Hawaiian dream vacation gets even pricier
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

HONOLULU - Visitors to Hawaii may be in for a surprise - the high cost of getting around doesn't end after that long and expensive airline flight from the mainland.

From air travel to exotic sea expeditions, rising fuel prices are making a Hawaii vacation an even more pricey affair.

Hawaii has the highest gas prices in the country, and many of those escalating costs are passed on to unsuspecting tourists. The average for a gallon of regular reached $3.38 on June 29, according to AAA's fuel-gauge report.

''It's forced everybody to raise their prices a little bit,'' said Dan Peavy, owner of Aqua Adventure Charters on Maui, which offers snorkeling and diving trips.

''Most people don't even realize it.''

Peavy said he raised prices by $4 per person this year to help offset the extra money spent to fuel the boats that take visitors out to sea.

Helicopter journeys around the islands also have become even more costly due to fuel costs. At Sunshine Helicopters on Maui, trip prices have increased between $30 and $55.

''It's causing us to charge a higher price for our product, and it's passed on to the consumer,'' said Russ Scott, owner of Sunshine Helicopters. ''It's an expensive thing we offer anyway. . . . It's not good for business.''

Even everyday items that a visitor might buy at a convenience store near the beach will take a few more pennies out of your wallet.

Twelve-ounce soft drinks, lettuce and rice all cost a few cents more since shipping company Matson Navigation raised its fuel surcharge.

''It's an unavoidable expense,'' said Jeff Hull, spokesman for Matson. ''You can't e-mail cargo.''

Tourists to Hawaii spend an average of $170 a day, excluding airfare, said Eugene Tian with the state Department of Business, Economic Development and Tourism. Only about 11 percent of those costs are attributed to transportation.

''The impact may be passed on completely to the consumer, or part of it may be eaten by the company,'' Tian said. ''We haven't seen a significant increase yet, but eventually we will.''

The tourism industry has been thriving in Hawaii despite the rising prices.

The state recently reported that there were 2.3 million visitors during the first four months of the year, a 2.1 percent increase over the same months in 2005. Those vacationers spent $3.8 billion during that time, an increase of 7.3 percent.

Getting to Hawaii in the first place is the most significant area where travelers will feel the pinch caused by rising fuel costs.

Airlines have had to find new ways to cut internal costs and ease the blow felt by customers, said Mark Dunkerley, president and chief executive of Hawaiian Airlines.

''We don't have any way of avoiding the cost of fuel. . . . Some of it has been passed on to customers,'' he said, adding, ''Prices for consumers aren't going up nearly as much as they are for the airlines.''

Not all businesses have passed fuel costs on to their customers.

Norwegian Cruise Lines, with one of the fastest-growing tourism businesses in the islands, has been able to absorb fuel costs so far without increasing ticket prices, said Robert Kritzman, executive vice president and managing director for Hawaii operations.

''It's obviously an expense we have limited ability to impact or control,'' Kritzman said. ''We are looking for ways to be more efficient.''

Some businesses partially dependent on tourism suffer when pump prices go up overnight.

Cabs and buses are regulated, so gas prices don't directly affect how much they can charge. But that offers no real relief for the passenger. Hawaii's cab fares are among the highest in the country - 30 cents for every eighth of a mile, with a $2.25 minimum.

''Tourists don't ride in cabs as much right now,'' said Patrick Nguyen, a taxi driver waiting at Ala Moana Mall for a fare to come along.

''When business isn't good, it affects your tips.''

Unavoidable expense: With fuel prices on the rise, the cost is passed on to unsuspecting tourists
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