Plan Eliminating Half Of Maui Vacation Rentals Was Years In Making

Why Hawaii Tourism’s Shocking Return Hit Maui Hardest

For more than a year, we Hawaii residents had the islands to ourselves in the most unimaginable way possible. We’d seen it like this only once before, in 2008-2009, during the financial turndown, but still, it was nothing like this. Nothing.

Then, as quickly as tourism stopped, it restarted with a flood of Hawaii vacation starved visitors.

The shock that hit the islands and continues to reverberate. 

We know that tourism was something of a mixed bag for decades. It keeps the economy going, which we love. But, we dislike it at times because of traffic, crowded beaches, and more.

The pace with which it has rebounded continues to amaze everyone, industry stakeholders included. Domestic arrivals are significantly outpacing 2019 numbers.

Maui is screaming the loudest. 

Maui is struggling to manage the sheer number of flights and visitors that it has attracted. As with many places across the country, and perhaps worse than most, there aren’t enough workers to keep the visitor industry going. But that’s just the beginning of the problems.

How bad is it? Bad enough that Maui Mayor Victorino wants the airlines to reduce the number of flights to the island. “We don’t have the authority to say stop, but we are asking the powers to be to help us.” Addressing the airlines, he said, “it’s the airlift that really drives all of this. Without airlift, people don’t come.”

At one point, and not long ago, Maui courted and welcomed the arrival of Southwest Airlines flights to Maui. That carrier alone now flies to Maui from Honolulu, Las Vegas, Los Angeles, Long Beach, Oakland, Phoenix, San Jose, Sacramento, and San Diego. Alaska Airlines has 10 flights a day to Maui, while Hawaiian Airlines has many more. And don’t forget American, Delta, and United flights too.

Maui to levy visitor accommodation taxes 3%.

The county plans to implement its own 3% tax as quickly as possible. That is in addition to the current taxes.  As a result of this, Hawaii’s accommodation tax will become the highest in the US. And, as we said before, “you can anticipate the combined tax on hotels and vacation rentals to be approximately 18% going forward.”

Hawaii has not fully reopened.

Hawaii has lifted some Covid restrictions. Yet, it doesn’t plan to eliminate all of them unless and until the state crosses the line when 70% of Hawaii’s population is vaccinated. As of today, that number is just 58.9%.

At the same time, with its low Covid rates, Hawaii is one of the world’s most in-demand destinations. And it seems that Maui, more than any other island, is the desired vacation spot.

We noted recently that the rapid spread of the Delta variant would result in more iconic destinations reimposing restrictions and raising fears about added travel rules. “This uncertainty will keep Hawaii the #1 Travel Pick through 2022.

Maui is anticipating domestic arrivals to equal or exceed 2019 levels, given all of the new flights.

And yet, restaurants, as just one example, are still only operating at a limited capacity and some only during restricted hours. As a result of multiple issues, some of the most popular Maui restaurants have amassed waiting lists months long.

Bad island traffic exemplified along famed Hana Highway.

The Maui mayor recently addressed traffic and illegal parking on the road to Hana. For one thing, there are just too many cars. Also, visitors stopping to take pictures along the epic route often block traffic on the narrow road. The major mentioned concern is that emergency vehicles are now being impeded by the traffic situation.

Something will need to change on that road. That’s for sure. Read New fees, fines, and systems coming to Maui and all Hawaii visitors.

Calls for more changes on Maui.

Some are asking for a reduction in visitors to overage no more than a specific percentage of the total population, perhaps 33%. Currently, tourism is running at up to 45% of the total population. Others are calling for a moratorium on new hotel construction. Some officials said that while residents are frustrated with returning tourism, they still appreciate the visitors. One council member said that visitors “are our #1 economic driver. They create jobs. So they’re very important to us. But people are saying we want to have a balance.” That seems to be the key in the entire discussion, balance.

Visitors and locals share the frustration.

