As summer unfolds, with the peak of the tourist season starting just one week from now, the Hawaii tourism sector faces ongoing challenges. Hotel performance shows a continued, slow downward trend. The latest May 2024 Hawaii Hotel Performance Report just out from the Hawaii Tourism Authority paints a concerning picture of the industry’s current state and trends.
Hawaii statewide visitor insights.
Statewide hotel occupancy fell slightly to 71.2%, a drop from 2023. This points to a troubling trend, at least for the industry, regarding the gradually weakening visitor numbers. The average daily room rate (ADR) dropped by an insignificant 1% to $342. That amount is before the 18% accommodation tax, bringing the average post-tax rate to $404, before any other costs, including resort and parking fees, for example. Maui hotel rates, including 18% tax, were $610.
How islands performed in May.
Maui County remains impacted by last year’s wildfires, among other issues. Those include the extreme cost of Maui hotels and the concerns around the proposed elimination of up to half of Maui vacation rentals. Maui hotel occupancy dipped to 58.3%, which has become a long-term downward trend.
Honolulu continues to show the most resiliency compared with neighbor islands.
Oahu, on the other hand, experienced stable occupancy rates of 78.4%. Kauai saw a drop, while Big Island achieved a small improvement.
Kauai hotel occupancy is 70.9 %, down by 2.9% compared with 2023, while the Big Island saw a small improvement to 63.7%. Both islands are maintaining higher average daily rates, with Kauai at $486 and Big Island at $426 (includes 18% tax).
A broader view of Hawaii tourism at the crossroads.
The consistent decline in key performance indicators suggests that Hawaii’s tourism recovery has faltered. With international visitor numbers yet to return to pre-pandemic levels, as well as domestic travel cooling, the entire sector is grappling with multiple headwinds with few signs of improvement on the horizon. Some, however, may say that this is just what the state had in mind in its desire to curb the industry.
The economic impact of Hawaii tourism changes is broad and deep.
The decrease in tourism has significant implications for Hawaii, affecting local businesses and the state’s overall economy. In addition, rising operating costs and lower occupancy rates are squeezing profit margins for many hotels.
Have Hawaii hotels, at long last, hit the end of price increases?
Hotels’ marketing efforts are ramping up even in summer to attract more visitors, while significant challenges remain. We are definitely seeing this trend of more promotional pricing during a time of year that has rarely been known for that in Hawaii. More on that topic to follow.
The May 2024 HTA report underscores that Hawaii remains at a pivotal juncture with its tourism industry, even as stakeholders work towards revitalizing the sector. If the state is serious in its desire to revitalize tourism and not seeing it dip further, greater efforts and robust marketing may be needed to reignite waning visitor interest and drive the state’s economic recovery.
What are your thoughts on the latest data from the state about Hawaii tourism?
hta-may-2024-hawaii-hotels-performance-finalGet Breaking Hawaii Travel News
Last time I went was in the middle of Covid.,.. May “21. Even then, the prices were absurd.
Then, I saw the new punitive tourist taxes, and read about the hostility toward visitors. The message was loud and clear: ” Stay home, Haole”. OK, no problem. We have lots of vacation choices, and Hawaiians made that choice easier for us. Going to Costa Rica instead this year. Bye!
I’m not sure what island you are on, but Maui hotel occupancy is sitting right around 40% occupancy.
I am not visiting because I have repeatedly heard that Hawaiians don’t like tourists. After Jason Momoa said to stay away from Maui, I did some more googling and found out that that attitude is prevalent throughout Hawaii. I am not going to spend a lot of money to go somewhere where people don’t want me or my money.
I would like to comment on why tourism may be declining. Airfares are up by 25- 40% over what we paid pre Covid. It is now $1000.00 per person to fly from Alberta Canada. I also think the multiple costs for the short term vacation rentals has gone up as well making it more unaffordable. I know it is a fine line between tourist dollars bring jobs and local Hawaiians resenting the tourists which makes us fell uncomfortable. These three reasons may be contributing in the reduction of tourists visiting. I have a booking for March but may cancel because of the airfare and the higher rates overall in Hawaii, even though I will lose my deposit. The current currency rate between CAD $ and US $ is over 40% and that is also a big reason Canadians can not afford to go either.
The entire issue began with White Lotus and the idea that tourists are all rich and entitled and the welcome mat began to roll up. With the lack of tourism during covid, locals got used to having their parking and beaches back. No thought that the high rental taxes continued to be paid by STR owners. Taxes that keep locals taxes lower.
