Hawaii is fast running out of places to turn to help bridge the gap in areas of its struggling tourism industry. With visitor numbers down and economic concerns fast mounting, state officials are squarely focused on what California travelers it can find.
The shift we discussed earlier came after multiple tourism setbacks, particularly on Maui, where businesses continue to struggle in the wake of the 2023 wildfires. Read: Hawaii Emergency Funds Court SF and LA Visitors.
At the same time, Hawaii has seen a dramatic decline in one of the two focus areas it sought to bolster: high-spending visitors from Los Angeles, many of whom were affected by devastating wildfires in affluent areas like Pacific Palisades and Pasadena.
The state’s last hope appears to be the other demographic in its plans, Bay Area travelers who can hopefully help fill the gap.
Maui needs to counter cheap European airfares from the Bay Area.
Round-trip flights to Europe from San Francisco are often now priced similarly to those to Hawaii. This unexpected price shift has made highly competitive international destinations a more appealing alternative for Bay Area travelers than Hawaii. And once they land in Europe, the price difference can be even more stark. Many are accustomed to global travel and increasingly question whether Maui offers better value than other destinations.
Commenter Mike said, “We just checked the rental we usually stay in at Kapalua… it is renting for almost twice what we paid two years ago. Europe is a lot cheaper. This year we are going to London and Edinburgh. As much as we love Hawaii, we just can’t put up with the ridiculous cost increases.”
Even before the Lahaina fire, Maui’s lack of affordability, as expressed above, was a growing concern. Unlike Oahu, which offers a greater mix of accommodations at various price points, Maui’s inventory remains more heavily concentrated towards the high-end. With budget-friendly alternatives available yet more limited, some visitors are opting for destinations where they perceive their travel dollars stretch further.
The stubborn price factor of Maui hotels.
A comparison of hotel pricing highlights the growing issue. While a four-star hotel in Waikiki might cost around $300 per night, similar accommodations in Maui can exceed double that. This widening price gap is driving some travelers to consider alternative destinations.
Bill B added, “It’s clear what is going on — a 50% rise in rates since 2019, turning an already expensive location entirely unaffordable. In the same amount of time, I can fly to Europe, which is much more affordable… and the locals don’t constantly complain about tourists. I love Hawaii, but can’t afford to travel there anymore.”
The messaging problem continues.
Conflicting calls to reduce tourism and later appeals for visitors have left many unsure if they’re genuinely welcome on Maui. Hawaii’s tourism messaging has been inconsistent, creating uncertainty among potential visitors.
Lingering concerns over past anti-tourism rhetoric, particularly on social media, continue to adversely influence travel decisions. Some travelers express hesitation about returning to Maui, even as officials now encourage responsible tourism. The shift in messaging has been slow to take hold, leading to ongoing confusion about whether Hawaii is actively seeking visitors or still discouraging them.
This perception issue isn’t new. In online discussions, travelers continue referencing past statements that discouraged tourism, demonstrating how long-lasting these messages can be. Overcoming this will require a more cohesive and reassuring communication strategy.
Can California visitors fill the gap?
Southern California is clearly a challenge in terms of Hawaii travel at the moment. Upcoming data will undoubtedly corroborate that. Meanwhile, Northern California visitors, historically among Hawaii’s highest spenders, make that another key market.
However, economic shifts in the region pose new challenges. Tech layoffs, a real estate downturn, and financial uncertainty are leading many there to be more discretionary about luxury travel options. Combined with inflation-driven cost increases, even affluent visitors may rethink luxury Hawaii trips in favor of destinations that offer better value.
At the same time, international tourism—once a major contributor to Maui’s economy—has yet to recover due to a weak currencies and other factors. This has placed additional pressure on Hawaii to attract high-spending visitors from the mainland.
Hawaii’s success in attracting California travelers hinges on offering a compelling alternative to increasingly competitive destinations. With international travel becoming more accessible and arguably more cost-effective, the state will need to highlight unique cultural experiences, exclusive luxury offerings, or other distinct advantages to stand out.
Looking ahead.
Hawaii’s latest push for Bay Area travelers is an effort to stabilize visitor arrivals amid shifting travel trends. While state officials hope this campaign will offset losses from other markets, success will depend on whether travelers see Hawaii as an accessible, welcoming, and worthwhile destination.
