Hawai'i's visitor industry continued its momentum in July with yet another monthly record in visitor arrivals.

The state welcomed 736,820 visitors last month, a 7.7 percent increase over July 2004, according to data released today by the state Department of Business, Economic Development and Tourism.

Visitors spent $1.16 billion in July, up 11.2 percent. Average daily spending last month was $168.50 per person, up from $164 per person in July 2004.

"July was jamming," said Chris Hahn, co-manager of tour operator Hike Maui. "We were extremely busy in July. This is the busiest we've ever been."

Hahn said the increased business this year prompted the company to buy another van and add a couple more employees, but that it has also been trying to spread out its hikes "so that there's less effect on the 'aina," she said.

Hawaii Forest and Trail on the Big Island has seen its most popular guided nature tours sell out practically everyday this summer.

"It's been a very good summer," said sales and marketing director John Kitchen. "It's probably one of our strongest summers ever, I would say."

Cruise-ship visitors, one of the Hawaii Forest and Trail's major client bases, jumped 38 percent over last year, thanks to the addition of Norwegian Cruise Lines' Pride of America last month.

The growth in visitor arrivals helped boost total visitor days by 8.4 percent. Visitors' average length of stay grew 0.7 percent to 9.33 days.

"We are very pleased with July's extraordinary performance, especially from the domestic market," said state tourism liaison Marsha Wienert. "All indicators continue to show that our visitor industry is poised to have the best year ever."

Hawai'i is on track to host a record 7.4 million tourists this year. The current record, 6.95 million, was set in 2000.

The number of visitors from the western U.S. grew the most among Hawai'i's top four major markets with a 12.8 percent increase to 320,332. Eastern U.S. visitor arrivals increased 3 percent to 202,380, and Canadian visitor arrivals grew 6 percent to 12,055.

Japanese tourists totaled 130,941, a 0.8 percent increase.

Mainland visitors spent more than they did last year, with U.S. West visitors posting the largest increases in per person daily spending (8.5 percent) and spending per trip (7.7 percent).

But Japanese visitors spent 2.1 percent less per person daily and 4.5 percent less per trip. Canadian visitors' daily and per trip spending also fell, by 0.7 percent and 6 percent, respectively.

Every island saw more visitors last month except for Moloka'i, where visitor arrivals dropped 4.8 percent. Visitor arrivals grew 7.9 percent on O'ahu, 4.2 percent on Kaua'i, 2.6 percent on Maui, 15.1 percent on Lana'i, and 16 percent on the Big Island.

NCL America contributed to the increase in visitors with the introduction of the new Pride of America cruise ship, which began touring the Islands in July. The number of visitors who flew here to board Hawai'i-based cruise ships grew 57 percent year-over-year to 22,725.

Hawai'i has benefited from its image as an exotic, yet safe, destination.

Aqua Hotels & Resorts owner Mike Paulin said this year has seen exceptionally strong growth but cautioned the industry can't depend on the safety image indefinitely.

"I think a lot of the growth has been related to the safety of the destination. And it is safe," he said. "But that's relative to other places in the world. So the growth that we're seeing in both rates and occupancy is related to terrorist activities (elsewhere), and that's not what you call a long-term marketing plan."

Paulin added that the tourism industry needs to be careful about not drawing too many tourists.

"I just hope that we are being protective of our own resources and not overtaxing them by focusing on the quantitative side of tourism. I think that would be a mistake."

State tourism officials have also expressed the need to grow the industry by attracting higher-spending, longer-staying visitors.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.