HONOLULU -- Hawaii's hotel industry struggled through a miserable 2009, and the impact is being felt across the island chain.

Statewide hotel revenues dropped by $741 million to $3.6 billion, according to the latest Hospitality Advisors LLC report released on Tuesday.

The majority of that came from a 17 percent drop in room revenue as many hotels were forced to slash prices because of the global economic crisis, Hospitality Advisors said.

Visitor arrivals dropped 4.5 percent and visitor spending was down just under 12 percent, according to the Hawaii Tourism Authority.

"2009 has been a very tough year for the visitor industry both in Hawaii and nationally," Hospitality Advisors LLC President and CEO Joseph Toy said. "Since April 2008 when the sharp downturn began, Hawaii has had 21 consecutive months of hotel revenue losses that now amounts to over $1.14 billion."

The state went from 70.5 percent hotel occupancy in 2008 to 66.5 percent last year, Hospitality Advisors LLC said.

Total Hotel Room Revenue:
2009 $2.42 billion
2008 $2.92 billion
2007 $3.13 billion
2006 $3.12 billion
2005 $2.95 billion
2004 $2.67 billion

Most economists have predicted that the tourism industry will not return to normal until 2011 at the earliest.