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Cover Story: HEADWINDS FOR HAWAII

Following a long stretch of solid performance, the Aloha State is battening down for a contraction in tourism, prompted by a dramatic decrease in airlift and competition from Mexico and the Caribbean.
By Lester Craft

Hawaii’s tourism economy continued humming along in the first quarter, with visitor arrivals increasing by 2.8% and key hotel performance indicators rising yet again. But challenges were brewing nonetheless.

Aloha Airlines and ATA shut down in quick succession, stripping Hawaii of 15% of its airlift — a development that could give additional impetus to energized competition from the Caribbean and Mexico, whose resorts appear more strongly positioned than ever to pursue much of Hawaii’s traditional visitor base. ...

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New research: The hassle factor costs $26 billion
By Nadine Godwin

NEW YORK — Concerned about what it called a deteriorating air travel system and lack of leadership in Washington, the Travel Industry Association is laying the groundwork, with new research and an industry summit, to push the government harder for corrective action sooner rather than later.

The TIA said that the hassles of air travel have become such an issue that 28% of all air travelers avoided at least one trip in the past year, for a total of 41 million air trips that did not happen. ...

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