Hawaii Visitors are Back – Just Not That Many of Them 
The State's new pre-travel testing program allowing visitors with a negative COVID-19 test to avoid a 14-day quarantine is welcome news to the visitor industry. Unfortunately the cost of the test, the lack of availability of timely tests (within 72 hours of departure), the risk (albeit low, but not zero) of a false positive or not getting results validated by the State are all challenges that are keeping our visitor numbers low. Powell & Aucello’s projection is that visitor numbers will stay in the current range until a COVID-19 vaccine becomes widely available. 

Erik Kloninger Provides Additional Insight on Visitor Arrivals
The chart below presents daily statewide visitor arrivals as reported by HTA using a 7-day moving average since the start of the pre-arrival testing program began on October 15. After remaining below 1,000/day, statewide daily visitor arrivals spiked starting on Oct. 15, 2020. This likely reflects both pent-up demand and adjustments of travel dates to take advantage of the pre-departure testing exemption. Arrivals tailed off for about a week and a half to the 3,500/day level toward the end of October before picking up to the 5,500/day level by the end of the first week of November. Daily visitor arrivals plateaued at about 5,600/day for a week before ticking up again after mid-November. By Nov. 19, 2020, the 7-day moving average had crossed the 6,000 mark.
During the year-earlier period, the state averaged about 26,000 visitor arrivals per day, meaning that state visitor arrivals are at about 24% of pre-COVID levels. A little more than one month into Hawaii tourism reopening, this represents good progress, given that visitor arrivals pre-Oct. 15, 2020, were at about 3% of 2019 levels. If all hotels in Hawaii reopen, average occupancy would be below 20%....not a sustainable number. 
Other Happenings 
We are hearing that bookings for the holidays and January are lagging below what owners and revenue managers had hoped for. Actions by lenders against the owners of underperforming hotels (that is essentially any Hawaii hotel with a loan) have continued to be postponed. Some lenders, even those who are loan-to-own types, don't want to take ownership now given the negative carry an owner would face. We are not aware of any Hawaii hotel foreclosure filings to date but suspect that will change.  
 
The Outlook 
Look for more forbearance for the next few months and some movement early next year on those properties where the borrower is unwilling to pony up capital.
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