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. 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.

      17
  1. 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.

    49
  2. 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.

    45
  3. 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.

    35
  4. 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.

    10
  5. 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.

    22
  6. 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.

    14
  7. 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
  8. 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.

    45
  9. 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.

    17
  10. 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%.

    30
  11. 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?

    7
    1. Hi DavidInquiringMind B

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

      Aloha.

      3
    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.

  12. 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.

    17
  13. 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
  14. 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
  15. 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.

    4
  16. 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
  17. 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…

    9
    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.

      17
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