| The current economic crisis has put a damper on | | | | budget accommodations. Would the trend towards |
| tourism across the nation. Some areas are hit | | | | alternative vacations accommodations also apply to |
| particularly hard, as their major economic growth and | | | | the upscale vacation rentals like the Hale Makai Beach |
| standard of living is based on tourism, such as on the | | | | Cottages and, if so, why? |
| Hawaiian Islands. | | | | A: You are correct, not all alternative vacations |
| Since the early 1950s, Hawaii has been one of | | | | rentals are low budget and not all hotels are luxury |
| America's top ten national getaways. The year 2008 | | | | resorts. In order to compare their pricing, you need |
| brought many challenges for the Hawaii tourist | | | | to look at the facilities, locations, services, etc. |
| industry. The number of visitors to Hawaii has sharply | | | | offered by traditional hotels and competing |
| decreased, about 20% compared to 2007, and the | | | | alternative accommodations. Essentially, you should |
| amount of visitor spending has dropped by about | | | | calculate the total expenditure for a family vacation |
| 12% since March of 2008. | | | | at the Hale Makai Beach Cottages or similar TVRs |
| Although the 2008 third quarter economic outlook by | | | | versus a stay at a high-end Kauai hotel or resort. |
| the Hawaiian Department of Business, Economic | | | | Q: Other than the room rates, are there any other |
| Development & Tourism (DBEDT) forecast | | | | price factors that distinguish alternative vacation |
| moderate growth for most of Hawaii's economy, | | | | accommodations from hotels or resorts? |
| visitor arrivals and visitor spending continue to | | | | A: Yes. For example, the cost for a stay at the Hale |
| decrease. | | | | Makai Beach Cottages can be calculated in advance. |
| As the sun always shines upon the State of Hawaii, | | | | There are no hidden costs or unexpected surprises, |
| the economic future for all the Hawaiian Islands looks | | | | which is incredibly important for cost conscious |
| uncertain, and the standard of living for most | | | | families. While the basic daily rate for the |
| Hawaiian residents will be lowered if the market does | | | | accommodation is fixed in either case, the big |
| not recover and tourism to Hawaii does not return to | | | | difference is in the ancillary costs. In a hotel, you |
| its previous high. | | | | typically pay extra for meals, drinks, laundry, |
| Oahu, home to Honolulu and Waikiki Beach, is the | | | | communication, and other services at high resort |
| most visited of the Hawaiian Islands. Maui - mostly | | | | rates. Often, guests end up paying more for their |
| known as a Surfers Paradise - is second, while the | | | | meals and (mini)bar bill than for the actual room rental. |
| Garden Island of Kauai ranks third. Kauai is best | | | | Conversely, staying at an alternative vacations |
| known for its rural character, secluded beaches, and | | | | accommodation is similar to living in your own house |
| Aloha spirit. | | | | at a different location, meaning you can limit your |
| According to the Kauai Visitor's Bureau about 70% of | | | | living expenses to something roughly the same as at |
| visitors to Kauai are staying at Hotels and Resorts, | | | | home. You can choose to go to a restaurant, but |
| whereas 30% of visitors to Kauai choose alternative | | | | you don't have to if your budget does not allow for |
| vacation accommodations. The trend to eco-lodges | | | | it. |
| and back-to-nature-vacations is sprouting all over the | | | | Q: How has your own business been affected by the |
| world, and tighter budgets make the alternative | | | | recent economic downturn? |
| vacation model a more affordable choice. | | | | A: We are dealing with a very soft market and are |
| We spoke with Rike Burmeister, who manages the | | | | also seeing a decline in bookings since September of |
| acclaimed Hale Makai Beach Cottages in Haena, an | | | | 2008. Luckily, our overall occupancy rate for the year |
| alternative vacation rental since the 1970s. The | | | | 2008 is still strong and fairly stable. |
| family-owned beachfront estate is a picture perfect | | | | Q: What do you think helped stabilize your occupancy |
| tropical vacation getaway. All of the five cottages | | | | rate? |
| are equipped with lavish bathrooms and gourmet | | | | A: Mostly, it has been our long-term guests, who |
| kitchens. The meticulous interior design of the | | | | have kept us afloat through thick and thin over the |
| cottages provides inside comfort and a fluid | | | | years. Our return guests are the foundation of our |
| connection to the natural splendor of the immediate | | | | business and part of the Hale Makai Ohana, going |
| surroundings. | | | | way back. There are some Hale Makai guests who |
| Q: Rike, you are doing business is on Kauai. How do | | | | visit not just once but twice a year. Other guests |
| you think the economic crisis described by Alan | | | | return with their entire family year after year to |
