99 thoughts on “Why Hawaii Visitor Decline Persists | Latest Report”
Andy S
Well, with my travel agent lately discouraging us from travelling to Hawaii (where she has booked us several times in the past) and suggesting that the Caribbean is a much better value due to the “untouchable prices” (her words) in Hawaii, you definitely have a problem. And I have to admit, she is right. There are islands in the Caribbean that are much less expensive than Hawaii, easier to get to (from the Midwest, which obviously is no fault of Hawaii’s!), and offer outstanding beaches, fantastic food, and delightfully friendly people who actually Want you to visit. The choice is sadly becoming much easier….and this from a lover of Hawaii who has travelled there many times in the past. Your pricing (and I have to say, your Marketing, which does Nothing to counterbalance all the “We don’t want any more tourists” drumbeat from many locals) need serious changes before we’ll spend out vacation dollars and time there. Sorry.
We just returned from Kauai. We love the island but we realized the cost of going there is putting it out of reach. Our 2 bdrm condo was $4500 + $2000 taxes/fees. Rental car was less now inventories are up. Groceries remain high. Cost of accommodations is what will determine tourism.
I have enjoyed reading your postings over the years. I will not be viewing them any longer because I refuse to visit Hawaii with these unreasonable prices. The new local government fees have not helped either. What used to be my favorite place in this world has priced and regulated itself out of my consideration for future vacations.
Greed, killed the goose that lzid the golden egg. People chose not to spend thatr kind of stupid money for Hawaii. As long as the industry thinks it is in a slump and will recover there will be no improvement. Costs need to drop in half of current rates to stimulate a return.
I know I will never book another trip to Hawaii as long as the prices stay this high. Too many other good deals in this world to go back to Hawaii
Hawaii has been trying to kill the golden goose of tourism for years and unfortunately they’re seeing success. Ever increasing taxes and fees for anything the tourist touches, unwelcoming attitudes of the citizens, outrageously expensive hotels – The list goes on.
The state is reaping what it has sown and since tourism accounts for as much as 85% of the economy depending on the island, this isn’t likely to end well. The downward trend will cut the revenue from all those taxes and fees. The government will invent new ones to try to fill the budgetary shortfall and the cycle will continue until it crashes. It will be a long and painful road back.
My wife and I love coming to Maui, The first visit was in 2005. We decided to visit and I started to look for a place to stay. Hotels were my first choice. Then I saw the prices they wanted for a room. way outside our budget. Then I forget how but I found a Lady who had Condo’s for rental. We ended up in a Condo in Kihei for 7 nights and loved it. Since then we have been back multiple time always in the same Condo Complex. Later this year may be our last visit as our complex is on the Minatoya List. Please understand we love the Island and our visits there but if our accommodation choice is an over priced Hotel room with a bed, bathroom and TV because our Complex can no longer rent us a Condo then I regret that somewhere else will become our choice. Hotel rooms don’t have kitchens we can prepare meals in, no large fridge/freezer to keep ice and drinks in. A nightly rate currently more than double what we pay for a condo. We can’t afford to go that route!!
Prices will not come down the Hotel/Resort and STR owners start
incurring significant losses and cash flow problems.
It was the same way during the recession of 2008 thru 2011.
They are always reluctant to lower prices because they’re
afraid of leaving money on the table.
As the owner of an STR, I would like to point out that we are not rolling in cash. Some months I break even and others I take a loss. The cost to run a STR in Maui is huge. HOA fees are huge, maintenance and repair expenses are huge. Property managers get their well deserved portion too. I say this because increased losses and lower cash flow will most likely not result in many deals for visitors. More likely it results in people having to sell the investment homes they worked hard for.
Hotels can probably afford to cut their rates, but please don’t lump STRs in the same pool. Most of us are charging what we need to in hopes of just breaking even. I am not afraid of “leaving something on the table.” I just want to make sure that I can afford to keep going!
