No need to fret for the state of Hawaii tourism anymore.

Visitor numbers to the Aloha State dropped dramatically during the recession, and the state’s tourism industry suffered another blow when an earthquake and tsunami in Japan last year stifled the flow of big-spending Japanese vacationers to the islands.

But tourism in Hawaii is rebounding fast, with the state welcoming nearly 7.3 million visitors in 2011. Although that is still short of the state’s record year in 2006, officials expect continued growth this year.

Tourism statistics released Jan. 30 showed that the state’s visitor count last year was up almost 4 percent over 2010. Better yet, vacationers spent $12.58 billion in 2011, a 15.6 percent increase over 2010 and the second-highest total in state history.

"We’ve seen a healthy demand for Hawaii globally," said Mike McCartney, president of the state-run Hawaii Tourism Authority.

Hawaii’s tourism officials have helped their cause by promoting the islands to countries with surging economies, whose strong currency buys more in the U.S. As a result, Hawaii in 2011 drew 32 percent more tourists from Australia, nearly 30 percent more from China and 7 percent more visitors from Brazil compared with the year before, according to tourism officials.

"We moved toward a global marketing strategy," McCartney said. "We took our core and we took off on it."

Hawaii visitor numbers peaked in 2006 at almost 7.7 million. During the economic meltdown, tourists cut back on spending and visitor numbers to Hawaii plunged nearly 15 percent from 2007 to 2009, according to the Hawaii Tourism Authority. But things turned around as Hawaii’s tourism numbers grew each year after that.

The western United States remains the greatest source of Hawaii’s visitors, accounting for more than 35 percent of tourists, while the eastern U.S. generates 26 percent of the state’s visitors. Japanese tourists made up about 17 percent of visitors last year, down from 18 percent in 2010. Canadian visitors are the next biggest group, representing about 7 percent of Hawaii’s tourists, according to the tourism authority.

Many of those visitors are opening their wallets wide. The average visitor spent $1,727 per visit in 2011, up from $1,550 the year before, according to the authority.

To help draw new visitors, Hawaii’s tourism authority spent about $6 million in 2011 to help airlines research and promote the most profitable routes to Hawaii. That is an increase from the $5 million the agency spent on airline routes in 2010.

Hawaiian Airlines, the largest carrier to the state, recently announced a partnership with JetBlue Airways to fly out of JetBlue’s gates at New York’s John F. Kennedy International Airport. The move will give East Coast tourists direct flights to Hawaii starting in June.

The airline also increased flights in December from Sydney, Australia, to Honolulu from five flights a week to daily service. Hawaiian Airlines also plans to increase its direct flights from Seoul to Honolulu from four times a week to daily, starting in July.

Hawaiian Airlines executives say they have worked with Hawaii’s tourism officials to build and promote new routes. But they have always been confident that Hawaii’s tourism industry would remain strong, regardless of short-term slumps.

In 2008, when visitor numbers to Hawaii began to drop, Hawaiian Airlines committed to spending $8 billion on new planes to meet future tourism demand to the island.

The airline plans in April to replace its Boeing 767-300 planes that fly from Osaka, Japan, to Honolulu with new Airbus A330 jets that are equipped with 30 more seats per aircraft. The move will add nearly 11,000 seats annually on the route.

"We work on long-term trends," said Mark Dunkerley, Hawaiian Airlines’ president and chief executive. "We try to look forward over a decade or two."

Thanks to the resurgence of visitors, occupancy levels at Hawaiian hotels surged from a low of 67 percent in March 2009 to 77 percent during the week that ended Jan. 7, according to Smith Travel Research. Average room rates during that period rose from $182 in 2009 to $238 in January.

"2011 was a better year than the prior two years," said Chris Tatum, vice president for Marriott International Inc., which operates nine hotels in Hawaii.

He noted that Hawaii has welcomed many Korean tourists since the U.S. waived the need for South Koreans to obtain a visa to visit.