Those in the visitor industry say they are dealing with angry and frustrated travelers who have a hard time finding places to eat, park and stay. Unfortunately, no one seems all too happy at the moment.

Also read: What It Feels Like Now: From Zero to 💯 As Hawaii Travel Hits New Records.

Would you please let us know what changes you’d like to see on Maui?

 

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48 thoughts on “Why Hawaii Tourism’s Shocking Return Hit Maui Hardest”

  1. More Hawaiian locals need to get vaccinated in order to get a handle of the Corona virus. Workers also need to return to work.

  2. I’m curious, since Hawaii is that busy, why are they opening up to some overseas travel ? That’s going to add a lot more to the reported overcrowding.

    1
  3. My local friends on Maui are complaining that the visitors seem a bit out of control, probably due to being cooped up for a year. Many instances of disrespectful behavior and issue with wearing a mask. We love to host visitors to all Hawaii but please be mindful of Hawaiian respect and customs. I am sure the rude tourists rpresents a small percentage of visitors. A bit of aloha goes a long way!

  4. Same ol’ same ol’. This exact same debate has been ongoing since Captain Cook first set foot on the islands–and the natives killed him. It’s a love / hate relationship (tourists love Hawaii / locals hate the tourists) that will never change… EVER.

  5. We went to Honolulu in April, talk about feeling unwelcome by airport staff by security. It seems the authorities were the ones that treated us worse. Outside mall where they supposedly required masks and so we did but many did not but one time my wife just had hers pulled down from her nose and was rudely told by security to get it on while people walking by didn’t even have them on. Let me tell you, the businesses everywhere welcomed us as if there was no pandemic. It’s just another smack down to control, well you do not have to worry about this vacationer, I won’t be back. Not impressed with the ridiculous prices and rude authorities and the worse amenities on excursions and lame Luau’s. You definitely do not get what you pay for in Hawaii, visit somewhere else where you are welcomed.

  6. We have been to Hawaii many times in the past 40 years. It’s still one of my favorite places on earth. We have Mostly split our time between Maui and Oahu, with a couple of trips to The Big Island and to Kauai. I still miss the kitschy souvenir shops, the friendly locals, the ability to go anywhere on the islands with little or no traffic, the absence of fast food chains and low rise hotels. Airfare was reasonable, hotels catered to all economic levels. I know, it’s a different world today. It’s not the same where I live either. The airlines will only fly full planes, the hotels will only operate at full capacity and vacation condos can’t survive without patrons. Raising prices only limits the economic circumstances of the travelers, but doesn’t guarantee that the visitors will be respectful of the natural wonders or the locals. I agree with previous posters that limiting visitors to “attractions” as is done elsewhere, can work, but only if advertised along with the booking of air and hotel (condo). Visitors need to know before they put money into a trip, or you end up with unpleasant and obnoxious visitors. As for restaurants, we are on vacation, we don’t want to spend our precious vacation time waiting in line for a meal, and, a large percent of the travelers are 1st timers, they don’t know where they want to eat, months before their trip. And, restaurants don’t always survive between trips. Establishments that want the business, need to step up, pay their employees a livable wage so that they can accommodate patrons. I hope to come back soon. But, I think I’ll wait until the rest of the world reopens, and maybe things will be better.
    Thanks for letting me rant

    1. We have been visiting Maui almost every year since 1998. I totally agree with everything you said, especially missing the quaint towns/shops, empty roads and beaches, etc.

