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Hawaii Tourism Authority: Hawaii visitor spending increased 9.8 percent

Hawaii Tourism Authority: Hawaii visitor spending increased 9.8 percent

George D. Szigeti, president and CEO of the Hawaii Tourism Authority (HTA), issued the following statement commenting on Hawaii’s visitor statistics results for July 2017.

“July is typically the peak month of the year for Hawaii tourism and one that industry partners count on to generate good results. Even so, the 9.8 increase in visitor spending and 6.8 percent increase in visitor arrivals in July completely exceeds any forecasts that were made for the month. That sentiment is also true for the first seven months of the year.

“Our State is very fortunate that demand for the Hawaii travel experience continues to be strong in 2017, especially from the U.S. mainland and Japan. Hawaii’s economy as a whole is benefiting from tourism’s unexpected degree of success, with the positive impact extending to our State tax base. Through the first seven months, Hawaii’s tourism industry has generated $1.16 billion in State tax revenue, an increase of $94.8 million over the same period last year. This revenue helps our State to support programs that makes our communities stronger, especially for those in need.

“We recognize some residents have expressed concerns about the growth of tourism on our islands’ way of life. Sustainable tourism is a balance that our tourism industry is striving to achieve for the good of everyone. This topic is a discussion that requires public and private stakeholders to come together and find solutions that will benefit both our leading industry and the community-at-large.

“Sustainable tourism is the theme of HTA’s Global Tourism Summit, taking place September 19 to 21 at the Hawaii Convention Center. We encourage people to register and participate in sessions and presentations that are intended to make Hawaii a better place for residents and travelers to enjoy.”

Visitors to the Hawaiian Islands spent a total of $1.59 billion in July 2017, an increase of 9.8 percent compared to a year ago, according to preliminary statistics released today by the Hawaii Tourism Authority (HTA). Total visitor arrivals rose 6.8 percent to 891,878 visitors, bolstered by growth in arrivals from air (+6.4% to 888,236) and cruise ships (+282.5% to 3,641).

Of Hawaii’s major markets, the U.S. East reported the largest gain in visitor spending in July 2017 (+21.7% to $452.5 million) compared to a year ago. Visitor arrivals were up significantly (+11% to 208,530), supported by increased air seat capacity from Dallas and Minneapolis. Average daily visitor spending was also higher (+10.2% to $215 per person).

Spending by visitors from U.S West rose in July 2017 (+9.5% to $598.8 million) versus last year, boosted by an increase in arrivals (+5.4% to 385,235 visitors) and higher daily spending (+3.7% to $168 per person).

The Japan market continued to report year-over-year growth in visitor spending and arrivals in July 2017 due to increased air service to Kona and Honolulu. Visitor spending grew (+5.5% to $192.5 million), fueled by increased arrivals (+7% to 136,300), which offset slightly lower daily spending
(-1.6% to $232 per person).

For the Canada market, visitor spending decreased in July 2017 (-8.9% to $46.6 million) compared to last year. Visitor arrivals rose (+3.4% to 26,691) but daily spending declined (-10.6% to $148 per person) from a year ago.

Visitor spending from All Other International markets increased in July 2017 (+1.1% to $295.2 million), as growth in arrivals (+2.8% to 131,482) offset lower daily spending.

The island of Hawaii reported a sharp increase in visitor spending in July 2017 (+23.2% to $216.7) compared to a year ago. Visitor spending also grew on Oahu (+10.3% to $764.4 million) and Maui (+8.4% to $432.5 million), but decreased slightly on Kauai (-0.7% to $165.5 million).

Total air seats serving Hawaii increased in July 2017 (+3.1% to 1,139,710) compared to last year. Double-digit growth in scheduled seats from U.S. East (+21.8%) and Japan (+18.3%) offset declines from Oceania (-5.1%) and U.S. West (-1.2%).

Year-to-Date 2017

Visitor spending statewide increased through the first seven months of 2017 (+8.9% to $9.95 billion), bolstered by growth in arrivals (+4.7% to 5,496,854) and daily spending (+4% to $200 per person).

Year-to-date, Hawaii’s four largest visitor markets, U.S. West (+11.2% to $3.66 billion), U.S. East (+13% to $2.66 billion), Japan (+12.3% to $1.25 billion) and Canada (+8.7% to $655.2 million), have all reported strong growth in visitor spending compared to the same period a year ago.

Visitor spending from All Other International markets declined year-to-date (-3% to $1.69 billion), due to decreased arrivals (-3.1% to 739,715) and lower daily spending (-3.5% to $241 per person) compared to the first seven months of 2016.

Other Highlights:

• U.S. West: Visitor arrivals increased from the Pacific (+4.7%) and Mountain (+7.1%) regions in July 2017 year-over-year, boosted by more visitors from Colorado (+13%), Oregon (+15.9%), Washington (+11.8%) and California (+3.1%). Through the first seven months of 2017, arrivals increased from both the Pacific (+2.8%) and Mountain (+6.3%) regions.

• U.S. East: Visitor arrivals from all regions were up in July 2017, led by growth from the South Atlantic (+12.3%), East North Central (+11.7%) and West South Central (+9.1%) regions. Year-to-date, arrivals increased from all regions compared to the first seven months of 2016.

• Japan: Significantly more visitors from Japan stayed in condominium (+25.7%) and timeshare (+24.7%) properties in July 2017 versus a year ago. This was the third straight month that timeshare and condominium usage has grown by double digits.

• Canada: There was moderate growth in hotel stays (+2.6%) by visitors from Canada in July 2017, while usage of rental homes (+28.6%) and timeshares (+24.9%) rose sharply compared to July 2016.

• MCI: Total MCI visitors increased considerably in July 2017 (+29.3% to 41,112) year-over-year. Significantly more visitors came to attend conventions (+91.7%) and corporate meetings (+21.2%), while fewer visitors traveled on incentive trips (-26.3%). Two events held at the Hawaii Convention Center contributed to this increase. The 2017 Institute of Electrical and Electronics Engineers Computer Vision and Pattern Recognition was attended by nearly 4,000 delegates, while a private corporate event drew more than 3,000 delegates. Year-to-date through July 2017, the number of MCI visitors rose (+5.4% to 328,089) compared to the same period a year ago.

Highlights from All Other Markets:

• Australia: Fewer available air seats contributed to a decrease in visitor arrivals in both July 2017 (-5.8% to 28,456) and in the first seven months of 2017 (-3.5% to 178,425).

• New Zealand: Visitor arrivals increased for both July 2017 (+14% to 8,801) and year-to-date (+8.1% to 35,885) compared to a year ago.

• China: Arrivals declined for both July 2017 (-11.5% to 13,489) and year-to-date (-10.5% to 96,379) versus the same periods in 2016.

• Korea: Visitor arrivals increased in July 2017 (+11.8% to 21,415), but are slightly behind the pace year-to-date (-1.1% to 134,715) of 2016.

• Taiwan: Visitor arrivals decreased in July 2017 (-2.8% to 1,876). Arrivals year-to-date were comparable (+0.1% to 11,175) to a year ago.

• Europe: Visitor arrivals from the United Kingdom, France, Germany, Italy and Switzerland increased in July 2017 (+3.1% to 16,428) versus last year. Through the first seven months, arrivals have declined (-2.4% to 73,469) compared to last year.

• Latin America: Visitor arrivals from Mexico, Brazil and Argentina rose slightly in July 2017 (+0.9% to 3,090), but declined through the first seven months of the year (-7.8% to 14,609).

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