The death of Hawaii’s golden goose

Hotel occupancy is the lifeblood and a key indicator of Hawaii’s tourism industry. So why are occupancy rates going down?

It’s not that Hawaii’s occupancy rates are bad. Most mainland hotel and resort operations would love to have Hawaii’s average monthly occupancy rates of 70 to 80-percent. Most would love to have Hawaii’s average daily room rates, too, now over $200 a night.

Hawaii has a limited number of hotel rooms (including resorts, hotel condominiums, etc.), which creates an excellent opportunity for a golden goose scenario. Filling those rooms and increasing the average daily room rate is what it’s all about. That’s the golden goose of Hawaii’s tourism industry. That’s the way it has been for decades. Until now.

So what’s the problem? Occupancy rates are dropping; steadily in recent years, while the average daily room rate continues to increase. Hawaii is no longer a select destination for the masses. With exorbitant room rates, expensive activity costs, and atrocious food and entertainment prices, Hawaii is in danger of killing the very goose that has laid golden eggs since statehood.

Hawaii has reached a point where it cannot compete with a growing list of attractive travel destinations. Australia. Mexico. Asia. Parts of the US are bargains compared to vacationing in Hawaii. More activities, better facilities, lower costs to travelers.

Travel and hospitality go hand in hand. A vacation to Hawaii is overly expensive and the hospitality isn’t all that good any more. Tourists (and by default, tourism) are treated as an inconvenience instead of a golden goose to be cherished and nourished.

Businesses and governments are like people. They don’t change when they should, they change when the pain reaches an intolerable level. Hawaii’s tourism industry isn’t feeling much pain because the financial situation of the customer, the tourist, is good. Cycles are what they are for a reason. What goes around, comes around.

Even a mild change in the general economy may affect the travel plans and destinations for tens of millions of vacationers. That will affect Hawaii and cause pain and suffering to the golden goose.

The solution is simple, though painful. It would require state and business to work together to ensure that Hawaii remains competitive as a travel destination of choice for the benefit of tourists who visit, and those serving the tourism industry.

Business leaders are primarily Republican while Hawaii’s government officials are primarily Democrat, and they’re both at odds with one another. For now, Republican influence is dwindling in the state’s affairs, so that must mean that Democrats are responsible for the impending death of Hawaii’s golden goose.