Islands Population Up

Aloha Kakou:

Hawaii's population increased 12.3% in the last decade, with the total number of people in the state numbering about 1.4 million. Maui's population grew about 21% to about 154,834.

http://www.staradvertiser.com/news/20110225_Isle_population_up_to_14M.html

Visitor Numbers Projected To Increase

Aloha Kakou:

Carl Bonham, director of the University of Hawaii Economic Research Organization (UHERO) said yesterday at a Hawaii Tourism Authority conference that Hawaii could have over 7 million visitors in 2011, a similar number to that of 2005.

He also said that he believes that Hawaii will end the year with 6% more visitors than last year, based on increased air lift to the state.

http://www.hotel-online.com/News/PR2010_3rd/Aug10_HawaiiBiz.html

Difficult Lending Market Affects All Hotel Employees

Aloha Kakou:

Please see David Carey's comments in the attached article regarding the state of lending in Hawaii's hotel industry. David Carey is Outrigger's president and chief executive officer.

Mr. Carey says that, with the financial markets unwilling to lend money to the hotel sector, it becomes "difficult for owners to spend more money on employees and benefit costs."

"In order to generate any business at all in this sort of tougher economy, pretty much everybody's trashed their prices," Carey said. "So owners are experiencing a significant profit squeeze."

http://www.staradvertiser.com/business/20100608_Isle_hotels_in_distress.html

Luxury Travel Up

Aloha Kakou:

With an increase in luxury travel to Hawaii of 18%, can a rebound for the rest of us be far behind?

http://www.travelagentcentral.com/consortia/vacationcom-reports-rise-luxury-travel-sales-20964

Allegient Air To Add Service To Hawaii

Aloha Kakou:

Allegiant Air, a Las Vegas based air carrier, is planning on adding service from West Coast cities to Hawaii when it purchases six Boeing 757-200's.

While routes and timetables have yet to be determined, the airline will begin by purchasing two of the planes from a European carrier this spring and then retrofitting them for service to Hawaii.


http://www.honoluluadvertiser.com/article/20100306/NEWS09/3060345/Hawaii+will+be+newest+destination+for+budget+airline+Allegiant

ALGT News 2010-3-5 General

Hawaii's General Excise Tax

Aloha Kakou:

You already knew that we don't have a state sales tax, right? That 4.166% extra that you pay is not sales tax but general excise tax. The difference is that a sales tax is a tax on the buyer but the GET is a tax on the seller.

Every time goods change hands in Hawaii, the GET is charged. There are no exceptions here as there are in other states. Groceries, prescriptions, milk and even doctor's visits are subject to Hawaii's GET.

Please see this article from January 3rd's Star-Bulletin for more information about how this tax works.

http://www.starbulletin.com/news/20100103_Lawmakers_consider_increasing_the_sales_tax.html

High Surf

Aloha Kakou:

Hawaii's north facing shores could see 25 to 35 foot surf within the next 24 hours. A swell approaching from the northwest is slowly making it's way down the island chain.

The National Weather Service issued the warning today which is in effect to 6pm Thursday.

The next couple of days will be a great time to head over to Hookipa or Jaws to watch some real surfing!

http://www.honoluluadvertiser.com/article/20100105/BREAKING01/100105008/25-+to+35-foot+surf+forecast+for+Hawaii+s+north+shores

Hawaii Hotel Occupancy

Aloha Kakou:

Howard Dicus of KGMB does a visual representation of Hawaii's hotel occupancy using Legos, for those of you who need a diagram to illustrate this morning's statistics:

http://www.hawaiinewsnow.com/Global/story.asp?S=11621889

Even though it's not shown here, Howard also mentioned our new partnership with Demming's Delivery for groceries delivered to the guest's unit prior to arrival.

Aloha Kakou:

Hawaii is on track to receive about 6.5 million visitors in 2009, placing the islands' visitor counts at low levels not seen since 2002 and 2003.

http://www.honoluluadvertiser.com/article/20091125/NEWS01/911250354/Hawaii+visitors+expected+to+be+below+7+million+again+this+year

Lackluster 1st Quarter Followed By Slooow Recovery

Aloha Kakou:

Leroy Laney and Paul Brewbaker, economic advisers to First Hawaiian Bank and Bank of Hawaii, respectively, agree that the first half of 2010 will continue to be slow with a turn toward a very slow recovery beginning mid-2010.

