Hotel revenue up

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“We have to compete against improving destinations like Bali and South Thailand if we want to get our fair share out of Asia,” Carey said.

Associated Press

HONOLULU — Hawaii’s hotel room revenue in 2011 was the highest since 2007, according to a report that tourism industry consultants released Wednesday.

Statewide room revenue last year was $2.87 billion, up 12.7 percent from $2.54 billion in 2010, said the report by Hospitality Advisors LLC and Smith Travel Research.

Occupancy was 73.4 percent, up from 70.7 percent in 2010. The average daily rate was about $189.62, up from $174.84 the previous year.

Room rates in tourism-dependent Hawaii last year were the second highest in the nation behind New York City, and occupancy ranked No. 4, after New York City, San Francisco and Miami, according to Smith Travel Research.

Hoteliers and other industry observers note that last year’s room revenue is far less than the 2006 peak of $3.12 billion.

“We are definitely still in recovery mode,” said Joseph Toy, president and CEO of Hospitality Advisors. “Over the past four years, we’ve seen close to $2 billion in net income evaporate. It’s going to take another two to three years to make that up.”

For December, statewide occupancy averaged 73.1 percent, an increase of 3.2 percentage points from December 2010.

David Carey, president and CEO of Outrigger Enterprises, appeared before the Hawaii House Tourism Committee on Monday and said hotel costs have increased significantly. He’s among the industry leaders lobbying for increasing the Hawaii Tourism Authority’s marketing budget by $2 million. They also oppose increases of the transient accommodation tax.

“We have to compete against improving destinations like Bali and South Thailand if we want to get our fair share out of Asia,” Carey said.