Without meaningful adjustments, simply shifting focus to a new market may not be enough to reverse the ongoing tourism downturn. However, with strategic changes, Hawaii can reclaim its position as a top destination for Bay Area travelers and beyond.
We welcome your comments.
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We are owners of a 1 bedroom condo in Kihei
Association costs are 1,100 per month, property taxes 12,000 per year.
How does the Mayor think a small 1 bedroom apartment with those condo fees would be suitable for a family?
The housing crisis has been going on for years why did they not use the taxes that have been collected to build affordable housing for the locals
What happened to the millions of the taxes paid by tourists in the last 30 years
Why don’t the locals wake up and look at their government
Where is their concern with this new plan
I love Hawaii. Over the years I have visited 8-10 times. The last time was 2 years ago and what I fast found the cost of everything has gone way up. The beach front hotels have cut the public off from going to the beach or push you to go to their package to park. They leave about 10 public parking spots which are never empty. Other areas charge to even go on to their property even if you’re just going to their store to spend money. Accommodations are way too high for the average family. Everything there is about money. You have pushed people away by your greed.
Love Hawaii but Maui always seems like the stuff I don’t like about the other island all rolled into one.
It was trendy for a bit amongst the west coast folks, but these days I hear more excitement from folks returning from Kauai, big island, and even Molokai’i.
Maui feels so suburban/Disney/sprawl I hate to say.
Would love to go to Maui. How about some decent non-stop flights from Phoenix?
Flights to Maui, from California, are 100%+ more this year compared to 2024. Fuel costs are lower this year. What is going on? Mexico is looking like a steal!
Maui told us loud and clear that they didn’t want us, that we were not not welcome and that we were the cause of their problems. We heard you loud and clear. Now we go where we are wanted and appreciated for what we bring. We will not be back.
Hawaii counties have been significantly suppressing small BnB entrepreneurs for a few years. Accordingly, few lodging alternatives exist in Hawaii anymore – to the delight of the hotel industry.
Additionally, Hawaii state/ county/ businesses have extensively been cutting down mature trees (especially fruit trees – allegedly trying to deter homelessness). These short sighted policies also contribute to Hawaii tourists being disappointed – and seeking other destinations.
Fiji has been pushing their new non-stop from DFW. The price isn’t much higher than a flight to Hawaii and prices in Fiji (hotels, food, etc) are much less. Hawaii’s a special place, but there’s plenty of competition for tourist dollars. As credit cards are maxed out, those left who can take a vacation and aren’t millionaires will be looking for value.
I totally understand why tourism is off. They need to figure out how they want it. They want tourism, they don’t want tourism, they want tourism, they don’t want it. A good example is what they are doing with STRs. Making it harder to rent. And of course the price of everything is going crazy.
We used to go to Maui 2 or 3 times a year. But there are many other places now that are more affordable and appreciate tourism. So we have been going there instead.
Its going to take a major attitude change and a bunch of time.
After looking again,again,again and such wouldn’t the result lead you back to square one? Try promoting affordable airfare and 50%off hotel rates and free parking and see how that works. Doing the same actions and expecting different results never works. Sooner or later tourists will just loose hope. Residents will have to jump ship before the darn thing sinks. Round and round there she goes where she stops nobody knows. Hawaii is like spinning the bottle.
OK , this is my thoughts. I studied and discovered Hawaii islands in 1965 and fell in love through National Geographics. Saved money, went to Islands, fell in love with Maui. Saved and re-visited isles every 3-5 years since 70’s. I would cry every time I left. 2022-2024, I literally had to read social media posts to be positive it was safe and welcoming to go to Maui. It took so much research, and worrying, that it lost its luster with the negative stay away posts. I had 3 losses in 2024 that made me so depressed. A parent, a sibling, and the loss of my ongoing love for Maui. I thought I would actually die there some day. Instead Maui died in its own sand. The overcrowding of tourism damaged all the trails and changed the look of everything. Sadly, the loss of Lahaina really hurt me and of course the locals. I can’t bear to drive even the by pass. And until the locals can get proper housing to live comfortably, I do not want to add myself to the mix. It’s too sad.
Hawaii, you wanted to get rid of the middle class American visitors, and it looks like you did. Mission accomplished. I hope you like the results.