  7. Parking is the BIGGEST issue from beaches to the road to Hana.
    And there is no reason not to create more parking.
    As for the restaurants not returning to full capacity while travel has that is on the locals that have not received their vaccination.
    Only 58% whats up with that? most states have already passed 70%

    1. Well, there IS actually a reason not to create more parking… several of them. (1) Hawaiian government–both local / county and state–is completely inept and dysfunctional. Look no further than the Oahu rail project to confirm that. Any time any new construction or infrastructure projects are proposed–even something as simple and necessary as a parking lot–get ready for an uproar from “the locals”… and claims of burial grounds and sacred lands, yada yada yada–that will tie up the project for years–if not forever. (2) Hawaii is completely broke–at both the county and state levels–despite extracting hundreds of BILLIONS of dollars from tourists over the years. Why? Huge state and county bureaucracies–and massive social programs–instead of investing that money wisely in common-sense infrastructure projects over the years (like widening/improving the road to Hana decades ago–when the traffic first started–and continuing / connecting / improving that road all the way around the back side of Haleakalā–like any intelligent state or county government would have also done decades ago). So it’s not like these fools don’t KNOW what needs to be done to solve these problems… they just don’t have the intelligence or the mandate to actually do them.

      1. No, no, no, no! There is a reason why the road to Hana or our back side road to Hana has to be upgraded. They don’t want to, other than making sure the bridges are safe to cross over and the road doesn’t have holes in it, is the only things that need to be taken care of over there. The Hana community don’t want all those people going back there. It is a different world there, still true Hawaii and we want to keep it that way.
        As far as our social programs, mind your own business! We want to take care of our people and especially our Kapuna! Yes we have social programs and Lord willing they will continue. Too many people come here that cannot care for themselves and become homeless. Hawaii is not a dumping ground for your mainland homeless people. These people should not come here. That would help to alleviate some of our money going into social programs. By the way every now and then we give homeless people one-way tickets to go back to the mainland as long as they have somewhere to go back to. That being said part of the reason we need these social programs is because you mainlanders come over here and buy up our properties and put high prices for rent on them. Locals cannot afford to pay higher rents. So don’t spout off about our intelligence or mandate. We have our reasons why we do things the way we do. Our heart is for the aina and our people.

  8. Just a suggestion. Improve the PI’ILANI HWY to help with access to Hana. That way the locals have a alternative to get home. Can only so much thru a funnel. Here in Colorado we need to make reservations to get into Rocky Mountain Nation Park. This is to control the amount of cars (tourists) that go into the park.

  9. I agree with the comment made by Stafford L, stating Beat of Hawaii comment about Hawaii not having workers is a bunch of garbage, why should people work, when they can get unemployment and all kinds of stimulus checks, but eventually this will all run out. It is not only in Hawaii that this is happening, also this is going on in California. Come and visit and you will find out. We have been going to Hawaii for many years now and it has always been crowded, nothing new. Except your locals don’t want to work, also in California, if you can get paid for not working, why work.

    1. Wow, if you hate locals so much, why do you come here? Your assumptions about employees are very far off base.

  10. Please, don’t build any more hotels or condos that are mainly purchased for vacation rentals.
    Please, do something about the high cost of rent. It is killing the local population. Non-residents should not be allowed to purchase property here and then charge exuberant prices to residents. Our families are struggling to even find a place to rent right now and the high rent isn’t helping.

  11. The island of Maui has been the victim of it’s own beauty I guess. When I talk to friends about Hawaii, I would guess 70-80% only go to Maui. They seem to think Maui is Hawaii.

    I have read that the powers on Maui have for years promoted that idea. I imagine that such views aren’t going to change.

    1. Agree. Seems most of our friends define Maui as Hawaii when they travel. We long ago shifted to the Big Island for our visits. Just the larger geography alone is a plus. Great destination and people.

  12. Your comment stating there are enough workers is a bunch of garbage,there are workers who have been getting unemployment check and the stimulus check why would they go back to work making more than having to actually work. The Mayor needs to address this and stop crying about this as all the visitors are putting money into the county coffers and all the shops and other thing’s are now making money as they are now being supported by the visitors.

    1. the article is accurate. There may be plenty of people able to work that dont choose to work, it isn’t Hawaii’s fault, the federal government created the problem. The fact of the matter is that there aren’t enough people doing the jobs that need to be done to allow tourism to operate at a level necessary to support the influx of people to our islands.

