Archive for the ‘Comments by Waikoloa Vacation Rentals’ Category

The first quarter of 2013 has been very promising for the tourism industry in Hawaii. With almost all aspects of the industry growing from 2012 it appears 2013 will be an excellent year for the vacation rental industry in Hawaii.

Each island specifically enjoyed growth.  Of the more popular islands, Oahu enjoyed the largest growth in visitors with an increase in visitors of 7%.  The Maui had the smallest growth of 6%.  All the islands seem to fair pretty.  Within 1% of each other, all the islands fared relatively the same.

As the vacation rental industry continues to grow in popularity nationally, vacation rentals were once again the sector that experienced the largest growth of all the accommodation types.  With a 7.2% growth, it fared over 1% better than the hotels did for the first quarter of 2013.

With spending up and the popularity of vacation rentals increasing, luxury vacation rental complexes such as Kolea at Waikoloa Beach Resort on the Big Island of Hawaii are seeing significant increases in demand and rates.  Looking into the second quarter of 2013 better increases are expected for the vacation rental industry in Hawaii.

January of 2013 offered the same positive momentum the State of Hawaii has seen in recent history. This trend actually continues the upward momentum on record for every month since January, 2011. Both total arrivals and overall expenditures increased during the month of January, 2013.

For the first month of 2013, total arrivals into the state increased by nearly 6% overall compared to January of 2012. Total visitor expenditures grew by nearly the same number. The US West region arrivals grew by 9% and expenditures increased by over 14%. Total arrivals from the US Eastern market increased by almost 2% while visitor spending improved by nearly 11%. Arrivals from the Japan market continued its eighteen month consecutive run, improving by nearly 8%. Expenditures increased by nearly 4%. Canadian visitors continued their support, offering over 5% additional visitors and almost 2% higher spending compared to January, 2012.

Each of the major Hawaiian Islands had increases with arrivals and visitor spending this last January. Kauai led the charge followed by the Big Island of Hawaii, then Maui and finally Oahu.

Chinese visitors decreased overall due to a shift in the Lunar New Year from February this year to January of last year. February should show improvements for that specific market. Though there were fewer visitors getting married on the islands this past month, honeymoon arrivals did increase by over 8%. Incentive trip arrivals increased however convention and corporate meeting visitors did decline compared to last year.

Guests staying in condos vs. hotels did increase for the month, improving by nearly 6%. Guests selecting hotel accommodations increased by almost 5% compared to January, 2012. These numbers are not surprising given the vacation rental market has been extremely busy over the past few months.

As we move further into 2013, business levels continue to improve. The Hawaiian Islands are busier than ever and the trend appears to be holding steady. The economy of Hawaii welcomes this continued success and we look forward to the future.

With 2012 behind us, tourism throughout the State of Hawaii showed continued growth through the month of December and at year’s end. Both visitor arrivals and expenditures increased compared to this time last year for the month of December. As noted by the Hawaii Tourism Authority, visitor expenditures and arrivals grew during every month of the year for 2012. In addition, visitor spending and arrivals were the highest ever on record. These statistics close out 2012 as the most successful year that the State of Hawaii has ever witnessed.

The month of December, 2012 offered a nearly 15% growth in expenditures and an over 6% growth in arrivals compared to the same time frame last year. All four major Hawaiian Islands showed growth in both categories for the year as well. Developing markets such as Korea, China, Hong Kong, Singapore, Australia, New Zealand, Europe and Latin America also showed an increase of over 21% in arrivals for the year.

Honeymooner arrivals increased by almost 10% for the year as did cruise ship arrivals, offering an increase of more than 16% for the year as a whole. Scheduled air seats grew by 8.5% for the year and all four major islands had more scheduled flights. Hilo for example, had nearly 60% more scheduled seats than the year previous.

The Big Island had the largest growth in visitors compared to the other major island for the third month in a row. In addition, it offered more than a 20% growth in visitor expenditures for the month compared to December, 2011. Oahu had the next highest arrival total followed by Kaua’i and Maui.

Guest arrivals staying in condos rose by nearly 6% for the month of December and over 5% for the year. Domestic travelers were supporting the vacation rental market more so than international visitors. International visitors staying in condos for the month showed a slight decline but did finish strong with an over 8% increase for the year. The US West market supported the industry a bit more in accommodation selection than those from the US Eastern market. This is not surprising given the US West market offers more overall visitors. The US East market offered an 8.2% rise for the month and nearly 3% gain for the year. Its West coast counterpart showed over a 9% gain for the month with a nearly 6% gain for the year.