Yes, this! 100% Had several family members who would go yearly and now don’t want the attitude or high costs and so they go else where. My husband and I switched to Kauai and Kona years ago and now are considering other locations as the value isn’t there.
We are getting major push back from many returning guests wanting to book our STR units on west Maui, their worried about having to scramble for a place to stay should the County decide to implement the ban and close down our business. The county side stepping the issue isn’t helping.
Airbnb is not being phased out. The only thing that’s happening right now is that there is a proposal to stop certain short-term rentals from operating. Just a proposal. This is far from a done deal, and is unlikely to happen any time soon.
Even if the proposal were to be approved, Airbnb will still be on Maui. There are thousands of other short-term rentals that aren’t included and/or affected by the proposal.
Wait, you mean having a vocal minority being racist and making all kinds of noises about driving tourists out of the state is having a negative effect on tourism? Who would have thought? And having a “locals only” attitude that permeates the local government contributes to a downturn in tourism? I’m shocked. Shocked I tell you. Here is a tip for you. If the majority of your economy is based on tourism, and you have almost no other economy outside of that, it is probably best to encourage tourism, instead of letting that very vocal group of people who don’t understand economics make these kinds of decisions for you.
Does Maui still think that blue collar tourists are exploiting the island? That’s what the mayor said. So the $8000 bucks that I used to spend on my Hawaii vacations just wasn’t enough? Don’t worry I won’t be exploiting the islands anymore. There are plenty of interesting places to visit for $8k. I used to recommend visiting Hawaii to all of my customers. At least a few of them actually did. Not anymore. I tell them to wait untill y’all figure out whether you want them or not.
Hawaii, with its breathtaking landscapes and rich culture, has long been a paradise for visitors and residents. However, for those who call this beautiful place home, there’s a persistent undercurrent of struggle that often goes unnoticed by tourists. After 33 years of living here, I’ve witnessed firsthand the impact the hospitality demands place on the local community. Every day, countless residents rise with the sun, juggling responsibilities of family life while donning a cheerful facade to welcome visitors. This daily ritual entails a significant sacrifice, as many locals work multiple jobs, trying to get from point A to B but never truly getting ahead. The aloha spirit can sometimes seem strained under the weight of such relentless pressure. If you’ve ever felt that aloha spirit fading during your visit, I encourage you to consider the perspective of those serving you. They are not just servers; they are extremely valuable parents, friends, and community members.
Thank you for take on why local residents and tourism workers have the behaviors and attitudes they do. The issue, though, is that your explanation also applies to every single resort destination in the world. Yet, other destinations seem to be able to balance their occasional frustrations with what feels like a genuine, inclusive welcoming of visitors. I talk to them wherever I go, and other residents who share their land with visitors really seem to Like visitors. Some of their families have been in the tourism industry for generations. They love what they do, and I can feel it.
The opposite is true here on Maui. That either needs to change, or Maui needs to get out of the tourism business altogether, as to be in the tourism business requires a genuine love of people. People of all nationalities, races, and income levels. People other than themselves.
I’m unsure if you’ve travelled to tourist destinations such as Greece, Spain, Portugal, Italy, but the locals in these countries feel very much like the locals in Hawaii. They’ve lost their communities to tourism and are not happy about it. They can’t afford to live in the area where they were born.
But those places often have alternative industries. Spain, for example, has a thriving technology scene.
Hawaii has nothing except for tourism. Agriculture is a miniscule percentage of the economy and the number of farms on the islands continues to decline.
It’s fine to want to diversify the economy. It is awesome really. But you diversify First, then divest of the “problematic” tourism industry.
Oh, and good luck finding a new industry that is as beneficial and low impact as tourism. I guess we could build chemical refineries, heavy industrial manufacturing or maybe build a toxic waste mitigation industry by importing hazardous materials from elsewhere…….
Tourism is terrible, except when you compare it with nearly every other industry that man has developed from time to time. Most parts of the country that have diversified economies based on resource extraction, processing or blue collar labor would Kill to have a tourism industry like Hawaii’s.
