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Wednesday, November 30, 2011
Visitor Spending breaks $1 Billion per Month
By News Release @ 11:42 PM :: 3831 Views :: Energy, Environment

News Release from Hawaii Tourism Authority

Total expenditures by visitors who came to Hawaii in the first 10 months of 2011 grew 14.8 percent, compared to the same period in 2010, to $10.3 billion.

Total visitor days for all visitors increased 4.1 percent and total arrivals (+2.6%) continued to exceed last year at 6,034,104 visitors, according to preliminary statistics released today by the Hawaii Tourism Authority.

For the month of October 2011, total visitor expenditures rose 15.6 percent (up $141.7 million) from October 2010 to $1.1 billion. Total spending by all visitors has risen every month since December 2010.

Contributing to the growth in October 2011 was higher daily spending ($199 per person, up from $177 per person in October 2010) and a 2.3 percent increase in total arrivals to 587,711 visitors.

Total arrivals by air only in October 2011 were relatively unchanged (+0.2%) compared to last October at 565,848 visitors. Arrivals from Canada increased 10.1 percent, the sixteenth consecutive month of double-digit growth. Japanese arrivals showed moderate growth for a second straight month, up 0.6 percent from October 2010.

U.S. East arrivals (+1%) also increased for the second consecutive month. However, arrivals from U.S. West declined 5.1 percent from last October. The number of visitors who arrived aboard cruise ships in October 2011 doubled from October 2010 to 21,863 visitors.

For the first 10 months of 2011, total expenditures by Canadian visitors rose 28.9 percent, boosted by strong growth in arrivals (+20.2%) and higher average daily spending.

Total expenditures by U.S. West (+7%) and U.S. East (+9.3%) visitors continued to increase. Despite some fluctuations over the past few months, U.S. West (+0.9%) and U.S. East (+0.8%) arrivals remained ahead of year-to-date 2010.

Total Japanese visitor expenditures rose 7 percent, even though arrivals were lower (-6.3%) compared to the first 10 months of 2010.

Additional Total Air Visitor Highlights:

  • A total of 12,894 visitors came to get married in October 2011, up 7.7 percent from last October. The increase was predominantly from the Japanese market, which jumped 53.5 percent to 7,771 visitors. Fewer U.S. West (-24%) and U.S. East (-31.1%) visitors came to get married compared to last October.
  • More total visitors came for meetings, conventions and incentives (MCI) (+5.1% to 44,117 visitors) compared to October 2010 (See Meetings, Conventions, and Incentive Visitor Highlights).
  • More total visitors stayed in hotels (+1.9%) compared to October 2010, with increases from U.S. East (+3.7%), Japan (+1.3%) and Canada (+9%) offsetting a 5.8 percent decrease from U.S. West.
  • Fewer total visitors stayed in condominiums (-1.1%) and timeshare (-3.4%) properties compared to a year ago.

Major Market Areas

U.S. West

Although arrivals (-5.1%) decreased, higher daily spending ($152 per person, up from $145 per person in October 2010) and a longer length of stay (9.66 days, from 9.35 days in October 2010), contributed to a 2.5 percent growth in total expenditures by U.S. West visitors to $341.8 million in October 2011. U.S. West visitors’ total expenditures have shown positive growth in nine out of 10 months of 2011.

Arrivals from the Pacific Region fell 5.9 percent from October 2010. Decreases in arrivals from California (-6.4%), Oregon (-11.4%) and Washington (-7.2%) offset a 34.7 percent growth in arrivals from Alaska. Arrivals from the Mountain Region were 2.5 percent lower in October 2011.

For the first 10 months of 2011, total expenditures by U.S. West visitors grew 7 percent to $3.5 billion. Total visitors days (+1.2%) and visitor arrivals (+0.9%) continued to lead the same period last year.

U.S. East

Total expenditures by U.S. East visitors rose 12.4 percent to $248.5 million in October 2011, boosted by higher daily spending ($211 per person, up from $185 per person in October 2010) and growth in arrivals (+1%). Total U.S. East visitors expenditures have increased in eight out of 10 months of 2011.

Arrivals from the New England (+5.5%), East North Central (+4.4%), West South Central (+1.9%) and West North Central (+0.4%) regions increased; but arrivals from the South Atlantic (-2%), East South Central (-1.2%) and Middle Atlantic (-0.4%) regions were lower compared to October 2010.

For the first 10 months of 2011, total spending by U.S. East visitors rose 9.3 percent to $2.6 billion. Visitor days grew 1.1 percent while visitor arrivals were slightly higher (+0.8%) compared to the first 10 months of 2010.