Moving into 2013, the tourism industry has shown continued growth from the previous year into the month of January, 2013. The islands have been extremely busy and continue to show signs of prosperity. Hopefully this growth will continue through the New Year and beyond, offering a bright future for the State of Hawaii, visitors and island residents alike.

During the month of November, 2012 arrivals increased 14.5%, visitor expenditures went up nearly 23% and meeting, convention and incentive visitors grew by nearly 2% as compared to the previous year. These statistics put 2012 on the map as the busiest, most successful year for the State of Hawaii ever. Year to date, expenditures throughout the islands grew by just over 19% compared to the same time frame last year. In addition, 2006 considered the peak year for the State of Hawaii until now, had nearly 5% fewer guests visiting the state every day.

All four of the major islands reported growth with total expenditures and arrivals by air. In the lead, arrivals to the Big Island increased by 17.5% and visitor expenditures grew by 31.2%. Maui came in second with an arrival increase of over 14%. Expenditures increased by over 21%. Oahu offered nearly 14% additional arrivals with an almost 23% increase in overall visitor spending. Kauai had a 13% increase in visitors with an almost 12% increase in guest spending. All data was compared to November, 2011.

This overall growth can be attributed to various contributing markets around the world. West coast visitors increased by nearly 14% while East coast arrivals increased by just over 6%. The Japanese market offered support with an increase of nearly 22%. Canadian arrivals increased by 9% overall and other developing markets such as Asia, Oceania, Europe and Latin America had a nearly 10% increase in arrivals

The month of November, 2012 offered a dramatic increase for the condominium accommodation selection for arriving guests. This percentage grew by over 8% compared to November of last year. Though hotels increased by over 14%, these numbers continue to show the growing popularity of choosing a condo versus other options. There was also an increase with guests choosing to stay in a condo only during their vacation. Rather than splitting their time between multiple accommodation options, over 10% more arriving visitors chose condo vacations versus adding a hotel stay as well.

It appears that the recent years of struggle are in the past and the future looks bright for the tourism industry and the economy state wide. These November monthly totals and year-to-date figures continue to show a positive outlook for the State of Hawaii as we move closer to 2013.

With 2012 beginning to wind down, the State of Hawaii continues to show growth. This trend managed to carry through historically slow times such as this past October. Though October is considered to be a less desirable time of year to visit, arrivals and visitor expenditures did increase from that of last year. Other areas of improvement also included visitors staying in condos and guests getting married here in Hawaii.

Arrivals for the state increased overall by nearly 9%. Each of the four major islands showed an increase in arrivals for the month. The Island of Hawaii led the way with an increase of over 14%. Oahu was next with an almost 8% gain and Maui’s arrivals grew nearly 5.5% compared to October, 2011. Kauai’s arrivals, which had shown considerable gains throughout the year, increased by just 3% during the same time frame. More visitors, nearly 11%, came to visit friends and family during the month as well. This category has grown by almost 5% for the year. As discussed last month, guests making their own travel arrangements have continued to increase. This October was no different, offering an almost 13% gain. It seems that more arriving guests are becoming more comfortable making their vacation plans.

Japanese arrivals grew by over 15% while the Canadian market decreased by just over 4%. Cruise ship arrivals increased by almost 30%. Guests traveling to the state to get married increased this past October by almost 10% and 2.5% for the year thus far. Honeymoon visitors increased by only 1%, but hold strong at nearly 11% for the year.

Expenditures, or overall guest spending, increased statewide by almost 13%. Kauai led the charge for the month, with an increase in guest spending by 18.5%. Though it had a smaller arrival gain, those traveling to the garden isle spent more this last October then they have historically compared to 2011. Maui had the second highest expenditures, offering a 13% increase. Oahu had an 11.7% gain while the Big Island of Hawaii showed just over 10% growth compared to October, 2011.

In regards to accommodation selection, guests staying in condos improved by nearly 10% for the month. The US West market had the greatest influence followed by the Canadian market and then the US East. All of which showed increases of 11%, 3% and 1.5% respectively. Hotel arrivals increased by nearly 7% compared to this time, last year.

