Long gone are the days when Hawaii begged tourists to stop coming in masses. The Aloha State has been experiencing an unusual decline in hotel occupancy and room pricing for several months now.
Let’s clarify something first. When checking out 2024 stats, Hawaii still earns the most “Revenue per Available Room” (RevPAR) and the most “Average Daily Rate” (ADR).
And when compared to international competitors, O’ahu lead in the category of “sun and sand” destinations with an 80.1 percent occupancy rate, followed by Aruba (76.9 percent) and Puerto Rico (76.9 percent).
But still, the state is losing revenue. There is an ongoing downward trend that has started to worry authorities.
In a bid to boost the industry, the Aloha state has launched aggressive marketing campaigns to bring tourists back.
“We are being more assertive in our messaging strategy with inspiring campaigns that spotlight Hawai’i’s people, culture and experiences unlike anywhere else in the world,” said HTA board chair Mufi Hannemann.
“We need to ensure that the Hawaiian Islands stay top-of-mind among travelers amidst the competitive global market, especially in summer and fall.”
The two most ambitious campaigns have included: “The People. The Place. The Hawaiian Islands,” which promoted environment and culture conservation and “Yappari Hawai’i,” catering specifically to the Japanese market.
Shockingly, these campaigns have not had the expected results.
From January to June, RevPAR fell to $276, which is 2.3 percent lower than last year. ADR was $370, which is 2.5 percent lower than in 2023. There was an insignificant increase of 0.1 percent in occupancy, but it was 5.7 percent lower than before the pandemic.
All these numbers translate into Hawaii collecting $2.8 billion in total revenue, 2.3 percent lower than in 2023.
Why Is Hawaii Not Attracting as Many Tourists as Before? –
One of the reasons hotel stakeholders have cited is the still-evident impacts of last year’s wildfires in the once highly-visited Maui County.
The natural disaster killed 101 residents and forced 7,200 survivors to turn to local hotels for shelter.
On the other hand, hotel prices are sky-high, and the government has proposed to get rid of up to half of county vacation rentals.
The result: Maui hotel occupancy has fallen to 58.3%, messing up all state figures. This, they say, has become a worrisome trend over the last few months.
“It’s ugly out there. We may get last-minute pickup for the summer, but will it be enough to be as good as last year or the year before? I doubt it. It’s going to fall a little short,” said Lynette Eastman, General Manager of the Surfjack Hotel & Swim Club in Waikiki.
If high prices in Hawaii have prevented you from booking your tickets to the Islands, this unusual combination of factors pushing prices down could be your best bet to cross this destination off your bucket list.