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Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

April 24, 2019 by Forimmediaterelease

For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

Travel News | eTurboNews

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Number of Hawaii visitors up but spending down

March 28, 2019 by Forimmediaterelease

Visitors to the Hawaiian Islands spent a total of $1.39 billion in February 2019, a decrease of 2.7 percent compared to February 20181, according to preliminary statistics released today by the Hawaii Tourism Authority. This is another dip following the 3.8 decrease in January.

In February, visitor spending increased from the U.S. West (+4.7% to $503.3 million) but declined from U.S. East (-6.7% to $370.9 million), Japan (-0.8% to $170.1 million), Canada (-0.7% to $150.7 million) and All Other International Markets (-15.3% to $188.7 million) compared to a year ago.

On a statewide level, average daily visitor spending was down slightly (-0.9% to $200 per person) in February year-over-year. Visitors from Japan (+3.3%), U.S. West (+1.2%) and All Other International Markets (+0.7%) spent more per day while visitors from U.S. East (-4.1%) and Canada (-1.0%) spent less.

A total of 782,584 visitors (+0.5%) came to Hawaii in February 2019, up slightly from the same month last year. Arrivals by air service (+0.3% to 766,293) were comparable to last February while arrivals by cruise ships (+12.1% to 16,291) increased. However, total visitor days2 declined (-1.9%) versus February 2018 due to a shorter average length of stay by visitors from most markets.

The average daily census3 of total visitors in the Hawaiian Islands on any given day in February was 248,244, down 1.9 percent compared to February last year. Arrivals by air service realized growth from U.S. West (+6.5%), Canada (+2.5%) and Japan (+1.1%) which offset decreases from U.S. East (-0.9%) and All Other International Markets (-17.2%).

Visitor spending on Oahu decreased (-1.6% to $613.0 million) while visitor arrivals (456,820) were flat compared to last February. Maui recorded increases in both visitor spending (+1.2% to $413.0 million) and visitor arrivals (+1.5% to 220,801). The island of Hawaii saw declines in visitor spending (-17.5% to $192.3 million) and visitor arrivals (-14.8% to 137,502). Visitor spending increased on Kauai (+4.7% to $153.5 million) while visitor arrivals were similar (+0.2% to 104,167) to February 2018.

A total of 1,010,961 trans-Pacific air seats serviced the Hawaiian Islands in February, up slightly (+0.5%) from a year ago. Growth in air seats from Canada (+10.9%), Japan (+6.3%), Oceania (+1.8%), U.S. West (+0.5%) and U.S. East (+0.5%) offset declines from Other Asia Markets (-25.1%).

Year-to-Date 2019

Through the first two months of 2019, visitor spending declined (-2.4% to $3.01 billion) compared to the same period last year. Visitor arrivals increased (+1.8% to 1,603,205) but a shorter length of stay (-1.8% to 9.43 days) resulted in no growth in visitor days. Average daily spending (-2.4% to $199 per person) was lower compared to a year ago.

Visitor spending decreased from U.S. West (-0.8% to $1.06 billion), U.S. East (-1.8% to $832.5 million), Japan (-3.8% to $349.6 million), Canada (-0.4% to $318.3 million) and All Other International markets (-7.5% to $443.2 million).

Visitor arrivals increased from U.S. West (+5.5% to 631,064), U.S. East (+0.7% to 356,943), Japan (+3.3% to 251,488) and Canada (+0.7% to 133,915), but declined from All Other International Markets (-7.9% to 201,981).

Other Highlights:

U.S. West: Visitor arrivals from the Pacific region rose 7.6 percent in February compared to the previous year, with more visitors from Alaska (+13.7%), California (+8.4%), Washington (+6.7%) and Oregon (+2.9%). Arrivals from the Mountain region were up 3.2 percent in February with growth from Arizona (+9.5%) and Nevada (+8.5%), offsetting declines from Utah (-5.7%) and Colorado (-1.3%). Through the first two months, arrivals from the Pacific (+7.4%) and Mountain (+1.8%) regions increased versus the same period last year.

Through February 2019, average daily visitor spending dropped to $182 per person (-2.4%) compared to the same period last year, largely due to decreases in transportation and food and beverage expenses.

U.S. East: Growth in February visitor arrivals from the East South Central (+1.6%) and East North Central (+0.6%) regions were offset by decreases from the West South Central (-4.1%), South Atlantic (-4.0%), New England (-2.4%) and Mid Atlantic (-0.7%) regions compared to a year ago. For the first two months of 2019, arrivals were up from the East South Central (+7.2%), West North Central (+2.6%) and South Atlantic (+0.7%) regions.

For the first two months of 2019, average daily visitor spending declined to $214 per person (-1.4%), largely due to a decline in transportation expenses.

Japan: In February, more visitors stayed in hotels (+5.2%) while stays in condominiums (-16.1%) and timeshares (-7.6%) decreased compared to a year ago.

