Hawaii tourism has long been and remains the state’s economic engine, drawing visitors worldwide to our iconic tropical destination, with pristine beaches, luxury hotels, and vibrant culture. But behind the scenes, the workers who make this paradise run efficiently are in a crisis threatening the entire industry.
As Hawaii grapples with it, more hotel workers are forced to live in unthinkable conditions, including shipping containers, a stark and alarming reality. It may sound extreme, but with affordable housing options gone, it’s becoming one of the more common solutions.
Hawaii’s housing crisis and its impact on hotel workers.
Sky-high rents and a severe housing shortage have left many hospitality workers with few affordable options. As a result, hotel management across the islands has turned to temporary solutions, including shipping containers, which are now being used to house staff in some areas. This is not an isolated incident but a growing trend that places workers in less-than-ideal living conditions.
Many hotel workers who don’t have the good fortune of multi-generational living opportunities are now living this way. While this is a quick fix, they are anything but a long-term solution. It’s a troubling sign about the state’s lack of affordable housing.
The growing demand for workers.
As Hawaii’s economy recovers post-pandemic, the demand for hospitality workers has skyrocketed. Hotels and resorts are struggling to fill vacancies, and the lack of available housing is compounding the issue. Employers face a tough choice: either provide workers with housing far below acceptable standards or risk losing staff entirely.
While many residents and workers have voiced their frustration, one Facebook commenter summed up the growing sentiment: “The housing crisis isn’t just about the workers; it’s about the overall stability of the tourism economy.” As the housing shortage deepens, some hotels may be forced to scale back operations due to a lack of workers, further harming the industry’s recovery efforts.
The domino effect on Hawaii’s tourism economy.
When workers face challenging living conditions, this can’t help but ultimately impact the Hawaii vacation experience. Hawaii’s tourism industry relies on its hospitality staff’s hard work and dedication. However, when these workers struggle to find housing, it shows in their work performance, and by extension, in the services offered to guests.
The issue isn’t just about worker conditions; it’s about how this housing crisis threatens the quality of service tourists have come to expect. If hotel staff are unhappy or overworked, it could lead to longer wait times, reduced amenities, or negative customer experiences. With fewer workers, hotels may be unable to maintain the high standards that Hawaii’s tourism economy is known for.
1 Hotel Hanalei Bay: A Case Study.
While staying at 1 Hotel Hanalei Bay, Beat of Hawaii editors experienced firsthand how the staff shortage may affect service. While the hotel’s lush environment and luxurious accommodations remain a unique draw, there were clear signs that staff struggles were impacting guest experiences.
Despite the hotel’s reputation for high-end service, certain areas had noticeable delays, and some requests went unaddressed. One example was a 30-minute wait in line for breakfast when empty tables were available but not enough staff.
While at the resort, we also felt that some workers lived on the property, which we later confirmed was true.
This situation isn’t unique to 1 Hotel Hanalei Bay. Still, it is a symbol of broader trends in Hawaii’s tourism industry, where the housing crisis has forced those workers who can even be found into precarious living arrangements that may contribute to reduced morale and efficiency. While the hotel remains a popular destination, it’s clear that the ongoing housing shortage could affect the quality of service provided, ultimately influencing tourists’ overall experiences.
Is this sustainable for Hawaii’s tourism industry?
The housing issues are far-reaching, impacting not just hotel workers, but employees across various industries that support Hawaii’s service-based economy.
Employers in diverse sectors—from restaurants to medical offices—face the same housing challenges. Some have even resorted to buying properties to house their employees.
For instance, management at 1 Hotel Hanalei Bay is housed in a nearby home that was explicitly purchased for their accommodations. These examples highlight the broader strain on Hawaii’s labor market and its ripple effects across the entire economy.
Hawaii’s tourism economy depends on a stable, motivated workforce, and the ongoing shortage of affordable places to live threatens to undermine Hawaii’s stability.
The lack of housing could lead to further costs for visitors and employers, who struggle to balance staffing shortages, operational demands, and escalating housing expenses.
What needs to happen next?
County Councilperson Felicia Cowden, a reader and commenter on Beat of Hawaii, has been vocal about the need for more affordable housing in Hawaii, and she is advocating for legislation that would prioritize housing for workers. However, addressing this crisis is no easy task. Affordable housing development, whether in Hawaii or on the mainland, is a complex issue, and the needs of workers must be a higher priority in Hawaii if the state wants to sustain its tourism economy.
