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The Honolulu Advertiser
Posted on: Sunday, December 3, 2006

Tourism weathers the aftershocks

By Lynda Arakawa and Will Hoover
Advertiser Staff Writers

David Heard, a supervisor with the city's environmental services division, steps over a gushing stream of sewage being diverted into the Ala Wai Canal while repair work is done on a broken sewer main.

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SEWAGE

Flood

Sandbags help prevent further flooding at the Kauai Marriott Resort during the spring’s “40 days of rain.”

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A short stretch of Kaua'i's Kuhio Highway in the Kilauea area shows the devastation left by water from the breached Kaloko Reservoir in March. Water from the collapsed dam swept away trees, roads, property and lives. Hawai'i's tourism industry has overcome many setbacks to its island-paradise image this year to see a near-record tally of visitors.

ADVERTISER LIBRARY PHOTO | March 14, 2006

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A crowd of visitors watches the hula show at the Kuhio Beach hula mound near the statue of Duke Kahanamoku.

ADVERTISER LIBRARY PHOTO | Sept. 25, 2006

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Ala Wai Sewage Spill

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Kaua'i Flood

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But with all these hits to Hawai'i's image, tourists still continued to visit the Islands at levels nearly matching last year's record pace. Hotels are set to rake in record room revenues this year, and visitors are pumping in more dollars into the local economy.

It all illustrates the strength of the Hawai'i brand as a destination, which should lead to continued solid business next year, tourism executives say.

"In spite of what we might say was a year full of minor natural disasters, the industry has shown a tremendous resilience," said Hawai'i Tourism Authority president and CEO Rex Johnson. "Thank our lucky stars, but none of these disasters have been anything like the Indonesian tsunami or anything like that. So, we've been very lucky in that respect."

The industry owes much of its success to Mainland visitors like Maryland residentDynell Jones. The 38-year-old dental hygienist heard about the Oct. 15 earthquakes off the Big Island and the "40 days of rain" this past spring, but she still came here recently for her honeymoon, a dream she has had since she was "a young lady."

"Every place has had their challenges, but that wouldn't stop me from coming to see a beautiful place," Jones said. "I've never experienced (an earthquake) and I would be frightened to, but I'm never going to stop doing things because I'm afraid of natural (disasters). It can happen anywhere.

"Tourism is important to places like this. They're going to do their best to make sure that it's right."

News reports about Hawai'i's record rainfall, the tragic Kaloko dam failure on Kaua'i and the closure of Waikiki beaches tainted from sewage spills prompted the industry to launch a "Sunshine Returns to Hawai'i" public relations campaign last spring. Months later, when the Oct. 15 earthquakes rocked the state and caused blackouts, the industry scrambled to counter widespread news and images of damaged houses and tourists stranded at the airport.

Hotels reported little negative impact from the incidents, although some say the earthquake could have been a factor in a 4.2 percent decline in visitor arrivals in October.

But there are still lessons to be learned.

"Maybe we could have done a little better in managing the information flow that went out to the world," said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises Group. "Take for instance the earthquake. It was such a minor event in the grand scope of things, but it received much more attention in the national press than it warranted given what really occurred. Perhaps we could have been a little more proactive in making statements to soften the effect of such things.

"What we learned is we really need to have a more coordinated voice speaking on our behalf as an industry and as a destination. I think we didn't do quite as well as we would have liked there."

State tourism liaison Marsha Wienert said the state and the industry have become quicker to react in emergencies but agreed communications could have been handled better. She said she is participating in Gov. Linda Lingle's task force — created after the earthquakes — to determine how to better communicate in disasters and that a report is expected this month.

"In today's media world, information is instantaneous. You can't expect like we used to, it's not going to hit CNN for a few hours. Well, it hits CNN within three minutes now. So you have to be ready to react immediately. And that, of all the lessons learned, is the ability to react immediately in the face of an emergency situation."

Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts in Hawai'i and French Polynesia, said there was a downturn in bookings and an increase in cancellations in the two weeks immediately after the earthquake.

But he said Hawai'i's industry does bounce back relatively quickly, in part because the Hawai'i Visitors and Convention Bureau disseminates "a lot of information on what's going on so that the traveler can make an informed decision."

"Obviously the lesson is having plans prepared, having your Web site ready to be updated, being totally honest on what is and what isn't happening. You can't, or shouldn't, try and fool anyone. ... You have to be that much more on top of what's going on. Being on top of what's going on in the marketplace and the perception of your destination is now more crucial than ever."

While some executives have reported a slightly slower booking pace this fall and going into the beginning of next year, they are optimistic that the industry's strength will lead to a strong 2007. State economists project visitor arrivals to grow 2.5 percent next year.

"Everything we see indicates another solid year for the industry and for the destination," said Wallace of Outrigger. He expected arrivals will be similar to this year, with higher room rates.

Vieira said Starwood is "not bullish on '07, but we're optimistic that there will be a slight improvement on '06. ... We don't think there's a downward trend. We just think any type of growth patterns will be slower."

Johnson of the HTA is also optimistic but isn't taking anything for granted.

"Our only concern for next year as an industry is world stability, but that's a concern you wake up with every day. Sure, we always have concerns: Do we have enough work force? Will gas prices go crazy? Do we have some sort of a crisis, be it natural or geopolitical? But that's just the business.

"Obviously, this industry has to be ever-vigilant for those types of things that may happen. It has to present a good product, and have a good work force to provide services.

"While things look pretty good right now, we always have to understand that this industry is extremely fragile, too. Some little thing can cause all kinds of problems. Tourism as an industry is both fragile and resilient."

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com and Will Hoover at whoover@honoluluadvertiser.com.