The Japanese are very slowly coming back but spending much less. Decreased domestic arrivals and spending on Maui continue to drag the state down. And where are the new visitors to Hawaii? One thing for certain, the higher cost of accommodations, up to 70% more, is continuing to send people elsewhere. And you’ve said as much in thousands of comments.
Last month, the Hawaii tourism industry faced a mix of challenges, with domestic visitor numbers more closely reflecting economic changes. Insights from the state’s Department of Business, Economic Development, and Tourism (DBEDT) February 2024 report paints a clear picture of Hawaii’s tourism lagging recovery.
Hawaii residents and BOH regular Justin expressed his concerns well. “The long and the short of it is simple: People have found other places to go where their money travels further and they perceive being treated more warmly. I cannot get friends to come visit us on island and the two reasons I almost always hear are those two above. I will then see them post of social media being in Mexico or the Dominican or other places around the Caribbean. We’re slowly killing the golden goose with no alternate plans for income here.”
Maui was the only island that did not see an increase in visitor numbers or spending. And while all the other islands did, the increase was small, suggesting that typical return guests to Maui are mostly not returning to Hawaii yet.
Domestic visitor trend has been down since August.
Despite a moderate stream of visitors arriving in the Hawaiian Islands, digging further beneath the surface, concerning shifts in average daily census and spending patterns reveal the changing nature of Hawaii’s tourism market.
The U.S. West and U.S. East regions are critical to Hawaii’s tourism industry.
In the midst of fast-changing travel preferences, efforts to attract visitors from these markets should continue amidst shifting circumstances if Hawaii is to be successful in retaining visitors. Your comments make clear that Hawaii will need to work harder to keep you island vacation focused instead of looking farther afield.
At the same time, small signs of optimism emerged from the state regarding the Japanese market, making Japan-vacationing visiting Governor Green happy, who was in Japan this month seeking to deepen ties with Japan and capitalize on opportunities for mutual economic growth. That said, Japanese visitor spending remains down, reflecting cautious spending behavior.
Governor Green’s DBEDT Director, James Kunane Tokioka, acknowledged the challenges facing Hawaii’s tourism industry. However, in the obvious uncertainty, he believes a spirit of collaboration persists in Hawaii travel, driving efforts towards sustainable growth and resilience.
Visitor behavior is worth noting.
First, “Most U.S. West visitors in February 2024 had been to Hawaii before (84.0%) while 16.0 percent were first-time visitors. We continue to believe that retaining customers (Hawaii visitors) is far easier than attracting new ones.”
That concept appears to be missing in the thinking of the HTA and Hawaii’s governor, neither of which have, to our knowledge, ever addressed the value of return visitors.
Where did Hawaii visitors stay in February?
“In terms of accommodations, 51.5 percent of U.S. West visitors (the most prolific of all Hawaii visitors) in February 2024 stayed in hotels, 16.4 percent stayed in condominiums, 13.5 percent stayed with friends and relatives, 12.5 percent stayed in rental homes, and 8.5 percent stayed in timeshares.”
With Hawaii hotel and vacation rental accommodations privately owned and outside the state’s purview, what would you like to see Hawaii do to win back your visitor business?
HawaiiDBEDTFebruary2024Get Breaking Hawaii Travel News
US West Coaster Here –
Hawaii has to stop looking at us as just $$$ and nickel and diming for everything. OK….hawaii can be beautiful, but lots of the world is more beautiful. Those places are lower cost and actually welcoming. Europe, Carribean, Asia is far cheaper and provides better value.
Hawaii has destroyed their image on playing identity politics and blaming everyone else for the problems. Proper management and fiscal responsibility would have solved a lot of these problems.
For example, Bonaire – 1 week of luxury accommodations …week of diving and 4×4 …. 730USD all in. No expectation of ridiculous tipping or surprise fees everywhere. Not to mention they are encouraging and helpful to people visiting……
Social media is damaging the Aloha image. Some locals respond with hostility to visitor inquires. The fire seems to have triggered anti-visitor sentiment. It is difficult to get potential guests to visit a location that is perceived to be xenophobic when there are many other locations that are welcoming and less expensive.