The crisis around tourism workers continues to worsen, and without significant changes, more workers will find themselves in difficult situations, further exacerbating challenges facing the Hawaii travel sector.
The takeaway for your vacation.
So, what does all of this mean for your Hawaii vacation? While Hawaii remains one of the most beautiful destinations in the world, the workers who create that extraordinary experience struggle to survive and stay in the industry.
By supporting efforts to improve worker conditions, we can help preserve the standards that make Hawaii unique for visitors and the workers who make it all possible. The future of Hawaii’s travel depends on solving the affordability crisis for its workers, and as visitors and residents, we also have a role to play in supporting these efforts.
We welcome your thoughts!
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What I do know is that this has been an issue for decades in Hawaii. What has the state or counties done to solve this? Nothing…nothing but blame tourists, increase taxes / fees and maybe now ban certain STRs. This situation will continue to get worse as time goes on without a clear vision and pragmatic actions. Good luck with all that.
Housing on the islands is a major issue, not just for hospitality workers. Shipping containers when retro-fitted are part of the “tiny house” movement and can be adequate living spaces if done properly. There are other options like those used on Maui and other places for disaster relief housing. These are not long term solutions, but may help to get people through.
The lowest priced room at Hotel 1 Hanalei starts at about 1K per night. With regular fees that jumps to 1300+ per night.. That’s a lot. Not sure how many rooms there are at the hotel but let’s assume 250 for fun, but I don’t know, maybe there are 500 or more rooms. the cheapest room generates about $400-500K per year. That lots of money. Wouldn’t it be nice of the chain to buy some acreage to build condos to house their employees? Make the condos very affordable or even a part of their pay package? Two nights in the cheapest room is enough to pay a months rent on a 1 br condo/apt I’d guess. I don’t know… just daydreaming… Do something to maybe insure the employees are happy and feel valued?
All companies should provide housing to workers, not just hotels. Are we really going to complain that the housing is poor quality when it’s free? The entitlement of some people…..
So are these employees forced to use their hotel income to pay the hotel employer to rent the apts from the employer? Like the old “owe my soul to the company store” experiences? Do they live in the containers (shudder- who are we?) for free? Why can’t the hotels allow them to stay on premise or at least for free in their properties? These human beings will never get ahead of they are worked hard but can’t save anything. I’m not staying in hotels that mistreat employees.
I just got back from maui. They have a real problem with how air bnb has gone in unregulated. Also how there doesn’t appear to be any inspection of rental units in general. My guess is that Airbnb has adversely impacted places where people can live. We stayed in some condos managed by a local condo company in complexes that were relatively older and were likely built a second homes. I think they should have a limit as to how many of these can be rented out and maybe based on the timeline as to when they were converted into condos for rent as Hotel units. The condo complex we stayed at in Kihei was well cared for and the unit relatively well cared for and in satisfactory safety and cleanliness condition. On the other hand the Airbnb we rented in Payia was a poorly remodeled unit that may have been an apartment at one time and converted into condos. There were numerous electrical safety issues. These units should be inspected for safety.
by people shouldn’t even be staying in airbnb’s if they really care!
The 1Hotel employs large numbers of foreigners on J-1 visas, which are one year in duration. They do want to hire American because they want cheap labor. I am an experienced front desk clerk/night auditor, from 60 room to 500 room hotels, and they will not hire me. They would rather foreign workers live in containers than pay U.S. citizens to work there.
We can’t bring back the Aloha spirit if employees of luxury resorts live in containers. It’s just unacceptable.
As a visitor, what efforts are available to me for, as the article’s final paragraph recommends “supporting efforts to improve worker conditions”?
not much a tourist can do to “support efforts to improve worker conditions.” Maybe bump your tips up to 50%?
Riffing on the observations of the great George Carlin: Hawaii is very busy “Taxiing to the Terminal”…
It’s all I got…
Wonderful opportunity, actually.
Container homes have been made into lovely family homes for a few decades.
If the management would create, like Habit does, great homes using the containers, with play grounds, etc for kids. maybe stop the policy of keeping everyone out of the resorts (or some of them) and instead let the staff have use (at off hours) of facilities.
Wow. Maybe even have staff buy in.
