The latest statistics from the Department of Business, Economic Development and Tourism (DBEDT) indicate a varied but promising recovery for Hawai‘i’s tourism sector as of May 2024. The U.S. West shows notable growth, while the U.S. East presents a mixed picture. Japan reports substantial increases, though below pre-pandemic levels. Canada and Oceania face challenges with low air capacity. Stability in Korean travel and the absence of flights from China and Taiwan highlight growth opportunities. Understanding these trends can help Hawaiian tour operators strategically capture emerging opportunities and drive growth.
U.S. West
The U.S. West saw significant growth driven by increased services from Anchorage, Denver, Ontario, Salt Lake City, San Diego, San Francisco, Seattle, and Everett. This surge helped compensate for the reduction in services from Los Angeles, Oakland, Portland, and San Francisco. The trend indicates a strong recovery and growing demand from this region, suggesting a robust market for tour operators to tap into.
- vs 2023
- Flights: 2.0% up
- Seats: 4.1% up
- vs 2019
- Flights: 10.8% up
- Seats: 14.6% up
Key Insights: The U.S. West saw significant growth driven by increased services from Anchorage, Denver, Ontario, Salt Lake City, San Diego, San Francisco, Seattle, and Everett. This surge helped compensate for the reduction in services from Los Angeles, Oakland, Portland, and San Francisco. The trend indicates a strong recovery and growing demand from this region, suggesting a robust market for tour operators to tap into.
U.S. East
Despite a slight decline in air capacity, the U.S. East showed resilience with increases in services from Boston, Detroit, Houston, and New York JFK. The decrease was primarily due to reduced services from Chicago, Dallas, and Washington D.C., along with the discontinuation of Newark flights. This indicates a mixed recovery, with some areas showing potential for growth.
- vs 2023
- Flights: 1.2% down
- Seats: 2.3% down
- vs 2019
- Flights: 3.4% up
- Seats: 1.5% down
Key Insights: Despite a slight decline in air capacity, the U.S. East showed resilience with increases in services from Boston, Detroit, Houston, and New York JFK. The decrease was primarily due to reduced services from Chicago, Dallas, and Washington D.C., along with the discontinuation of Newark flights. This indicates a mixed recovery, with some areas showing potential for growth.
Japan
Japan exhibited a substantial increase in air capacity, primarily from Nagoya, Osaka, Haneda, and Narita to Honolulu. Despite this growth, the numbers are still significantly lower than in May 2019. The absence of direct service to Kona and reduced flights from other cities indicate a partial recovery, highlighting the potential for further expansion in the Japanese market.
- vs 2023
- Flights: 35.4% up
- Seats: 40.8% up
- vs 2019
- Flights: 37.9% down
- Seats: 27.7% down
Key Insights: Japan exhibited a substantial increase in air capacity, primarily from Nagoya, Osaka, Haneda, and Narita to Honolulu. Despite this growth, the numbers are still significantly lower than in May 2019. The absence of direct service to Kona and reduced flights from other cities indicate a partial recovery, highlighting the potential for further expansion in the Japanese market.
Canada
The Canadian market experienced a decline, with fewer services from Vancouver despite the resumption of flights from Calgary. The overall capacity remains lower than in May 2019, indicating challenges in attracting Canadian visitors. This suggests a need for targeted marketing efforts to revive this segment.
- vs 2023
- Flights: 11.1% down
- Seats: 10.8% down
- vs 2019
- Flights: 3.2% up
- Seats: 17.4% down
Key Insights: The Canadian market experienced a decline, with fewer services from Vancouver despite the resumption of flights from Calgary. The overall capacity remains lower than in May 2019, indicating challenges in attracting Canadian visitors. This suggests a need for targeted marketing efforts to revive this segment.
Oceania
Australia: Australian air capacity remains significantly below pre-pandemic levels, with modest recovery seen only in flights. This suggests a cautious market with room for growth as services from Brisbane, Melbourne, and Sydney are yet to return to full strength.
- vs 2023
- Flights: 1.6% up
- Seats: 4.8% down
- vs 2019
- Flights: 36.9% down
- Seats: 43.3% down
Key Insights: Australian air capacity remains significantly below pre-pandemic levels, with modest recovery seen only in flights. This suggests a cautious market with room for growth as services from Brisbane, Melbourne, and Sydney are yet to return to full strength.
Source: https://www.hawaiitourismauthority.org/media/13000/may-2024-visitor-statistics-press-release.pdf
Conclusion: Charting the Path to Growth
The data from May 2024 presents a mixed yet promising outlook for Hawaiian tour operators. The U.S. West and Japan are leading the recovery, showing substantial growth and presenting lucrative opportunities for tour operators to expand services and offerings. Conversely, regions like the U.S. East, Canada, and Oceania require focused efforts to regain lost ground. Strategic marketing, targeted promotions, and service enhancements are crucial to attract and retain visitors from these areas. By understanding these trends and adapting to them, tour operators can effectively navigate the path to growth and capitalize on the evolving travel landscape.
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