For Immediate Release: January 28, 2009
DBEDT Release News 09-03

December 2008 Visitor Expenditures Decreased 22.4 Percent

Note: December 2008 Visitor Research Data can be viewed here.

HONOLULU--Expenditures for 2008 by visitors who arrived by air totaled $11.3 billion, down 9.9 percent or $1.2 billion, according to preliminary statistics released today by the Department of Business, Economic Development and Tourism (DBEDT).

For the month of December 2008, total air visitor expenditures dropped 22.4 percent or $280 million, from the same month last year, to $967.7 million. The decline was caused by a 17.1 percent decrease in arrivals by air to 550,529 visitors and lower average daily visitor spending ($170 per person, down from $185 per person in December 2007).

Total visitor days for air and cruise visitors in December 2008 fell 14.9 percent from the same month last year. Total arrivals for air and cruise visitors declined 16.5 percent from December 2007. However the average length of stay by these visitors was slightly longer at 10.35 days, compared to 10.16 days last December.

Among the top four visitor markets, air arrivals from the U.S. West dropped 21.9 percent while U.S. East arrivals were down 15.3 percent compared to December 2007. Japanese arrivals fell 15.5 percent while arrivals by air from Canada declined 11.6 percent from last December.

"Hawai‘i experienced an exceptional first quarter in 2008 which helped offset the challenges that the world economic crisis has had on the visitor industry and our economy," said State Tourism Liaison, Marsha Wienert. "The results for the year and for December were expected, however we continue to believe that in spite of the challenges opportunities exist. By continuing to work together we will get through this and our tourism sector will be stronger and healthier than ever."

"The value of a Hawai‘i vacation has never been better and we need to convince mainland travelers that now is the time to visit our islands. The Canadian market was excellent in 2008 and we need to continue to nurture it. Additionally growth opportunities exist in many developing markets especially Korea and China," Wienert added.

For all of 2008, total visitor days for air and cruise visitors declined 9.1 percent. Total arrivals by air and cruise decreased 10.8 percent from the same period last year to 6,806,622 visitors. This will be the first year since 2004 that annual arrivals were less than seven million visitors.

2008 arrivals by air totaled 6,699,424 visitors, 10.6 percent lower compared to last year. The average daily spending was $180, compared to $182 per person for 2007.

• Among the U.S. mainland regions, Mountain Region showed the steepest decline with 23.7 percent less visitor arrivals in December 2008 compared to the same month last year. Arrivals from Hawai‘i's largest regional market, Pacific was down 22 percent in December 2008. For the entire year of 2008, visitor arrivals ended down 15.1 percent from the Pacific Region, down 13.9 percent from the Mountain Region, and down 14 percent from the South Atlantic Region.
• Only three states ended the year with positive growth in visitors to Hawai‘i: Alaska (+20%), Washington (+.1%) and Montana (+.5%).
• Timeshare properties continued to gain in popularity among visitors in the islands. In 2008, total visitors who stayed in timeshare properties increased .5 percent to 671,559 visitors compared to 2007 (668,399). Moreover, the number of visitors who stayed only in timeshare units increased 1.2 percent in 2008.
• Total visitors who came to honeymoon were up 2 percent in December 2008 but ended the year down 6.9 percent.
• The percentage of repeat visitors from the U.S. West in December 2008 (83.1%) was higher compared to last December (81.6%) The average length of stay by all U.S. West visitors increased to 10.55 days from 10.20 days in December 2007.
• The percentage of repeat visitors from the U.S. East in December 2008 (63.9%) was higher compared to last December (62.1%). U.S. East visitors this month stayed 11.54 days compared to 11.09 days in December 2007.
• Although Japanese visitor arrivals (-15.5%) and visitor days (-12.3%) declined by double digits in December 2008, total visitor spending by this group was up 4.4 percent to $191.2 million due to higher daily spending (up from $270 per person per day to $322 per person per day in December 2008).
• There were more repeat visitors from Japan in December 2008 compared to the same month last year (60.3% versus 57.7%). Japanese visitors' length of stay was 6 days, compared to 5.78 days in December 2007.
• Year-to-date, Canadian visitors who stayed in hotels decreased slightly (-1.8%) while those who stayed in condominiums (+11.8%) and timeshare properties (+14.1%) grew by double digits compared to 2007.
• The proportion of first-time visitors from Canada in December 2008 (32.6%) was relatively similar to December 2007 (32.3%). Canadian visitors' length of stay in December 2008 was longer at 13.67 days, compared to 12.9 days in December 2007.
• December 2008 is the first month this year in which Canadian visitor days showed a year-over-year decline (-6.3%).

• All islands reported lower visitor expenditures this month compared to December 2007. Total visitor expenditures on O‘ahu declined 14.8 percent to $508.2 million. Total expenditures on Maui decreased 28.3 percent to $243.4 million; total visitor spending on Hawai‘i Island fell 27.5 percent to $120.4 million; while total visitor spending on Kaua‘i was down 34.6 percent to $85.7 million.

• O‘ahu experienced less of a decline in visitor days from the U.S. West (-16.1%) and the U.S. East (-5.6%) compared to the other islands.
• Hawai‘i Island reported more visitors days by Canadian visitors (+6.8%) compared to December 2007.

• Much of the growth in Canadian arrivals in 2008 was on Maui (+3.4%). While visitors from Canada declined on O‘ahu (-9.4%), Hawai‘i Island (-11.1%), Kaua‘i (-22.8%), Moloka‘i (-27.9%), and Lana‘i (-30%).
• In 2008, Japanese arrivals were lower on Kaua‘i (-25%), Maui (-19.5%), Hawai‘i Island (-12.2%) and O‘ahu (-10.2%) compared to 2007.
• 2008 domestic air seats declined 10 percent from 2007. December 2008 domestic air seats were down 17.9 percent compared to last year December. International air seats were down 14.7 percent in December 2008 and 11 percent in 2008.

• There were 4,359 fewer U.S. West visitors; and 10,562 fewer U.S. East visitors who either arrived by air to board cruise ship, or came by out-of-state cruise ships to Hawai‘i during the month compared to December 2007.
• In December 2008 a total of 21,327 cruise visitors came by air to board a cruise ship or arrived by cruise ship, compared to December 2007 when a total of 42,367 visitors came by air to board cruise ships or came by cruise ships to Hawai‘i. The average length of stay by all cruise visitors during the month was 10.36 days.

• The decline in cruise visitors for December 2008 largely resulted from the departures of the Pride of Hawai‘i (in February 2008) and the Pride of Aloha (in mid-May 2008).
• However, there were more visits from foreign flagged ships in the month of December 2008. Six out-of-state cruise ships came to the islands in December 2008 with 13,013 visitors, compared to five ships which brought 10,603 visitors in the same month last year (+22.7%).
• In 2008, a total of 264,216 visitors came by cruise ship or by air to board cruise ships, 47.5 percent lower compared to the same period last year. Visitor days for all cruise visitors decreased 46.1 percent.
• In 2008, 107,198 visitors came by cruise ships, down 18.2 percent; while total visitor days for those who came by cruise ships declined by 15.1 percent (See "Arrivals at a Glance" Table on page 2).

For more information, contact:
Marsha Wienert, Tourism Liaison
Phone: (808) 586-2362
Email: marsha.wienert@hawaii.gov

Dave Young, DBEDT
Phone: (808) 587-1212
Email: dyoung@dbedt.hawaii.gov