And what role does BOH think visitors should play in supporting these efforts? What these unfortunate staffers need is more money so they can afford better housing. But, visitors are already being charged ever increasing rates, fees, and taxes. And the state and counties don’t seem willing to lower them. I’m no financial wizard, but it seems logical to me that if Hawaii Lowered its taxes and fees, more visitors would come and therefore more money would be inserted into Hawaii’s struggling hotel and STR industries, and they could then increase pay for its staff.
Aloha BOH,
Maybe this is an unrealistic crazy idea but as a couple of Viking Cruise regulars we see on board a generally well adjusted and happy staff. If the hotel industry could adapt a similar model of live in staff on a contractual basis with the ability to transfer and work at other locations. Just sayin , it is time to shift gears and get out of the box they have made for themselves.
Mahalo
Been going to Kauai for over 20 years and have a timeshare at HBR, which accesses the same beach as 1 Hanalei. We have similar issues and find it all over the island. One thought I have us why not do something similar to the cruise industry. Provide housing and food for 6 months at a time to workers from other countries. Businesses should come together to build housing and share the costs for what is a problem they all have. Better for them and the people doing the work.
If local hotel workers are replaced by people from other counties, what do locals do for employment?
Like any industry, if they want workers then they should carve into their budget housing allowances or purchase/build employee housing.
The port of Hawaii probably has a quality control on damaged,rusted or containers not able to sustain the 70,000 lbs of cargo these containers hold. Exposure to saltwater adds a toll. Preppers have purchased these decommissioned units for around 1000-1500 each. Hotels probably provide these bought from auctions for extra storage but don’t declare it as a housing facility. With all the abandoned cars, roadside appliances, what’s the difference? Isn’t the Hawaiian golden rule is enter at your own risk, Not responsible for accidents, and please don’t involve the authorities. IMO the hotel probably holds a blind eye to the whole situation. Maybe this is their way of not falling victim to Hawaii’s high cost of rent, utilities, and morally greed.
Containers are certified for ocean travel for five years, then they must be surveyed for recertification. Nearest surveyors are on the mainland.
Better a container than a garbage dumpster any day. No rent,No utility bills, No landlord, No property taxes. These people probably have more money in the bank than people with homes. If they work at the resort they probably get restroom services and possibly low cost food. Living in paradise and making more than your bills can’t be all that bad.
You want to trade with them? It always gets me when people spend thousands on timeshares, but think employees who work there, should be happy living with the bare minimum. No, they don’t have more in the bank than you do! I know some of them ….it’s a struggle and totally unfair.
My nephew works for Costco on the mainland in the south. He has 2 co-workers who are originally from Maui. They are both Hawaii born and raised, but they requested a transfer from Hawaii to the mainland because they could no longer afford to live there. Costco pays well with good benefits but the governing bodies in Hawaii have made the economic situation there so bad that people are having to leave their homeland and their extended families just to survive. The blame falls on both the leaders and the citizens who vote for them, knowing full well that the only thing that will change is how much more their taxes and housing costs will be raised. I think Hawaii is going to soon reach the point of no return and then expect the rest of the US taxpayers to bail them out, all while in the same breath they are telling us not to visit.
This is not a new problem. 35 years ago we were at LAX returning from Hawaii and talked to an airport worker who was originally from Hawaii. His family moved to the Mainland. Back then it was too expensive to live in Hawaii. I have been coming to Hawaii for 50 years. Things have changed and visitors are not welcome. So sad. Everyone is struggling no matter where they live. But get real, how could Hawaiians survive without the tourist industry?
Was touring around LAX area in 2023. There is a massive parking lot there reserved for LAX workers, flight crews, who live in their RVs or cars. Security, bathroom, laundry facilities, vending machines, shuttles to and from terminals. Incredible!
That’s how the free market works
Nothing new. I had a 2nd cousin who was born on the island of Oahu. Spent 20 years on the Honolulu PD. Decided he couldn’t afford to live on Oahu and raise his family with what Honolulu paid. Moved to a city in the Seattle area and took a job with their PD. Gave up 20 years seniority for a pay raise and lower cost of living. He ultimately retired from that city’s PD.
Nice to hear about your cousin being successful in the beautiful Pacific Northwest. I live in Oregon and our PD tried to hire recruits from Hawaii. Most of them quit and returned to The Islands. Couldn’t take all the rain.