Lived in Maui 3 times, and have been coming for over 25 years. I came with family last Thanksgiving…things have changed. This local anger against visitors has been slowly going downhill over the years and the fire has brought it out to another level. My friends that still live there agree with me. Fear of education, training, life skills, and “what I call fake” Aloha is the norm. So, I will continue to visit the Big Island, where several friends have moved and Maui is off the travel list.
I couldn’t agree more, I’ve been visiting for over 10 years and things have gone down every time but the place is beautiful and accept it for what it is and make the best of it. Save $$ where you can, mainly by Not staying in hotels.
Governor Green, are you listening?
The tourism industry in Hawaii cannot survive by pricing out the average traveler and his/her traveling companion(s).
Do not hold your breath waiting for the Japanese to come back. Their economy is in a depression while we suffer an inflation. Food and lodging costs in Japan are just about 65% less than here in Hawaii! Only a very wealthy Japanese person can consider a return to the islands.
Just like Turo is a cost-efficient alternative to the mainland car rental companies, non-hotel accommodations remain the most cost-effective accommodation choice. Forget Muffi and the hotel industry and support local ownership and hospitality.
I’ve been to Hawaii at least 8 times in previous years. I am very interested in Polynesian culture, language and dance for many years. I was planning a return however after viewing hotel rates, car rental rates and incidental fees I will instead look at cruises and all inclusives in Mexico, Caribbean and the Mediterranean. Though it saddens me to make other choices, I will go where I am more welcome.
We just returned from our 23rd or 24th trip to the islands. A couple things were obvious. Condo and hotels were still very high. Our airfare was down a little. Gas was still $1 to $1.40 a gallon higher than the Midwest but no higher than our trip 5 months earlier. Car Rentals still remain extremely high probably due to rental fleets being reduced dramatically during COVID. We have always been treated well by locals on all our trips because we want that local experience and treat them with the utmost respect. When our son finishes his home we will probably be coming even more and still renting cars and condos because there is nowhere on earth like Hawaii….and we have been all over the Carribean.
I read all the comments, 33 so far, and have some thoughts on all this.
1. I have been coming back to Hawaii every year since 1993. (except 2020). I have not met any rude locals. I have always been treated as a friend.
2. Any elected official has only 1 goal: to get re-elected. If during the course of that job they do something for the good of all, well, it is probably an accident.
3. None of this will change until the locals elect a new state government. Your current one party rule is causing 95% of your problems. That party has never met a tax it didn’t like. Look at DC, that person is spending trillions for the sole purpose of getting re-elected. Point made.
See you in Dec.
Hi Joe.
“DC” is spending Trillion$ to get re-elected?
Please elucidate.
The islands, especially Maui, are pricing themselves out of business. There are many wonderful beach locations here in the mainland as well as Mexico and the Caribbean, all of which are less expensive and very welcoming. Be careful what you wish for, because it just might bite you in the rear end. The wealthy also go to Europe instead of Hawaii, so don’t depend on them to keep you afloat. We have a trip planned for June – early July but it may be our last. We are trying to get airfare for my son and wife and we can’t find anything for less than $800+ round trip from Los Angeles or Orange County. Accommodations are the most expensive, but airfare has gotten very high as well. Good luck with your new plan to entice the Japanese.
Aloha,
We enjoy our annual visit to Kauai, and look forward to returning in January 25. Unfortunately this annual trip is becoming very difficult to sustain, and we are actively considering other options including canceling the trip in 2025.
Cost is a factor, yes, but not the only factor. Overcrowding, poor road infrastructure, traffic in paradise do all degrade the appeal of Hawaii.
Another factor that seems to get lost is the importance of comfortable reliable affordable air transportation. I am keenly disappointed that HAL has configured the beautiful new 787 with a 3x3x3 seat configuration and no true premium economy seating in pairs. Sorry but 3×3 seating is a deal breaker. Not doing it! Its supposed to be a vacation!!!
