Some may conclude that Hawaii is getting what it wants: fewer visitors. Many others don’t concur, including those within Hawaii travel, even at the state’s Hawaiian Tourism Authority (HTA). Recent data from the Department of Business, Economic Development, and Tourism (DBEDT) corroborates what we recently reported about Hawaii’s downturn.
In January, the Hawaiian Islands experienced another confirmed visitor decline, overall down 4% compared with January 2023 and far more in some places. Visitors are holding the line despite rising costs and are spending less, down nearly 5% compared to last year, according to DBEDT.
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With the future of international travel uncertain at best, Hawaii is in murky waters. Exclusive reliance on Hawaii tourism continues amid slowly descending arrival numbers, with no alternatives to travel anywhere in sight. This downward trend impacted tourism-dependent Maui even more than the rest of the state for a number of reasons.
24% decline in visitors on Maui.
DBEDT chief Jimmy Tokioka said that the Maui wildfires continue to impact visitor arrivals, resulting in a 24% decrease in compared to last year. In spite of the numbers, there has been significant progress since the fire, which plunged to its lowest numbers after the Hawaii Lieutenant Governor told everyone to leave Maui.
Hawaii tourism is wobbly at best.
Hawaii’s tourism decline is by no means just based on the Maui wildfires. Following post-Covid demand, the state’s entire core U.S. tourism market remains in decline. At the same time, in 2024, Americans are traveling to Europe in record numbers, in spite of increases in tourist taxes, visa requirements, and other limitations.
Recently, the HTA told the state legislature that they are concerned about Hawaii tourism data and are looking for help to “stabilize” the industry. HTA Chair Mufi Hannemann spoke about strong competition from other destinations for Hawaii’s visitors, saying, “This is the economic revenue generator for the state, this industry. You can see it right now; the trend is going to continue, and spring looks pretty soft as well. It’s not good news, but we have a plan.”
Reasons for the Hawaii tourism losses include the following:
1. Concerns about short-term Hawaii vacation rental troubles.
The future of Hawaii vacation rentals looks troubling. Last week, the governor swore about Hawaii vacation rental owners, and still threatened a proposed ban on Maui vacation rentals starting April 1.
2. Those seeking better value exotic destinations from Mexico to the Maldives.
While Hawaii is a beautiful and domestic tropical vacation, it has come out of many people’s price range. People are branching out from Hawaii, and we hear that daily in your comments.
3. Perceived anti-visitor sentiment.
Real or perceived, there is the sense that anti-visitor feeling here has grown stronger. This issue isn’t going away, and while there’s no real alternative to tourism in the short-term, the idea remains in many people’s minds. And with the governor calling “Bulls***” on vacation rental owners, it is easy to see just how pervasive this attitude can be.
4. Problems in Hawaii including sorely lacking infrastructure and more.
The state’s challenges follow over six decades of rapidly growing non-stop tourism. That growth came with not enough planning, infrastructure, or fiscal management. You need look no further than Hawaii airports, beach parks, and roads to see what’s happened.
5. Negative perceptions are partly based on social media behavior.
Instagram is the ideal platform for sharing Hawaii vacations while connecting with family and friends. But Instagram led to bad behavior in Hawaii. Issues have arisen while seeking the perfect Instagram moment. While there’s no doubt that social media transformed Hawaii travel marketing, it also influenced Hawaii visitors’ behavior and the experiences some seek to share. The quest for the most outrageous content in photos and videos has sometimes resulted in unwanted, self-centered behavior.
6. Hawaii overcharging while underdelivering.
3* Hotels for $500+ per night are an example. One of the most frequent subjects in comments has been cost, especially accommodations. Today, our longtime reader Tom said, “When every destination in Mexico, the Caribbean, and places like the Maldives or Seychelles are more affordable, folks that enjoy the entire experience of those destinations might not return.” Alexander added, “We recently fell in love with Costa Rica, beautiful beaches, reasonably priced hotels (even the 4 and 5-star resorts), warm water, and most of all…….very welcoming people.”
