Travel Tips

Mexico Travel Decline Could Increase Hawaii Vacations

Locations in this article:  Honolulu, HI

Hawaii Skim BoarderAs fears of swine flu prompt thousands of passengers to cancel or alter their travel plans to Mexico, a few other destinations may be getting a much-needed boost during a season of weak travel demand.

Many travel agents and tour operators are reporting a 20 to 30 percent cancellation rate for trips to Mexico, which is having a massive impact on the country’s tourism industry.

Mexico’s finance secretary, Augustin Carstens, said that the swine flu outbreak has cost the country approximately $2.2 billion, with a large portion of the losses coming from the tourism sector.

Hotel occupancy is half its normal rate, and airlines from many countries, including the U.S., have limited or halted flights to the country.

The pain is likely to continue for some time to come, as the U.S. State Department is advising against non-essential travel to Mexico until at least July 27.

Many of those who are not willing to forfeit a long-planned vacation but don’t want to risk heading south of the border are now re-booking travel to other warm-weather destinations such as Jamaica and Hawaii.

Hawaii SilhouettesJack Richards, president of travel wholesaler Pleasant Holidays, says that the majority of people re-booking Mexico holidays with his company are opting for Hawaii instead. Other major travel agents are pointing to Jamaica as the number one alternative destination, with Hawaii a close second.

Though it’s too early to know if the trend is statistically significant, it’s welcome news in Hawaii, whose hotel industry has suffered one of its worst years in decades.

A survey by Hospitality Advisors showed that the state’s hotel occupancy rate was a meager 67 percent in March, which was 10 percent lower than March of last year and the lowest rate recorded since the survey began in 1987.

Overall March visitor numbers were down 16 percent from March of 2008, and have been falling by double digit levels every month for the last year. But preliminary April figures show only a two-tenths of a percent drop compared to April of last year.

Hawaii's Pink PalaceThough Hawaii tourism officials are reluctant to celebrate the positive aspect of a pandemic that has killed hundreds elsewhere, it is heartening that during times of crisis, travelers often shift their business elsewhere rather than staying at home.

For example, after the September 11 terrorist attacks in New York and Washington, DC, many American were afraid to fly, but the cruise industry experienced a surge in business.

Jamaica and other Caribbean islands are no doubt similarly elated at the boost in business, considering that the region has also been suffering one of its worst tourism seasons ever.

Over the last few months hundreds of Caribbean resorts, hotels and airlines have been offering super-discounted package deals, often at half the price they were previously selling for, in order to boost interest in the islands.

Now, not only are more land-based travelers opting to head to the islands, but with the swine flu outbreak many cruise ships are diverting from Mexican to Caribbean ports, pouring much-needed funds into struggling island economies.

However, the bad news is that a few tour operators seem to be capitalizing on the re-booking frenzy by charging desperate customers higher rates for alternate destinations.
But the companies are defending the practice by claiming it is a simple matter of supply and demand.

By Karen Elowitt for PeterGreenberg.com.

Related links: Forbes, Associated Press, ABC News, State Dept., Honolulu Advertiser, KITV, Vancouver Sun

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