For the first two months of 2019, average daily visitor spending declined to $238 per person (-4.4%), primarily due to lower lodging and transportation expenses.

Canada: In February, less visitors stayed in condominiums (-7.3%) and hotels (-1.6%). Stays in rental homes (+23.7%) and timeshares (+4.4%) increased from a year ago.

For the first two months of 2019, average daily visitor spending decreased (–0.7% to $177 per person) compared to the same period last year, due to lower shopping as well as entertainment and recreation expenses.

MCI: A total of 57,043 visitors came to the Hawaiian Islands for meetings, conventions and incentives (MCI) in February, an increase of 10.4 percent from last year. More visitors came to attend conventions (+18.6%) and corporate meetings (+2.2%) but fewer traveled on incentive trips (-1.0%). Contributing to the growth in convention visitors was the 2019 International Stroke Conference, held at the Hawaii Convention Center, which brought nearly 6,000 delegates. Through the first two months, total MCI visitors grew (+10.5% to 116,310) compared to the same period last year.

Travel News | eTurboNews

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Hawaii Tourism: Hawaii hotels’ occupancy, revenue down in February 2019

March 25, 2019 by Forimmediaterelease

In February 2019, Hawaii hotels statewide reported decreases in both average daily rate (ADR) and occupancy, which resulted in lower revenue per available room (RevPAR) compared to February 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $242 (-4.2%), with ADR of $290 (-1.2%) and occupancy of 83.4 percent (-2.6 percentage points) (Figure 1) in February.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

In February, Hawaii hotel room revenues fell by 5.6 percent to $360.0 million. There were more than 22,000 fewer available room nights (-1.5%) in February and approximately 58,000 fewer occupied room nights (-4.5%) compared to a year ago (Figure 2). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during February.

All classes of Hawaii hotel properties statewide reported RevPAR declines in February, except Upper Midscale Class properties ($149, +2.5%). Luxury Class properties reported RevPAR of $447 (-6.2%) with ADR of $574 (-2.2%) and occupancy of 77.9 percent
(-3.4 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $154
 (-10.3%) with ADR of $181 (-6.8%) and occupancy of 85.3 percent (-3.4 percentage points).

Among Hawaii’s four island counties, only Oahu hotels reported ADR growth for February ($237, +1.2%). This increase was counter-balanced by a 1.0 percentage point decrease in occupancy to 86.4 percent, resulting in no RevPAR growth in February ($205) compared to a year ago.

Maui County hotels reported a decline in RevPAR to $337 (-4.5%) in February but led the state overall. Both ADR ($420, -2.9%) and occupancy (80.3, -1.3 percentage points) decreased year-over-year.

Hotels on the island of Hawaii reported a drop in RevPAR to $233 (-13.5%) in February, with lower ADR ($285, -5.8%) and occupancy (81.8%, -7.3 percentage points) compared to February 2018.

Kauai hotels’ RevPAR fell to $230 (-12.3%) in February, with declines in both ADR to $306 (-1.3%) and occupancy to 75.1 percent (-9.4 percentage points).

All of Hawaii’s resort regions reported RevPAR and occupancy losses in February. Only Waikiki properties were able to raise ADR for the month ($232, +1.0%) compared to a year ago.

Travel News | eTurboNews

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Uganda travel and trafficking

March 23, 2019 by Forimmediaterelease

Sub-Saharan Africa has enormous tourism potential: leopards lounging in acacia trees, elephant herds drifting across vast savannah plains, gorillas and chimps rioting in deep forests, the earliest traces of human beings and their works. But according to the World Bank, the region receives a mere 3% of global tourism arrivals.

What scares tourists off may have something to do with an unfair, continent-wide reputation for lawlessness. There is a way around this. During the 1970s, entrepreneurs created the idea of eco-tourism as an alternative to the sun and sand package tours that wreaked havoc on the environment and local communities. Perhaps the eco-tourism concept could be expanded to encompass human rights more broadly, focusing not just on the ethical conduct of companies but on governments as well. Thus, travelers could be assured that their fees, taxes and entertainment dollars aren’t being used to support regimes engaged in grand corruption, human rights abuses, wildlife trafficking and the persecution of minorities.

Uganda’s new tourism push is a case in point. The government hopes to welcome four million visitors in 2020, more than double the current number. The Uganda Investment Authority is expediting bids from eco-tourism companies to develop ten sites in the nation’s national parks, including Queen Elizabeth, Masindi and Kidepo Valley. The World Bank has lent Uganda $25 million dollars to build a new hotel and tourism school, purchase equipment such as buses, game drive trucks, boats and binoculars and hire public relations firms to market Uganda in US, Europe, the Middle East and China. In October, Kanye West boosted the publicity effort by recording a music video in one of Uganda’s fine resorts and also visited Statehouse where he presented President Yoweri Museveni with a pair of his patented sneakers. Then in January, Tourism Minister Godfrey Kiwanda launched a beauty contest to identify Miss “Curvy” Uganda, whose zaftig figure will appear in tourism brochures.