And the tourisim message was Stay Away. For those who did return, they were met with additude and higher costs. Hawaii has a huge problem. Get it together before other tropical getaways share the Aloha and the feeling of Hawaii that is lost with money grabbing corporate thinking and jaded locals.
Stop building bland highrise hotels that cost a fortune, and find a way to bring back the Waikiki of the 80’s. Get rid of the ugly International Mkt place and return to something similar to the past with small quaint shops, tropical gardens, local artisans, open air Hawaiian style restaurants. Make people feel that they are experiencing the Hawaiian culture instead of another mainland strip mall with high end stores. Bring back the small wooden structured art galleries that one used to drive by on the way to the North Shore. So many interesting cultural things are gone.
Too expensive for what you get. Maybe a bit of a decline will force the hotels to do some renovations and updates. Some of the hotels I feel like don’t care because tourists kept coming at ridiculous prices.
Hawaii doesn’t like tourists. It is that simple. I can go to Puerto Rico, Costa Rica, Panama, and have a great time at one half or one third of the price. And, all the local people want me there.
The main reason I am going less often is because it’s so damn expensive hotels, car rentals are the worst! Airfare follows has a close third…🤒
$404 a night is a ridiculous price. That’s why people aren’t coming. For the foreseeable future I’m only going to be connecting through Hawaii to other more affordable destinations. I’m going to Vanuatu in October and I only paid $75 a night for a Waterfront Villa! In Hawaii something like that would be $5k a night. Average people can’t afford it anymore.
We were planning a couple’s vacation, because we’ve always wanted to visit, but put simply, the prices were too high for everything – hotels, flights, you name it, so we went to the Caribbean. We’re not poor, but there comes a point when it just seems silly to spend that kind of money on something we can find elsewhere for much less. If Hawaii wants to restrict tourism, I’m all for it – people still have to be able to live on the island, and I applaud the State’s efforts to make that more possible. If the prices keep rising like they have, though, it’s only going to be the super rich visiting, which I hope works for the State. Honestly, I think it would make more sense to ban AirBnb and VRBO so that houses, condos and apartments are only used by people who live in them, and keep the hotels for the tourists, but that’s just me. Seems like otherwise Hawaii is looking at a never-ending cycle of price increases on everything that collapses the economy…
Aloha Will.
Be careful what you wish for. If all the houses and condos and apartments were only occupied by those who live there and the hotels were the only game in town, you can expect the exorbitant hotel rates to explode even further. Are you ready to pay $1000 per night plus fees at a minimum? How about $2000?
I’m confused ? Hawaii tourism chased me away a few years ago. Prices were going up. They wanted rentals restricted. They wanted the number of planes arriving to be cut. Some locals wanted me to not be there. Now they are complaining that tourism is Down ?
I miss Kauai, but have found other great places to enjoy spending my money…..
Controversial subject.
We are blessed to go twice a year. Retired on a fixed income.
We penny pinch and budget all year to pay for the 2 trips.
Everything everyone has said here about out of control $ increases is true.
The middle class and working class like us are being priced out in favor of the rich elite.
Less tourists and the ones who do go spend more $.
We live in SoCal/OC and worked 99 years total in the tourism industry.
Tourism is huge here and we welcome,need,and want you here.
This is what Hawaiians wanted and they got it. Congrats. You killed the Golden Goose!
Could it also be that fewer people want a hotel experience? Someone (besides the hotel industry) should do a study on lodging preferences. I wonder if there’s a trend the Hawaii is fighting?
Hawaii used to be something really special back in the 70’s and 80’s, when sugar cane and pineapples farms were part of the tourist experience. When you took a circle island tour and stopped at some great places to experience the Hawaiian culture and way of life. Now it’s all about fancy price gouging hotels, high end shopping, and restaurant chains. After reading the report and how much the prices have increased since 2019, I’m stunned and saddened. I know things must and do change, but Hawaii’s problem is the government that the locals voted into office and the changes they are making that are ruining the islands for everyone.
Hawaii is out-pricing itself as a tourist destination. Hotel accommodations and restaurant costs keep increasing. The middle class is having a very hard time making ends meet due to the high inflation. As a result, they are either not traveling or taking trips to less costly destinations.
Prices are high. Treatment of tourists is poor by locals. Not planning any more Maui or Kauai trips
If I lived on the mainland there is no way I would travel to Hawaii with hotel room rates on the Big Island over $350/night (plus taxes and resort fees)! Who can afford to pay that? And that’s without the cost of airfare, car rental, and food. As someone who owns a business dependent on tourism, I find this data truly frightening.
