Author Archives: The Hansen Ohana

APEC 2011 Summit in Hawaii Expected to Generate $120 Million in Economic Activity

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Isle companies urged to prep for APEC 2011

By David Butts

Article from: The Honolulu Star-Advertiser

The Asia-Pacific Economic Cooperation leaders meeting is 337 days away and Hawaii businesses need to get busy if they intend to take advantage of the event.

 

APEC leaders meeting

» When: Nov. 12-13, 2011
» Attending: Heads of state of 21 largest economies in Asia-Pacific region; 1,000 business leaders, 2,000 journalists; up to 17,000 others
» Impact: $120 million in economic activity
» Information: www.apec2011hawaii.com

That was the message from Monica Whaley, president of the National Center for APEC, who spoke yesterday at the Chamber of Commerce of Hawaii’s 2010 policy summit at the Sheraton Waikiki Resort. 

APEC will bring heads of state from the 21 largest economies in the Asia-Pacific region to Hawaii next November. The event is expected to generate some $120 million in economic activity for Hawaii while boosting the state’s image as a premier location for business conferences.

About 15,000 to 20,000 will attend the event, including about 1,000 business leaders from the region and 2,000 journalists.

Hawaii businesses have an opportunity to connect with potential customers throughout the region at the CEO summit that runs concurrent with the APEC leaders meeting.

“The CEO summit is a little bit like Davos,” said Whaley, referring to the annual World Economic Forum held in Davos, Switzerland. “Meeting someone in your industry might result in a deal.”

The event will include an “idea fair” for businesses to show off their most innovative concepts, said Whaley.

Opportunities to participate include meeting with business leaders, getting a message out to the media and being a part of the host country’s local reception.

Journalists coming to Hawaii for the event will have a lot of downtime when heads of state are meeting privately. This gives local businesses an opportunity to take reporters on tours of their facilities to generate coverage of Hawaii around the region, Whaley said.

Local companies can “showcase that Hawaii is a place for business,” Whaley said.

The local host committee will be putting on a reception which is always well attended, she said. That’s another chance for local businesses to communicate with regional executives.

Whaley suggested that local companies get involved with the host committee, which is chaired by Bank of Hawaii CEO Peter Ho. Gregg Yamanaka, former president of MC&A, is the host committee’s CEO. Other members include: Mike McCartney, president of the Hawaii Tourism Authority; Patricia Loui, president of OmniTrak Group Inc.; Stanley Kuriyama, CEO of Alexander and Baldwin; and Bert “BJ” Kobayashi Jr., CEO of Kobayashi Group.

The most lasting benefit for local businesses from APEC might be the boost to the meetings and convention industry, which has been lagging since the 2008 economic collapse.

If people come to Hawaii and have a first-class experience, there will be no end to the effect on businesses deciding to host future meetings here, said Whaley.

Airline traffic increased 11.5% for Hawaiian Airlines Inc.

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News Brief from The Maui News

Traffic increases for Hawaiian Airlines

HONOLULU – Hawaiian Airlines Inc. said Wednesday that traffic jumped 11.5 percent in November as the airline offered more seats and flew planes with more passengers.

The Honolulu-based carrier said paying passengers traveled 718 million miles last month compared with 644 million in November 2009.

The airline increased passenger-carrying capacity 10.5 percent to 844 million available seat miles, a product of miles flown multiplied by seats on the plane.

Average occupancy also increased nearly 1 percentage point to 85.2 percent.

Hawaii's Unemployment Rate Steady and 3.2 Points Lower Than The National Average

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Unemployment rate steady at 6.4 percent in

October

Article Published in The Maui Weekly

Pacific Business News – According to seasonally adjusted figures recently released by the U.S. Bureau of Labor Statistics, Hawai‘i’s unemployment rate remained steady in October for the third consecutive month at 6.4 percent—down from October 2009’s rate of 6.9 percent.Hawai‘i was one of 17 states that didn’t experience any change in unemployment rates last month, and the national jobless rate also remained unchanged at 9.6 percent. This figure is down from 10.1 percent during the same time last year, the report said.

There were 632,700 people in the workforce last month, with 40,600 of them recorded as unemployed. September revealed a workforce of 634,600 people, with 40,400 of them unemployed, according to the bureau’s report. The state’s workforce numbered 635,100, with 44,000 people unemployed, at the same time in 2009.

Maui Hotels Show Highest Increase in Occupancy in the State ~ Continuing Recovery

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Discounts lure more to hotels

Lower room rates help the lodging industry lure tourists and boost the state’s economy

By Allison Schaefers  Dec 07, 2010 – article from the Honolulu StarAdvertiser

 

Recovery of Hawaii’s visitor industry continued in October as statewide hotel occupancy increased 4.5 percentage points to 70.9 percent.

 “Typically, October is well into the shoulder season (an annual slowdown between summer and Christmas), but occupancy for Waikiki and Oahu were unusually strong,” said Joseph Toy, president of Hospitality Advisors LLC, which issued the report.

 “Last year we had the American Dental Association Conference, but it’s gratifying that we had even higher occupancy above that.”