Unfortunately, you like many other STR owners will be caught in
the downdraft of declining demand. I remember back in 2011,
I could have bought a very nice condo in Koloa
(not on the beach) for $200,000 .
Not just in Hawaii either. Other expensive destinations are pushing back on vacation rentals and making them less viable. Plus the Airbnb platform was extremely hostile to hosts while profiting immensely from the pandemic.
Residential tenants since then have been better for me financially, although I miss staying at my former STR.
There are more than
a few STR owners who truly strive to keep rates affordable. We have owned a condo on Kauai for over three years, and have always used a management company. Multiple times, I have asked our management to lower our prices, as they just seem too high to me. Agree hotel rates are unreachable for most people, but there are still some nice places out there, at reasonable prices. It is unfortunate that taxes add so much to the total cost, but we owners have no control over that.
I think it will only get worse for the Hawaii Hotel industry, especially if the STR issue takes hold. If that happens, Hotels will have a corner on the tourist market, and they will continue to raise prices as high as the market will bear, i.e., until they see their occupancy rates level off or decline significantly. I would bet the majority of tourists prefer STR’s, and if that segment disappears, Hawaii’s economy will really suffer.
Wow, is anyone really surprised at this downward trend in tourism numbers and revenue? With the increasingly visible anti-tourism vibe, steps to outlaw short term vacation rentals on Maui, and crazy high prices, many of us repeat visitors are looking for alternative options. Instead of 2 1/2 months a year in West Maui, we’re heading to sunny beaches in Thailand this coming winter…..minus the hostility of the local residents and government.
Haven’t been back to Hawaii since 2020. It’s just too expensive. It saddens me as I loved the islands but it just isn’t affordable for the regular joe anymore.
It doesn’t take a rocket scientist to figure this out. Well, in Hawaii, it might actually.
Hotel prices are currently insane, particularly on the neighbor islands, where modestly priced hotels start at around $300/night and resorts start at $600/night.
To add insult to injury, virtually none of that money stays here. It all gets transferred to corporate offices, most of which are on the mainland.
It isn’t a price problem for us, it’s the politics and unwelcome atmosphere. Most of us remember how we were shunned from the Hawaiian Islands during Covid for being unvaccinated. We also see the obvious resentment and rude behavior directed towards mainlanders.
I ‘m not sure who those complaining about rude behavior by locals are coming into contact with. We have come every year for the past 35 years and are currently on Maui. I have not encountered any negativity on the part of locals whatsoever. As ye sow, so shall ye reap? Just a thought.
Guys. Look. The USD is extremely strong right now. Is a great time for US residents to visit other countries instead of Hawaii. Europe, Canada, Australia, Japan, etc., and enjoy a 33%+ discount on prices.
Conversely, is very expensive time for international travelers to come to the US, especially Hawaii, which is already more expensive. They are paying 33%++ more.
I’m surprised Hawaii travel has only dropped a few percentage points. I would expect it to be greater.
I thought the post from Lisa was really on point. Actually they pretty much all were. I have a strong feeling that the summer visitor counts are still going to trend downward. The negative comments from your posters have greatly influenced the readers to vacation elsewhere. Even lower airfare prices will not lure them back when everything else is so expensive. At least the locals will be happy to see less tourists overcrowding their island. But the economy is going to suffer and unemployment will rise. It will soon become too expensive for even them to live there. Lose-lose situation for everyone.
I forgot to say on the comments I just shared that I wonder if the lack of aloha on the Big Island is one reason for their downturn on tourism. Mahalo for the additional clarification post.
I have long been a traveler to Hawaii annually, even sometimes twice a year since 1977 and have seen an ebb and flow of the costs and availability that impact all islands.
True, after Covid, visitors flew out of a cannon and the islands were even overwhelmed with people looking to revisit their dream vacations. But, as international travel opened with amazing offers, most traveled on to other destinations leaving many islands unbooked but with no special offers to return to! Average Hawaiian hotels and even rentals skyrocketed with taxes, fees and other charges to average over $450 per night and with a car, is not sustainable for a $3,150. vacation without airfare, car, food and hotel! Even Maui is missing the mark post fires. While thousands of tourists poured donations to their beloved island, there was nothing remotely affordable to come back to.