Japan

Higher average daily spending ($317 per person, up from $291 per person in October 2010) and a small growth in arrivals (+0.6%) contributed to a 13.4 percent increase in total Japanese visitor expenditures to $189.2 million. This was the fifth consecutive month of positive growth in total Japanese visitor spending.

Growth from the Japanese market (+10.4% to 24,205 visitors) also contributed to a 1.8 percent increase in total honeymoon visitors (59,676 visitors) in October 2011.

Japanese arrivals increased on Maui (+6.9% to 4,788 visitors), Oahu (+1.7% to 100,682 visitors) and Kaua‘i (+47.9% to 2,221 visitors), but declined on Hawaii Island (-18.2% to 12,773 visitors) compared to October 2010.

Despite a 6.3 percent drop in total Japanese arrivals for the first 10 months of 2011, daily spending increased to $286 per person from $257 per person in the first 10 months of 2010. Total expenditures by Japanese visitors was $1.7 billion, up 7 percent compared to year-to-date 2010.

Canada

Total expenditures by Canadian visitors in October 2011 rose 18.1 percent to $61.2 million, boosted by a 10.1 percent growth in arrivals. Daily spending by these visitors increased to $169 per person from $156 per person in October 2010. Total expenditures from this market have grown by double-digits in every month since January 2011.

Canadian visitors who came on domestic flights increased 17.4 percent compared to last October. More Canadian visitors came on domestic flights than on international flights in October 2011.

For the first 10 months of 2011, total expenditures by Canadian visitors climbed 28.9 percent to $721.3 million. Total visitors days grew 18.8 percent, while visitor arrivals were 20.2 percent higher compared to the first 10 months of 2010.

Island Highlights

Total visitor expenditures on Oahu jumped 36 percent to $639.6 million in October 2011. Total arrivals to Oahu rose 2.1 percent from last October. Increases from U.S. East, Japan, Canada and other visitor markets (including Korea and China) resulted in a lower proportion of U.S. West arrivals. Visitors to Oahu in October 2011 also stayed longer (7.02 days compared to 6.86 days in October 2010) and spent noticeably more on a daily basis ($256 per person, from $197 per person in October 2010) compared to last October. Daily spending by U.S. East and Japanese visitors on Oahu were higher than in October 2010. Daily spending from U.S. West, Canada and other visitor markets also increased compared to October 2010.

In contrast, total expenditures on Hawaii Island fell 21.7 percent to $87.6 million as a result of a lower daily spending ($126 per person, from $157 per person in October 2010) and decreased arrivals.

For the first 10 months of 2011, Oahu, Maui, Kauai, Hawaii Island and Lanai saw growth in both visitor arrivals and total visitor expenditures. Year–to-date, visitor expenditures on Oahu and Kauai have shown increases in every month of 2011.

Island Highlights

Kauai: The growth in total arrivals to Kauai (+3.4%) was boosted by increases from Japan (+47.9%) and Canada (+9.7%), which offset lower arrivals from U.S. East (-1.2%). U.S. West arrivals to this island were relatively unchanged from last October. For the first 10 months of 2011, arrivals to Kauai by Canadian visitors (+21%) were significantly higher compared to the same period last year. Visitors to Kauai from U.S. West (+4.7%), U.S. East (+0.6%) and Japan (+6.7%) also increased.

Oahu: The 2.1 percent growth in total visitors to Oahu in October 2011 was boosted by increased arrivals from U.S. East (+3.4%), Japan (+1.7%) and Canada (+16.4%). Visitors from the other visitor markets, including Korea and China, rose 16.1 percent. U.S. West arrivals to this island declined 7.4 percent compared to October 2010. For the first 10 months of 2011, arrivals to Oahu from Canada rose 22.8 percent, but arrivals from U.S. West (-2.4%), U.S. East (-0.6%) and Japan (-5.7%) were lower than year-to-date 2010.

Hawaii Island: Total arrivals to Hawaii Island in October 2011 declined 6.1 percent compared to last October. Decreases in arrivals from U.S. West (-7%), Japan (-18.2%) and U.S. East (-1%) offset growth in arrivals from Canada (+1.8%). For the first 10 months of 2011, arrivals to Hawaii Island from Canada (+23.2%), U.S. West (+3.4%) and U.S. East (+1.7%) increased, but Japanese arrivals fell 18.9 percent from the same period last year.

Maui: Total arrivals to Maui in October 2011 dropped 1.9 percent compared to a year ago. Growth in arrivals from Canada (+3.2%) and Japan (6.9%) were offset by lower arrivals from U.S. West (-7.1%) and U.S. East (-1.1%). For the first 10 months of 2011, arrivals to Maui from Canada (+17.2%), U.S. East (+1.3%) and U.S. West (+0.8%) increased, but arrivals from Japan (-3.1%) declined compared to year-to-date 2010.

