Hawaii Hotel Occupancy Hits Lowest Point of the Year in May
Hawaii hoteliers are facing a tough summer as hotel occupancy in May dropped to its lowest level of the year. According to a report from STR, statewide hotel occupancy for Hawaii fell to 71.2%, a 1.3% decrease from May 2023. The average daily rate for a Hawaii hotel room also decreased by 1% year over year to $342, with revenue per available room (RevPAR) dropping by 2.3% to $243.
With Maui’s hotel performance lagging due to the aftermath of wildfires in August, the decline in May was mainly attributed to Maui. Occupancy in Maui dropped by 7.1% year over year to 58.3%, with the average daily rate for a hotel room falling to $517, a 4.2% decline from last year. RevPAR on Maui also decreased by 10.9% to nearly $302 as operating costs continue to rise.
While Oahu saw a slight increase in occupancy to 78.4% in May, with an average daily rate of nearly $272, the overall hotel performance in Hawaii is not meeting expectations. The report showed mixed results for Hawaii island and Kauai, with Hawaii island’s occupancy increasing by 2.1% to 63.7% and Kauai experiencing a 4% drop in occupancy to 70.9%.
Despite continued challenges on Maui affecting Hawaii hotels, industry experts believe more marketing efforts are needed to attract visitors. The recent downward revisions to the U.S. hotel forecast by STR and Tourism Economics indicate a broader trend of declining travel volume due to rising prices.
Jack Richards, president and CEO of Pleasant Holidays, noted a 24% decline in Hawaii bookings for the year, with Maui bookings down by 50%. He emphasized the importance of effective messaging and marketing efforts to boost tourism in Hawaii.
Overall, Hawaii hoteliers are facing a tough summer ahead, with increased competition from other destinations and ongoing challenges in attracting visitors. Industry leaders are calling for strategic marketing initiatives and proactive efforts to rebuild the tourism sector in Hawaii.