7. Lack of welcome/aloha.
Greg said, “No Aloha! We’ve visited the Islands every year since 1985. Skipped last year due to the messaging and cost. We love and respect the islands but are not willing to go somewhere that we are not wanted.
Wendy added, “There is no Aloha spirit. That is a tourism tagline. We owned a house on Kauai for 50 years! We sold it because I no longer felt comfortable being there.”
Cindy concluded, “My husband and I feel completely unwelcome! We go to Oahu four times a year. We have always planned to move there. After all the comments by the governor, locals quoted in the news stories, and the violent crime rate, we are totally rethinking our future and where we spend our money. We have totally downsized everything and saved constantly to make these trips possible. No Aloha spirit. Just feel completely unwelcome.”
8. Fickle Hawaii does and doesn’t want tourism.
Or, as we already stated, it only wants certain tourism. Last year, Hawaii Tourism Authority awarded a new contract, which started this January, to help attract “mindful and respectful” European visitors. And the governor visited Japan to try to win them back to the islands. HTA said it’s focus is on “increasing per person, per day expenditures.” But now, even HTA has retrenched, saying we need to “stabilize” Hawaii tourism.
9. Current and planned new fees and taxes.
These include a $25 tourism impact fee and new accommodation taxes beyond 18%. Take your pick; one or both will likely come to fruition. Governor Green said about the fee, “We’ll invest it for beach preservation, fire breaks, and other measures.” Some are completely opposed to this while others just have concerns. Long-time commenter Lee said, “I wouldn’t mind paying a $25 impact fee if I thought it would actually go to things like wildfire abatement etc. but I have my doubts about that.”
10. Poor messaging from Hawaii continues.
The concept of curating mindful visitors may be all good and well-meaning. On the other hand, you’ve said repeatedly in comments that it doesn’t come across right most of the time and can lead to the feeling of not being wanted. We also can’t think of one time that the governor has ever expressed any appreciation towards Hawaii visitors. Steve said, “My only other issue is the request to be “mindful”. I always do my best to respect any location we visit, however we travel to get away and relax not to immerse in local culture. If that is a requirement for travel to Hawaii, I’m out.” Lisa added, “I doubt that I will ever voluntarily fill out a Hawaii tourism survey again due to the negative impacts of being preached at about the need for tourists to be ‘mindful,’ wealthy, and preferably Japanese or Canadian and not American.”
West Coast arrivals led the decline.
Arrivals from Hawaii’s far and away top source of revenue, the U.S. West, were down more than 7% from January 2023. This is the first time we have more objective data since Covid (instead of using 2019) with which to compare. Their spending was also down about 5% from January 2023.
East Coast arrivals are fewer but were down 10% compared with January 2023, and Japan arrivals are still challenged. While up 64% compared with a dismal January 2023 number, it remains down 56% compared with before Covid. Spending remains down as well.
What would your first steps be in order to improve visitor numbers if you were in charge of Hawaii Tourism Authority? We can’t wait to hear Mufi’s plan and yours!
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Just recently visited Oahu and stayed in Waikiki for two weeks. The Hotel is outrageously expensive. They advertised lower rate per night, but they don’t tell you the cost of parking fee and resort fees. The total cost for both is almost the same price of nightly stay. I went to Palawan Philippines, recently and I enjoyed it very much. The water is warm and there are so much things to do in regards of island tours. The price is really reasonable. Accomodations is cheaper, with free all you can eat breakfast in the morning. You get more on what you pay. The Airfare from Lax to Philippines is just about couple hundred dollars more, but everything is much more cheaper there. So for me, I rather skip Hawaii and spend my vacation in the Philippines is very safe and people are very welcoming.
