Tourism Cycle Impacts Honolulu Real Estate
November 9th, 2009 categories: For Buyers, For Sellers
The Honolulu Advertiser is reporting that hotel occupancy rates have improved.
“After 18 consecutive months of declines in the numbers of visitors staying in Hawaii hotels, September brought a small gain in hotel occupancy — up 1.6 percentage points to 64.6 percent.”CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE
Big things can begin with little steps. Tourism is one of the economic forces in Hawaii and it must improve for Honolulu real estate values to rise. Time will tell if this blip is the beginning of a trend or just a temporary bump. Keep in mind that the nature of a cycle is that it will change. Upward cycles will turn downward and vice versa. If you ask me, for long-term investors, now is a very good time to buy.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
| Discussion: 1 Comment »
Chinese Airline Clearance Good For Honolulu Real Estate
October 26th, 2009 categories: For Sellers, Rants & Riffs
The Honolulu Advertiser recently reported that Hainan Airlines was recently approved for weekly flights to Hawaii.
“State tourism liaison Marsha Wienert said the first nonstop scheduled service from China to Hawai’i could provide a big boost for the long-anticipated increase in visitors from there. Wienert said it could begin around the first of next year while the state and the airline earlier had hoped for a start date before the end of this year. “It’s very good for us,” Wienert said Friday at a meeting of the Hawai’i Tourism Authority. With Hawai’i tourism struggling out of a slump, officials are looking to China as a much needed new market.”
CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE
Since real estate values are tied to tourism, expansion into the Chinese market can only benefit our economy. Think about this, in a good year, Hawaii has 7,000,000 visitors to the state. With its billions of people, we only need a fraction of a percent of the Chinese to come to Honolulu and our market will turn around. If you wonder why a Chinese national might like Waikiki, take a look at the picture below to see what their beaches look like. 
As this Asian market grows, owning a piece of paradise will become of interest to them and, I believe, you will see upward pressure on Honolulu real estate prices.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
| Discussion: 4 Comments »
Wall Street Journal on Hawaii Tourism!
November 20th, 2008 categories: The Market
Yesterday’s WSJ had some interesting thoughts on the state of Hawaii’s tourism business.
“High fuel prices earlier in the year, the bankruptcy filings of Aloha Airgroup Inc. and ATA Airlines Inc., which previously served the region, and the nationwide slump in consumer confidence has slammed Hawaii’s tourism industry. It welcomed 9.3% fewer visitors this year through September compared with the year-ago period, according to Hawaii’s Department of Business, Economic Development and Tourism.”
CLICK HERE TO READ THE WALL STREET JOURNAL ARTICLE.
Given this sluggishness, Hawaii is becoming a much better vacation value. So what does this mean for Honolulu real estate?
In the short term, I believe it means it is a very good time to buy…if you are a long-term player. In the long term, I expect the period in which we find ourselves will be viewed as having been a great buying opportunity (isn’t that what I just said?).
On a final note, pray for a nasty, cold winter and, if it happens, Hawaii tourism could turn around very quickly.
| Discussion: 2 Comments »
Added Flight Capacity Should Help Honolulu Real Estate
September 22nd, 2008 categories: The Market
North Shore of Maui from the Hawaii Super Ferry
With fuel prices rising and the National economy having it’s challenges, Hawaii tourism has been off for a number of reasons. One of the reasons was this year’s closure of Aloha Airlines and ATA Airlines and the resultant reduction in airline seat capacity. If fewer people can come to Hawaii, then there will be fewer people for hotel rooms, retailers and real estate. I am happy to report that a recent Honolulu Star Bulletin article shows that 3 airlines have made plans to add seat capacity. This will be good for our economy and for Honolulu real estate. The article reads…
“Alaska Airlines recently announced that it will cut capacity by 8 percent this winter and slash up to 1,000 jobs; however, Hawaii is actually going to benefit from these changes.
“We are increasing service to Hawaii,” said Marianne Lindsey, manager of communications for Alaska Airlines.
Delta also will be restoring an additional Monday flight from Atlanta to Honolulu, said Anthony Black, a spokesman for Delta. Starting Oct. 1, the carrier will offer service from Atlanta to Honolulu once daily on Tuesday, Wednesday and Thursday and twice daily on Friday, Saturday, Sunday and Monday, he said…
Hawaiian Airlines is also in the process of adding approximately 36 percent more seats to its fleet with the purchase of four more 123-passenger Boeing 717 aircraft, according to a press release from the Hawaii Visitors and Convention Bureau. The aircraft will be introduced into service at the rate of one a month beginning Oct. 1, the release said.”
