Hawaii’s Tourism Woes Unfold: Unfazed Downturn Continues

Hawaii visitor data in for 2023. On Kauai, for example, December spending was up more than 50% with fewer visitors.

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133 thoughts on “Hawaii’s Tourism Woes Unfold: Unfazed Downturn Continues”

  1. Hi guys. The only reason why visitor spending is up is because Hawaii has raised all of its prices. And it will continue whether they have visitors or not. And interesting how they closed down Macys in Kukui Grove. Like the theater across the street also. Pretty soon the malls will close down because they aren’t making any money. Everyone has and will be forced to shop online. How fun is that. Guess Target, Walmart and Costco become the new department stores with lower quality clothing. Unless you all have the .only to shop at fancy clothing boutiques. The “dreaded visitors” are the ones with money to be able to afford to shop there. But wait. They don’t want us there. Who wants to travel to a place where you are made to feel unwelcome.

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    1. Fun factoid. Shortly after announcing Macy was being closed, they experienced a smash and grab jewelry robbery. All doors to that entrance are plywood. I suspect Macy’s management is happy to be closing that location.

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  2. We love Hawaii and want to come back to Kona on our 30th anniversary in August (or February 2025) however I’m waiting to see how the airport situation transpires. We stayed in Lahaina on our 20th and we’re heartbroken for all of you.
    Praying for wisdom and blessings over you all!
    Hope to see you soon
    Tom

    5
  3. Another excellent article and analysis. BOH editors, I’m wondering if most of this anti tourist vibe is coming mostly from Maui, and if it’s been developing for years before the Lahaina fire?
    After traveling to Hawaii since 1965, I can see that I haven’t experienced this on Kauai, where we’ve had a Princeville timeshare for over 30 years, or on Oahu or the BI? Your thoughts would be appreciated.

    3
    1. Hi Daryl.

      Thank you. Our sense is that it isn’t limited to Maui. Having said that the aftermath of the Maui fires definitely exacerbated the issues on that island.

      Aloha

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      1. Thank you for your reply. If that’s the case, then the future of Hawaii tourism is indeed headed for some difficult times ahead. This will definitely adversely affect the Hawaiian economy at large and that is a very serous matter for the entire population of the state.
        The good residents of Hawaii will suffer from this, it’s just a matter of time. Very sad!

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  4. We visited Hawaii more than dozen times. All bigger islands.
    I don’t think we are coming back anytime soon.
    I love Hawaii, but not for the double of the regular price.

    Good luck!

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  5. That’s because people get here and don’t come back…once they see the ” real” state.
    The mountains can’t even hide the truth here

    6
  6. Aloha BOH,
    My wife, our 18 year old daughter and I live in Los Angeles and were on Oah’u 3 times last year and about 10 times since 2017. We are fortunate, but I have not noticed a change in how we are treated anywhere. We spend alot, because it costs alot, but am I missing something as when I book, it seems like everyone and everywhere is the same. Here is a cost break down:
    3 1st class on United, about $4500 a trip. $300 to park for 8 days at LAX. 7 nights in an oceanfront suite at The Moana or Turtle Bay with fees and taxes, $1300 a night. $1500 for the week for our Jeep. $45 a day to park it. With food and shopping and activities we spend $15000 or so for 8 or 9 days. Totally worth it. Mahalo Nui for having us.

    5
    1. My goodness, that’s $30k for seven nights. My family of five does basic economy for $3,200 from Texas. $70 airport shuttle parking for the week. $2,100 for seven nights at the Waikiki Banyan with free parking. $400 full size car rental during the week. $3,000 spending on food, activities, shopping. Always have a great time.

      2
  7. I think that much of the increase in spending has to do with increases in pricing plus inflation, with inflation playing a major part.

    1
  8. We have been coming to Maui (Wailea) for over 40 years, and are going again in March. But this next trip may very well be the last one, all the taxes and fees, as well an ” your not welcome here” theme have us looking elsewhere.

