MEDIA RELEASE

Total expenditures by visitors who came to Hawaii in August 2012 rose 14.6 percent (or +$151.4 million) compared to the previous year to $1.19 billion, according to preliminary statistics released by the Hawaii Tourism Authority.

Higher daily spending and an 11 percent growth in total arrivals (to 725,642 visitors) contributed to this increase.

Among Hawaii’s top visitor markets, arrivals by air from U.S. West grew 7.6 percent from August 2011 to 307,192 visitors, the 10h consecutive month of growth. Total U.S. West visitor expenditures increased 13.6 percent to $423 million.

Arrivals from U.S. East in August 2012 rose 9.6 percent compared to last August at 143,785 visitors. Increased daily spending also boosted U.S. East total visitor expenditures (+19%) to $277.1 million.

Japanese arrivals rose 12.8 percent to 155,318 visitors in August 2012, but remained lower than the August 1996 record of 205,025 visitors. A drop in daily spending (-4.0%) resulted in a moderate; 5.6 percent, increase in total expenditures to $248 million.

Canadian arrivals totaled 27,282 visitors, slightly lower (-0.6%) compared to August 2011, while total visitor expenditures declined 1.4 percent to $45.3 million. All Other2 markets showed strong growth in total visitor expenditures (+29.2% to $194.4 million) and arrivals (+28.8% at 90,182 visitors) compared to August 2011.

Visitor arrivals by cruise ships rose 3.8 percent (to 1,883 visitors) over August 2011.

Year-to-date 2012:

For the first eight months of 2012, total visitor expenditures rose 20 percent to $9.59 billion, with increases from U.S. West (+10.3% to $3.1 billion), U.S. East (+10.9% to $2.4 billion), Japan (+23.4% to $1.7 billion), Canada (+10.7% to $682.1 million) and All Others (+62.9% to $1.8 billion).

Total arrivals grew 10 percent to 5,378,263 visitors, with arrivals from All Other markets climbing 28.2 percent. Total visitor expenditures on each of the four major Hawaiian Islands increased by double- digits compared to year-to-date 2011.

Additional Highlights

August 2012 marked the fourth consecutive month of growth for visitors who came for conventions (+10.8% to 9,154) and corporate meetings (+26.8% to 4,852) after a period of mostly negative numbers in the first four months of 2012. Conventions were buoyed by a U.S. West increase of 37.7 percent. Lift in corporate meetings was due in large part to U.S. West (+21.5%) and U.S. East (+10.7%).

The incentives market remained negative (-4.1%) as it has for much of the year. In total, MCI was up 10.5 percent (to 18,480 visitors) for August 2012 and increased 3.3 percent (to 298,734 visitors) for the year.

The number of visitors who came to get married in August 2012 increased (+10.9% to 8,998) from a year ago. Growth from U.S. West (+20.2% to 3,473) and Japan (+3.3% to 2,648) more than made up for the decrease in U.S. East visitors (-10.1% to 1,703).

For the first eight months of 2012, a total of 80,286 visitors came to get married, up 5.4 percent from 2011.

The number of visitors who stayed in hotels rose13.5 percent to 476,435, the sixth straight month of double-digit increases. August 2012 hotel stays were up among Japanese (+17.6%), U.S. East (+10%) and U.S. West visitors (+7.9), but declined among Canadian visitors (-4.9%). The 2012 year-to-date increase was 11.9 percent to 3,353,220 visitors.

Total stays in timeshare properties rose 10.3 percent in August 2012, with strong increases from Canadian (+16.8%) and U.S. East (+15.5%) visitors and U.S West up 9.1 percent. Japanese visitor stays were positive (+7.1%) over August 2011, but was in sharp contrast to the previous five months of growth ranging from 30 to 74 percent. Year-to-date stays in timeshare for 2012 was ahead of 2011 by 6.9 percent (to 515,381 visitors).

A total of 50,687 visitors were on organized tour groups in August 2012. This was a 19 percent increase from August 2011 and the sixth consecutive month of double-digit growth. Visitors from Japan, which comprised the majority of group visitors, rose 10.9 percent (to 30,877 visitors).

There was also double-digit growth in group tour visitors from U.S. East (+30.5%), U.S. West (+10.4%) and Canada (+49%) compared to a year ago. The 2012 year-to-date increase was 12.6 percent (to 461,973 visitors).