I have worked in hospitality on Oahu for over 35 years. According to the US Census Bureau, there are 239,307 in the tourism sector (2021). I would imagine this number is 2x-3x with people indirectly involved with tourism (restaurants, wholesalers, distributors, etc). I don’t imagine everyone tied to tourism wishes to have less tourists. It’s the vocal minority and certain politicos that have a soapbox that get all the attention.
I welcome all visitors with Aloha, hope they have a great time, infuse the economy with their dollars, and plan to return with their friends.
What is not being reported in the MSM is that over 20 of the 50 US states have already rolled into recession, including the West Coast States, WA, OR and the biggie, CA.
The years of free money bomb and subsequent debt spending and hence inflation is catching up with the States, which have to balance their budgets. Unemployment is rising quite dramatically, especially in CA, even though the MSM does not report it. The government keeps posting “good” numbers for headline news, then quietly revising their numbers for employment downward steeply month after month.
The Feds are trying to keep it all afloat with massive deficit spending, but this will just lead to more and longer inflation, more debt, more problems….
Couldn’t agree more. Only thing I would add is the Fed Gov planned spending 100’s of billions in the next few years will mask an economic downturn which will keep inflation elevated and only exacerbate the wealth gap.
Many prior comments seem to blame the state – somewhat unfairly. While the state has not exactly managed the conversation regarding overtourism particularly well, the main culprits of runaway costs are (primarily mainland) hotels and car rental companies who are price gouging to a truly staggering degree.
Hawaii visitor taxes are based on the cost of accommodations. If the accommodation costs come down, so do the taxes.
Drew, you are forgetting the “tax rate”. Short-term rentals, hotels, and timeshares pay almost 5x as much in property taxes as residents. We residents should pay less, but not That much less.
The cost to the visitor is not only affected by the price of the accommodations, but on the tax rate imposed on the accommodations. For instance, on Maui, 11.85% is overly inflated compared to the 1.9%(!) the residents currently pay in property taxes.
This is on top of the Transient Accommodations Tax, General Excise Tax, and recently-enacted county-specific taxes that on Maui are 3%. This makes an overall accommodations tax rate of almost 18%.
Lowering taxes would significantly affect the total accommodations cost for the visitor.
I so agree with. you! The combination of extremely high real estate taxes on we owners cause us to raise our rates so we can try to at least break even on all of our expenses. Added to that, the almost 18% in taxes to the guest prices are getting out of hand. Personally, I think that many would not mind so much if we saw that these super high taxes went toward improvements for both residents and visitors. We have been visiting Kauai frequently for many years, as our daughter and her family live on island. It’s sad to note, year after year, that very little happens to improve the lives of residents, or the experience for visitors. We cant help but wonder where all the tax dollars are going.
When my bride an I visit HI I budget $10k/week. Which includes FC air, car, condo and dining out. Ridiculous, but at some point the madness has to stop. HI is quickly becoming the playground of the very wealthy and elite. Sad!
@ Jonny… but that appears to be what they want. One couple spending $10,000 vs. 5 couples spending $2,000.
Travel to hawaii has really got expensive, a week at hotel can easily cost $2000 , with air and meals another $2000. I find the roundtrip 16 day cruises from San Fran and Los Angeles to 4 hawaii islands and ensanada Mexico for $2000 total to be quite nice , and free 16 days of meals on ship and free entertainment.
We were there for two weeks, leaving the first week in March. The prices to eat at the airports, on flight there, kind of prepared us for the price of food. Our, one bedroom condo we rented through Airbnb was over three thousand dollars. We are a retired couple. We never would’ve been to afford it with kids. Even renting my car, was really high. We’re coming back as soon as this fall, prices permitting.
We were on Kauai. The medical care from the ER. In Kapaa and the attitude of physician, made us realize it wasn’t really safe for elderly.
He said, ” you are on a rock in the middle of the ocean”. No more Kauai for us..
Hi Jeff and Rob. Hope you’re doing well. You asked “What would you like to see Hawaii do to win back your visitor business?” The short answer is to stop gouging the tourists. Hubs and I used to visit twice a year and stay 2-3 weeks each time. The last time we visited it would have been cheaper to purchase a car and then resell it rather than rent one. They used “shortage of cars” as the reason, but we saw the acres of rental cars parked near the airport. We usually stay in a STR condo, but those are also priced out of sight. I guess they would rather let them sit empty than to offer them at a fair price. Nuff said. Thanks for keeping us “in the know” and for letting us vent.