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  9. Hawaii not wanting visitors is the reason for fewer vacationers. Food costs and rental prices are higher because of lingering inflation causes.

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    1. Mark B
      We’ve been going to Hawaii since the late 80’s. We’ve just returned from Maui’s West Coast. At the hotels, restaurants, golf courses, people were thanking us for coming to Maui. Not one person expressed any negative attitudes toward visitors. Tourists were welcomed with open arms.

      Hawaii has given us Paradise for so many years, we wanted to give back. We spent a vacation day donating time at the Maui Humane Center. They also welcomed us and thanked us for being there.

      If Maui is to recover, the Island needs tourists. 99.9 % of all people living on Maui recognize that tourism is important.

      It took Kauai 25 years to recover from the 1992 hurricane. Unless tourists start returning, it will be years before Maui recovers.

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  10. The costs, especially on Maui, are just too high. We’ve made over 40 trips to the islands, but this year we’re going to Cabo. The Aloha spirit is changing. Sad.

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    1. Mark J
      The Aloha spirit hasn’t changed but is dampened by the personal issues facing the people of Maui on many levels. Whether it’s a lack of housing, storage, medical care, and where the next meal is coming from, these are just some of the issues people on Maui are dealing with. The monetary donations provide short term assistance. The vast majority of people on Maui recognize that tourism is the long term solution. Cabo has other issues and frankly I would not even accept a free trip there. Maui has given us so much, it’s time we sacrifice and give back a little.

      8
  11. We spent 2 weeks in Kaanapali or Napili every year for the past 20 years. It was heartbreaking to follow the loss of life in the Fire, and the destruction of beloved Lahaina. But even before the Fire, during and after the Pandemic, Hawaiian officials and individuals made perfectly clear they don’t value tourists… be it in massive fee increases, higher guest taxes, and constant complaints in the press and online about Mainland guests. Now that Tahiti & the Cook Islands are advertising competitive prices for those of us in California… aloha Hawaii. I’m planning my next trip… to Tahiti… someplace I think I’m more welcome.

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  12. The comment that spending is up for tourists is not necessarily related to tourists spending more, but instead paying considerably more for the same vacation. We returned from a trip to Maui just this past week. The cost of the hotel and restaurants was way overpriced compared to past Hawaii visits as well similar vacation resorts in Europe, Mexico, and the Caribbean. We have historically traveled annually or semi-annually to Hawaii. Sadly, a return trip to beautiful Hawaii is out for us. We’re retired and can easily get better value traveling elsewhere. I hope Hawaii reconsiders the exorbitant price increases for travelers there–or at the very least be cognizant of the competition for tourist dollars.

    21
  13. It has been our practice over the last decade or more to spend a couple weeks on the Big Island in February/March. We will be returning again this year but are beginning to look elsewhere for ’25. Most likely Costa Rica. Whether we rerun in ’26 or not will likely depend on what we see here and how Hawaii deals with its seemingly twin goals of substantially reducing tourism and substantially increasing costs/taxes/fees.

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  14. I am Canadian have been to Maui more than 30 times. Last visited Mar 2022. We will not be back pricing is completely out of control. Homelessness rampant in many parts of the island. Overt hostility from locals to tourists . Costa Rica it is! Really enjoyed Maui but it’s over.

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  15. We aren’t ready to swear off Hawai’i travel forever, yet. We’ve visited many times since 1995 (mostly Kauai), but have decided to take a break from Kauai in 2024. We are taking a ‘wait and see’ approach for now.

    5
  16. My first thought reading ” visitors down but spending up ” was that Gov. Green got what he wanted . Spending more and getting less will continue to erode the numbers of travellers coming to Hawaii. My wife and I have been to the islands 28 times and now the costs have far outpaced the willingness to pay . You quote $600 for a place to sleep for a night … am I the only one who thinks that’s ridiculous ? We have discussed with any number of others that the islands have priced themselves out of the range of the average Joe.