I’m glad I managed to visit the islands. My last trip was in 2022. It was then I saw the effects of the HTA. It felt obvious that blue collar people were not wanted.
I would love to return, but it’s just not a financial possibility.
I hope the Hawaiian people manage to survive the changes forced on them by their own government.
I use to go once a year but now that the hotels and other rentals have added extensive taxes, processing fee, resort fees and other fees we refuse to go to Hawaii. I don’t mind the daily costs for fun but the hotels and rentals have gotten out of control. I refuse to support those costs.
Don’t forget the impact of the strong dollar. It’s allowing Americans to travel abroad and keeping many foreigners away.
While deeply sympathetic to the people effected by the Lahaina fire, the messaging has been horrible. We want tourists, we don’t want tourists, we only want tourist’s money. It’s a little offensive when other destinations are soo much cheaper and appreciative.
Hawaii s about to be deeply Humbled. I have zero sympathy for them.
I live and work here, and I can’t even afford a staycation. Don’t let the hotels fool you, they are making more money than ever. They love fewer, higher paying customers, because they can cut staff.
That is a ridiculous statement.
My wife and I went to Kauai in February, we went through Costco travel and did a lot of research on hotels, restaurants, etc. We found some very good deals, and booked through them, we also ate at alot of local restaurants I think people need to do there homework and take the time to research what they want. This would definitely help!
I think the concerns for traveling to Hawaii are the cost of hotel stay , car rentals and food and to add the 18% tax. With the cost of airfare keeps on going up , people are inclined to just travel where their limited budget can go.
“The consistent decline”. It’s 71%. People will always come hawaii. The pandemic didn’t stop them.
Love Hawaii but is just too expensive and the crazy hotel taxes make it even worse. Was planning an extended trip to Maui this year but discovered trip to Europe is much cheaper. Our favorite Maui hotel is now $1300.00 a night!
Oahu is overpriced, over-hyped, and over-run with tourists. Also, there is a significant amount of rainfall which consistently falls on the weekends which takes away from the fun of enjoying outdoor activities. This haole is out – shootz…
Long time visitor to Lahaina. After the fire we were looking forward to visiting with island again but the messaging was stay out, don’t come back we don’t want to come. We now
have discovered great places in the Carribean and probably won’t return. Unfortunately we still love Hawaii.
Coming to the comments here rarely disappoints. It is continuously the same tired old talking points. No more Aloha for the tourists. Too expensive. Mexico and the Caribbean are cheaper. We won’t be coming back. Hawaiians will be sorry when their incomes disappear from lack of visitors. It’s the same tired declarations over and over after every post on this blog and it’s really quite amusing.
Right? And then when there are no jobs because people are being laid off due to low tourism and hotel prices are too high, what will they do?
Crackdown on short term rentals should have an impact. What’s interesting is the whole claim that tourism is already down and I just don’t see it. I’m in the service industry and we are just as busy as ever. Road traffic has eased up a little but I associate that with the lack of snowbirds on the road.
I totally agree. Although I think we will cut back to vacationing once a year in Kauai instead of twice a year due to the high lodging costs.
Reading the political posts is like being back in middle school.
Why do the whiners and complainers even post here, if you want to go somewhere else just go there.
Yup, and you just repeated the same tired old declarations.
I think parking fees are outrageous. And now they’re going to add resort fees and accommodation tax? That is just too much! So disappointing. They need tourism but make it very unaffordable.
In my opinion, with vrbos or airbnbs. I can actually afford to go to Hawaii. With stopping that to 30 days it kind of puts it out of reach for me because hotels are ridiculously overpriced and have no kitchen which a lot of the vrbo’s offered. Which would then give me option to be able to cook most of my meals somewhere instead of spending so much money. Second, Hawaii keeps telling us we hate tourists. Why do I want to go somewhere if I’m going to feel like I’m not wanted. I know these are first world problems, but if you’re wondering why your tourism dips this is a lot of stuff I speak with other people about.
If you’re not spending money to support local businesses, like dining out, you’re not contributing to Hawaii’s economy. Instead, you’re straining our limited resources. We don’t need that kind of tourism here.
So going on all the tours, shopping at food stands for local vegetables and going to farmers markets instead of grocery stores for fresh vegetables. Eating at the food trucks when I can is not contributing to Hawaii’s economy? Going to shows and coffee shops plus stores but because I don’t eat out every night and day in Hawaii, I’m not contributing ? I’m not sure if you understand how economics work that is completely contributing to your economy.
