that it now costs our guests money to check bags with the airline!

http://www.hotel-online.com/News/PR2009_3rd/Aug09_HotelTowels.html

Hotel Occupancies "Stabilized"

Aloha Kakou:

This quote from Outrigger's Barry Wallace, appeared in the this week's Pacific Business News and is copied here verbatim:

Barry Wallace, Outrigger Enterprises Group's executive vice president for hospitality services, said occupancy has finally "stabilized" at Outrigger's properties.

"Keep in mind that July is the busiest month of the year and the dramatic rise in occupancy is not likely to happen again, " he said. "August is holding up but won't match July. But I am optimistic that the September-October-November period, despite the very short booking windows, will improve year over year."

Revpar has been affected by the substantial discounts, and everyone would like to bring rates up," said Wallace, referring to revenue per available room. "But it won't happen that easily and will probably take longer than a year."

http://pacific.bizjournals.com/pacific/stories/2009/08/17/story1.html
http://pacific.bizjournals.com/pacific/stories/2009/08/10/daily47.html?surround=lfn

I Building Painting

Aloha Kakou:

Painting on the I building was completed last Friday. As you can see from the pictures, the buildings are being painted in the same colors, probably to avoid arguments from owners! The new service lanai lights have been installed on the 2nd floor; the 1st floor lights will be installed over the next several weeks.

Due to Felicia, L building painting was postponed until next week. This week, however, was not wasted as the painters worked on various spalling projects around the property.

Aloha, Felicia

Aloha Kakou:

The last remaining remnant of Felicia is over Maui, bringing rain to the central valley and to the slopes of Haleakala.

While Lahaina side got some rain last night, it looks as though this storm is over. Today we have sunshine with widely scattered showers and winds just slightly stronger than our usual trades.

http://www.ssd.noaa.gov/goes/west/hi/loop-vis.html

Not Even A Storm Warning Now

Aloha Kakou:

The storm watch has been lifted for the remnants of Felicia, according to the Central Pacific Hurricane Center.

The sky is still dark and the clouds low over Puu Kukui. There still exists the chance for gusty winds and locally heavy rain.

As you can see by this satellite image, Felicia has become disorganized and thus less powerful. Since Felicia is approaching Maui from the Northeast, most rainfall will most likely be on the windward sides of the island.

Felicia Downgraded Again

Aloha Kakou:

Felicia has been downgraded from a tropical storm to a tropical depression.

At the moment, there are brief showers here at the Outrigger Maui Eldorado, interspersed with sunshine. Last night, there was little to no rain on the Lahaina side.

NOAA is calling for a 60 to 70 percent chance for heavy rain today with rainfall totals between half and one inch.

While it looks like we may have dodged this storm, we are remaining prepared as Felicia's path and/or intensity could change quickly.

Better To Be Prepared

Aloha Kakou:

Here is the notice that I provided to all guests today regarding the impending storm. The storm's strength and track is still any body's guess but it's better to be prepared than not.

For up to the minute storm information, go to NOAA.gov and enter 96761 in the ZIP code section - you'll get the immediate forecast for Lahaina.

felicia1

Felicia Update

Aloha Kakou:

Felicia has been downgraded to a tropical storm and may further weaken to a tropical depression by the time she reaches Maui.

The largest impact from the storm is expected to be Tuesday, with potential heavy rains and some strong winds forecast up to 44 mph.

Current conditions are partly cloudy with occasional rain showers. Winds continue to be very moderate.

http://forecast.weather.gov/MapClick.php?CityName=Lahaina&state=HI&site=HFO&textField1=20.8913&textField2=-156.674

New Condo-tel Owners Have Change Of Heart

Aloha Kakou:

Decreasing property values and lower nightly rates have new condominium hotel buyers headed to court.

Condo-tel unit owners across the country are suing to get out of contracts which, they say, should have been treated as an investment in securities rather than as a real estate transaction.

The Securities and Exchange Commission (SEC) in 1973 specified that when developers made claims about rental income, marketed a rental program without prompting or placed any limitations on occupying units, the purchase could be considered a security. Reluctant buyers are saying that sales representatives of these new properties made verbal claims to these ends, even if the sales literature made no such comments.

http://online.wsj.com/article/SB124943301400306393.html

Maui Condo Sales Decline Slows

Aloha Kakou:

Sales of Maui condos for July were up 6 this year compared to last. In 2009, 69 condos were sold on the island while 63 were sold in July, 2008.