Total Air Seats to Hawaii

There were a total of 744,800 air seats in October 2011, similar to last October. The number of scheduled seats (736,736 seats) was comparable to a year ago.

Charter seats in October 2011 fell 26.6 percent from last October to 8,064 seats due to decreases from Taiwan and Japan. While charter flights were used by the Taiwanese incentive groups mentioned above, there was no charter activity from Taiwan in October 2011.

Japan Airlines’ charter flights from Haneda from Oct. 6-27 became scheduled service as of Oct. 31, 2010.

For the first 10 months of 2011, there were slightly fewer charter seats (down -0.9% to 90,910 seats) compared to the same period last year. Domestic charter seats decreased 3.6 percent compared to year-to-date 2010, primarily due to the scaling back of chartered service to Las Vegas.

International charter seats year-to-date were up 4.4 percent. More charters flights out of Japan are expected for November and December of 2011 compared to the same months last year.

Scheduled air seats to Lihue climbed 20.6 percent, boosted by direct service from Oakland and San Jose (added in March 2011) and more seats from Los Angeles. Scheduled seats to Honolulu (+0.9%) rose slightly compared to October 2010.

Direct flights to Hilo resumed in June 2011 with service from Continental Airlines from Los Angeles and San Francisco.

Scheduled seats to Kona (-15.7%) declined compared to October 2010 largely due to the discontinuation of direct service from Narita (last flight to Kona was Oct. 30, 2010), and fewer seats from San Francisco.

Scheduled air seats to Kahului (-7.9%) also declined largely due to the discontinuation of service from Las Vegas and fewer seats from Los Angeles, Phoenix and Seattle.

Scheduled seats from U.S. East decreased 17 percent due to the suspension of flights from Minneapolis and Detroit. In addition, there were reductions in service from Chicago to Honolulu and Kahului.

Scheduled air seats from U.S. West dropped 1.7 percent compared to October 2010. Reduced service from San Francisco, Seattle, Phoenix, Las Vegas and Denver offset recently added service from Bellingham and Orange County; a doubling of seats from Anchorage; and increased service from San Jose, Oakland and Salt Lake City.

Total scheduled seats from Other Asia doubled in October 2011. October was the first full month of operation by Asiana Airlines with twice weekly flights from Seoul. China Eastern Airlines canceled four scheduled flights from Shanghai on October 14, 18, 21 and 25, but twice weekly service resumed October 28. In addition, Korean Airlines increased to twice daily service in March 2011, and Hawaiian Airlines has had direct service from Seoul since January 2011.

Cruise Ship Visitors

There was a total of 32,778 cruise visitors in October 2011, an increase of 61.8 percent from last October. These visitors spent 7.07 days in the islands, down from 9.57 days in October 2010.

Total cruise visitor days in October 2011 rose 19.5 percent.

Preliminary analysis of ship itineraries for Fall (September-December) 2011 showed only 3 more ship tours compared to Fall 2010. Much of the activities in 2011 were concentrated in October, evident by the 10 cruise ships that came with 21,863 visitors on board. This was two times the visitors who were aboard five cruise ships in October 2010.

For the first 10 months of 2011, a total of 192,539 visitors came by cruise ship or by air to board cruise ships, up 7.7 percent compared to year-to-date 2010. Visitor days for all cruise ship visitors rose slightly (+0.6%) from the same period last year.

Statement from Mike McCartney, President and CEO Hawaii Tourism Authority:

October was another month of continued recovery for Hawaii’s tourism economy. Visitor spending has contributed $1.3 billion more in to Hawaii’s compared to last year, reaching $10.3 billion. Visitors in October 2011 spent $20 more per person per day than last October. On Oahu alone, visitor spending reached $639 million, up an impressive 36 percent over October 2010, and has increased every month in 2011.

We are also pleased with continued growth from our international markets, including the second positive month of arrivals from Japan since the devastating earthquake and earthquake. New and additional airlift through 2012 also demonstrates that demand for travel to the Hawaiian Islands remains high, and is a good indicator of momentum for the visitor industry in the coming year.

We are optimistic with the recovery so far, and will maintain our aggressive brand strategy in our diversified markets. Following HTA’s successful webinar marketing plan presentations, and meet and greet sessions, the HTA, together with our marketing partners and Hawaii’s visitor industry, will continue to align our efforts to help provide jobs and ensure the vitality of Hawaii’s tourism economy.

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