    34
  17. The gov in Hawaii is killing their own economy with all their own global warming agenda and trying to fleece all the tourists to pay the price. Such a pity.

    23
  18. We own two 1-month timeshares in Kona. The maintenance fee provides us the cheapest place to stay on the island!! But when your car costs $1k more for a month, your plane tickets are $400-500 more per person… even with the big savings in our condo and we rarely eat out because of the expense, it is still starting to price us out. We are passing Hawaii for 2024 and hope we get to return in ‘25!

    9
  19. We are returning to Maui in February, despite having to make new hotel reservations and Valentine’s Day dinner reservations because of the Lahaina wildfire tragedy. We want to support the rebuilding of West Maui with our visitor dollars.
    Maui is still, “No Ka ‘Oi”.

    5
    1. Exactly! With the much higher hotel prices and rental cars, that increase isn’t likely doing much for the local businesses. Hopefully keeping locals employed, but it’s not like visitors are buying that much more.

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  20. Over the last 40 years, I’ve travelled from the mainland to Hawaii (mainly Maui and the Big Island) over 100 times. I lived in Kihei for 1 year. I’m done. Costs and anti-visitor sentiment that at times borders on racism has become too overwhelming. In Sept., I rented a condo in Wailea for 3 weeks. The price of the condo was increased by 50 percent just for taxes and fees. Locals use the roads, parks and beaches all year. A visitor uses them maybe 1 or 2 weeks a year and yet politicians heap special use fees on visitors, not locals. My son lives in CA. He pays to use CA state parks. No local exemption. Locals are special in HI, others–No. Affordable housing crisis isn’t the vault of visitors. It’s a problem everywhere in the U.S.

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  21. We just completed our “Every 5-years” anniversary (35 years) trip to Hawaii, each time to a different island. Sadly, it will likely be our last. They finally priced us out of nearly everything. You expect to pay more in Hawaii, but there is a point when it’s not enjoyable because you feel taken advantage of. I’m sure the very wealthy will continue to enjoy, but I think there are more like me than they realize. Hawaii is beautiful, but they are not the only tropical paradise in the world.

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  22. Majority of locals have made it clear they don’t want or need tourists. Be careful what you ask for when biting the hands that feed you. We’ve gone elsewhere the past 3 years. Plenty of other beautiful places that appreciate tourism. Cheaper as well.

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  23. What are the criteria used to determine “visitor spending”? If it’s only hotels and short-term rentals, airlines, excursion companies, and car rentals, it’s misleading, although probably the only metrics available. As revenues for those go up year-to-year, those amounts would then be measured against the number of visitors and a spending number/visitor could then be determined. However, restaurants, retail shops, grocery stores are probably not included because locals use the same facilities, although visitors spend considerable amounts in these facilities.

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  24. It’s no surprise. You have an administration running the entire state who’s bent on crushing tourism. Sadly, the islands have sold out the vast majority of other income, so now they’re reliant upon tourists almost wholly. The Lahaina fires would be a scapegoat excuse as prices post C19 have skyrocketed. Everyone is feeling the pinch from the economy, so people will invest in similar destinations that welcome the tourists vs those charging a huge premium and treat the tourists in very poor ways. Not to mention the homeless and all the other taxes visitors are slapped with. We visited the Big Island back in October for the first time, sadly it’ll probably be the last the way it’s looking. I’ll hit Costa Rica or another destination.

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  25. I’ve been traveling to Kauai every year since 1993. I have a trip planned for Nov of this year but it may be my last. The rising costs of housing, car rentals, dining etc are making the trip cost prohibitive. I will look for less expensive alternatives in the future.

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  26. Aloha-

    All I can say is our annual (since 2017) spring trip to Kauai and Maui is not going to happen this year. We booked two rooms on the beach in Puerto Rico for less than one room in Hawaii. We also are flying our adult kids to vacation with us since we could afford two rooms. Our annual fall trip to see our kids who live on Oahu is also off. They are flying to Colorado instead. Hotels in the mountains are cheaper. We will see if 2025 brings a better travel environment.