I think you are contributing but there is the other side of the coin in Hawaii. Tip,Tip where’s my tip. Everybody wants a tip. Even the street acts around Kuhio street on Oahu. Restaurants automaically add the tip fee to the total bill and then apply sales tax to the gratuity without the customer even being informed. Is this considered contributing or stealing? I guess you went where most people don’t receive tips. No free money or 100% profit in ripping off the tourist.
Thanks for epitomizing the reason for the down turn!
Message received: Go somewhere else!
My wife and I, and the rest of our relatives, do support local businesses, we just don’t want to have to eat out for Every meal.
If you don’t want “that kind of tourism”, then you can say goodbye to almost all of your tourist dollars going forward. Good luck with that.
Exactly this. If you don’t vacation how we want you’re not welcome.
I was exactly that kind of tourist that you’re talking about wanting and desiring on your island and I was still treated like crap, manipulated, and gouged.
Hawaii is morally bankrupted. That’s Hawaii’s problem. Hateful and blaming everyone else for their problems is not going to solve them. You seriously only have a tourist economy after all this time?
Oh, wait,I’m sure it’s somebody else’s fault… 🙄
Those who don’t take care of their problems like adults will lose whatever they have. And personally, I feel like the way that I was treated, I’m anticipating Hawaii to get a good dose of reality about how worthwhile they really are to the rest of the world…
visitors and tourists are realizing what a joke Hawaii is and will hopefully just stop showing up all together.
Aloha is Dead.
Hawaii needs to be humbled.
Aloha. That is a lousy attitude. Most restaurant food is low quality and often hideously overpriced. If I had to eat every meal out I would stay home. Reminds me of Las Vegas; they won’t put a coffee pot in your room because they don’t want you in your room, they want you downstairs spending money. I do not want to go out for coffee at 6am. Thus the condo with a kitchen.
Mahalo
Of course there is a downturn in visitors to Hawaii.
It has turned into a rich man’s paradise that regular people can no longer afford.
A real shame
Proverbs 11:29 – He that troubleth his own house shall inherit the wind: Kūkalahale / ʻōlauniu
I wanted to plan a Christmas graduation trip on Maui for our daughter as she finishes PA school this December. I know the week of Christmas is a pricey time anywhere but 20,000 for two hotel rooms and four flights was ridiculous so instead we are going on a cruise to the Bahamas for $8,000 which includes the flight and will enjoy our Christmas in the Caribbean. Sorry Hawaii We do love you but you’re overpriced!
It’s been a pretty clear message to me here on Maui from my friends and family, they’re only coming if they can stay with us. The room rates are so past being just “high”, even with the recent “drop”, to the point where friends and family literally feel the rates are offensive and egregious gouging. Part affordability and part principled revolt – they refuse to come to Maui because of it. So, the Hoteliers need to get in line with dropping rates to the betterment of the entire tourism ecosystem and Mayor Bissen needs to focus his housing ire on those same Hoteliers. No tourists, no jobs, no jobs, no income, no income housing doesn’t matter because you can’t afford it.
I love visiting the Hawaiian islands and it was my vacation highlight. With the staggering cost of both hotel and car rental rates in the islands I can find better holiday values on the mainland, Mexico, Canada and even Japan. I wish Hawaii the best as gouging visitors will have short term gains and long term lasting repercussions as people avoid travel to the islands as being to expensive.
Our governor and mayors are taxing the visitors to death. Now they are halting the VRBO’s. to line their bloated pockets. Why should i fly 10 hours to get ripped off. i can go to the Caribbean or Mexico or even south Florida and get a hotel room for $150 a night or a VRBO for $100 a night. I have lived on and off Oahu, Maui, Big Island since 1997. and I can get cheaper sand anywhere in the world. When the local folks notice that people are talking with their wallets. They will vote in some visitor friendly bureaucrats and Politian’s that want to see Hawaii grow. Not destroy the economy. Like they did with the pandemic. funny Florida opened up 18 mo early and survived. Good example where we still have frightened voters running around with masks.
Enjoying bigger and better places folks! Many Many Many visitors have found a better place to go.
I don’t think it should be a surprise that raising prices means less visitors. Additionally less airbnb opportunities or higher prices in the airbnb world will also hurt the island. Both equate to less foreign $$$ coming into the economy for restaurants, car rentals, tourism adventure guided trips which will ultimately mean less employment. I don’t think the economic policy makers are holistically reviewing their policy and consequences. Luckily Hawaii is one of the most beautiful places and in the world, and so policies can be toggled to find the right sweet spot.