Aloha Pam.
For a reasonable rental car, I suggest you consider Turo and help support individual local owners, not the mainland major car rental outfits. To find the best rates on comfortable, interesting accommodation (especially on Kauai), search for “farm stays”, and try to think 3 to 6 months ahead 🙂
Hawaii tourism also needs to focus on the West Coast as that group of travelers is more inclined to head to Hawaii than many further inland stateside travelers. The latter have more vacation options available to them; in particular the Caribbean which is typically a mere few hours away by direct flight. Indeed, with more modern-like facilities, easier travel access, family-oriented vacation packages plus cruise-line stoppages, not to mention cost effective, the Caribbean is easily ciphering off potential Hawaii travelers. Hawaii tourism needs to both modernize accommodations, offer a greater variety of family-oriented facilities and attractions, as well as bring back the ‘aloha’ spirit that once permeated the Hawaii travel experience.
Hi, I have a trip planned to Kona next week, we will be staying 22 days. I have a timeshare. This will be our 3rd time. We love Hawaii. The only draw back are the high prices. Aloha
The long and the short of it is simple:
People have found other places to go where their money travels further and they perceive being treated more warmly.
I cannot get friends to come visit us on island and the two reasons I almost always hear are those two above. I will then see them post of social media being in Mexico or the Dominican or other places around the Caribbean. We’re slowly killing the golden goose with no alternate plans for income here.
If our shift is towards boutique tourism, where less people come but they are wealthy and therefore spend more, I hope for our economy’s sake those people start showing up in droves.
We have been repeat visitors to Maui since 2007. Took a break during Covid 2020 due to their restrictions. Flights are still very affordable for us (WA) but the cost per night at the various condo rentals have doubled!!! Cheaper and easier to rent at the beaches of SoCal.
Instead of coming up with new fees for visitors just raise the GET and exempt unprepared Food. That way locals, who prepare and eat many meals home, will not have to pay the GET on most of their food but visitors who eat most of their meals out will pay more in tax.
When you eliminate AirBnB for families or small groups traveling to Hawaii this is what you get. When hotel rooms are over $700 and meals are close to $40 per person this is what you get. It is cheaper to travel to resorts in Mexico. You need to start allowing more AirBnb rentals in order to get tourism back up. Another big factor is tourist from Asia. Not sure how you get these people back to Hawaii. Because are competing with Thailand, Indonesia and Malaysia.
In the past when we have visited we enjoyed the aloha spirit. The fresh pineapple, your music etc. when we went last year we never even heard your loved music until right before leaving. No pineapple and no aloha anywhere. It was sad and left us wondering why we went. This year we are going to Kauai. Only because of a request for personal reasons. I am reluctantly going.
Jackie, I agree with you completely. The one thing I used to like about Hawaii was hearing the island music wherever we went. Now we hear none of it anyplace except at home. I’ve bought my fair share of Iz music. My husband always used to stop at a roadside stand to buy me a lei and pick up a pineapple. I guess those days are gone.
Aloha Jackie, and welcome to Kauai. E komo mai. You will find a friendly populace, plenty of pineapple (including Sugarloaf White Pineapple Frosties at the Aloha Aina Farms stand near the botanical mini-golf in Kilauea) and numerous venues for Hawaiian music.
Lucky we live Kauai and you are lucky to be coming. We hope that you have an Airbnb, VRBO, or farmstay booked, and support local ownership.
She is lucky to be coming, and you will be lucky to be having her on your island. Never forget, it works both ways.
My favorite place to travel just getting too expensive. Something needs to be done. I can’t afford to travel to Hawaii any longer…so sorry.