    Mahalo

    29
    1. Try renting a timeshare – 2 bedroom, about 2000-2500 a week or 300-375 per nt. Usually a lanai or balcony, kitchen + living room plus the bedrooms. And usually access to BBQs.

      Way better than a hotel – well, you may have to take the trash out during the week sometime, but is that really a big thing?

      4
  27. I greatly fear that Hawaii’s changing emphasis on fewer high-end rather than more low-end may backfire spectacularly. Even high-end tourists like a bargain and may take offense at being seen as cash-cows.

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  28. Looks like Hawaii’s plan to cater to only the wealth and reduce tourist traffic is taking hold. Time will tell us if we are killing the golden goose.

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  29. Spending not up if you compare it to 2019. The only reason they’re taking in more money is because the price of everything is many times more than 17%.

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  30. How is visitor spending calculated? Is that just lodging and lodging taxes? The state and counties would know those numbers, but I don’t see how they would know what other funds were spent. Maybe rental cars, since the states and local countries have their grubby mitts in that. But how would they know restaurant/store/other shopping spending?

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    1. Hi DavidInquiringMind B

      Good point. Lots of spend is unaccounted for here. BTW, thanks very much for almost 700 comments to date!

      Aloha.

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    2. Retail spending can be monitored on a monthly and seasonal basis (sales tax remittance reports), thereby indicating tourism impacts on retail revenue versus the baseline resident population. I’m sure they have the numbers down to a science these days.

      The only thing that can’t be monitored is cash transactions off the books, but they make assumed estimations for those numbers (its a reality governments have to face until cash no longer exists ….why do you think they are pushing Digital Currency so much, to remove losses due to unrecorded cash transactions)

      3
    3. I’ve worked in retail and know that stores keep records for daily sales. These records allow them to compare daily sales from pervious years.

    4. They collect surveys at the airport on random passengers which ask you to itemize what you spent. I did one last year. Think it was the HTA.

  31. Highly doubt the Lahaina fire is responsible for that much impact on all of the islands. I think people are just getting tired of the mentality in Hawaii. Been there 10 times I will not be going back to any of the islands again.

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  32. Hawai’i is going after the luxury and up-scale markets. Sad for those of us who have been visiting for years and are getting priced out. We will be looking for alternatives. Maybe Samoa, Tahiti and New Zealand.

    17
  33. Big Island annual visitor here (since 2015 minus 2 “Rona” years) Hilo Side. Spend at least 1 month or more on island during Jan/Feb.

    Nothing will keep us away (we’ve even purchased a vehicle here)

    We like to excape peak snow in Atlantic Canada and plan to do so until our Dr says no.

    Have visited Oahu, Maui and Kauai, not for us, too many tourist on those islands. Plus, Big Island has all the natural beauty!

    5
  34. The hotel and airbnb rates are not sustainable long term. I believe there was still lot of artificial travel demand coming out of Covid these last couple years. We have been spending almost 3 times as much in post Covid Hawaii.

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  35. This will continue to be an issue as long as prices and taxes are too high/overpriced and negative comments about visitors continues.
    Hawaii’s economic eco system relies on tourism, without it many people will suffer.

    9
  36. We have been to Hawaii about a dozen times over the past 20 years. Unfortunately, it’s becoming almost too expensive for use regular folks to visit as frequently…

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    1. What’s happening in Hawaii with tourism is very reminiscent of what’s happening in order industries. I mean has anyone looked at what new vehicles are going for now? A lot of manufacturers are just concentrating on the upper echelons of the car market because that’s where all of the profits are. But who can afford to buy an $80-100K pickup truck? It would be interesting to see what happens when the occupancy rate at hotels in Hawaii fall to 50 percent.

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