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Sapsuckers cause holes
Birds known as sapsuckers dig small holes in a horizontal line on palms (right) and trees (bottom). Sometimes the trunk is almost completely covered with hundreds of holes. Birds feed on the sap that drips from the holes or from the insects that are attracted to the sap. Decay can sometimes occur behind the feeding holes. Some crown die-back and lose of vigor can occur under certain circumstances.
Treatment: There is no treatment for the holes. Sapsucker damage can be somewhat prevented by wrapping the trunk with burlap. Some people secure several bamboo poles (vertically) to the trunk to retard the birds movement around the trunk. Good luck.