CLICK HERE TO READ THE ENTIRE ARTICLE.
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Asia May Hold A Key To Honolulu Real Estate Values!
September 16th, 2008 categories: The Market
Beautiful unknown flower behind my home.
The key to Honolulu real estate has been ongoing demand for a very limited supply of homes and condominiums. Besides local buyers, over the years we have seen Californians, Canadians, Japanese and others add additional demand that has ultimately fueled increases in our Honolulu real estate values. In past posts, I have been tracking the ongoing removal of barriers for Chinese travel to Hawaii.
Great news! Today’s article at Pacific Business news shows that there is concerted effort being made to open Chinese markets. The article also says that Korean travel to Honolulu is coming too.
“The emerging Chinese and Korean visitor markets may well be the future of Hawaii’s tourism industry, helping it to recover from declining Japanese and U.S. Mainland markets.”
READ THE PACIFIC BUSINESS ARTICLE
Let’s encourage expanding the number of people that can come to Hawaii. It means job growth and is good for real estate values.
Chinese Time
The Canadians Are Coming
The Chinese Are Here
The Koreans Are Here
| Discussion: 1 Comment »
Canadians In Honolulu
July 29th, 2008 categories: The Market
It’s great to be in Hawaii. Our tropical paradise has always been attractive to people from other parts of the world. Our warm breezes, blue skies and soothing water have made us the place of dreams. It seems interest in our real estate ebbs and flows with the economic fortunes of the rest of the world.
As economies become strong we see the newly rich find interest in our isles. Then as one economy cools, another will heat up bringing new interest from that area of the world. Over my lifetime Hawaii has seen significant investment interest from Californians, Canadians, Japanese, Middle Eastern oil money, Koreans to a lesser extent and many more. Who knows owners of Euros may be on their way? I believe the interest is the result of our location in the Pacific, terrific climate and our status as a State of the United States of America. In other words, we are somewhat exotic but you can drink the water without an attack of revenge and you don’t have to exchange you money. Furthermore, in today’s world of terrorism we offer a level of safety that may not be found outside of the United States.
A recent article in the Honolulu Star Bulletin shows that we have been seen more people visiting from Canada.
“Last month, while other tourism markets to Hawaii floundered, the showing from Canada increased by 13.7 percent, according to statistics from the state Department of Business, Economic Development and Tourism. Through May, 184,320 visitors from Canada have come to Hawaii, DBEDT said.”
CLICK HERE TO READ THE STAR BULLETIN ARTICLE.
Given this increasing interest, is it possible that the Canadians could fuel a new rise in our market?
Today’s picture of Diamond Head was taken from the Hawaii Super Ferry on my way to Maui.
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The Chinese Are Here!
June 25th, 2008 categories: The Market
For the last few months I have been writing that the Chinese are on their way to Honolulu! Here is an article confirming the first group is here. Hopefully, it is the beginning of many more visitors from China. If so, it could bode well for local real estate values.
“One of the first groups of Chinese leisure travelers and tourism officials to arrive in Hawaii will receive a welcoming reception Wednesday.”
READ THE ENTIRE PACIFIC BUSINESS NEWS ARTICLE
Have you ever wondered what Rabbit Island looks like from the water? This picture was taken from the starting line of this past Sunday’s canoe regatta.
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The Chinese May Be Coming to Honolulu Too!
April 3rd, 2008 categories: For Buyers, For Sellers, The Market
For the last several years, I have been waiting for the newly minted Chinese middle class to discover Hawaii. Based on an article in Pacific Business News concerning a recent agreement between our two governments, Honolulu may soon see more arrivals from China. According to Tina Yau in the Shanghai office of Hawaii Tourism China “No matter if it’s a West Coast or East Coast package, for sure they will include Hawaii.”
Also, a Honolulu attorney that I know who moved to China a few years ago, believes that Hawaii will be very attractive to Chinese investors. He thinks it will be a few more years before they start arriving in significant numbers. Anyway, this bolsters my long-term bullishness for Honolulu real estate.
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