  13. The changes I’d like to see as a long time resident is for Maui county to get a new, forward looking Mayor. Mikey can’t decide if he wants tourists or not.
    He’s the biggest impediment to regaining out jobs and economy. No tourist area gets to pick and choose who comes and when. If he doesn’t like being Mayor then step out of the way!
    Enforce the laws of the land, enforcement of traffic, parking, and stealing all needs to be done.
    Step out of the way Mayor Victorino, and let Maui find her own balance without your meddling and taxes!!
    Mahalo Rob and Jeff for your thought provoking articles and Aloha 🌺 Spirit.

  14. SWA is the airline equivalent of someone moving to Hawaii and speaking pidgin soon after they arrive.
    Sadly, you can’t limit one airline just because they want to flood a market.
    Maui is well on it’s way to being turned into the Las Vegas strip.

  15. They simply need to raise cost of air travel. Once the airlines can use their aircraft for other destinations they won’t be pushing people to Hawaii. Then when prices go up we won’t have the moron tourists who climb Kamahama status or chase monk seals.
    Those are the people we really don’t need here.
    Mahalo for your website guys you do a great job.

    1. You mean kamaiana right? Also unfortunately some dummies still have money to spend, and they all think it’s “in” to brag about Maui. I still love Oahu 50 years later. It’s home away from home.

      1. Sorry. Was typing fast and poorly.
        King Kamehameha statue on big island was being climbed on.

  16. The last thing anywhere in Hawaii needs is more fees. Another 3% tax will encourage other islands to follow suit. It is pricing itself away from average income travellers and will end up hurting accommodation providers who rent basic places. Only wealthy people will be able to come and those are generally not the people who are looking to connect with local culture. It is another nail in the coffin of a diverse visitor diaspora.

    1. Respectfully disagree.
      Have been on Maui since the 70s. When travel was expensive always found respect from tourists with few exceptions.
      One southwest started flying it seemed to bring people who were a lot less respectful. Of course not all, but a greater number.
      Sometimes less is better.

      1. Sad but true Chris, while as you noted it’s not all, the reality is the southwest pax’s seem to be different. Southwest lends itself to the bargain hunting, stay in a BNB (illegal?) and buy groceries to cook there while they explore throughout the island. SWA does not partner with anyone but themselves and it shows. Those kind of people are most certainly not bad people, but the tourism market cannot support an imbalance of those kind of tourists flooding the neighborhoods and doing their own thing.
        To your point about the change in the face of tourism here, just look at some of the posts elsewhere here that says it all.
        The people on here saying those “lazy locals should stop accepting hand outs from the government and embrace being flooded with tourists” are a pretty good example of a certain demographic that really doesn’t get what Aloha means, doesn’t understand Hawaii and spoil what is still good about the islands.
        They would be much happier in Las Vegas or Orlando.

  17. The 3% tax increase is because the State is going to keep 100% of the TA tax whereas they used to share it with the county. So the legislature approved counties to be able to tack on up to an additional 3%.

    1. Hi Alfred.

      That’s correct, and was detailed in the article we wrote and that is linked to.

      Aloha.

    2. Important information for all those leaving SFO for Hawaii on UAL:
      There is a highly organized efficient way to receive your fast clearance safe travels check. There are booths set up between gates 16 and 17 where you will be given a UAL paper bracelet that speeds you through the terminal to your baggage claim. Because we had the bracelet we were guided past a line of hundreds of people. We saw someone later at our resort who have been on our fly without the bracelet. He said it to his family over an hour to get through the airport.

  18. I don’t agree with the Visitor Impact Fees as Tourism is your main business so you shouldn’t charge people to come. However limiting access to the Hana Highway, or requiring a fee to travel the road makes sense. It will be more enjoyable for all if there aren’t so many people on the road.

