For Immediate Release: September 26, 2008
DBEDT Release News 08-29

August 2008 Visitor Expenditures Declined 17.6 Percent

Note: August 2008 Visitor Research Data can be viewed here.

HONOLULU--Total expenditures by visitors who arrived by air declined 8.7 percent to $7.8 billion in the first eight months of 2008, according to preliminary statistics released today by the Department of Business, Economic Development and Tourism (DBEDT).

For the month of August 2008, total air visitor expenditures dropped 17.6 percent or $206.9 million, from the same month last year, to $970.7 million. The decrease was caused by lower daily spending (-3.1% to $174 per person) and a 17.3 percent decline in visitor arrivals by air to 606,342 visitors.

Total visitor days for air and cruise visitors in August 2008 were down 15.2 percent compared to the same month last year. Total arrivals by air and cruise visitors fell 17.4 percent from August 2007. However the average length of stay by these visitors was slightly longer at 9.19 days, compared to 8.96 days last August.

Among the top four visitor markets, air arrivals from Canada rose 8.5 percent compared to August 2007. Visitations from the U.S. West showed its biggest decline on record, down 24.2 percent. Arrivals from the U.S. East (-16.5%) and Japan (-13.9%) were also down from the same month last year.

"Hawai‘i's visitor industry is feeling the effects of the continued softness in the national economy," said State Tourism Liaison, Marsha Wienert. "The performance of Hawai‘i's summer season exemplifies the volatility of the visitor industry on uncontrollable outside factors. Rising fuel prices, the loss of two Norwegian Cruise ships and a decrease in international cruise ship visits, the mortgage crisis and consumer confidence have all played a part in tourism's decline.

"On a positive note, even with the continued declines from the U.S. and Japan, visitors from Canada continue to grow, extending the typical Canadian visitor season to our islands," said Wienert.

"Hawai‘i's visitor industry is resilient and even with the current challenges there are still many opportunities to increase visitors in both the short and long term. Airlines have not cut flights to Hawai‘i at the level as many other destinations, and in fact we will be gaining new seats this fall," added Wienert. "Starting in October Delta Airlines will resume several flights to the islands that had been cancelled earlier in the year. Alaska Airlines will be adding flights from Seattle to Kona in November and Anchorage to Kahului in October with seasonal flights from Honolulu to Anchorage. The biggest challenge we face moving forward is to increase demand for our islands. By increasing demand the visitor industry and our economy will benefit."

For the first eight months of 2008, total visitor days for air and cruise visitors declined 6.9 percent. Total arrivals by air and cruise decreased 8.2 percent from the same period last year to 4,773,634 visitors.

Year-to-date, arrivals by air totaled 4,719,334 visitors, 8 percent lower compared to the same period last year. The average daily spending decreased to $176 per person compared to $179 per person in the first eight months of 2007.

Other Highlights:

