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Decline In Hawaii Tourism Starts According To State

July 8, 2022 by Beat of Hawaii 218 Comments

Decline In Hawaii Tourism Starts According To State

The signs have been on the wall for some time. The state has openly wanted it, and the islands concur; Hawaii needs less tourism to attain balance and sustainability. And the universe is responding to that request, which in the end, may not be exactly what Hawaii wanted after all. Time will tell.

Hawaii has been blessed with return visitors, more so than most destinations. In fact, during the first three months of 2022, it’s estimated that 75% of all visitors were returning rather than new. But that will change, and Hawaii will find itself in a highly competitive environment, unlike any time before. We discussed it well before the latest report came out: Why Hawaii’s Repeat Visitors Aren’t Returning – Does Anyone Care?

It is being reported now that this trend is already leading to fewer bookings, which in turn could also have side benefits for future visitors. The no-price-is-too-high plan for Hawaii accommodations, for example, looks like it is on the precipice of collapse. Much more reasonable rates may be returning.

BOH: We expect Hawaii accommodation prices to drop approximately 25% between now and this fall.

The state’s latest Visitor Satisfaction Survey was just released.

Data collected was from nearly 4,000 visitors between January and April 2022. Here are the takeaways and what we can expect going forward. You can also read the report below.

1. Hawaii visitors remain satisfied overall with their experience. In fact, about 90% both rated their Hawaii vacations as excellent and will recommend a Hawaii vacation to others. About half said that their trip exceeded their expectations. But, nonetheless, they’ll be returning in fewer numbers.

2. Cost is the number one reason Hawaii visitors won’t be coming back, as costs rose about 16% between 2021 and 2022. And we think that’s lower than reality. Adding to the dilemma are increased accommodations taxes (which are up 3% compared with last year), and ridiculously high car rental charges, too. Also, by way of annoyance, parking at Hawaii hotels has gone to as much as $65 per night, which we’ve never seen previously. Hawaii has had the most significant increase in cost compared with other worldwide visitor destinations. That’s followed by the perception of a lack of value, overcrowding, and other factors.

3. Post pandemic shutdown, visitors are more desirous than ever to visit new places. Combine that with the lack of an economic paradigm here in Hawaii, and a Europe, Asia, Caribbean, Mexico, or Australia vacation looks pretty good to many. While Hawaii vacations looked like a safe and sane bet a few months ago, international travel is on a rapid rebound pace. In fact, while Hawaii travel begins to wane, Europe is about to exceed all prior visitor numbers.

4. West Coast visitor return intentions dropped by 4.1% to 82.2% compared with visitors surveyed last year. In this annual study, this was the lowest return intention since 2016. East coast visitors are even less likely to return,  -6.6% to 66.6%.

Do you concur with the survey results? We look forward to your input.

2022_q1_dbedt_vsat-report-final

 

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Filed Under: Hawaii Travel News

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Comments

  1. Mitch C says

    November 19, 2022 at 5:48 am

    Not sure I want to visit somewhere I’m hated because of what other people did a hundred and twenty years ago. They appreciate continental Americans in the Caribbeans, it seems, rather than hate them for what other people did like they do in Hawaii.

    Reply
  2. Ernie S. says

    August 9, 2022 at 10:06 am

    With less tourism coming from the mainland in coming months and the lack of repeat visitors the dependence on Japan and Asian markets will be needed, but will they? Recession and Inflation has Japan belt tightening and Asia the same, will they loosen their belts to splurge on Hawaii or mostly stay put? No one knew that anything could rival Covid, but will this be the next death knell to Hawaiian Businesses at a time that they were making a comeback, only time will tell. As I have heard it told many times, watch what you ask for you might just get it. Maybe You Shall!

    Reply
  3. Joe B says

    July 20, 2022 at 5:21 am

    Let Hawaii tourism die, the tourist market’s have been gouging tourist for decades thinking that the fools with their money will keep coming.
    It’s time to spend your traveling dollar elsewhere.