Hawaii needs to rethink their plan, Aloha means hello but it also means good-bye. It’s up to them which way their spirit is returned.
Politics in Hawaii have created too much uncertainty for the traveler. Hotel prices, keep climbing, and as consumer tastes change, they are looking for more value. It’s not just the price of the hotel room, it’s the cost of the restaurants and the mediocre service, the cost of cocktails at the hotel, the parking and the taxes. I think we are going to see more and more tourists look for alternative accommodations. You’re still going to have people that will stay in the hotels but more and more of that revenue will move to alternative lodging.
“The consistent decline in key performance indicators suggests that Hawaii’s tourism recovery has faltered…”umm isn’t that what the citizens want? We are sad to say we are taking other options for vacation, and are quite happy. As a former visitor-I am tired of being labeled as disrespectful, uncaring, a litterbug…whatever. We volunteered for the whale count, sent money to Maui Strong , only to find a corrupt government, obscenely expensive hotel rates, and angry native Hawaiians. Aloha
Aloha! Just returned from a first time visit to the Big Island. It was beautiful, but we were stunned how unwelcome we were. The staff at the Royal Kona and Grand Naniolo, as well as the staff at Ultimate Burger, were fabulous, but the Hawaiians elsewhere on the Big Island that we encountered were not friendly, compared to those on Oahu and Kauai. I promise we were showing aloha and being very respectful of the aina. When we return to Hawaii for our next trip, it will not be the Big Island. We are sad about the lack of aloha, as we just knew it would be friendly! Mahalo for allowing this post to be shared and for your continued updates that we subscribe to on Hawaii!
Of the islands I’ve visited over the years, all four major islands, the Big Island has the most local feel to me. That means that outside of the tourist spots, you end up with people who are just living their lives and are not bending over backwards to show friendliness to the visitors. However, they are generally open to genuine personal connections when the opportunities arise. The Big Island remains my favorite and I can’t wait to go back.
Well, with my travel agent lately discouraging us from travelling to Hawaii (where she has booked us several times in the past) and suggesting that the Caribbean is a much better value due to the “untouchable prices” (her words) in Hawaii, you definitely have a problem. And I have to admit, she is right. There are islands in the Caribbean that are much less expensive than Hawaii, easier to get to (from the Midwest, which obviously is no fault of Hawaii’s!), and offer outstanding beaches, fantastic food, and delightfully friendly people who actually Want you to visit. The choice is sadly becoming much easier….and this from a lover of Hawaii who has travelled there many times in the past. Your pricing (and I have to say, your Marketing, which does Nothing to counterbalance all the “We don’t want any more tourists” drumbeat from many locals) need serious changes before we’ll spend out vacation dollars and time there. Sorry.
We just returned from Kauai. We love the island but we realized the cost of going there is putting it out of reach. Our 2 bdrm condo was $4500 + $2000 taxes/fees. Rental car was less now inventories are up. Groceries remain high. Cost of accommodations is what will determine tourism.
We used to visit Hawaii as a family almost every year. But it has simply become unaffordable due to various reasons. Maybe in the future…
I have enjoyed reading your postings over the years. I will not be viewing them any longer because I refuse to visit Hawaii with these unreasonable prices. The new local government fees have not helped either. What used to be my favorite place in this world has priced and regulated itself out of my consideration for future vacations.
Greed, killed the goose that lzid the golden egg. People chose not to spend thatr kind of stupid money for Hawaii. As long as the industry thinks it is in a slump and will recover there will be no improvement. Costs need to drop in half of current rates to stimulate a return.
