Hawaii’s hotel industry brought in a record $3
billion in revenue last year, benefitting from the state’s
reputation as a safe, yet exotic destination in a time of
international tension. The previous record of $2.73 billion was set
in 2004.
With modest gains in the number of customers and
room prices expected this year, hotel consultancy Hospitality
Advisors, LLC has estimated that Hawaii hotels will likely set
another record in 2006.
For 2005, both statewide average daily room rates
and revenue per available room a critical measure of profitability
surpassed records set in 2004. Hawaii also ranked behind New York
City as second among the top 25 U.S. hotel markets for average
daily rates, revenue per room and occupancy.
According to Stan Brown, Marriott International’s
vice president for Pacific Islands and Japan, 2005 proved to be a
banner year for Hawaii’s top industry. “We should certainly
celebrate that,” said Brown. “There were a lot of successes in the
industry as a whole. It was certainly great for employment, great
for business, a great rebound.”
Brown added, “The start of 2006 looks better than
the first quarter of 2005, so that’s very encouraging as well.”
The statistics came a day after the state reported
that a record 7.46 million visited Hawaii last year and spent a
record $11.5 billion. Visitor arrivals are projected to top 7.6
million this year.
The hotel industry’s gains last year were largely
driven by strong growth in higher-spending markets such as business
travelers, honeymooners and visitors from the U.S. East, reported
Hospitality Advisors president, Joseph Toy.
The industry also set a December record in average
daily rates and revenue per available room of $189.98 and $145.36,
respectively. December occupancy grew 5.4 percentage points
year-over-year to 76.5 percent.
Compiled by Smith Travel Research with Hospitality
Advisors, the survey averages more than 141 properties representing
some 48,222 rooms, or 79.5 percent of all lodging properties with
20 rooms or more in the state including full service, limited
service and condominium hotels.
Starting April 27, Indianapolis-based ATA will add
daily flights between Honolulu and Los Angeles and Ontario, CA. The
carrier will also launch four daily flights from Oakland to
Honolulu, Hilo and Maui to replace former San Francisco routes. ATA
service to Hawaii from the West Coast will expand from 7 to 11
daily flights.
www.ata.com