..you have out priced your selves. Aloha..I will go to vegas
The governor and the state of Hawaii better understand the metrics and what is going on with tourists. In my opinion, the governor is still sending mix messaging about tourists. If a family has one big vacation a year, do you think they are going to spend it in Maui if they think they will not be welcome? I just returned from a trip to Maui & most of the locals I talked to, want tourists back due to jobs. I live there about 3 months out of the year and Maui is a great place to visit. The governmental leadership is lacking the awareness to promote Maui rather than send out mix messaging.
I agree. Gov. Green and his minions are killing Hawaii tourism. Totally out of control.
Sorry Hawaii, but we will take our hard earned dollars to another beautiful vacation destination where we are “wanted” and where prices are reasonable. You are acting like you are the only beautiful vacation spot in the world and you’re not. We will not be back until we feel welcomed and you get your prices down where they should be.
General inflation is everywhere and affects everyone, but every dollar taken in state and county tourist fees and taxes is a dollar not going to a local business, and as seen by the comments on this site the word is out and the dollars are going elsewhere.
Earlier this month, we stayed at our 2-bedroom timeshare unit on Kaua’i, along with another couple we invited for their first trip to Hawai’i. They enjoyed their time on the island, but I don’t think they will ever return. They have been going to Cozumel, Mexico for over 30 years, a much shorter flight for them, with more reasonable prices for food and accommodations. We prepared our meals from the grocery stores and Costco, only going out a couple of times for “Happy Hour” pupus or shave ice. We went to Limahuli and to Kilauea Lighthouse, which both required reservations. On previous visits, we went to restaurants often and explored much more, but now it seems just too much trouble and too expensive.
Aloha guys! I think Hawai’i has not grasped the fact that the entire population of the states has doubled since the good old days. Everyone is seeing increased tourism. I also feel governor Green is turning his back on the US people that got him where he is by courting the Japanese and ignoring the mainland people. I believe he needs to take a hard look in the mirror. Evidently he feels wronged by the mainland. He needs to issue a sincere apology and actually work on tourism issues. The 10% of the world’s richest people have a lot of choices on where to spend their money, not necessarily Hawaii. Every tax is imposed to help the state, yet it still has the same issues, so where is it spent? Mahalo everyone.
Stop scaring would be visitors to Maui!! They are hearing everything from “don’t come ever again” to “please come back now and spend your money!” Too many threats from the governor of cutting off short term rentals! Too many horror stories floating around out there of people with booked and paid reservations being cancelled at the last minute due to housing the fire victims. It is time for all of that to end if you want all of Hawaii to return to boom days!
We have been visiting Maui for over 40 years. We do have a trip planned for June. I am afraid that this might be our last trip over. I come from a travel industry family so I am very familiar with costs of accommodations. This vacation I have noticed that the taxes, service fees and cleaning deposit were just about as much as the rates themselves. Our seven day stay cost more than our 12 day stay 2½ years ago. As far as airfare, coming from southern California, one way cost more than our round trip did last visit. We love Maui, but it is becoming increasingly difficult to afford a vacation there.
This is all “as designed”, right? The government’s mantra of “Quality, not quantity” is coming to pass.
2024 February Daily Average Visitors – 236,008
2019 February Daily Average Visitors – 246,741
2024 February Daily Average Visitor Spending – 57.1 million
2019 February Daily Average Visitor Spending – 49.6 million
Less visitors, more money spent. You do have to take inflation into account, but the numbers are trending the way the government, voted in by the residents, wants them to.
“…Rising Costs Continue To Drive Down Hawaii Visitors…” but ins’t that what “They” want?
I am flying to Maui tomorrow staying one week and one week in Oahu staying in VRBO accommodations.
I am a first time traveler from Toronto Canada my bucket list trip and before I even go on my dream trip the reality is that I won’t be returning.
The cost has more than tripled since March 2020 when I first booked. The Canadian exchange rate is currently $1.35 making everything even more astronomical in price.
Hello politicians the cost of living has gone up everywhere not just in Hawaii wake up and smell the coffee not everyone is flush with money.
I know that I will enjoy my trip but honestly can’t justify spending this money ever again.
Reduce costs, of course. My issue is never attitude problems. I’ve never had a bad experience in over 65 trips to the islands. A smile usually sets the tone. So, just airline, car rental, food and hotel costs.