Big Island Buzz - Hawaii

Obama Christmas Visit to Hawaii and the Future of Tourism

January 2nd, 2010 · No Comments · Economy, Tourism

51397841 300x168 Obama Christmas Visit to Hawaii and the Future of Tourism

A motorcade carrying the vacationing President Obama moves along a road on the east coast of Oahu on Tuesday. Hawaii officials hope the Obamas' visit will help turn around a deep slump in tourism. (Chris Carlson / Associated Press / December 29, 2009)

The LA Times has an article up about President Obamas’ visit to Hawaii this holiday season. Has the Presidents visit helped? Or has past comments about reducing expenses (like business meetings in fancy hotels), actually hurt the Hawaiian economy?

But some Aloha State natives are blaming Obama, a Hawaii native, for at least part of the slump. They say he didn’t do them any favors last year when he said firms receiving government bailouts shouldn’t be taking trips “to Las Vegas or go down to the Super Bowl.” He might as well have said Hawaii.

The drop in jobs has especially hurt Hawaii’s Big Island, which traditionally feels a slowdown first and recovers last as opposed to Oahu, the most populated island, said Joseph Toy, president of Hawaii tourism research firm Hospitality Advisors. In November, hotel occupancy on the Big Island was a meager 40%, he said.

Occupancy at hotels on the Big Island and Kauai fell to 54% from 72% and to 60% from 78%, respectively, over the last three years, says TZ Economics, a local research firm. The drop in hotel revenue exceeds $1 billion across the state, according to some estimates.

On a recent sunny afternoon at Uncle Billy’s Kona Bay Hotel on the Big Island, only cats scurried around the manicured grounds. The balconies and outdoor restaurant were deserted. A lone woman sat smoking by the circular pool.

Across the street at the Kona Inn Shopping Village, a jewelry store, tour operator and an arcade called the Fun Factory were all closed, padlocks on their doors.

“It’s never been this slow in 25 years,” said Patrick McFeeley, a photographer who owns the Picture Store, which sells photos of giant waves, lava flows, palm trees and other iconic Hawaiian images from a shop overlooking the sea.

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