The median condo sales price was $375,000, down significantly from last July's $575,000.

http://pacific.bizjournals.com/pacific/stories/2009/08/03/daily57.html?surround=lfn

Outrigger Maui Eldorado Publicity

Aloha Kakou:

Another blurb about the Outrigger Maui Eldorado, based on the previously issued press release:

http://www.jetsettersblog.com/blog/2009/08/02/outrigger-maui-eldorado-value-added-deals/

Felicia Friday

Aloha Kakou:

Hurricane Felicia has been downgraded from a category 4 hurricane to that of a category 2. The storm's track is still uncertain, with landfall on Hawaii Island possible as early as Sunday or as late as Tuesday.

http://www.honoluluadvertiser.com/article/20090807/NEWS01/908070368/1352

The image above is NOAA's "five day cone" representing the National Oceanic and Atmospheric Agency's projection of Felicia's path. For complete up-to-date information on Felicia, please see NOAA's site:

http://www.nhc.noaa.gov/refresh/graphics_ep3+shtml/144412.shtml?3day#contents

The weather experts are currently saying that by the time Felicia gets to Hawaii, the storm could be degraded to a tropical storm or, better, a tropical depression. Either could bring strong winds and rain to Maui. Felicia is currently moving in a generally westerly direction at 12 mph.

Countdown To Fifty

Aloha Kakou:

August 21st represents Hawaii's 50th anniversary of becoming one of the 50 United States. If you're interested in the events planned for this celebration, take a look at the the official website of the anniversary: http://hawaii.gov/statehood

Maui County's official event is tomorrow at the MACC. Try not to be overwhelmed by the event's extensive nature:

http://hawaii.gov/statehood/events/maui-county-official-statehood-event

Hurricane Felicia

Aloha Kakou:

Yes, there is a hurricane possibly headed toward Hawaii. It’s still too far away to get a consensus on where or whether it will make landfall.

Today’s Honolulu Advertiser mentions that the storm is beginning to weaken and that it’s path is still uncertain:
http://www.honoluluadvertiser.com/article/20090806/NEWS01/908060341/1352

The National Weather Service does not mention the hurricane but does talk about some wind and rain: http://forecast.weather.gov/MapClick.php?zoneid=HIZ018

Today’s Maui News says the storm has strengthened and will begin to weaken:
http://mauinews.com/page/content.detail/id/521930.html?nav=10

The storm's path is also up to debate at this point; Felicia could pass harmlessly to the north or south or she could march directly across the islands. The good news is that, should the storm take a northerly tack, passing over the colder water will weaken it by lowering it's windspeeds and possibly breaking it up. Landfall, if it happens, is predicted sometime between Sunday night and Tuesday morning.

We are prepared in the event of a storm; I'm hoping and believing that we won't have to act on those preparations.

Maui Eldorado Sales Data

Aloha Kakou:

This realtor's webpage shows a summary of the units here that are for sale and, had a unit been sold, the sale price. This is monthly data based on July, 2009.

He also shows the days on market (DOM) which range from 35 (one month) to 537 (almost 2 years!). The price ranges are equally diverse, starting at $367k and going up to $1.5 million.

http://www.localkaanapalicondos.com/2009/08/maui-eldorado-709-report.html

I Building Painting

Aloha Kakou:

Painting of the I building has begun. The Outrigger-managed units in this building were put out of order as the painting crew first powerwashed, then masked and finally began painting the building's exterior.

As you can tell from the photos, the masking alone is a major project as the painters cover all of the lanais and service lanais. The painting today started at the 104/204 end of the building on the lanai side. Hopefully the work will be finished on schedule by Friday, when the painters will move on to the the L building.

Fortunately, the work has a low impact on the surrounding buildings; there is very little noise or odor as the work progresses. And, as the buildings are being painted the same color, there is very little visual impact as well.

Best Islands In The World

Aloha Kakou:

Maui was named the 6th best island in the world, according to Travel + Leisure magazine's 2009 survey of readers. That's down three points from last year.

The criteria for selecting the best island are natural attractions, activities/sights, restaurants/food, people, value.

http://www.travelandleisure.com/worldsbest/2009/#paramSetting#