Hawaii’s visitor industry, which shattered previous records for visitor arrivals and spending last year, begins 2013 with tourism officials believing there will be enough momentum to do it all again this year.
State tourism simultaneously set year-end arrivals and spending records for the first time since 2006, according to preliminary year-end numbers released Thursday by the Hawaii Tourism Authority.
"2012 was the best year on record for Hawaii’s tourism economy," said HTA President and CEO Mike McCartney. "Together with our global marketing contractors and industry partners, we will continue efforts to make 2013 another successful year for Hawaii’s visitor industry."
Almost 8 million visitors came to the state in 2012, topping the previous high of 7.6 million in 2006. Total visitors in 2012 rose 9.6 percent. The gains were led by an increase of Japanese arrivals of 17 percent from the previous year. The U.S. West, the state’s largest tourism market, increased 6.7 percent in arrivals while U.S. East rose by 3.5 percent and Canada by 4.3 percent.
Visitor spending for the year hit $14.3 billion, which surpassed the previous full-year record of $12.8 billion set in 2007. However, when adjusted for inflation, that figure is 3.3 percent lower than 2005, the adjusted peak.
Still, total spending was up 18.7 percent from last year’s $12.1 billion. Japan’s spending rose 21.7 percent followed by a 12.2 increase from the U.S. West, a 9.9 percent rise from the U.S. East and a 9.8 percent gain from Canada.
Spending and arrivals grew every month of 2012, capped off by a strong finish in December. Last month, visitor arrivals increased 6.3 percent to 733,709, while spending rose 14.9 percent to $1.4 billion.
The 2012 gains were directly related to substantial increases in airline seat capacity; the tourism boom on Oahu; rebounding visitor arrivals from Japan; the growth of international markets like Japan, China, South Korea and Australia; as well as visitor industry efforts to make Hawaii a more globally competitive destination.
"We could not have achieved this momentous year without the hard work and dedication of the people that support our industry — from the bellmen, storekeepers and flight attendants to the Legislature, business community and residents — we all came together to help Hawaii," McCartney said.
Last year’s stellar visitor industry returns equate to a three-year comeback, he said. Hawaii found itself in a deep trough after losing two home-ported cruise ships and two airlines and battling challenges including the H1N1 flu, the recession, global economic uncertainty and most recently the 2011 Japanese earthquake, tsunami and nuclear disaster, McCartney said.
By 2009, Hawaii’s daily visitor spending had fallen to $27 million, while tourism-generated state tax revenue dropped to $930 million and tourism-related jobs declined to 133,000, he said. With Hawaii’s visitor industry mended, McCartney said, daily visitor spending has topped $39 million, state tax revenue has reached $1.58 billion and tourism-related jobs have grown to 167,000.
This year HTA has set a goal of bringing 8.2 million visitors to Hawaii and generating $14.88 billion in visitor spending.
David Uchiyama, HTA’s vice president of brand management, said Hawaii will reach this goal by prioritizing objectives such as increasing direct air access, sending more visitors to the neighbor islands and filling up the off-season.
"We’re getting closer to capacity, so we have to think about substantiality. Growth is about bringing people at the right time and sending them to the right place," Uchiyama said. "We have plenty of room on the neighbor islands and during the shoulder season."
Continued Hawaii tourism growth would have a positive impact on the economy across the isles, said Peter Ho, chairman, president and CEO of Bank of Hawaii.
"If you look at the national unemployment picture, the country is at 7.8 percent, and we are down just over 5 percent — that’s a big difference, and a large part of that is due to the success that we are having here in the visitor industry," Ho said.
Since Hawaii tourism has improved, Bank of Hawaii has seen better borrowers and loan growth in all of its lending categories, he said.
"The visitor industry is one of the primary economic drivers in our marketplace," Ho said. "We see that success spreading. There is increasing business and investment activity."
Randy Perreira, executive director of the Hawaii Government Employees Association, said the state budget should be in a healthier position this year due to Hawaii’s strong tourism economy.
"There is more money, so obviously we’re more optimistic about this legislative season," Perreira said.
The administration also may be able to lift some of the cuts that have been in place, he said.
"A strong visitor industry is good for everyone," Perreira said.
The trickle-down affects mean that other industries, such as construction, may see a related comeback, he said.
"We’re expecting a good year," Perreira said.