Tim, I understand your statement, being a midwest baby boomer, Everyone I know including my whole family, had to get up very early and work later and work very hard. I have had 3 jobs. In our era, you had to work work hard, and smile. I was raised to get back up and quit whining. We all had to wear a mask of false pravdo during our working years to keep our jobs of many forms. I don’t blame the Aloha Spirit to be thinned out. We have a huge population and it continues to grow without birth control. Mainlanders should be aware if they move to islands, they must fill the shoes of the locals. The new generation does not know how to work as hard as us.
Unfortunately that situation plays out in many places not just Hawaii. Replacing a tourism industry with something else is very difficult, and results in income loss for those who need it most. Very few places have been able to pull that off. As government revenues fall, services reduce , infrastructure deteriates and locals have to live with less. The very wealthy will be fine and probably scoop up more assets. Show a place that stopped tourism and raised there standard of living without government handouts.
Personally we prefer Airbnb so we can have 2 or even 2.5/3 bedrooms. A hotel room is inconvenient for a family. But with airbnb being phased out, it’s not likely we will go back to Maui. We used to go every year.
Your point about ‘aloha’ is interesting. Can you force someone to live and share it with others? No, yet that spirit has made Hawaii stand out from other vacation choices. Ignorant, uninterested tourists aside-a real problem, no matter the income level-Maui needs to decide, I think, what kind of visitor it wants -and can support through its infrastructure & workforce. Right now, it is not remotely competitive to other destinations as many have shared. Yet if it differentiated its charms beyond price, it might compete despite the costs…i.e., most can’t justify (more than once in a lifetime) a family of four at a Luau of three hours paying $1,000+. Yes, that’s what it costs, maybe $700 for the cheapest ones. That’s not sustainable – unless you seek mythical (or real?) ‘high rollers’ with disposable income at the top of society in America & rest of world. Their numbers are shrinking. Without the Aloha spirit to sway traveler choices, the rich will soon be Maui’s only visitors.
One just has to laugh at all of this. Now Hawaii wants tourism? Now having troubles? Hawaii made itself loud and clear that tourism isn’t wanted. Etspecially from locals and the cities thar were banning or restricting rentals as an option. Resorts continue to expand. Not certain why rentals were a threat. Locals, in general, are not welcoming of tourists. These locals are servers and hotel workers. The anti aloha is made clear. It isn’t just the expense of going to Hawaii, it is the lack of aloha and the ignorance that tourists do not respect the Hawaiian culture and language, just because they spent the day at a mall. Get a new tourism board. Look to the 60s to market the core attractions of the beautiful islands. I have a part time home there and always hate to leave. There is aloha, but one must hunt for it.
Fascinating and very sad discussion. I’ve been a fan and advocate of Maui and its neighbor islands as destinations for several decades now, and I’m seeing the end of the “let’s just go to Hawaii instead” vacation. Is that what Hawaiians want? If so, that’s fine, it’s your right.
I first traveled there for business, seeing for myself how beautiful the principal islands were, how welcoming to tourists, especially families. My family and I began what became around 30 trips together there from the Pacific NW in 1995. It was fun & educational to visit, explore its oceans and mountains, embrace and understand the Aloha spirit and culture, even wrestle with its admittedly troubled history – i.e., eventual absorption (ok, it was stealing, period, let’s be honest) by the US.
Any political issues – right or wrong – aside, I believe the situation now is dire for Hawaii. Maui in particular seems to have drawn a line in the sand that only the very wealthiest will be able to cross.
Our group of 12 just booked a villa on the beach in Mexico for less than half the cost for Hawaii, airfares are cheaper and not as long a flight.
We stopped going to Hawaii a few years ago from the Bay Area as on our last two visits the cost of hotels and restaurants was not worth it. Most restaurants are understaffed, not well managed and in need of renovations, but insanely expensive. Hotels cost twice what you would pay in some of Europe’s most beautiful destinations. On top of that, there is a very anti-tourist vibe (more than anywhere in Europe) and an expectation that you should be doing community service on your vacation. Took a beautiful beach vacation to Italy and Croatia last year for less than our last trip to Hawaii.
Timeshare in Kahana books it’s excess capacity for a week at $2,285 for a modest two bedroom.
I see Californian’s staying closer to home to save on a rental car and round trip air travel as regular expanses have gone up so much.
If Lahaina can gets it harbor rebuilt in any from government grants and the big hotel chains, that would really help for more ocean excursions. I think that would be a great first step to rebuilding the frontage of Lahaina, getting more local jobs in the water back.
