An October 6 report in the Honolulu Star Bulletin:
Hotel revenue dropped $156 million year over year during the five-month period beginning in April, with the greatest losses -- $136 million -- occurring during the industry's peak summer months, said Joseph Toy, president and chief executive of Hospitality Advisors LLC.
"At times like these, I count the number of lights that are on at Waikiki hotels," Toy said. "It's really dim. Most of the hotels have cut their lighting to curb expenses."
The most recent hotel losses reflect a sharp 10.5 percent decline in room nights sold and a 14.9 percent drop in visitor arrivals during this year's busy summer season as compared with last year, Toy said in an analysis released today. Average room rates statewide have increased slightly to $209.55 for the summer, but substantial renovation and improvement costs and other discounting have offset most of the gains, he said.
As reported, one answer for some is to have the Hawaii Tourism Authority spend more tax dollars on marketing. But the HTA says that since its budget depends on hotel room tax revenues, there might not be enough revenues to spend more.
Hmmm, here’s a thought. Reduce or eliminate the hotel tax, which would reduce hotel room rates and boost visitors, and then let hotel owners pay for their own marketing efforts.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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