Contributing to the August growth in U.S. West visitors were the Pacific (+8%) and Mountain regions (+8.5%). More visitors from California (+10.6%) compensated for fewer visitors from Washington (-0.7%), and growth from the Mountain region was led by Nevada (+18%).

Year-to- date, arrivals for the Pacific region rose 6.4 percent and Mountain region arrivals grew 2.4 percent.

U.S. East arrivals in August rose 9.6 percent after relatively no change in July. The Middle Atlantic region continued to show double-digit growth in arrivals (+16%), supported by direct flights from New York City to Honolulu which were added in June.

Arrivals from the West South Central (+12.2%), New England (+10%), South Atlantic (+8.4%), East North Central (+3.6%) and East South Central (+3.9%) regions also increased, offsetting a slight drop from the West North Central (-0.6%) region.

Oahu

For the fifth consecutive month, Oahu had the fastest growth rate in arrivals among the larger Hawaiian Islands. Arrivals to Oahu rose 12.6 percent in August 2012, with increases from Japan (+12.4%), U.S. East (+10.3%) and U.S. West (+7.8%), offsetting a 7.7 percent drop from Canada.

Higher average daily spending (+4.5% to $194 per person) also contributed to a 13.7 percent growth in Oahu’s total visitor expenditures to $639.7 million.

For the first eight months of 2012, arrivals to Oahu grew 12.1 percent and total visitor expenditures increased 20.5 percent to $4.9 billion. Of the 3,281,429 visitors who went to Oahu in the first eight months of 2012, 74 percent stayed exclusively on Oahu while the remainder also visited other islands.

Maui

In August 2012, higher daily spending (+5.8% to $187 per person) and growth in arrivals (+10.1%) resulted in a 14.4 percent growth in Maui’s total visitor expenditures to $281 million.

Increased arrivals to Maui from U.S. East (+10.7%) and U.S. West (+9.2%) offset lower arrivals from Canada (-2.6%) and Japan (-1.5%).

Total visitor expenditures rose 20.5 percent compared to year-to-date 2011 to $2.5 billion. Of the 1,568,747 visitors to Maui (+6.0%) through August 2012, six out of 10 visitors stayed there exclusively.

Kauai

Arrivals to Kauai rose 12.1 percent in August 2012 with increases from U.S. East (+15.1%) and U.S. West (+6.8%).

While the number of Japanese (+43.8) and Canadian (+22.8%) visitors remained small compared to U.S. visitors, there was strong growth from these two markets compared to August 2011.

Higher average daily spending (+16.5% to $170 per person) contributed to a 23.8 percent growth in total visitor expenditures to $119.6 million in August 2012.

For the first eight months of 2012, arrivals to Kauai increased 7.7 percent to 737,734 visitors, while total visitor expenditures grew 21.1 percent to $960.5 million. Of those who visited Kauai, 53.7 percent spent their entire trip on the island.

Hawaii Island

Total visitor expenditures on Hawaii Island were up 14.6 percent to $140.3 million in August 2012. Arrivals grew 11.8 percent from August 2011, led by increases from Canada (+36.4%), U.S. East (+21.3%), Japan (+7.7%) and U.S. West (+3.7%).

The average daily spending on Hawaii Island was higher compared to last August (+3.4% to $165 per person).

For the first eight months of 2012, total arrivals to Hawaii Island rose 8.5 percent to 976,304 visitors. Of this, 46.9 percent stayed there exclusively.

Total visitor expenditures grew 16.6 percent to $1.1 billion.

Air Seats to Hawaii

Total air seats for August 2012 increased 15 percent compared to the same month last year. Total air seats rose for Honolulu (+16.7%), Kahului (+13.4%), Kona (+14.5%) and Lihue (+4.3%), but declined for Hilo (-11.5%).

Total scheduled air seats grew 15 percent from August 2011 and total charter seats were up 18.8 percent to 19,136 seats. The number of international charter flights climbed 34.8 percent compared to last August.

Out of Japan, there were 35 charter flights operated by Korean Airlines in August 2012, as well as seven charter flights from Hawaiian, Delta and Japan Airlines. In addition, there were two charter flights from Samoa and American Samoa.

