Hawaii is trying to lure you with deals

HONOLULU — Hawaii's tourism industry is offering new deals as it grapples with a turbulent airline industry and Americans holding tight to their wallets.

To combat a severe slump in tourism, a new $4.5 million advertising campaign has been launched to lure visitors for the remainder of this year. It's part of the more than $12.5 million in emergency funding that has been devoted by the state and businesses to combat the drop in tourism.

Over the past decade, Hawaii has faced many challenges that have taken a toll on tourism, from the Asian financial crisis in the late 1990s to the Sept. 11, 2001, terrorist attacks. But officials say nothing compares to the multitude of challenges now.

"This is the classic perfect storm," said John Monahan, the Hawaii Visitors and Convention Bureau's president and chief executive.

Besides the turmoil in the economy, Hawaii this year faced the sudden shutdown of Aloha and ATA airlines, two major carriers serving the islands from the West Coast. The state also lost two cruise ships.

Visitor arrivals plunged 17.3 percent in August compared with the same month last year, including a record 24.4 percent drop in visitors from the West Coast, according to the latest state figures. Visitor spending also fell 17.6 percent.

Tourism is the No. 1 industry in Hawaii and the economic lifeblood of the islands. A drop-off in visitors affects everything from jobs to tax revenues.

Officials said despite rising airfares, a Hawaiian vacation package costs less this year by hundreds of dollars compared with last year. Some hotels are offering a complimentary extra night or breakfast, and more businesses are offering 2-for-1 deals on activities.