Been to Maui a dozen times. Last time the state (Hawaii) made us take a covid booster shot just to visit. You’re the publication that has touched on it. It’s not the fire that frightens visitors away but the response to it. Not turning on the siren, the delayed release of water fire the fire that was up to 5 hours, and police rerouting many vehicles back into the inferno. And the mayor still won’t answer where he was during the fire.
Real Reason 1(For West Maui). The fire. People and politicians did not listen about opening up tourism too soon in West Maui when so many were still under extreme trauma and displaced. Result= Fishing for housing at Ka’anapali, bad experiences, witnessing first hand the devastation and trauma, feeling unwelcome and out of place in general, realizing they were lied to that it was OK to come to West Maui in the first place at that time. Sitting in traffic realizing that everyone is More Trapped Now than before the fire. A looming STR re-organization, Not a Ban, is absolutely Not one of the reasons people are not coming to Hawaii right now. They are All still available for the foreseeable future.
Until the state starts getting serious about the crime, homelessness, drug use, and general pilau attitude of locals regarding tourists (especially the white ones – if you’re brown or Asian you miraculously get a pass), the numbers will continue to fall. Inflation has people watching their budgets closely, and that money goes a lot further somewhere else.
Keanu,
I totally agree with how the locals ate treating tourists.
I am not a tourist to Maui.
I am white( well actually after being there I am brown), this last time being there I was treated rudely quite alot. That has never happened before.
I do need to say also, that there still some very nice locals. I found in the retail stores so many rude workers tiwards who they thought were white tourists.
I am soeaking of the non touristy stores. Just your every day stores.
I’m in Maui now, my 5th overall visit to Hawaii. I find the people incredibly welcoming and hospitable, same as always. The hotel rates on the other hand are astronomical! Resorts wanting at least $750 plus taxes and resort fees is simply unattainable for the average American. We are staying in a quaint studio condo/hotel in Napili with one double bed for $360 per night, but it only sleeps 2. The island is very quiet and landing a restaurant reservation has never been easier. I think the majority of the blame is on the hotel costs. Airfare was incredibly cheap but not enough to counter the hotels and their fees. Speaking of fees, AirBnB and VRBO rentals look affordable on first glance, until you go to checkout and see all the fees too!
Well, the article is accurate on the many reasons why Hawaii tourism is in decline. My two visits a few years prior to the pandemic was underwhelming. Expensive, traffic jams, unpleasant locals ( they are undoubtedly struggling to live in Hawaii themselves). The overcharging and under delivering is all too true. Once we considered moving to Hawaii but high cost and incompetent government at all levels is reducing housing options for most Americans. You vote for fools and you end up with foolishly little.
I live in a country that also has a lot of tourists, and frankly, I hate it. A country that sells itself off just to get money destroys its natural beauty and the spaces for the people who are there all the time. Hawaii is a place for residents – and has other industries – and also has opened up to tourists. It isn’t Just a tourist destination.
I support getting rid of rentals. Like everywhere else in the world, residential holiday rentals have destroyed the real estate market for those who need shelter, which is a human right. There is a balance to achieve here, but putting tourists first isn’t it.
I have been going to Oahu from 2020 thru later 2023 vs other destinations to surf, dive, hike etc. I spent approximately 12 months over the last 4 years there. I left and went to the Philippines. Very little crime outside of Manilla. No taxes no restrictions on Short Term rentals. No resentment from locals. No fees. No government hate to tourists and being forced into run down over priced crowded hotels.
Cots of food and eating out is 70% less than Hawaii. Environmentally it is much more alive. Reefs. Ocean fishing. It is obvious that the government of Hawaii wants do enrich itself at the expense of its residents and tourists while it provides a substandard unsafe product. I have no issue with the people and aloha spirit
We completed a business/vacation combination to Kauai in February 2024. We spent a lot of money on our three teen kids and one child, but we heard at almost all excursions that visitors were ruining the islands. We also heard they all dislike the Co-founder and CEO of Meta (formerly Facebook, Inc.) Mark Zuckerberg. We have this funny feeling that maybe they did not like us either. We will certainly explore other tropical destinations mentioned.