• The decrease in U.S. West and U.S. East visitors was partly due to fewer cruise ship visitors in the islands compared to last August. There were 8,795 fewer U.S. West visitors; and 5,784 fewer U.S. East visitors who either arrived by air to board cruise ship, or came by cruise ships to the islands during the month compared to August 2007.
• All U.S. mainland regions showed double-digit declines in visitor arrivals in August 2008 compared to last August. Arrivals from the two largest regions, Pacific and Mountain were down 25.2 percent and 19.5 percent, respectively.
• There were more repeat visitors from the U.S. West in August 2008 (80.1%), compared to the same month last year (78.4%). The average length of stay by all U.S. West visitors increased to 9.29 days from 9.02 days in August 2007.
• A larger percentage of U.S. East visitors stayed in timeshare properties (+7.4%) in August 2008, compared to the same month last year. There were also more U.S. East visitors who traveled on incentives (+42.6%) or who came to get married (+5.4%) during the month.
• The percentage of repeat visitors from the U.S. East in August 2008 (54.2%), were also higher compared to last August (52.4%).
• The 8.5 percent growth in Canadian visitor arrivals in August 2008 following double-digit increases reported for May (+21.9%), June (+18.6%) and July (+15.6%) further extended the Canadian visitors season into the fall. For the first eight months of 2008, Canadian arrivals increased 8.6 percent to 234,452 visitors. Supporting the increase in Canadian visitor arrivals were greater air seat capacity from Canada (+19.6%) statewide in August 2008, compared to the same month last year.
• There were more first-time visitors from Canada in August 2008 (48.8%) compared to the same month last year (47.9%). Canadian visitors in August 2008 stayed longer at 12.31 days, compared to 11.00 days in August 2007.
• All types of accommodations benefited from increased arrivals from the Canadian markets. Most noticeable was a 66.4 percent growth in Canadians who stayed in timeshare properties in August 2008 compared to the same month last year. Year-to-date, Canadian visitors who stayed in hotels increased slightly (+.5%) while those who stayed in condominiums (+21%) and timeshare (+12%) properties grew by double digits compared to the first eight months of 2007.
• Daily spending by Japanese visitors increased from $228 per person to $234 per person in August 2008. However, lower visitor arrivals contributed to a 12.2 percent drop in total expenditures from this market to $178 million.
• More Japanese visitors came to the islands to honeymoon (+6%) or to get married (+2.7%) compared to August 2007. For the first eight months of 2008 there were 119,431 honeymooners from Japan, up 4.7 percent from year-to-date 2007.
• There were also more repeat visitors from Japan in August 2008 compared to the same month last year (70.8% versus 68.9%). Japanese visitors stayed 6.28 days in August 2008, similar to the same month last year.

• All islands reported lower visitor expenditures this month compared to August 2007. Total expenditures on O‘ahu decreased 17.3 percent to $470.8 million. Total expenditures on Maui were down 16.4 percent to $259.4 million, total expenditures on Hawai‘i Island dropped 18.1 percent to $129.6 million while spending on Kaua‘i declined 18.4 percent to $102.9 million.

• For the first eight months of 2008 arrivals from Canada declined on O‘ahu (-3.9%), Kaua‘i (-17.4%), Hawai‘i Island (-7.4%), Lana‘i (-17.2%) and Moloka‘i (-9.7%) but increased on Maui (+9.6%).
• Year-to-date, Japanese arrivals were lower on Maui (-19.1%), Kaua‘i (-22.9%), Hawai‘i Island (-12.8%) and O‘ahu (-7.3%) compared to the first eight months of 2007.
• For the first eight months of 2008, visitor arrivals were lower for all U.S. mainland regions compared to the same period last year except for Washington state (+6.4%) and Oregon (+1.8%) which remained higher compared to last year.

August 2008 Cruise Ship Visitors

August 2008 Cruise Visitor Highlights

• Two out-of-state cruise ships came to the islands in August 2008 with 2,050 visitors, compared to two ships which brought 3,311 visitors in the same month last year. Year-to-date, 54,300 visitors came by cruise ships, down 23.2 percent, while total visitor days declined 62.7 percent (See "Arrivals at a Glance" Table on page 2).
• In August 2008 a total of 13,748 cruise visitors came by air to board a cruise ship or arrived by cruise ship, compared to August 2007 when a total of 32,617 visitors came by air to board cruise ships or came by cruise ships to Hawai‘i. The average length of stay by all cruise visitors during the month was 10.26 days compared to 10.02 days in August 2007.
• The decline in total cruise visitors for August 2008 was mainly due to the departures of the Pride of Hawai‘i (in February 2008) and the Pride of Aloha (in mid May 2008).
• For the first eight months of 2008, a total of 172,471 visitors came by ship or by air to board cruise ships, 47.3 percent lower compared to the same period last year. Visitor days for all cruise visitors decreased 44.3 percent.

For more information, contact:
Marsha Wienert, Tourism Liaison
Phone: (808) 586-2362
Email: marsha.wienert@hawaii.gov

Dave Young, DBEDT
Phone: (808) 587-1212
Email: dyoung@dbedt.hawaii.gov