More tourists have filled hotel rooms, increased hotel revenues and generally improved the state’s economy this fall and winter, but hoteliers continued to pine for better room rates and a more even recovery. 

The average daily rate for a room in October fell by 0.7 percent to $163.52, Toy said.

“Rates won’t pick up again until 2011 and then only by about 4 percent,” he said. 

“At this point it’s really more about recovery. A 4 percent comeback from an 18 percent drop hardly represents growth.” Room rates have fallen about 18 percent from their peak a few years ago.
“Although Oahu and Maui continue to show significant improvement each month, the recovery will remain uneven until the Big Island and Kauai begin to show more strength and consistency in their respective markets,” Toy said.

Julius Finnern of Menomonee Falls, Wis., and other Pearl Harbor survivors and their families helped boost Hawaii hotel occupancy last week. 

Finnern, who served on the USS Monaghan DD-354 when it was home-ported in Hawaii in 1940, returned to Hawaii for the annual survivor’s convention.

“I’m 91 and I never thought I’d live to 25,” Finnern said. “My ship had 12 major engagements with the Japanese.”  Luckily for Finnern and for Hawaii, he lived to return to the state at least five times on survivor business.
 

Hawaii hotels should continue to gain occupancy as world economies get back on their feet, but the hotel room rate discounting that began 2 1/2 years ago to increase demand will remain, said Toy. 

“Our margins are a lot more shallow due to labor and benefit costs, and there’s been a double-digit energy inflator,”said Jerry Gibson, area vice president of Hilton Hawaii and general manger of Hilton Hawaiian Village, the state’s largest single hotel property employer. “I don’t know that we can realize the profits that we used to have.”

Waikiki led the state in occupancy at 80 percent but finished the month with an average daily rate of $148.59 as compared with $150.68 a year ago.

The overall rate for Oahu hotels decreased 1.2 percent to $148.21 for the month.

Occupancy at Oahu hotels climbed to 78.2 percent from the previous year’s 75.6 percent, helping push revenue per available room, or revPAR, to $115.90 versus last year’s $113.43. 

Statewide revPAR rose 6.1 percent to $115.94. 

Maui hotels had the largest October occupancy increase, rising 11 percentage points to 67.1 percent.

Maui hoteliers also had the highest average daily rate, $194.24; however, it was 3.2 percent below the same period in 2009.

Maui’s revPAR climbed to $130.34 versus last year’s $112.46.
Hawaii island recorded the state’s lowest occupancy; however, the 57.6 percent figure was 2.3 percentage points ahead of last year.

October’s daily rate also increased by 5.8 percent to $171.65 on the Big Island, while revPAR rose to $98.87 as compared with the year-ago $89.74. 

Kauai hotels saw occupancy rise 1 percentage point to 61.2 percent, but the average rate dipped 5 percent to $172.07 and revPAR fell by 3.4 percent to $172.07.

Recovery of Hawaii’s visitor industry continued in October as statewide hotel occupancy increased 4.5 percentage points to 70.9 percent.

Recovery of Hawaii’s visitor industry continued in October as statewide hotel occupancy increased 4.5 percentage points to 70.9 percent.

 

HOTEL OCCUPANCY

Occupancy rates at Hawaii hotels in October and the same month last year: 

By Island

 

  2010 2009

Source: Hospitality Advisors

 

Maui's November Real Estate Statistics

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Brief Maui Statistics Overview:

November’s Sales Volume – Residential Sales came in at 58 homes sold, while Condo Sales decreased to 66 units sold. Land sales came in at 6 lots.

November’s Median SALES prices – Home median prices rose to $445,000 and Condo median prices rose to $349,990. Land median price was $362,500.

Days on Market for Residential homes = 166 DOM, Condos = 147 DOM, Land = 136 DOM.

(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the marketplace’s average DOM.

“Year to Date Sales” numbers compare January – November 2010 to January – November 2009. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends. 

Year to Date: Residential unit sales rose (+23%), average sold price = $758,398 (+6%), median price = $460,000 (-8%) and total dollar volume sold = $564,247,922 (+31%).

Condo unit sales increased (42%), average sold price = $651,062 (-8%), median price = $380,000 (-18%). Total Condo dollar volume sold = $686,870,761 (+30%).

Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales increased (+12%), average sold price = $498,347 (-57%), median price = $405,500 (-19%), Total dollar volume = $55,814,854 (-52%).

Also, total sales for immediately past 12 months: Residential = 829, Condo = 1,136, Land = 123.

December 5, 2010 – Active/Pending/Contingent status inventory:

             Dec.    Nov.    Oct.   Sept.    Aug.    July     June    May    April    Mar.    Feb.     Jan.    Dec.09

Homes   974     976    1,001     981      994    1,008    1,007   1,040   1,059   1,043    1,040    996       1,022

Condos 1371  1,347   1,394   1,455   1,503    1,412    1,423   1,449   1,494   1,567    1,541   1,495     1,496

Land      601     596     601       620     604       601       591     579      585      568       561     522        585

Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that the overall view.  Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.

Data and statistics provided by the Realtors’ Association of Maui (RAM).