HONOLULU – Total expenditures by visitors who arrived by air fell to $9.6 billion, a 7.9 percent decrease in the first ten months of 2008, according to preliminary statistics released today by the Department of Business, Economic Development and Tourism (DBEDT).

For the month of October 2008, total air visitor expenditures decreased 12.9 percent or $124.6 million, from the same month last year, to $844.7 million. The decline was caused by a 13.5 percent drop in visitor arrivals by air to 493,506 visitors and lower average daily visitor spending ($189 per person, down from $191 per person in October 2007).

Total visitor days for air and cruise visitors in October 2008 decreased 12.1 percent from the same month last year. Total arrivals by air and cruise visitors declined 13.5 percent from October 2007. However the average length of stay by these visitors was slightly longer at 9.06 days, compared to 8.91days last October.

Among the top four visitor markets, air arrivals from Canada rebounded from a 6 percent decline in September, to an increase of 7.6 percent compared to October 2007. Arrivals by air from the U.S. West and the U.S. East decreased 19.8 percent and 14.1 percent, respectively. Although October 2008 arrivals from Japan (-5.6%) were down compared to last year, the decrease was less severe compared to double digit declines in each of the previous four months.

“The national and global economic conditions continue to affect the visitor industry statewide,” stated State Tourism Liaison, Marsha Wienert.

“There are a few positives in the October statistics. Visitor arrivals from Canada increased 7.6% for the month and 7.7% year-to-date and international visitors traveling to the islands to attend a convention or corporate meeting increased 55% and 35.5% respectively.”

“In addition, the recent commitments received by the airlines to continue and/or increase airseats to the islands from Japan, Korea and Taiwan will help as we develop these geographic markets,” Wienert added.

For the first ten months of 2008, total visitor days for air and cruise visitors decreased 8.1 percent. Total arrivals by air and cruise dropped 9.7 percent from the same period last year to 5,746,203 visitors.

Year-to-date, arrivals by air totaled 5,663,351 visitors 9.5 percent lower compared to the same period last year. The average daily spending was $181 per person unchanged from the first ten months of 2007.

Other Highlights:

• All U.S. mainland regions showed double-digit declines in visitor arrivals in October 2008 compared to the same month last year. Arrivals from the two largest regional markets, Pacific and Mountain decreased 20 percent and 20.4 percent, respectively.

• A higher percentage of U.S. West visitors in October 2008 stayed in timeshare properties (17.1% of all U.S. West visitors) compared to the same month last year (13.9%). More U.S. East visitors (11.5% of all U.S. East visitors) in October 2008 also stayed in timeshare properties compared to last October (10%). Through the first ten months of 2008, more U.S. West (14.6%, up from 12.7%) and U.S. East visitors (11.3%, up from 9.9%) stayed in timeshare properties than in year-to-date 2007.

• There were more repeat visitors from the U.S. West in October 2008 (80.4%), compared to the same month last year (78.4%). The average length of stay by all U.S. West visitors increased to 9.65 days from 9.34 days in October 2007.

• The percentage of repeat visitors from the U.S. East in October 2008 (54.3%), were also higher compared to last October (51.7%). U.S. East visitors this month stayed 10.11 days compared to 10.04 days in October 2007.

• The Canadian market has been growing steadily since 2006 with increases in visitor arrivals in 31 out of the last 34 months.

• A significantly higher number of Canadian visitors who came in October 2008 stayed in timeshare properties (+44.9%) compared to last October. More visitors from this market also stayed in hotels (+9%) and condominium properties (+5%) than in October 2007. Year-to-date, Canadian visitors who stayed in hotels rose slightly (+.4%) while those who stayed in condominiums (+18.7%) and timeshare (+17.2%) properties grew by double digits compared to the first ten months of 2007.

• There were slightly more repeat visitors from Canada in October 2008 (59.4%) compared to the same month last year (58.8%). Canadian visitors’ stay in October 2008 was slightly shorter at 12.16 days, compared to 12.34 days in October 2007.

• Daily spending by Japanese visitors rose from $306 per person to $322 per person in October 2008, resulting in a 1.9 percent drop in total expenditures, compared to a 6.8 percent decline in visitor days and a 5.6 percent decrease in arrivals for the month.

• There were also more repeat visitors from Japan in October 2008 compared to the same month last year (54.1% versus 50.7%). Japanese visitors’ length of stay was relatively steady at 5.52 days, compared to 5.58 days in October 2007.

• For the first ten months of 2008, 156,714 Japanese visitors came to honeymoon in the islands, up 3.3 percent from year-to-date 2007.

• The loss of two Hawai‘i home-ported cruise ships continued to impact arrivals on all islands in October 2008, in particular on Hawai‘i Island where 76.7 percent of the losses in arrivals (-19.7%) were attributable to less domestic cruise ship visitors. Similarly, 69.2 percent of Kaua‘i’s, 47.5 percent of Maui’s and 37.9 percent of O‘ahu’s decline in arrivals were due to decreased cruise visitor counts.

• Fewer visitors went to more than one island in October 2008, resulting in a 22.3 percent decline in multiple island visitations compared to the same month last.

• All islands reported lower visitor expenditures this month compared to October 2007. Despite a 13.3 percent drop in arrivals, total visitor expenditures on O‘ahu declined only 5.1 percent to $448.7 million, due to higher daily spending (+6.1% to $213 per person), by those who came in October 2008. Total expenditures on Maui decreased 21.6 percent to $200.1 million; total visitor spending on Hawai‘i Island decreased 18.5 percent to $104.8 million; while total visitor spending on Kaua‘i fell 18 percent to $83.2 million.

• Japanese arrivals on O‘ahu surpassed U.S. West and U.S East in October 2008.

• Maui reported increased arrivals from Japan (+9%) and Canada (+10.5%) compared to October 2007.

• For the first ten months of 2008 arrivals from Canada declined on O‘ahu (-5.3%), Kaua‘i (-18.5%), Hawai‘i Island (-8.1%), Lana‘i (-17.9%) and Moloka‘i (-13.6%) but increased on Maui (+7.6%).

• Year-to-date, Japanese arrivals were lower on Kaua‘i (-25.8%), Maui (-17.7%), Hawai‘i Island (-12.5%) and O‘ahu (-8.7%) compared to the first ten months of 2007.

• For the first ten months of 2008, visitor arrivals were lower for all U.S. mainland regions except for Washington State (+3.8%) compared to the same period last year.

October 2008 Cruise Ship Visitors

• There were 7,350 fewer U.S. West visitors; and 9,749 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 October 2007.

• In October 2008 a total of 28,799 cruise visitors came by air to board a cruise ship or arrived by cruise ship, compared to October 2007 when a total of 50,482 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 9.24 days.

• The decline in cruise visitors for October 2008 largely resulted from the departures of the Pride of Hawai‘i (in February 2008) and the Pride of Aloha (in mid-May 2008).

• Also impacting the cruise visitor count was fewer visits from foreign flagged ships. Nine out-of-state cruise ships came to the islands in October 2008 with 18,012 visitors, compared to eleven ships which brought 20,960 visitors in the same month last year (-14.1%).

• For the first ten months of 2008, a total of 221,072 visitors came by cruise ship or by air to board cruise ships, 47.8 percent lower compared to the same period last year. Visitor days for all cruise visitors decreased 45.9 percent.

• Year-to-date, 82,852 visitors came by cruise ships, down 21.8 percent, while total visitor days for those who came by cruise ships declined by 19.2 percent (See “Arrivals at a Glance” Table on page 2).

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