The downside of Uganda’s tourism campaign is that every safari-goer it attracts will pay fees to government agencies such as the Uganda Wildlife Authority, which is currently engaged in a program of violent evictions that have left thousands of people in northern Uganda’s Acholi region destitute, and has also been implicated in trafficking in ivory, pangolin scales and other illegal wildlife products, both inside Uganda and in neighboring countries.

Since 2010, thousands of huts in Apaa, northern Uganda have been burned to the ground, and animals and belongings stolen by UWA officials and members of other security agencies. The government claims the area is gazetted for a game reserve, but residents say their families have lived in the area for generations and have nowhere else to go. Sixteen people have been killed and thousands, mainly women and children are now homeless. Some of the raids appear to have been carried out by members of the neighboring Madi ethnic group, and government officials have characterized them as ethnically motivated. However, the Madi and Acholi have lived in peace for generations and some suspect that senior government officials may be inciting the attackers.

Meanwhile, CITES, the international body that tracks endangered species has named Uganda as a global hub for the illegal wildlife trade. After damning reports about the scale of poaching in Kenya and Tanzania revealed that elephant populations were plummeting in both countries, stricter laws and better enforcement resulted in a nearly 80 percent decline in poaching in Kenya since 2013. Tougher enforcement has also resulted in steep declines in poaching in Tanzania. But between 2009 and 2016 an estimated 20 tons of ivory were trafficked via Uganda, along with over 3000 kilograms of pangolin scales.

The trade in wildlife products appears to be organized by senior officers of the army and UWA. Ivory traffickers working along the Uganda-Congo border told Belgian political scientist Kristof Titeca that much of their loot came from Congo and the Central African Republic, where the Ugandan Army, with US support, unsuccessfully tried to track down the notorious warlord Joseph Kony between 2012 and 2017. Thus, US taxpayers may have inadvertently facilitated Uganda’s wildlife crimes.

Uganda’s recently established Standards, Utilities and Wildlife Court, which is supposed to deal with trafficking crimes has begun prosecuting and convicting low level traffickers—the men who transport the goods to Kampala for export – but as yet there have been no prosecutions of those suspected of organizing the trade. When 1.35 metric tons of confiscated ivory disappeared from a Uganda Wildlife Authority storehouse in 2014, the director was suspended for two months and then reinstated. According to a 2017 Enough Project report, two senior Uganda Wildlife Authority officials quit the force in despair after apprehending traffickers and then being ordered by officials in President Yoweri Museveni’s office to drop the cases.

Uganda’s own elephants have largely been spared, and their numbers may even have increased in recent years. But other animals have not been so lucky. In 2014, the UWA granted a local company a license to collect thousands of pounds of scales from the shy, aardvark-like creatures known as pangolins. While officials claimed that the intention was to purchase the scales from people who’d collected them from animals who had died of natural causes, there’s little doubt that huge numbers of pangolins were killed as a result.

Unfortunately, the World Bank’s assistance to Uganda could be making things worse. It’s $25 million Tourism Sector Competitiveness and Labor Force Development loan, approved in 2013, is part of a larger $100 million Competitiveness and Enterprise Development Project which, according to project documents, allocates 21% – or $21 million, to government agencies, including the Uganda Wildlife Authority. World Bank spokespersons declined say how much of that will go to the UWA, and what the money will spent on, other than “systems strengthening and procuring tourism assets.”

Before the World Bank launches any project, it commissions an environmental impact assessment, as well as a review of safeguards to protect habitats and indigenous people who might be affected by it. In this case, the safeguards and Impact Assessment documents don’t consider the risk that Ugandan security agencies, including the army and UWA, might use funds raised from the project to engage in human rights abuses and trafficking.

This matters because countless development groups, including the Global Fund for AIDS, TB and Malaria, the Global Alliance for Vaccines and Immunization, the Red Cross and the World Bank itself– have seen millions of dollars in funding sink into Uganda’s swamp of corruption. Billions more have been siphoned out of the Treasury and the workers’ pension fund and or in inflated bids for infrastructure projects such as roads and dams.

In power for 33 years, Uganda’s leader Yoweri Museveni has hung on in part by spending funds looted from various development projects on voter bribery and harsh repression. In 2017, he sent Special Forces troops into Parliament to beat up MPs who were trying to block debate about a bill that would enable him to rule for life. One of the victims, MP Betty Nambooze, may never walk unaided again. Then in August, the same Special Forces arrested and tortured four other MPs and dozens of their supporters, including the famous pop star-politician Bobi Wine

Some of Museveni’s opposition-politician-victims, if allowed to govern, might – like the leaders of Tanzania and Kenya–do a better job of protecting Uganda’s people and its wildlife than he has. But as long as the World Bank and other donors keep allowing Museveni’s government to get away with corruption, human rights abuses and wildlife trafficking, these activities will only continue. While the World Bank continues to ignore this reality, Uganda’s prospective investors and tourists should steer their dollars towards less odious regimes.

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