In all the article is spot on.
I’ve been coming to the islands every year since the early 90’s for business and pleasure. So having worked with people that live there I understand where the locals are coming from.
At least for the short term rental problem, I would put a large part of the blame on Hawaii’s own governments from the state to the local level. Hawaii is not the only place on the planet with the problems of non local individuals and corporations buying up real estate and driving locals out of the market. Beautiful places across the globe are feeling the impact of being too popular so Hawaii’s leaders need to stop blaming and start looking at how others are solving the same problems.
When folks talk about “outsiders” coming in and buying up properties I remember that it was locals who first sold off to them.
Since back when covid began, the messaging from Hawaii has seemed to be, “Send money, stay home.” If Hawaii wants us back, they’re going to have to treat us like they want us there rather than just wanting us to send them our money.
It sounds like part of the problem is that all visitors are being tarred with the same brush. I haven’t been to Hawaii for many years, but when I do go it’s not to lie on the beach (I can sit on my butt at home, for free) — it’s to experience things that aren’t available elsewhere. For example, I’m a World War II history buff, and there is a lot of military history available on the islands. That’s what I go for.
Of course, I can also echo all the other comments about high prices. A complete lack of mid-level lodging (such as Hampton Inn, which finally opened in Ewa a decade or so ago) betrays a lack of understanding of who’s visiting.
This article is spot on. Long time visitor and go for the nature and outdoor beauty….not the resorts. The options and attitude has been severely limited and negative to anyone except the high end 1000 per night resort dweller. Camping fees have gone up 10x….segregation between residents and visitors fees. Parking for everything….not to mention the other taxes.
How would Hawaii residents coming to California like being charged 2-3X the fee to enter any California state park? Or yelled at to get out of our state? It would make headlines…yet perfectly “equitable” and fine in Hawaii.
I can go pretty much anywhere in the pacific….for less and have a better time….hawaii has simply turned toxic!
This is spot on… I really became frustrated with the whole situation when laws were passed that charged visitors, but not residents for access to the same areas and charging for everything they possibly can. And on top of all of that, the toxic dynamic that Green is creating from all of his comments about visitors from the US mainland (not Canada, he loves them).
The other thing I love is when Bissen and residents make comments regarding visitors treating Hawaii like Disney… so pathetic, they are the ones turning Hawaii into Disney with all the fees and the pay to play attitude. Not to mention all the finger pointing and blaming visitors for everything that goes wrong, what a joke, take some accountability.
I just returned from a six day trip on Maui. We stayed at the Marriott in Wailea. We had an excellent experience. We felt very welcome and the service. Everywhere was excellent. I saw no evidence of rude behavior from any tourists . We were told of rude and disrespectful behavior from one bartender at the Ritz Carlton. However, we saw no evidence of that at all. Unfortunately, a few ruin it for the many and that becomes a big issue with the press. Molly is still a beautiful and relaxing place. I am looking forward to going back to Maui again in February.
I found out the hard way there is no “Aloha Law” in Hawaii. Upon arriving I Kauai to backpack, I was not allowed to purchase gasoline for my campstove at a gas station near the trailhead. Then on the Big Island, I was not allowed to take a photograph of a historical photograph on the wall of the visitor center on Kohala coast. I sent in a written request and was refused and even threatened by the police there.
The people that claim that Aloha is gone are mistaken, You know you get what you put out. If you fly Hawaiian Airlines you get all the Aloha you can handle. As far as the Gov is concerned he is killing Hawaii slowly. He needs to be voted out quickly before he destroys Hawaii for good. We’ve had our place in Maui now for 12 years and the Aloha is the same as when I first visited 23 years ago. I’ve lived & been all over the world and
I’ve felt more at home and welcome in Maui, Kuai, & Hawaii than anywhere. So all of the people that are saying no Aloha take a look in the mirror see if your giving Aloha.