Hawaii economy stirs as hotel occupancy rates climb

As tourism continued to drive the state’s economy, Hawaii’s hotel occupancy rates grew 10.9 percentage points last week compared to the same week a year ago, according to a July 18 industry report. The Hawaii Hotel Industry Snapshot, conducted by Smith Travel Research and Honolulu-based Hospitality Advisors, showed hotel occupancy for the week ending July 10 was 79.4 percent, compared to 68.5 percent a year ago.

Statewide hotel occupancy was also up year-over-year, coming in at 16.9 percentage points ahead of the national average of 62.5 percent for the week. Oahu maintained the highest occupancy rate at 86.7 percent, up 8.8 percentage points from a year ago. Maui followed with 76 percent, up 16.8 percentage points from a year ago. Kauai hotels were 69.6 percent full, up 5.4 percentage points, and the Big Island recorded 66.6 percent occupancy, up 11.5 percentage points.

Statewide hotel room rates, which were heavily discounted throughout the economic downturn, are on the rise again, up 4.2 percent for the week to $183.27 a night. Oahu saw room rates climb 8.2 percent since last year to $162.55. Maui maintained the state’s highest room rates at $235.10 a night, up a slight .9 percent from a year ago. The Big Island saw room rates dip 1.2 percent from last year to $176.81 while Kauai saw a steeper decline since this week last year, by 8.8 percent to $185.46.