State data is now in regarding June travel, and it is telltale. Reading between the lines provides even more insight into what’s really happening here in Hawaii.
First, the numbers. Visit0r arrivals from the most important West Coast are still down 4.5% compared with June 2021, although the Eastern U.S. secondary market was up 3.9%. That downturn is a result of economic concerns primarily. But we’d say there’s more to it than that.
Beat of Hawaii friend Jerry Gibson, president of the Hawaii Hotel Alliance (who your editors know from when he lived on Kauai), was quoted as saying, “I don’t see any shining stars throughout the next months. The festive season (Dec. 23 to Jan. 3) will always be strong. The rest of the year is softer than I expected.”
Frequently out-of-touch and controversial Hawaii Tourism Authority said, “Our current visitors are spending substantially more on their Hawaii trip, counter to the misperception that we are seeing a lower-spending, budget traveler. Even with these higher-spending visitors, we must continue our efforts in destination management to ensure the balance of economic benefits with environmental and community well-being.”
What’s troubling in Hawaii?
Problem 1: The demise of a high-value but reasonably priced Hawaii vacation.
Visitors from the crucial West Coast spent $963.3 million in June, which was up a whopping 39.4% compared with pre-pandemic June 2019. Those from the Eastern U.S. spent $662.5 million, up 34.9% compared with June 2019.
A nearly 40% jump in the cost of a Hawaii vacation is not sustainable. One of Hawaii’s raison d’etre has always been offering a high-value, moderately priced, exotic yet domestic vacation. Is Hawaii really prepared for something else if that paradigm is entirely out the window?
Problem 2: No marketing agency to help guide Hawaii tourism.
HVCB (Hawaii Visitor And Convention Bureau) was booted out unceremoniously several months ago. The state’s Hawaii Tourism Authority gave most of the marketing role to the Council for Native Hawaiian Advancement. But that has resulted in the now-disputed conflict as to who will be ultimately in charge of Hawaii tourism marketing. Their firing is being protested by HVCB, which was extended a short-term 90-day contract for marketing that ends in September. In the meantime, their marketing efforts have largely been scrapped as the dispute marches toward the courts.
Problem 3: Hawaii Forward bookings hit the skids.
It is already widely reported that the forward booking pace is crawling for the late summer and fall seasons. The holidays are always strong, but after that, we don’t see great signs ahead and 2023 looks to be a highly competitive, problematic travel environment with many Hawaii visitors instead opting for long-on-hold international destinations. And while slowing tourism to some degree may be desirable, a free fall would not be. Remember that tourism is far and away the largest income driver in Hawaii, producing hundreds of thousands of jobs and billions in tax revenue.
Problem 4: Overtourism challenges resulting in traffic, flight delays, airport jams, and lack of availability.Â
Maui is soaring to numbers not seen since Covid. There were nearly 300k visitors last month, the highest in 2 1/2 years. But when it is widely reported that Maui airport features lines up to 3 hours long, that doesn’t bode well for returning visitors. Maui is also intent on reducing tourism and has in mind to find ways to limit it to a fraction of the current numbers.
But challenges are bigger than that and impact all the islands. Traffic has been worse than in years, while lack of staffing results in unexpected availability at places throughout the islands. The airlines have their own set of issues, but arrive early, and pack patience when traveling.
Problem 5: Anti-tourism sentiment continues, at least for now.Â
There’s one thing about this. So long as there is too much tourism, this feeling will continue. But likely, as soon as there is a big drop in Hawaii tourism, which seems possible and even likely going forward, that sentiment could shift on a dime.
How Hawaii manages tourism is still complicated and clearly a work in process.
Hawaii seeks to move to a more sustainable form of tourism. Yet how that will evolve isn’t yet clear.
One issue is visitor-only or green fees. See Controversial Haena State Park controls topic of Peter Greenberg show. New controls and increased visitor fees are also in effect at Hanauma Bay, and Diamond Head, among others. These are spreading throughout the islands at the county and state levels.
Agree that 40% increase is not sustainable. I was a frequent Hawaii visitor to the point residents joked that I was a “resident tourist” but I have not visited in a couple of years now due to the high cost.
We just returned from Maui a few weeks ago. We’ve been to Hawaii 5 or 6 times but not since 2019. Prices everywhere were pretty high but we didn’t give $1 to a resort or hotel. They are a total ripoff. Rented a condo, right on the beach. Free parking, no nonsense. We ate at only local places in Kihei. They were awesome. Rental cars are a necessary evil and ridiculously priced and taxed. Flights were packed but “affordable”. The locals in Kihei were welcoming. Elsewhere, especially in resort areas, not so much so we stayed away from spending any money there. But overall we noticed fewer “alohas” and “mahalos” than previous visits and Maui felt less special. Makena Big Beach was still the star, not crowded and beautiful, one of the best beaches in the world. The book your State park in advance nonsense for Aio Valley was lame, and the full loop past Hana is not open, also a pain. I think we prefer now the Big Island, loved our trip there in 2019.
I have a question. Mary S. mentioned 3 daily destination fees (taxes). Are these fees Gov. Green’s way of getting around not being allowed to charge his $50 fee or are these something different?
Hi Sheryl.
There are no new taxes. Just those you already know. The ones that say destination are discretionary ones the hotel is inventing.
Aloha.
Kenneth R, in the long run if nothing improves, it will be You losing. Did you ever imagine when you bought into your Timeshare that the day might come when tourists might not want to come to Hawaii? That Your Timeshare might lose appeal and value to others, all caused by the industry and Hawaiian Government? The potential for many things to occur, or not, is there. It’s not your fault, You are a Consumer, if things go sideways, or before, contacting the Consumer Protection Agency could be a prudent move. Enjoy your vacations somewhere else!
Guys, would the Hotels and Resorts actually do something like making up and collecting destination fees? Isn’t that like saying that they are gouging tourists just because they can? Next thing you’ll be telling me is that across from the police department the Elite have been running Big Money Political Donation Parties to Buy Future and Present Political Favors. Guys, Hawaii isn’t Chicago or New York of the 60’s, is it?
High Value? Where’s that coming from? Haven’t seen anything but the High Prices so far! Simply being in Hawaii isn’t a “Value” despite its Beauty, sorry it doesn’t qualify. Value would represent “Savings” and Other similar Ideals that show Discounts and other Benefits like these Examples. High Value for High Prices, Hawaii is only Half Way There, Show Tourists where the High Value Is! Currently there is only a Motto/Mantra/Catch Phrase without Any Sense of Value. Don’t even mention those coupon books!
Prices are to high here to say the least. As time share owners, this is our 4th visit to the islands. Unfortunately, we are considering going somewhere else next trip. We been avoiding restaurants etc., because of inflated prices. So, who loses in the end.
I have been a timeshare owner for about 20 years and plan on continuing to come every year. The yearly dues have unfortunately more than doubled. I will leave my timeshare to my kids as there is not much resell value. But Hawaii is my home away from home.
The numbers don’t lie and Hawaiians will be receiving their long awaited presents after Christmas the way things are looking. What some scoffed at may just scoff back, a severe drop off in Tourism! With a stroke of a pen the 3% cap on property tax increases will be gone leaving everyone exposed to paying much higher. Jobs gone, businesses gone, traffic lighter, poverty UP. All of this is possible soon thanks to Hawaiians! Great Job if it occurs, if not too bad. Seeing Hawaiians picking up after themselves would have been fun. Watching them push ahead in the Food Kitchen line would have been insulting to their precious Houseless counterparts. What will Hawaiians do for an encore? Beg for Tourism to come back? Not on Your Terms or Prices!