In the months following the terrorist attacks on New York City and Washington, D.C., the Hawaii tourist industry saw a sizeable drop in tourist visits - as much as 30% by some accounts. This drop resulted in the closing of a number of businesses, large numbers of layoffs in the hospitality industry, and an economic crisis for the State of Hawaii.
Slowly, but steadily, the situation has improved over the past year as the tourist industry, Hawaiian people and the State of Hawaii fight back. The battle is being won, in large part, due to a period of very attractive airfares to Hawaii, as well as deep discounts offered by almost all hotels, resorts and tour package operators.
Hawaii Tourist Industry - One Year Later
Let's take a brief look at how some of the key elements of Hawaii's tourist industry stand one year after the events of September 11, 2001.
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Tourist visits which had dropped by almost 30% by late 2001 have rebounded. June 2002 statistics show visitor traffic down just 1.4% from June 2001, prior to the attacks.
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Japanese visitor traffic has not rebounded and continues a downward trend which has existed since 1997, but which was seriously affected by September 11, 2001. In 1997, an average of 179,300 Japanese visitors came to Hawaii each month. This year, the average has been just 113,450 arrivals a month. Since Japanese tourists traditionally spend more than their Western counterparts, this trend continues to affect the tourist economy significantly.
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Hotel occupancy in Hawaii improved to 81.7% in the second week in August 2002. This is 1.8% less than the same period in 2001, but a large improvement over the numbers earlier in 2002.
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Unemployment, which stood at 4.5% prior to the attacks, had increased to 5.7% in November 2001. It has now dropped back to its pre-attack level of 4.5%, which is lower than the national average.
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More than 4,000 Hawaii businesses closed last year as the events of Sept. 11 added to the continuing slowness of the economy. Business terminations were up 15.9 percent at 4,080 in 2001 from 3,521 in 2000, according to a new report from the Office of Advocacy in the U.S. Small Business Administration. The good news is that 3,811 new employers started in the islands last year, up 1.8 percent from 3,745 in the previous year.
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While many airlines reduced service following the events of September 11, almost all service to Hawaii from the U.S. mainland has been restored. In fact, several carriers are actually introducing additional service to the islands. It appears that Hawaii will not see cutbacks in 2002-2003 as major U.S. carriers trim their number of flights in an effort to reduce losses.
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The state's two airlines that handle inter-island air travel, as well as a significant portion of traffic from the mainland, had announced their intention to merge following the events of September 11. That proposed merger was subsequently cancelled and the airlines have decided to push forward independently. In fact, despite continuing economic difficulties, both have announced intentions of increasing flights to and from the mainland. For the second quarter of 2002, Aloha Airlines announced a $6.8 million loss. Hawaiian Airlines announced a $31 million loss for the same period.
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The island's cruise industry suffered a severe blow when American Classic Voyages Co. declared bankruptcy and its two ships, the S.S. Independence and ms Patriot, were removed from service. These two ships had each operated weekly cruises in the Hawaiian Islands from Honolulu and Kahului, Maui. In a positive development, however, Norwegian Cruise Line has picked up a large part of the slack with the introduction of the Norwegian Star to Hawaii. This $400 million super-ship is the largest cruise ship ever to set sail in the islands of Hawaii, accommodating 2,200 passengers and 1,100 crew members. It sails weekly from Oahu or Maui with a side-trip to Fanning Island in French Polynesia.
While everything has not returned to pre-September 11 levels, most signs are encouraging. Luckily, Hawaii remains a "safe" destination in the minds of most American and Canadian tourists. While world events can impact tourism for a period of time, the inborn desire of most people to explore the unfamiliar assures that travel will always remain a top choice for most people.
Sources:
Hawaii Visitors and Convention Bureau
U.S. Small Business Administration
Honolulu Star Bulletin
