Aloha to affluence

ASSOCIATED PRESS
VISITORS TO HAWAII topped 7 million for the first time last year, and the tourism industry is talking about making the islands a little more exclusive.
An affordable hotel room on Maui, an empty patch of warm sand on Waikiki Beach, a prime tee time on the Big Island -- all are becoming more scarce as more tourists flock here in record numbers.
In 2005, the islands welcomed 7,457,297 visitors, who spent a record $11.5 billion, according to the latest state figures.
Tourism industry officials, however, warn that Hawaii is at or very close to capacity and are being more selective in attracting those they consider the most desirable tourists.
They're not telling anyone to stay away, but they clearly want more spending without too many more tourists. The visitor count was up 6.7 percent over 2004 when the state just barely missed reaching the 7 million milestone with 6,991,927 visitors.
"Let's put it this way, it's been a good year," said Rex Johnson, president and chief executive officer of the Hawaii Tourism Authority.
Market shifting
But Hawaii's target market is shifting toward "activity-seeking travelers" -- rich people who golf, spend hours in a spa, island-hop and can afford the overpriced snacks inside a hotel room's mini bar.
Barry Wallace, an executive vice president for hotel operator Outrigger Enterprises, said his company, which operates 22 hotels in Hawaii, is becoming more selective in marketing.
"Our initiative has been to focus on targeting the very, very best guests -- the ones who will take advantage of activities and other amenities we have to offer," he said. "That's been the focus of our marketing for the last two years, and it certainly will be from this point forward."
Hawaii's hotel occupancy rate last year was 81.2 percent, second only to New York City at 82.9 percent. Los Angeles was third at 74.6 percent, according to Smith Travel Research.
Hotels on Oahu, most of which are located in Waikiki, were 85.6 percent occupied last year. The rate was lower on other islands, where the most lavish rooms fetch several thousand dollars a night. Luxury hotels on Maui, for example, were 76 percent booked at an average room rate of $319 a night.
"Hotels last year were running as full as they possibly could. There were times in the high season where there was no room at the inn and you couldn't get a room in town," Johnson said. "Given that our capacity is not going to grow by leaps and bounds, we are just about where we're in balance."
Other factors
Hotel availability is not the only thing that dictates capacity. Everything from available seats on planes to protecting natural resources also are factors, industry officials said.
Too many visitors may not seem like a problem for a state that depends on tourism like no other in the nation. But it can be.
"If you try to stuff too many visitors into this space we have, you begin to be a detriment to your product," Johnson said.
Service begins to suffer and there will be overcrowding at beaches, parks, airports and already congested roadways. Long lines are already the norm at some popular tourist attractions like the USS Arizona Memorial.
More resources such as law enforcement, electricity and water will also be required on islands that are often already stretched thin.
"If we lose this thing called 'aloha,' we're just like any sand-and-surf destination. I don't believe we can afford to go there," Johnson said.
Who is desirable
A look at where the state's advertising dollars are being spent shows exactly who Hawaii wants -- affluent, active and educated travelers.
The Hawaii Visitors & amp; Convention Bureau, a private agency hired to market Hawaii to North America, launched a marketing campaign last year to lure "activity-seeking tourists" during the slower fall season.
About $1 million was spent on TV ads, including on the Travel Channel and the Food Network with $200,000 used for online advertising at the Discovery Channel, Forbes and The Wall Street Journal.
An additional $100,000 was spent on print ads for The Wall Street Journal, which was the only newspaper selected.
"There's great demand to come to Hawaii from North America right now, and what we're looking at, as a marketing agent, is attracting people who are going to have a great experience in Hawaii. We're looking for people who will appreciate what Hawaii has to offer," said Jay Talwar, the bureau's vice president of marketing.
On average, one of every 10 people in Hawaii is a tourist. About 1.3 million people live in the state, three quarters on Oahu alone.
"I think we're all cognizant of the fact that we have the most beautiful spot on Earth, but the real draw are the people in Hawaii," Talwar said. "It's the aloha spirit that people feel when they arrive here. We want to do all we can to support that."
Every major Hawaiian island experienced an increase in visitor arrivals last year, with the Big Island leading the way with 16.1 percent.
Safe, exotic
Hawaii has successfully marketed itself to the world as a safe yet exotic tropical destination. The state has also benefited from the reluctance of some Americans to travel abroad because of worries about disease, terrorism, natural disasters and the weak U.S. dollar.
Domestic visitors increased 7.4 percent to 5.3 million last year, while international visitors rose 5.2 percent to 2.1 million.
While targeting upscale tourists, tourism officials stress that they are not trying to keep any potential travelers from planning vacations to Hawaii and acknowledge that one natural or manmade disaster could change things in an instant.
"It really is a fragile industry," Johnson said.