Hawaii hotel industry in the US hit by low spending of tourists and spending curbs on military workers

The Hawaii hospitality industry in the United States has been hit hard by the spending curbs imposed on military personnel and a decline in the number of visiting tourists. The cut in travel reimbursement costs by the Department of Defence has been criticised by a local union.

It also noted the adverse impact from the fall in spending by foreign visitors. The Defense Department’s curbs on travel reimbursements for workers on long-term temporary duty assignments had a major effect on the business of Aloha State ’s hospitality sector.

“The cuts affect employees that already spend significant time away from their homes and families,” said Jamie Hiranaka, president of the International Federation of Professional and Technical Employees.

Noting the cuts had hit both Hawaii workers headed to Mainland bases and those traveling from the Mainland to the Islands, he said, the 25 percent and 45 percent cuts will not support them for staying in hotels, reports Biz Journals.

Many of the union’s members work at Pearl Harbor on assignments from other naval facilities outside Hawaii.

“A lot of times you want a place with a refrigerator and sink — a good living area — and it's hard to find that at that rate,” he pointed out.

DoD amends

To address the woes from budget cuts, the federal department in November offered to reimburse workers 75 percent of the cost of lodging and meals in a given locality for one- to six-month assignments. The reimbursement will be 55 percent during assignments lasting more than six months.

“The DoD is taking money out of workers’ pockets, they’re taking money away from hotels and restaurants in places like Hawaii, and they’re making it harder for dedicated workers to support the U.S. military on long-term assignments,” added Matt Biggs, IFPTE’s Director of Legislative Affairs in Washington.

Meanwhile, the US International Trade Administration has documented that there is a continued decline in US.-bound visitors from Canada, Japan, Brazil, Argentina, and Venezuela. Senator Brian Schatz from Hawaii requested the Senate Appropriations Committee to review the DoD decision on reimbursement cuts.

LGBT Attraction

Meanwhile, Hawaii’s fame as a popular destination for LGBT (lesbian, gay, bisexual, transgender) honeymoons is back in limelight. San Francisco-based Community Marketing and Insight’s 20th Annual LGBT Tourism Survey said Hawaii has regained its place as the most popular destination for LGBT honeymoons with 8 percent of travelers in that category going to it.

Its six-minute video was viral in the social media and gained the attention of many media outlets. The Hawaii Tourism Authority is on the right track with the video, said Juergen Steinmetz, co-founder of LGBT Hawaii.

In the recent past, Hawaii’s image as a destination for LGBT travelers had been declining. But the recent developments in marriage equality have revived the potential for Hawaii as a LGBT tourism market, he said, added the Biz Journals report.

New York was the most popular LGBT destination across all categories, followed by Los Angeles, San Francisco, Las Vegas and Chicago.