"The efforts we’ve been having in promoting Hawaii in Korea have had an impact, and when you throw in the visa waiver program and the improving economy, we are excited about the potential from Korea," Tatum said.

Walt Disney Co. is also benefiting from the resurgence in tourism by opening in August the Aulani Disney Resort and Spa, an $800-million development on 21 acres in Oahu. The resort offers 300 hotel rooms and 350 time-share units that include amenities such as kitchens and living rooms. The resort expects to open an additional 400 time-share units by 2013.

Disney executives declined to disclose occupancy rates at the resort but said it had a "very busy holiday season."

"We are really happy with the number of visitors we have been seeing," spokeswoman Nikki Moreno said.

Tourists who have visited Hawaii recently said they have noticed an unusually high number of international tourists and exceptional service from waiters, bellhops and other workers, who seem grateful to welcome visitors back to the islands.

Stephanie LaPorte, a Monrovia resident who visited Hawaii with her family in June, said the beaches were packed but she had no trouble getting through the crowds at the airport.

"I’d go back every year if I could," she said. "It’s always beautiful there."

Stephan Pollack, a public relations executive who visited Honolulu in October for business, said he shared his hotel with lots of foreign visitors during his latest visit.

"I noticed Japanese, Canadians and Italians," he said. "In all, it was a great trip."

Posted on 6:25 pm, Tuesday, January 31, 2012. www.Hawaii24/7.com Karin Stanton | Hawaii 24/7 Editor

Construction of Phase I is now fully funded and Hawaii Community College Palamanui is expected to open its doors to students in fall 2014.

The University of Hawaii accepted $9.68 million Tuesday, Jan. 31 from Palamanui LLC — a partnership between Hunt Companies and Charles R. Schwab — to begin construction of the university’s first permanent physical campus on the Big Island’s west side.

The initial contribution of more than $5.2 million was delivered to the university this week. An additional $4.4 million has been placed in escrow and will be released to the university upon completion of the mid-level road connecting Kona Palisades to the new campus, which the university is building and expects to complete in April.

Mayor Billy Kenoi thanked the developers for their “promises kept” as “the kids in West Hawaii deserve the opportunity for higher education.”

Kenoi noted he got his start at a community college.

“Education is the great equalizer,” he said. “It gives everybody a shot. The outlook for our children’s future just got brighter.”

Building the campus makes higher education possible for hundreds of local families, he said.

“Our children will be able to learn skills and new technologies so they can compete for higher paying jobs,” Kenoi said. “I commend Palamanui LLC and its partners and appreciate their honorable fulfillment of promises made.”

University of Hawaii President M.R.C. Greenwood acknowledged West Hawaii is one of the most underserved regions of the state.

She said she recognized very quickly upon arriving in Hawaii nearly three years ago that “this was going to transform lives.”

Hawaii County Mayor Billy Kenoi, left, chats with UH President M.R.C. Greenwood prior to presentation of $9.68 million to the UH for the West Hawaii campus at Palamanui. Photo by Michael Darden

“The recession has made it very difficult to get down projects that seemed easy,” she said. “This is the beginning of something you will treasure. The new Hawaii Community College Palamanui campus will provide educational pathways to a better future not just to Hawaii island residents, but to the residents of the entire state.”

Representing the University of Hawaii Board of Regents, Vice Chair James H. Q. Lee also spoke at the ceremonial check passing Tuesday at West Hawaii Civic Center.

“A college education creates opportunities for a better life,” he said. “Community colleges, with their low cost and open access, are the entry point for many who have traditionally been left out of higher education. We are gratified by and appreciative of the efforts of all who helped bring this promise to the residents of West Hawaii. Our West Hawaii Regent, Carl Carlson, Jr., is out of state today but he, Chair Eric Martinson and the entire Board send their thanks to the many who made today possible.”