| Greenspan as "a once in a century financial tsunami" | | | | celebrate family reunions. Also, we have had many |
| will affect tourism on Hawaii? | | | | newly-weds who are returning for their wedding |
| A: Kevin, unfortunately we do feel the economic | | | | anniversaries. Other contributing factors are our |
| crisis on Kauai as well, and I believe the | | | | informative website, the incomparable scenic beauty, |
| consequences for the tourist industry will be dire for | | | | the high quality of our facilities, and finally our |
| a while. Consumer confidence is low, and people are | | | | business integrity and passion in providing a safe, |
| holding on to their money. 2008 has been difficult for | | | | healthy and truly relaxing experience to our guests. |
| the Kauai tourist industry even before Wall Street | | | | Q: How much of your success is based on the |
| collapsed. When Aloha Airlines and ATA Airlines went | | | | location of the Hale Makai Beach Cottages? |
| bankrupt this spring, the number of visitors to Kauai | | | | A: Our cottages are located on one of the most |
| decreased drastically. During the summer of 2008, | | | | beautiful beaches in the world. There is only a limited |
| airline tickets to Kauai were at an all time high, | | | | number of beachfront properties on the North Shore |
| whereas cheap tickets to Mexico were still available. | | | | of Kauai, and we are one of the very few. You |
| Consequently, Kauai lost a lot of potential visitors to | | | | cannot get any closer to the magnificent surf than |
| cheaper vacation destinations. | | | | staying at our cottages. Without question, the |
| Q: Will the Kauai tourist industry survive this financial | | | | proximity to the ocean is a major draw for our |
| tsunami in addition to declining numbers of visitors? | | | | property. |
| A: I certainly hope so, but as I said, it will be a long | | | | Q: How much of your success is based on the time |
| haul. I know the Hawaii Visitor Bureau is working hard | | | | you have been in business and your particular |
| on strategies to promote business to Hawaii and | | | | approach? |
| Kauai. One of the major concerns was the lower | | | | The Hale Makai Beach Cottages have been among |
| number of available airline seats since the spring of | | | | the first vacation rentals on the North Shore. Our |
| 2008. The good news is that Delta Airlines and Alaska | | | | roots on the island and our guest base go way back. |
| Airlines are increasing their flights to Honolulu and | | | | Some of our current guests have visited as children |
| Kona again. I am also hoping that the Delta- | | | | some 30 years ago. It's pretty neat. Of course, there |
| Northwest Airlines merger will bring additional | | | | have been significant changes over the years. Today, |
| non-stop flights to Kauai. | | | | our main focus clearly is to live and act "green." We |
| Q: Will the current economy advance the alternative | | | | are working very hard on protecting and preserving |
| vacation industry on Kauai, and what changes for the | | | | the sensitive local ecosystem and are encouraging |
| Kauai economy can be expected? | | | | our guests to enjoy and share, but also deeply |
| A: I believe the current economy crisis will hurt | | | | respect, the unique coastal environment. Most of our |
| tourism in general. If people have less spending | | | | guests feel very similarly and find our philosophy and |
| money, they start cutting back where it hurts the | | | | approach very attractive. |
| least. Often the easiest way to save money is to | | | | Q: Rike, do you think the alternative vacations model |
| stop spending it. So cutting back on fine dining and | | | | will become the next big trend in tourism? |
| travel is often the first step in downsizing. But it's | | | | A: Yes, I believe alternative travel will continue to |
| hard for all of us not to take any vacation at all. To | | | | grow and, as you say, may become the next big |
| the extent people do decide to travel, I think a | | | | trend in tourism. Alternative vacation sites have been |
| higher percentage of visitors will choose alternative | | | | more flexible and pro-active than most hotels in |
| vacation accommodations over hotel stays. I do think | | | | responding to environmental issues. With eco-tourism |
| we have an edge there. | | | | expanding all over the world, we are seeing a |
| The good news is that, at least historically, alternative | | | | growing number of guests with strong environmental |
| travelers have spent a much larger percentage of | | | | convictions and interests in connecting with the local |
| their money on small, local businesses as compared | | | | community. Most alternative visitors want to connect |
| to hotel and resort guests. A trend towards | | | | to the places they are visiting; they are interested in |
| alternative tourism should therefore boosts local | | | | the local history and culture and want to preserve |
| Kauai businesses, which are hurting the most. | | | | the natural beauty of the world. |
| Q: Alternative vacation rentals are not per se low | | | | |