There appears to be a shift in both where guests are going and how and where they are spending their money. The slowest or smallest island arrival growth yielded the greatest spending increase, while the largest arrival growth yielded the least amount of spending increases. There are a number of potential reasons for this inverse relationship. Fewer arrivals could cause price increases. This could be an attempt by local businesses to keep up with less demand; realizing arriving guests will spend money to make their vacations more memorable. Perhaps arriving guests are splurging on additional activities they haven’t tried in the past when returning to the islands. Guests also appear to be expanding their island of choice as is the case of the Big Island. Arriving guests may be trying a new environment, spending more to get here and finding ways to save money once they arrive on items such as vacation rentals, fewer costly activities, discounted car rentals and more. With vacation rentals on the rise, guests have the ability to rent a larger space at a greater value with less need to dine out, thus dropping their overall expenditures during their island visit.

As 2012 comes to an end, we will continue to watch this trend to see how 2012 concludes. Either way, the year has been successful for the state as a whole, impacting all areas of the economy hit hard by recent economic conditions. Hopefully this trend will carry into the New Year and beyond.

As the State of Hawaii moves into the latter part of 2012, the tourism industry continues to show improvement though in some cases, these increases have slowed down over the last month. This less dramatic time was to be expected during the fall season. The most important markers of forward and positive movement did however continue to rise. With indicators such as increased expenditures and overall arrivals showing continued growth, the final months of 2012 should help finish out the year in strong form.

The largest overall growth was seen with higher expenditures for September of 2012, moving up 15.6% as compared to the previous year. This was attributed to a higher daily spending average combined with a larger number of visitors to the state and in some cases, a longer length of stay.

This additional visitor spending affected each of the major islands. Kauai showed the highest growth for the month of September in expenditures, just shy of 42% compared to last year. Oahu recorded an almost 12% increase during September while Maui saw just over 13% in additional visitor spending for the month compared to 2011. The Big Island of Hawaii offered a 17.1% increase in visitor expenses during September. Year to date, expenditures have increased by 19.5% compared to last year overall for the State of Hawaii.

Arrivals for the State of Hawaii increased by 6.1% overall during the month of September with many of the larger islands contributing to the overall improvement. Visitors to Oahu offered a 7.3% increase while Kauai increased by 7.2% compared to last year. Maui saw a slight increase in arrivals of 2.4%. The Big Island offered a slight decline overall for the month of September of 3.2%. This was the first decline following nine consecutive months of growth in arrivals for the island. This change was attributed to fewer visitors from major US market areas such as the East and West coasts. As mentioned above, expenditures still increased for the Big Island of Hawaii. The Hawaiian Islands have seen an overall increase in arrivals of 9.6% for the first nine months of 2012 compared to the same time frame in 2011.

As the graph below indicates, both arrivals and visitor expenditures are continuing to rise however, expenditures are increasing with greater percentages.

Other areas of note include fewer visitors traveled to the state for weddings, meetings, conventions and incentives along with fewer honeymoon guests. Time share arrivals increased by nearly 11% compared to last year, year to date and the number of guests making their own travel arrangements grew by over 10 % from last year for the same time frame.

With the final quarter of 2012 still to come, 2012 appears to have its strength and integrity from the first three quarters holding strong.

This past July marks the ninth consecutive month in a row showing growth and positive momentum for the State of Hawaii. Though it has not been all that long considering the multiple years of hardship, it is a welcome streak of good news. Increased arrivals and expenditures along with continued international support helped make July an overall success.

Arrivals increased by nearly 8% and visitor spending grew by nearly 18% as compared to July, 2011. Japanese visitor arrivals increased by 21.5% compared to last year. This number is still well below the record high of July, 1997 by nearly 70,000 visitors though the trend has been positive for the year as compared to recent history. Canadian arrivals were about the same as the last year. Nearly all other major market areas showed improved arrivals and expenditures for the month. Though rare, there were no cruise ships arrivals during the entire month.

There was also an increase of honeymoon visitors, up by over 20% and the sixth consecutive month of growth. Wedding visitors increased by over 17% as well. These last seven months have shown an overall increase of wedding visitors, up by nearly 5% as compared to the same time period last year.

Looking ahead, the scheduled airline seats for the next three months, August through October, look good. Up over 13% from the same time frame last year, the latter portion of 2012 bodes well for the future for the state.

As the 1st half of 2012 is behind us, the positive momentum continues into the 2nd half of the year. June of 2012 showed an overall increase in expenditures, daily spending, arrivals, meetings, conventions and incentives along with honeymoon visitors. All areas of accommodation selection including hotels, condos, and timeshares showed positive growth, some with double digit percentage increases for the month.