Steve Colon, Hunt Companies Hawaii Division President representing Palamanui LLC said, “On behalf of Hunt Companies and Charles R. Schwab, I am thrilled to announce that Palamanui has honored its commitment to provide the financial catalyst to make the Hawaii Community College Palamanui campus a reality. This campus has been a dream for many in the West Hawaii community for a long time, and it is especially gratifying to know that our efforts will guarantee its fruition.”

Palamanui LLC will soon begin infrastructure improvements worth another $10 million for the university to connect to electricity and water lines. This necessary infrastructure will increase the Palamanui investment to nearly $20 million and will enable the completion of the planned first phase of the campus.

The Hawaii Community College Palamanui campus has been in the development stage for at least eight years and although it has suffered setback due to the challenging economic times, it it now on target to welcome students the second part of 2014.

Jim Lally, a community advocate for higher education and UH Foundation Board member, commented, “The Hawaii Community College Pālamanui campus is a shining example of a project that required the collaboration of state, federal, county and private entities, pooling their resources and expertise, to invest in West Hawaii’s future to serve our community. I couldn’t be more proud to have been a part of this collaborative effort to bring higher education opportunities to West Hawaii.”

Hawaii Community College Chancellor Noreen Yamane said, “Hawaii Community College Palamanui will build and expand upon providing access to higher education opportunities, train a skilled workforce and support economic development in this region. The vision, hopes and dreams for this campus are beginning to come true.”

Yamane said the current campus serves about 750 students, although that number will rise greatly when the Palamanui campus is built out.

Comprehensive building plans are now being finalized and should be completed within one month.

The University of Hawaii expects apply for building permits and put the first phase of the project out to bid in the first quarter of 2012. A blessing, groundbreaking and the start of construction for the Palamanui campus is expected this summer.

The first phase of the Palamanui campus, upon completion in 2014, will become the 11th campus comprising the University of Hawaii System.

Greenwood said it is not unusual for a project as large as a college campus to take a long time to get kickstarted. She pointed to the West Oahu Community College, which was in the planning process for 18 years.

Lining up community and state support, public and private funding, land and permits, and earning the confidence of all the stakeholders takes time and tremendous effort, she said.

Greenwood and Yamane said Palamanui would start small and grow into a two-year branch campus of the Hilo community college, then possibly into a full blown two-year comprehensive community college.

Yamane said the possibilities are myriad, with the vast natural resources available, from marine and ocean sciences to vulcanology to agriculture.

“It begins with a vision,” she said.

Still, the funding is only in place for construction.

Jean Hull, long-time culinary instructor, is leading a team to raise $1 million to equip the kitchen for the culinary program, and the campus also will need to be furnished and fitted with telecommunications equipment.

Hull said donations are being accepted through the ACF-Kona Kohala Chapter. Donations may be sent to ACF, P.O. box 1268 Kailua-Kona, HI 96745.

By Chris Isidore @CNNMoney January 20, 2012: 11:19 AM ET

NEW YORK (CNNMoney) — Home sales ended a difficult year on a high note, resulting in a gain in full-year sales volume.

The National Association of Realtors reported that the annual sales pace in December reached 4.6 million homes, up 5% from November’s pace and 3.6% from a year ago.

It was the third straight month of improvement in the pace of sales. The fourth-quarter sales volume lifted full-year sales to 4.26 million homes, up 1.7% from 2010 levels.

"The pattern of home sales in recent months demonstrates a market in recovery," said Lawrence Yun, the group’s chief economist. "Record low mortgage interest rates, job growth and

bargain home prices are giving more consumers the confidence they need to enter the market."

Home prices, however, remained depressed, largely because distressed sales continue to make up a significant part of the market.

The median price was $164,500 in December, down 2.5% from a year ago. For the full year, the median price of $166,100 was off 3.9% from 2010 levels.

Realtors said foreclosed homes sold for an average discount of 22% below market value in December, compared to a 20% discount a year ago. Meanwhile, short sales, which are homes sold for less than the amount owed on a mortgage, sold for a 13% discount, compared to a 16% discount in December 2010.

Foreclosures made up 21% of all sales, while short sales were 12%. Both figures were comparable to 2010.

