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Arrivals down, spending up and the Oahu / neighbor island dichotomy
Visitor arrivals are down 5% for the month of October pulled down by a 17% drop in visitors to Oahu. For the year to date, arrivals were down 11%. Arrivals were down on all islands led by Oahu’s 22% drop. Visitors are staying longer so the average daily census is only down 6%. International visitor arrivals are down dramatically with Japan down 90%, Canada down 30%, and all other international markets down 40%. US arrivals are up 14% with the West up 16% and the East up 9%.

Oahuʻs monthly visitor arrivals have been equal to about 80% of pre-pandemic levels since April, as shown in Erik Kloninger's chart below. Domestic arrivals have continued to exceed pre-pandemic levels, while international arrivals have lagged due to restrictions on international travel. With Japan lifting travel restrictions for vaccinated travelers starting in mid-October, that market is expected to grow in the coming months. Oahu’s international visitor arrivals increased from only 8.3% of pre-pandemic levels in January to 30% by the summer and to 38% by October. It will be interesting to see how fast the Japanese visitor market recovers given the weak Yen.
Spending
The good news is that visitors are spending more money. Year-to-date visitor expenditures are up 8.5% with the neighbor islands up double digits and Oahu increasing only 3.7%.

Hotel Performance
There is very little change in the performance of Hawaii hotels in October relative to the first nine months of 2022. We see continued strength in the neighbor islands and weakness in Oahu. The ADR increases relative to 2019 are holding strong and getting even stronger on Kauai. Kauai has the highest RevPAR growth at over 50% with Hawaii Island at just under 50% and Maui at 34%. Oahu’s RevPAR is flat with a decrease in occupancy and a commensurate increase in rate.
Looking Ahead - Air Seats and Room Rates
Total Air Seats to Hawaii for November through January are slightly above 2019 with HNL down 6%, OGG up 15%, KOA up 3% LIH up 7%, and ITO down 14%. Domestic air seats are up 16% while international air seats are down 38%. Japan is down 52%, Other Asia is down 39%, Oceania is down 25% and Canada is up 5%.

Elizabeth Churchill surveys the rates for the next four months offered by large Waikiki oceanfront hotels and reports that Waikiki ADR numbers are not coming back as expected. She notes that most properties are choosing to push occupancy and have dropped rates for festive and January.
Hot Lava!
One of the unique characteristics of the Hawaii hotel investment market, in addition to being totally dependent upon air seats, is that a volcano can influence the market. We were asked today by a group considering a Hawaii Island investment about the Mauna Loa volcano. What we don’t know yet is if the vog causes more cancellations than reservations booked by visitors hoping to see the lava flows. Stay tuned.
Data Source: Hawaii Tourism Authority
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