Expenditures rose by 20.4%, or $207 million as compared to the previous year, an all-time record for the month of June. The month also showed an 11.5% increase in overall arrivals through the state compared to the previous year. Many of the influential major market areas contributed to that increase such as the mainland United States, Asia, Latin America, Oceania, and Japan. Europe and Canada showed positive numbers however, they were less substantial.

Daily spending per person rose by just over 10% to about $192 per day. Meetings, conventions and incentives showed an additional 30.7% increase in arrivals from last year with an overall increase of 2.6% for the first half of the year. Fewer visitors chose to get married in Hawaii however, the honeymoon sector increased by nearly 15% over that of last year. It also appears that arriving travelers decided to visit one island rather than multiple locations over that of last year. With an increase of over 11%, visitors are making more of a commitment to their chosen destination for perhaps a slightly shorter amount of time. The average length of stay did decline slightly by just under 2%.

Hotels and timeshare properties witnessed the greatest increase of 14.6% and 16.8% respectively. Condo properties saw an increase as well from last year, showing a less impressive but positive growth of 6.5%.

In respect to the Big Island, arrivals increased by nearly 8% and visitor spending increased by just over 4% to $130.8 million. Japan and Canada had the greatest arrival increase as compared to other major market areas. Each of the islands showed consistent arrival increases and most had higher earnings as compared to the previous year.

The Hawaiian Islands are certainly moving in the right direction month over month and in this case, year over year. We look forward to the continued prosperity and support shown by both domestic and international visitors, moving the Aloha State into the future with a positive outlook.

Hawaii has been enjoying one of its best years since Kolea was built. The first half of 2012 has consistently been better each month than 2011.

All of the major markets arrivals have increased at least 4% from 2011. The largest increase has come from the Japanese market at over 17%. All the other major markets showed similar increases.

Total expenditures have increased at an astounding figure of over 21%. Several months broke records for Hawaii for total expenditures. June was the latest month with $1.2 billion in expenditures.

With the Japanese market showing the largest growth, hotels and timeshares were the accommodation types that also showed the largest growth. Many Japanese come to the islands on package deals with the large hotel chains such as Hilton contributing to their hotel as well as timeshare growth. This was the first year in many that the increase from year to year has decreased for condos.

What does this mean for Kolea? With a positive growth in both arrivals and expenditures, this fairs well for a luxury property such as Kolea. We, Waikoloa Vacation Rentals, have seen slightly greater increases at Kolea in all major aspects. The significant increase in expenditures led to an increase in average nightly rate and length of stay at Kolea. The increase in arrivals led to higher occupancy.

While the villas at Kolea offer many luxurious amenities, they also demand a lot of ongoing maintenance. Here are a few items that may help save you money as well as maintain your investment at Kolea.

Routine Maintenance on the Refrigerator
The coils for the refrigerators need to be cleaned. Many villas have not been cleaned since Kolea was first built. A large amount of build up on the coils makes the refrigerator less efficient, which costs you money. Extended neglect can shorten the life of your refrigerator significantly. While this is not an ongoing maintenance item, it is something you many want to consider doing every few years.

Lutron Lighting System
While the lighting systems in Kolea are nice amenities that blow away most owners as well as guests when used for the first time, if not managed properly they will use a significant amount of energy. Since most of the bulbs are halogen, there is not currently a way to go to an energy efficient bulb without a significant amount of cost. One reasonable way to save is to adjust your light settings. Many villas have all the lights at full strength on their most used control. Most would agree that this is more light than necessary. By adjusting the settings throughout your Lutron control panel you will find that you can save on energy by programming in more energy efficient settings.

Maintenance of the Dishwasher
With Waikoloa Beach Resort having extremely hard water, many appliances that deal with water are challenged. As mineral deposits build up throughout the dishwasher, it causes the efficiency as well as the effectiveness to diminish. At least annually, the filter should be removed and cleaned thoroughly and a cleaning agent be run throughout the dishwasher. This will help extend the life of your dishwasher.

Air Conditioning
The air conditioner(s) is the largest contributor to your electric bill. There are two popular ways to save here. The first is to install sensors that shut off the air conditioning when a door is opened. With the large pocket doors at Kolea, this is imperative. The second is to install a thermostat with a minimum setting. This will allow you to choose a reasonable setting that the guests cannot turn the temperature below. This will not only save on electric, but also help to minimize problems due to guests turning the temperature too low, thus extending the life of your system(s).

These are a few of the items we consider in the villas we manage at Kolea that you and/or your property manager may want to consider to help save you money and maintain your investment.