    2
    Reply
    • Ernie S. says

      August 9, 2022 at 10:21 am

      My feelings are truly mixed, we love Hawaii. That being said, the sentiments conveyed by Hawaiians have been received and loom large over any future trips. We have enough memories but had hoped to make more, it may not be Hawaii but some other amazing island where we are wanted, appreciated and more. Maybe an excursion across the Atlantic or Asian Paradise awaits, so much to choose from. Hawaii is a “place” like some others we’ve been to, believe it or not but you’re not so exclusive. We can vacation more often if we leave out Hawaii, money goes much further elsewhere. No one trying to pilfer through fees, taxes and everything else like Hawaii, in that respect you’re not even close to the perfect destination. Maybe some day you’ll grow up!

      2
      Reply
  4. Ernie S. says

    July 18, 2022 at 2:17 pm

    Hi Pat G, you are partially correct. Council on Oahu, soon to an Island where you live, keep increasing the minimum number of days you are able to rent your property as well as the maximum number of times. Currently they want 90 days minimum rental and can only rent it for 2 90 day periods per year, that will eventually decrease knowing them and their motives. It’s an Abusive Situation effecting only this type of rental. It doesn’t effect Hotels/Motels/Resorts, then again when does it ever? Unfair and very Unjust, time for significant changes in what Edicts Council can effect without Recourse.

    1
    Reply
  5. Ernie S. says

    July 18, 2022 at 2:05 pm

    Hi Eric, the cost of living is going crazy everywhere and Hawaii is considerably more than anywhere. I can’t imagine living there! Where is all of the money going? Residents are paying sky high taxes, but why? This is what everyone should be demanding to know, recently I’ve seen where Elected Officials have been going to prison for schemes and bribes, it’s time that they all do. No more donating the bribes and staying out of jail and in Office. Accountability 360°, do the crime and Time. Stop electing thieves! Demand Better.

    Reply
  6. Ernie S. says

    July 18, 2022 at 1:53 pm

    Hi Karen S, what will eventually start out as 1 or 2 lawsuits will probably be continued with additional ones. Council has been running roughshod over a certain segment of rentals and not doing so for any others, times will hopefully be changing. Requiring a minimum, and unrealistic, number of days rental agreement and limits on how many times per year are ridiculous and a severe restriction on the owners of rental properties. Hopefully the Court’s can give reasonable relief and Admonish local Government. They are doing nothing to help out residents.

    Reply
  7. Ernie S. says

    July 18, 2022 at 1:43 pm

    Hi Pat G, very interesting observations that you have made and yet Tourists somehow will be blamed for the Majority of problems. I believe that some Tourists are to blame for contributing to the existing problems without any doubt. The sheer numbers make it easier to see how an occasional problem could easily, and quickly multiply in places. When the problems are homegrown all too often assigning blame to other’s is just subterfuge and Diverting attention, such a shame. Everyone should take responsibility and clean up after themselves. Thank You.

    Reply
  8. PegM says

    July 14, 2022 at 4:46 pm

    Looked like they didn’t get enough people in the seats.

    Reply
  9. Bruce W. says

    July 14, 2022 at 11:42 am

    We looked forward to returning to Kauai after 6 years. The biggest shock were the fees being charged by state parks ($10 per vehicle and $5 per person) and the need to reserve a spot at Ke’e Beach just so you can walk along the Na Pali coast. It turns out the reserved spots had been taken within minutes of their being made available! So how are you suppoded to get to enjoy that area?? Besides, the whole reservation system seems ridiculous. It was never needed before the pandemic. So much for welcoming tourists back to Hawaii.

    2
    Reply
  10. Jim M says

    July 11, 2022 at 2:30 pm

    We Love Hawaii. My wife and I fell in love with Kauai on our first visit in 2008. We made it a retirement goal, purchased a small condo in Lihue when the kids moved out and moved here this year. We love it here!

    However the costs associated with a family vacation to Hawaii have gotten to the point that many will go elsewhere.

    A two week cruise can cost less than a vacation in Hawaii, for the near future. Last minute cruise deals include balcony rooms for $100 a day per person with all the taxes, tips and fees. Add on’s for beverages and it’s around $300 a day per couple.

    We were going to island hop this winter, instead we’re headed to New Zealand for the same cost.

    Hawaii tourism stakeholders must beware.

    10
    Reply
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