    1. All the state parks in the US require a visitor fee. Just set up a similar designation and fee station on the Road to Hana and start collecting the fees like they do in Yellowstone, Yosemite and other places. That way you can control the volume with the added benefit of additional costs for those who are willing to pay the fees.

  19. Maui and the Hawaiian Islands in general are suffering from poor Governance. From the 1950’s they have developed Tourism as an Economic Springboard for Employment and Spending by non-residents, with a very nice ‘Kaimaiana Program’ that allows Local’s to benefit in what are exhorbitant Prices, set for Tourists, by having Discounts in Dining, Hotels, Rental’s etc., all amortized against the Tourism Spend of Japan, USA, Canada, Australia and China predominantly! Look no further then Ala Moana, once the purview of “Local’s”, now International Brands, that had here-to-fore been on Kalakau in Waikiki at Royal Hawaiian, Hotel’s, International Market Place, and the now closed DFS Ctr.. There is no question of the Hana Highway predicament, and Residents, however it’s not 1965 anymore, what has County and State done to alleviate this over 56 years? So too, cola knots about the Native Hawaiian people cannot in some cases afford to stay in the State of their birth, but with the highest Gas Prices and Electricity Prices in the Nation, what has State Governments role? Again, in basically a “One Party State”, the ruling Party is responsible and with little Covid, being Outdoors, the Governor was slow to move out of the “Lock-down”, while encouraging resident employee’s not to work with both a State and Federal UN-Employment Subsidy that now keeps people from going back to work, in what is basically a Service Economy! Cutting off Tourism after eliminating Sugar etc., would be a death knell, Hawaiian Leaders have to emulate other areas that are relatively small, be it Sedona, Santa Fe, Carmel, Laguna Beach, Charleston, Amelia Island, Naples, Aspen, whatever to best develop a Residential Tax Base and complimentary Tourist Market, but after soliciting to develop Kaanapali, Kapalua and Wailea one cannot now, expect those that invested to retreat! Kauai does not want to be Maui, that is clear, and, steps can control this before it’s out of control, but Maui, the vacuum filled!

  20. Aloha,

    First, I so appreciate you, and the tireless time and effort you dedicate to the pulse of Hawai’i.

    If you would please respond, if I’ve paid for my Kaua’i vacation rental in full prior to the approval of the increase in tourism taxes/fees, could the owners bill me retroactively, the increased difference?

    Mahalo nui ame a hui hou!

    1. Hi Jana.

      We don’t know the answer. It would seem that it is related to the details within the contract you signed.

      Aloha.

  21. Ahoha BOH Bro’s

    Good job on outlining why Maui tourism has exploded.

    We fly out of Sacramento other than Oahu the only reason we don’t explore other islands is we do not have a direct flight to either Kauai or Big Island.

    As for changes I’d like to see unless you have proof of overnight accommodations in Hana I’d end all tourism traffic on the road to Hana. All tourist sight seeing would be done through tour bus companies licensed to travel Hana highway.

    Not a popular idea, but one that needs to happen.

    The other reason I’d close the highway tourist traffic there’s been increased tourist traffic driving the back side of the Hana highway. There’s no reason for tourist to drive that narrow winding road other then to brag that they did it.

    1. Having driven the Hana “highway” in a mini-van–not sure I would want to travel it in a “tour bus.” Those turns are pretty sharp and I’d hate to have a bus caught on a bridge–or, worse, involved in a crash. People who drive that road need to really be on Hawaii time and take their time–it’s not a rush drive. If “rush” is how you want to go–don’t go to Hana!!!

  22. Can’t imagine why anyone would put themselves thru this at this time. First time visitors are in for a shock it won’t be the paradise they thought it was going to be. Doubt they’ll ever come back, perhaps this is everyone bucket list moment. I live on Oahu and Maui for over 15 years and would visit after leaving twice a year. I’ll wait until the dust settles I can’t imagine this is an enjoyable trip.