But even with the distressed properties on the market, the inventory of homes for sale has gotten tight.

Realtors calculate that at the current sales pace, there is only a 6.2 month supply of homes available for sale, the smallest since March 2005, before the housing bubble burst.

That was down from a 7.2-month supply in November and more than an 8-month supply a year ago, which is a "a notable decline," according to Troy Davig, an economist with Barclays Capital.

"The housing market appears to be making progress in terms of working through its excess inventory," said Davig in a note Friday.

Joseph LaVorgna, chief U.S. economist for Deutsche Bank, said the current conditions should lead to improved prices and sales in the near term.

Other encouraging signs include a survey of home builders that showed the most bullish view of current sales conditions and customer traffic in nearly five years. The government’s report on home building is also showing improvement.

"Coming on the back of a dramatic improvement in homebuilders’ sentiment, the latest existing-home sales report corroborates our thesis that a housing recovery has finally begun," LaVorgna wrote in a note.

By Les Christie @CNNMoney January 12, 2012: 8:18 AM ET

Big Island mayor signs bill to ban plastic bags at store, restaurant checkouts

by: Maureen O’Connell HawaiiMagazine.com
posted: Thu Jan 19, 2012 at 01:37 PM

In an effort to reduce litter and threats to marine life, the Big Island is gearing up for a ban on plastic shopping bags. The green-minded move follows plastic-bag bans already in effect on Maui, Kauai, Molokai and Lanai.

Big Island Mayor Billy Kenoi signed a bill this week that will eventually ban stores from giving out plastic shopping bags. According to the law, which goes into effect next year, starting in January 2014 stores will not be allowed to offer plastic bags to customers.

Plastic-bag bans on Maui, Kauai, Molokai and Lanai took effect last January. At that time, businesses were encouraged to provide environmentally friendly alternatives and shoppers were expected to bring reusable bags with them to checkout counters. The laws were approved by the Maui County Council (Maui County includes Molokai and Lanai) and Kauai County Council in August 2008 and in October 2009, respectively.

Here are some more details.

• Maui County — Businesses, including restaurants, are required to provide recyclable paper or reusable bags for sale or at no charge. Business owners who provide non-biodegradable bags to customers at checkouts may be fined $500 per day.

• Kauai County — Commercial businesses, including restaurants and takeout eateries, are now required to use recyclable paper bags and biodegradable bags. Businesses that use plastic bags face a $250 per day.

There are some exceptions, though. Thin plastic bags are still available at businesses selling raw meat, poultry, produce and bulk items such as granola and flour. Also, plastic bags used to protect garments are allowed at dry-cleaners.

The Big Island’s County Council, which passed the ban proposal in December, will hold public hearings as it drafts its own administrative rules and penalties.

On Oahu, where the most of the state’s residents live, a similar proposal is expected to go before the Honolulu County officials this year. 

For additional information about the environmental dangers posed by plastic bags, check out the Rise Above Plastics program organized by the Oahu Chapter of the Surfriders Foundation.

Pacific Business News

Date: Monday, December 5, 2011, 11:47am HST – Last Modified: Monday, December 5, 2011, 12:10pm HST

Home sales on the Big Island saw double-digit gains in November, but prices lagged behind last year, according to data from the Hawaii Information Service    .

There were 129 single-family homes sold on the Big Island last month, 18 percent more than the 109 homes sold in November 2010.

The median price of a single-family home on the Big Island last month was $250,000, which was 4 percent less than $260,000 a year ago.

There were 35 condominiums sold on the Big Island last month, which was 21 percent more than 29 sales in November 2010.

The median price of a Big Island condo, however, was $179,000, which was a 38 percent decrease from $288,000 in November 2010.

Year-to-date statistics show that single-family home sales for the first 11 months of the year were more than 9 percent higher than the same period in 2010, but the median price was 6 percent lower. Condo sales for the first 11 months of the year were 18 percent higher than the same period in 2010, but the median price was 19 percent lower.