South Shore hotels lead state in occupancyfor first nine months of this year, at 87.3%

South Shore hotels recorded the best occupancy rate in the state for the first

nine months of this year, at 87.3 percent. That helped the island to an

occupancy rate of 77.6 percent for the same period, up from 74.1 percent for

the first nine months of 1999.

The South Shore’s hotels recorded a

September occupancy rate this year of 86.8, also the best in the state and up

from the 84.8 percent figure recorded in September of last year, according to

figures released by the Honolulu accounting and management firm

PKF-Hawai’i.

The island’s occupancy rate last month was 75.7 percent, down

slightly from 76.1 percent recorded in September of 1999, with North Shore

properties leading the way with an occupancy rate of 81 percent, nearly best in

Hawai’i. The North Shore figure is down slightly compared to the 82.4 percent

figure recorded in September of 1999.

Central Kaua’i properties recorded

average occupancy of 74.2 percent last month, down slightly from September of

1999, while South Shore accommodations were at 75.4 percent last month, also

down slightly from 75.5 percent in September of 1999.

Statewide occupancy

for the total market (hotels and resort condominiums not including timeshare)

was 76.4 percent last month, up for the ninth straight month and up compared to

the 74 percent figure recorded in September of last year.

For the first

nine months of this year, the island’s overall occupancy rate of 77.6 percent

was fueled by a strong South Shore occupancy figure, 79.8 percent, up from 77.4

percent during the same nine months last year. Statewide occupancy was a robust

78.9 percent for the first nine months of this year, an increase from 73.9

percent during the same period last year.

In the hotel-only market, the

island’s occupancy rate last month was 82.7 percent, best in the state and led

by the South Shore’s 86.8 percent mark, up from 84.8 percent in September of

last year. Statewide for the hotel-only segment, last month’s occupancy rate

was 77.7 percent, up from 75.1 percent in September of 1999.

In the

hotel-only segment for the first nine months of this year, statewide occupancy

was 79.3 percent, with Kaua’i’s rate of 82.7 percent second only to Maui’s 83.9

percent. Kaua’i’s occupancy rate is up from 76.6 percent recorded in the first

nine months of last year.

Resort condominium occupancies, which don’t

include timeshare figures, continued weak, at 69.7 percent statewide, and 59.6

percent on Kaua’i, last month. Kaua’i’s occupancy figures in this category

slipped to 67.6 percent on the North Shore, 66.8 percent in Eastside resort

condominiums, and 53 percent on the South Shore, all down compared to the same

month last year.

Year-to-date figures aren’t much better for resort

condominiums, with Kaua’i recording an overall occupancy figure of 66.2

percent, down from 68.8 percent for the same period last year. Eastside resort

condominiums had the best island occupancy figure for the first nine months of

2000, at 70.6 percent, while statewide occupancy was 76.7 percent, up from 74.8

percent recorded in the first nine months of last year.

While statewide

figures continued to show increases, industry experts are concerned that the

rate of increase continues to decline.

“September has continued the string

of statewide occupancy increases, with a 3.31 percent increase over the prior

year, although the percentage of increase continues to narrow,” said Ernie

Watari, PKF-Hawai’i chairman and chief executive officer.

“Volatility in

the U.S. stock market, tension in the Middle East, and clear indications that

the Federal Reserve Bank has been successful in slowing the U.S. economy, are

cautionary signals that coming months may not be as ‘rosy’ as the past nine,”

Watari continued.

“As such, PKF-Hawai’i maintains its cautious optimism for

Hawai’i’s tourism industry.” PKF-Hawai’i has been continuously monitoring

Hawai’i’s hotel industry since 1972, in conjunction with the Hawai’i Hotel

Association.