Hawaii

With record number of visitors, islands are aiming for a higher demographic

Published: Sunday, Feb. 19 2006 12:00 a.m. MST

Umbrellas block out the sun for visitors to the beach side Mai Tai Bar at popular Royal Hawaiian Hotel on Waikiki Beach in Honolulu. Hawaii had more than 7 million visitors this past year.

Lucy Pemoni, Associated Press

HONOLULU — Visitors to Hawaii topped 7 million for the first time last year, and the tourism industry is talking about making the islands a little more exclusive.

An affordable hotel room on Maui, an empty patch of warm sand on Waikiki Beach, a prime tee time on the Big Island — all are becoming more scarce as more tourists flock here in record numbers.

In 2005, the islands welcomed 7,457,297 visitors who spent a record $11.5 billion, according to the latest state figures.

Tourism industry officials, however, warn that Hawaii is at or very close to capacity and are being more selective in attracting those they consider the most desirable tourists.

They're not telling anyone to stay away, but they clearly want more spending without too many more tourists. The visitor count was up 6.7 percent over 2004 when the state just barely missed reaching the 7 million milestone with 6,991,927 visitors.

"Let's put it this way, it's been a good year," said Rex Johnson, president and chief executive officer of the Hawaii Tourism Authority.

But Hawaii's target market is shifting toward "activity-seeking travelers" — rich people who golf, spend hours in a spa, island-hop and can afford the overpriced snacks inside a hotel room's mini bar.

Barry Wallace, an executive vice president for hotel operator Outrigger Enterprises, said his company, which operates 22 hotels in Hawaii, is becoming more selective in marketing.

"Our initiative has been to focus on targeting the very, very best guests — the ones who will take advantage of activities and other amenities we have to offer," he said. "That's been the focus of our marketing for the last two years, and it certainly will be from this point forward."

Hawaii's hotel occupancy rate last year was 81.2 percent, second only to New York City at 82.9 percent. Los Angeles was third at 74.6 percent, according to Smith Travel Research.

Hotels on Oahu, most of which are located in Waikiki, were 85.6 percent occupied last year. The rate was lower on other islands, where the most lavish rooms fetch several thousand dollars a night. Luxury hotels on Maui, for example, were 76 percent booked at an average room rate of $319 a night.

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