Outrigger Resorts & Hotels has been making significant strides in expanding its presence in Hawaii. With the addition of the Outrigger Kaanapali Beach Resort in Maui and the Outrigger Kauai Beach Resort & Spa, the company has solidified its foothold in its home state. Despite challenges such as the aftermath of wildfires, Outrigger Resorts & Hotels remains optimistic about the future of tourism and hospitality in Hawaii.
Effect of Wildfires on Maui’s Tourism Sector
CEO Jeff Wagoner shared insights on how Maui’s tourism and hospitality sector has navigated the aftermath of the wildfires. While there was a temporary impact on occupancy in West Maui, the hotels are now back to traditional business. The Outrigger Kaanapali Beach Resort, acquired shortly before the wildfires, is performing well in line with other properties in the market. Plans for the future of the resort are in the works, indicating a positive outlook for tourism in Maui.
Wagoner highlighted the strong performance of the broader Hawaiian market, particularly in Oahu, Honolulu, and Waikiki. Properties in these areas have seen significant growth compared to the prior year. Although Maui experienced a slight decline post-wildfires, the market has since recovered, demonstrating resilience and consumer confidence in Hawaii as a travel destination.
While group travel may not be a significant segment in Honolulu, the convention center there recently had its best year ever. Outrigger’s properties in Kona and Kauai offer large meeting spaces, catering to the return of group travel. International groups, including those from Australia, Canada, and Japan, are showing interest in visiting Hawaii, contributing to the overall recovery of the tourism sector.
The demand from the Japanese market is showing signs of improvement, with numbers for travel from Japan reaching 50% to 60% of 2019 levels. Currency fluctuations have been a factor, but recent trends suggest an upward trajectory. As the gap in currency lessens, Hawaii is poised to benefit from increased travel from Japan, further boosting the tourism industry.
In the Asia-Pacific region, Outrigger’s properties have been performing exceptionally well. Fiji and Thailand have been standout markets, with properties running at over 90% occupancy each month. With the reopening of borders, Australia has contributed to the success of Outrigger’s properties in Fiji. China’s return as a source market for Thailand signals a positive trend, while the Maldives remains a strong destination despite new inventory coming into the market. Overall, Outrigger’s Asia-Pacific portfolio has exceeded expectations and continues to thrive.
Outrigger Resorts & Hotels’ strategic expansion in Hawaii and the Asia-Pacific region has proven successful, with growth in occupancy, strong performance in key markets, and a positive outlook for the future of tourism. The resilience of the brand, coupled with emerging trends in group travel and international demand, positions Outrigger as a leading player in the hospitality industry. With innovative plans for their properties and a focus on customer experience, Outrigger Resorts & Hotels is set to continue its upward trajectory in the years to come.
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