The state of Hawaii is projecting flat visitor spending for '10, with a gradual and modest recovery continuing through 2012.

And, as we've seen before, Hawaii's delayed entry to the worldwide downturn will mean a much more delayed return to good times.

http://www.honoluluadvertiser.com/article/20091118/NEWS01/911180367/Hawaii+s+economic+bounceback+likely+to+be+slow++state+says

Demand Strong But Fear Remains

Aloha Kakou:

Despite Maui's overall lower occupancy numbers, there still remains the desire by mainland folks to visit the island.

The Executive Director of the Maui Visitor's Bureau said, "People want to come (to Maui)" following her recent extensive marketing tours on the Mainland.

Joseph Toy, president of Hospitality Advisors, said, "It is notable that despite the fall in the market, we continue to remain competitive both in the U.S. market as well as other island destinations."

http://mauinews.com/page/content.detail/id/525612.html?nav=10

September Occupancy Up, Spending Down

Aloha Kakou:

Hawaii's hotel occupancy was up in September, the first time in more than a year that year-over-year numbers increased.

The cost of that occupancy came at the expense of room rates, with hotels having to offer reduced rates to attract guests. And guests who do come are spending less money on more discretionary items, such as dining out and activities.

Maui hotels continued to report declines in occupancy and average daily rate, falling 1.0 percentage point and 14.6 percent, respectively, Joseph Toy of Hospitality Advisors said.


Demand for the luxury regions of Wailea and Lahaina-Ka'anapali-Kapalua experienced a slight uptick in September 2009 compared to the prior year.

Don't forget that you can get the most recent hotel occupancy data by clicking on the Hawaii Hotel Occupancy link on the right.

http://www.starbulletin.com/business/businessnews/20091109_isle_hotels_see_more_rooms_filled.html
http://www.honoluluadvertiser.com/article/20091109/BUSINESS02/911090314/Hotel+occupancy+up+in+September

Aloha Kakou:

According to Forbes Travel, Hawaii is the number one honeymoon destination for American newlyweds.

http://www.forbestraveler.com/best-lists/most-popular-honeymoons-slide.html?partner=msnbc

go! Mokulele Air

Aloha Kakou:

Yesterday, go! and Mokulele airlines agreed to merge operations, creating a new entity called go! Mokulele Airlines.

This deal now means there are three interisland carriers including Hawaiian Air and Island Air in addition to go! Mokulele.

http://www.honoluluadvertiser.com/article/20091014/NEWS01/910140342/Hawaii+interisland+carrier+Mokulele+will+merge+with+go++airline
http://www.starbulletin.com/business/20091014_Joining_forces.html

Hawaii Hotel Performance

Aloha Kakou:

Check out this article in today's Wall Street Journal regarding the current state of the Hawaii hotel industry.

The graph at the top of this entry tell the whole story about Hawaii's occupancy over the last four years.

"The operating numbers have cratered, the underlying fundamentals aren't very good, and you have a whole bunch of problem loans," says David Carey, president and chief executive of Outrigger Enterprises Group, which owns 30 Hawaiian hotels, none in foreclosure.

http://online.wsj.com/article/SB10001424052748703790404574469120027986600.html

HI State Unemployment Insurance Up Plenty

Aloha Kakou:

Adding to the cost of doing business in Hawaii, the state is raising the amount it charges employers to maintain the state unemployment insurance fund. The cost is going up from $90 per year per employee to $1040 - $1250 (yes, it will be over $1000!) per employee, depending upon how low the fund gets.

http://www.starbulletin.com/news/20090918_Unemployment_fund_running_dry.html
http://www.honoluluadvertiser.com/article/20090918/NEWS01/909180371/Hawaii+businesses+to+be+hit+with+soaring+unemployment+tax

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