The number of domestic charter flights dropped 9.5 percent due to two fewer charter flights out of Las Vegas compared to August 2011.

Scheduled air seats from U.S. West in August 2012 rose 11.6 percent. Increased service from Los Angeles, San Francisco, San Jose, Oakland, San Diego, Sacramento, Las Vegas and Phoenix offset discontinued service from Orange County and reduced service from Portland, Denver and Anchorage.

Seats from U.S. East jumped 25 percent compared to August 2011. Daily direct service from New York City (Middle Atlantic region) and Washington D.C. (South Atlantic region) more than offset fewer seats out of Chicago (East North Central region).

Scheduled seats out of Japan rose 16.8 percent compared to August 2011 due to increased service from Osaka and Tokyo-Narita.

Scheduled seats from Vancouver, Canada grew slightly (+1.4%) compared to August 2011.

Oceania air seats climbed 33.7 percent from last August, boosted by additional service from Sydney and Auckland.

Scheduled seats from Other Asia jumped 59.3 percent from August 2011. Increased service from Korean Airlines, Hawaiian Airlines, and the addition of Asiana Airlines in September 2011 boosted seats from Seoul (+63%). Service from Shanghai by China Eastern, which began in August 2011, also contributed to the growth in air seats from Other Asia.

For the first eight months of 2012, total air seats grew 6.9 percent, with increased seats to Lihue (+11.7%), Honolulu (+6.6%), Kahului (+4.8%) and Kona (+4.8%). Seats to Hilo airport more than doubled compared to the first eight months of 2011 as direct flights to Hilo from Los Angeles resumed in June 2011.

There were significantly more scheduled seats from Other Asia (+47.4%), Oceania (+28%) and Canada (+16.8%) compared to the first eight months of 2011. Scheduled seats from Japan (+13%) and U.S. West (+3.8%) also increased, offsetting fewer seats from U.S. East (-4.5%).

Cruise Ship Visitors

A total of 11,227 visitors came by cruise ship or by air to board cruise ships in August 2012, an increase of 12.4 percent from a year ago. Cruise visitor days rose 10.1 percent.

One out-of-state cruise ship came with 1,883 visitors on board in August 2012, similar to last August.

For the first eight months of 2012, a total of 173,262 visitors came by cruise ship or by air to board cruise ships, up 20.4 percent from the same period last year. Visitor days for all cruise visitors increased 12.1 percent.

In the first eight months of 2012, 90,601 visitors came aboard 49 out-of-state cruise ships. This is 41.3 percent higher compared to the 64,137 visitors that boarded the 39 cruise ships during the first eight months of 2011.

Statement by Mike McCartney, president & CEO Hawaii Tourism Authority

August culminated a strong summer travel season for Hawaii’s tourism economy with double-digit increases in visitor arrivals and total expenditures for the month and year-to-date. Through August 2012, Hawaii has welcomed 5.38 million guests which have contributed to the 20 percent or $1.6 billion growth in total visitor expenditures, translating to $1.04 billion in state tax revenue.

Arrivals to the Hawaii Island grew 12 percent in August 2012 led by increases from Canada (+36%), U.S. East (+21%), Japan (+8%) and U.S. West (+4%). The average daily spending was higher (+3% to $165 per person) in comparison to last in August, contributing to the 15 percent growth in total expenditures to $140 million.

For the first eight months of 2012, total arrivals to Hawaii Island (+9%) with 976,304 visitors, 47 percent of which stayed exclusively on the island. Year-to-date, total expenditures grew 17 percent to $1.1 billion.

As we head into the traditionally slower fall travel period, we anticipate seeing this positive momentum continue with increased air service from domestic U.S. cities, Japan, Canada, Australia and New Zealand. In addition, Hawaii Island will host festivals and events which will help to draw visitors to our Hawaiian Islands including the Iron Man World Championship, Kona Coffee Cultural Festival, 2nd Annual Puna Chefs and Farmers’ Culinary Festival and Moku O Keawe International Hula Festival.

While we expect continued growth, we anticipate less significant increases in the fourth quarter and as compared to the significant year over year increases reported during the first eight months of 2012.

The HTA looks forward to continuing to work with our global marketing partners and tourism stakeholders to reach the upward revised 2012 targets and set a record year for Hawaii’s tourism economy.

— Find out more:
www.hawaiitourismauthority.org