  23. So now it’s the airlines fault??? This is a temporary situation created by pent up demand due to the lockdowns. We live in Colorado along a popular recreation river and have seen an explosion of people fly fishing, camping and floating down the river. Yes the traffic is horrible, the behavior of some individuals is disheartening and the wear & tear on the area is tough to see but it’s been wonderful for the small businesses. People want to be outdoors with their families and who can blame them.

    We are oh so fortunate to be ahead of most nations with vaccinations and our economy is rebounding better than most expected. In another year when other areas of the world catch up tourism demand will ease in the United States as other options become readily available.

    I hope Hawaii doesn’t price itself so high that average families will look for more affordable places to visit.

  24. The changes I would like to see on Maui is for the residents who have bilked the system by collecting unemployment benefits and free food at the maui food lines to get off their behinds and get back to work And moreover to stop their endless whining and abuse of both visitors and non-residents with second homes on the island who pay more taxes in the form of property taxes and visitor fees than the residents do to support the island in the first place. The so called shortage in restaurant and hotel workers would end in a flash as soon as eviction moratoriums, free food and unemployment payments that exceed normal wages cease. People work when they need to put food on the table and they don’t when someone else does it for them.

  25. We were in Maui in late June and early July. The numbers definitely picked up around the Independence Day weekend. We were amazed by that traffic in Paia, and we chose not to drive the Hana Highway because we had done it before.

    Frankly, if Maui continues to approve hotel and condo construction, tourists will fill the units.

    Numbers should return to more sustainable levels when Europe and other foreign destinations reopen to Americans. People are on a craze to travel right now, and Hawaii is one of the few luxurious destinations available.

  26. we recently returned from a month long stay in Maui/Kaanapali. It was the most crowded i had ever seen it but it’s still Maui..We fortunately stay in a condo with full kitchen and the resort provides bbq’s so we did not really go out much. We adapted. At home I don’t like to wait a long time to be seated at a restaurant..just won’t do it while on vacation. Overall, still a great time.

    1. Dear Andrea, I’m planning my life long dream vacation trip to Oahu next year & I’m getting very excited & can’t wait!! I’ve had my itinerary completed for months now. 🌍🏖🌺🐠🐢🌈🥥🍍🛩God bless you….Psalms 91:11❤

      1. Shave Ice, no matter what, a drive to the North Shore has to include Matsumoto’s, the original, 2-3 Flavor’s + Vanilla Ice Cream, pass on the Azuki Beans. Haleiwa on the north sign, parking behind, worth the line! Since this is a “once in a lifetime, from Waikiki take the road around Diamond Head, Waimanolo, Lanikai, Kailue, Kaneohe to Kahuku, then stop and go across the North Shore Sunset Beach, Waimea Bay, Chunn’s, Haliewa and Matsumoto’s on the right, when we started there in ’86, it was in the same store the opened in after WWII, take the Pineapple Fields back, Ft. Shafter after and then below comes Pearl Harbor the same view the Japanese fliers had, you’ll hit H1, may 45-50 minutes to Waikiki!

      2. Hey Andrea–my wife and I went to Oahu and Maui in June for the first time. We had no idea what to expect, but we had a plan of what we wanted to see. We feel we were respectful to the land and the people. We felt the spirit of Aloha, and it was an amazing trip. We hope to return someday, but nothing is guaranteed. We will treasure our experience.

        There are a lot of strong opinions here, and certainly costs and taxes will increase, but if you are prepared and visit the islands with the spirit of respect and Aloha, you will have an amazing trip. You will love the people and places, and the people you talk to will have the spirit of Aloha. It will be amazing. Aloha and pleasant travels.

  27. I’m concerned if Maui County limits the number of vehicles on the Road to Hana, as was mentioned in today’s HNN article suggesting the DOT purchase the Road to Hana from the federal government, we won’t be able to get to the legal vacation rental we have rented in Hana. Seems limiting vehicles, besides being illegal until it is no longer a public/federal roadway, would reduce property values for Hana-area vacation rentals.

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