Mala Harbour should be for the locals being public boat ramp.
Over the years I’ve been to Maui a few times. mostly during high school sports and being the away visitors. Back then (mid 70’s) Maui really fit the description of “Outer island”. Known for nothing much but agriculture and “Maui Wowie”. Beautiful place but the island never really did much for me. Molokai was my favorite outside of my home island of Oahu (we had a McDonalds!!!). As for Maui’s current problems? “Ye shall reap as ye sows” probably fits best here.
Best Regards.
Without vacation rentals on Maui the hotels have the monopoly and are having their way. And those profit dollars leave Hawaii’s economy. How’s this strategy working out?
What are you talking about? All short-term rentals are bookable and operating as normal. This kind of messaging isn’t helping.
Seems like to get more visitors airlines, hotels, car rentals just need to lower their prices until tourism picks up again and shouldn’t care where they come from. Supply and demand?
If officials really want tourism to pick up, they should be advertising affordable packages and such otherwise people will look for more affordable destinations.
They wanted visitors to stay away and now they are reaping what they wanted.
When you charge visitors 18% for accommodation fees, a possible tourists’ entry tax, and for all sorts of other (park entrance etc) things, but not the locals, you are really saying don’t come, we don’t want you. Oh, but if you do, bring your hard-earned savings we will be happy to take that.
The hotels, by increasing their prices, are also saying we only want the wealthy and screw the “average guy”.
They wonder why people are finding equally nice places to vacation at a much more affordable cost.
Hawaii has been “cutting off their nose to spite their face” for several years now.
Until true “Aloha” is restored there will be a decline in visitors aka revenue.
The elephant in the room is the STR ban, guests are reluctant to book their favorite condo’s with the looming shut down approaching. Our booking are off 50% or more. Those guests aren’t going to book a hotel room, that’s not the way they travel. Our bookings are off 50%, some owners are dropping the price of their units by half just to get some rentals. It’s a tough market on West Maui.
There is no “looming shutdown approaching”. There is no shutdown happening any time soon. The first reading of any proposals hasn’t even been heard by council yet. It will be a long road to any kind of decision, and even then, lawsuits and injunctions filed to keep STRs open if there is an attempt to remove property rights.
I see you are an owner or a host…You are shooting yourself in the foot with your own messaging.
The fact is word has reached travelers that Maui is having issues with STR therefore people are looking elsewhere and what they’ve discovered are new, very affordable destinations. Whether a shut down happens or not, the negative publicity is out there.
I don’t think J is shooting themselves in the foot.. it’s not their messaging but the County of Maui and a contingent of vocal locals. Btw, I’m an owner and J is just being realistic in assessing why bookings are low. If tourists know a ban is looming despite injunctions, why cause stress in the possibility of having to scramble for accommodations with the only option of high price hotels when you can book elsewhere stress free. Put the blame where it’s due, with the county!
Hawaii did this downturn of visitors themselves. With threatening to do away with Short term rentals which made it affordable to stay in Hawaii, and all of the negative comments made to tourists about not wanting us there, it is no wonder no one wants to come anymore. It will take a long time for tourists to want to come back after all the negativity that was given. Plus the expense of getting to Hawaii and staying there is making it even more difficult to bring the tourists back. Hawaii has a lot of changing and figuring things out before they see an increase of tourists!!!
Never again staying in a Hawaii hotel, too expensive. Will only stay in a condo rental so have a kitchen to use. Really like Maui, but their proposed treatment on rentals is a disgrace. In January spent 2.5 weeks in Waikiki condo and enjoyed it. Hawaii needs to be consistent in messaging if they want visitors or not. Maui message is emphatic No.
Maui is cannibalizing itself and the rest of the islands will suffer the same fate eventually if it continues on this course. The costs are simply astronomically high for no good reason. It’s bad enough they charge a ridiculous resort fee at most places but the daily parking is what really sets it over the top for me. When you factor in the resort fees and parking fees it comes out to usually $100+ per night in addition to your standard room rate and then there’s the exorbitant taxes.
It’s all just a bit much and the tourists are fed up. I personally have zero desire to ever go back to Maui. I guess that’s what the locals want anyway right? Careful what you ask for…
I’d recommend to market to Canadians, but King Manoanoa pretty much killed that possibility.