I moved here 35 years ago from Oahu and never looked back. Of course I miss my family but we have to make sacrifices to makes our lives work. Hawaii will always be in my heart. It is a very special place.
Great post, thank you.
Where is the union management’s help? Rough stats show there are roughly 36,000 workers paying about $20.00 a month for union dues. So where does the over $6 million go? My guess is there are no management people living in containers. They could buy a hotel and turn it into housing for their paying members. Rent would be enough to cover insurance and utilities. Leaving plenty of money for the management team. But that would probably cut into the bonuses paid.
Why is an employer’s union responsible to provide housing for it’s workers? Where do you think union strike pay comes from? Union hall or facilities fees and utility bills get paid from. Unions represent union members in which non union employers can terminate someone without the worker having representation. No unions in my state provide employee housing so Why Should Hawaii? Because it’s so expensive. Please Please cry me a river.
When I went on strike with the UPW, I didn’t expect to be paid. However, the least the union could have done was show support. Luckily my wife and I had family and we survived. Oh, we did get some grocery items. :} Do you think the union fat cats would part with their bonuses? What a laugh! We had to finally settle for a measly 3% raise. btw. It is Hawaii law that state members Must pay dues.
When Hotel 1 opened it pulled workers from Foodland (left them with two cashiers and installed self checkout to solve the problem. They pulled workers from other restaurants and retail shops and paid them a much higher wage than those businesses could. So now these businesses barely made it out of COVID and have to close because the hotel is taking everyone and paying them more. The hotel still doesn’t have enough ppl. There is a severe wait time for plumbers, electricians, car mechanics, hair stylist, everyone. There isn’t housing. Hawaii has not curbed STR, or provided any type of service worker affordable housing. I mean there is barely housing in general. Very few apartments and Princeville won’t allow And because they think it will cause more traffic (which makes no sense) like the guy said above. Just doing the right thing. Your hotel charges so much a night and they can’t even run at a pace they could. So everyone wins if they came up with a housing solution.
Aloha Rob and Jeff. Bob makes some good points. I would add that the high end hotels that are providing storage containers could lower prices and increase wages, but that would draw the ire of the investment companies controlling them. It’s easy to ignore the issue when you’re thousands of miles away. The state needs to take a lead on housing and get past the long timelines for permitting because Hawai’i won’t be able to hide all those containers forever. To the tourists, it will seem like they are paying a lot, but visiting a 3rd world country. How do they handle running water, toilets, cooking, climate control etc? Is this a code violation? People deserve better than living in a box.
I feel that Hawaiian housing costs are influenced more by non resident purchases than from visitors. I am not sure which mechanisms are legal but away to make home purchasing by non residents provide an additional revenue stream which could lessen the non resident demand and bring prices down. Perhaps imposing additional property taxes where the property is not the primary residence for more than 183 days a year.
There is no affordable housing crisis. There has been a huge speculative housing hoarding bubble (STRs, flips, rent seekers, etc.) which is unwinding now. There is no shortage, there are more homes on the market in Hawaii going all the way back to early 2017. Inventory is going straight up and listing prices are falling.
In the US Hawaii has the highest:
1. Public corruption convictions/capita
2. Homeless pop/capita 8/1k
3. Home price/income ratio 9.1
4. Family of 4 living wage needed $269k/yr
5. Cost to maintain a home 29k/yr
6. Out-migration/capita 6.4/1k
7. % Boomer homeowners 49
8. Loss of jobs/capita
It’s not just a shortage of service workers, it’s nurses, doctors, engineers, every occupation.
If people cannot find housing (rents/mortgages) commensurate with their educational and professional background they will out-migrate and not in-migrate.
Nothing will change and this will only get worse until shelter costs drop dramatically.
I don’t disagree with your facts but they all basically refute the first sentence saying there is no affordable housing crisis. As you point out, the affordable housing issue impacts all income levels and occupations except the extremely wealthy.
Agree.
To be more clear, I was trying to say that Hawaii doesn’t need to build more “affordable housing”, there is plenty of existing housing that was hoarded – driving up prices to nosebleed levels, hence the awful statistics.
Yup and it all starts from the top. Elected officials don’t give a s about the locals and are bought by large corporations so they can expand/build their mega resorts for the wealthy.
I’ll be watching from afar to see how much worse this gets in a few years.