Would you spend $250 for a night in paradise? That's the average cost of a hotel room in Hawaii.
Hotel costs are up while tourist arrivals are down 3 percent, raising some concern among those who follow the industry.
“So what is happening now is as hotel rates go up people still have that fixed amount of money so 70 percent is being used at hotels. The money is going to the hotels and the person who comes can not do as many activities,” said Jerome Agrusa, Ph.D., Hawai’i Pacific University travel professor.
There is concern that local businesses could suffer if rates continue to rise as tourists have less money to spend. Still many see great value in a Hawai'i vacation especially those visiting from countries with a favorable exchange rate.
“I’d still come as long as our exchange rate is up. We don’t really have a problem with that,” said Paul Wilson visiting from New Zealand.
Even with the lower tourist arrivals rate, overall hotel revenue is up to a new first quarter record of $1.44 billion. The increased per-night rates are a big driver in this record revenue despite the decrease in arrivals.