I know I will never book another trip to Hawaii as long as the prices stay this high. Too many other good deals in this world to go back to Hawaii
Hawaii has been trying to kill the golden goose of tourism for years and unfortunately they’re seeing success. Ever increasing taxes and fees for anything the tourist touches, unwelcoming attitudes of the citizens, outrageously expensive hotels – The list goes on.
The state is reaping what it has sown and since tourism accounts for as much as 85% of the economy depending on the island, this isn’t likely to end well. The downward trend will cut the revenue from all those taxes and fees. The government will invent new ones to try to fill the budgetary shortfall and the cycle will continue until it crashes. It will be a long and painful road back.
My wife and I love coming to Maui, The first visit was in 2005. We decided to visit and I started to look for a place to stay. Hotels were my first choice. Then I saw the prices they wanted for a room. way outside our budget. Then I forget how but I found a Lady who had Condo’s for rental. We ended up in a Condo in Kihei for 7 nights and loved it. Since then we have been back multiple time always in the same Condo Complex. Later this year may be our last visit as our complex is on the Minatoya List. Please understand we love the Island and our visits there but if our accommodation choice is an over priced Hotel room with a bed, bathroom and TV because our Complex can no longer rent us a Condo then I regret that somewhere else will become our choice. Hotel rooms don’t have kitchens we can prepare meals in, no large fridge/freezer to keep ice and drinks in. A nightly rate currently more than double what we pay for a condo. We can’t afford to go that route!!
Aloha. “ We can’t afford to go that route!!”
Why would you want to?
Mahalo
Prices will not come down the Hotel/Resort and STR owners start
incurring significant losses and cash flow problems.
It was the same way during the recession of 2008 thru 2011.
They are always reluctant to lower prices because they’re
afraid of leaving money on the table.
As the owner of an STR, I would like to point out that we are not rolling in cash. Some months I break even and others I take a loss. The cost to run a STR in Maui is huge. HOA fees are huge, maintenance and repair expenses are huge. Property managers get their well deserved portion too. I say this because increased losses and lower cash flow will most likely not result in many deals for visitors. More likely it results in people having to sell the investment homes they worked hard for.
Hotels can probably afford to cut their rates, but please don’t lump STRs in the same pool. Most of us are charging what we need to in hopes of just breaking even. I am not afraid of “leaving something on the table.” I just want to make sure that I can afford to keep going!
Unfortunately, you like many other STR owners will be caught in
the downdraft of declining demand. I remember back in 2011,
I could have bought a very nice condo in Koloa
(not on the beach) for $200,000 .
Not just in Hawaii either. Other expensive destinations are pushing back on vacation rentals and making them less viable. Plus the Airbnb platform was extremely hostile to hosts while profiting immensely from the pandemic.
Residential tenants since then have been better for me financially, although I miss staying at my former STR.
There are more than
a few STR owners who truly strive to keep rates affordable. We have owned a condo on Kauai for over three years, and have always used a management company. Multiple times, I have asked our management to lower our prices, as they just seem too high to me. Agree hotel rates are unreachable for most people, but there are still some nice places out there, at reasonable prices. It is unfortunate that taxes add so much to the total cost, but we owners have no control over that.
I think it will only get worse for the Hawaii Hotel industry, especially if the STR issue takes hold. If that happens, Hotels will have a corner on the tourist market, and they will continue to raise prices as high as the market will bear, i.e., until they see their occupancy rates level off or decline significantly. I would bet the majority of tourists prefer STR’s, and if that segment disappears, Hawaii’s economy will really suffer.
Wow, is anyone really surprised at this downward trend in tourism numbers and revenue? With the increasingly visible anti-tourism vibe, steps to outlaw short term vacation rentals on Maui, and crazy high prices, many of us repeat visitors are looking for alternative options. Instead of 2 1/2 months a year in West Maui, we’re heading to sunny beaches in Thailand this coming winter…..minus the hostility of the local residents and government.
Staycation with Kama’aina rate of $375 at King Kamehameha hotel over the weekend.
Shocked at how dead it was compared to same time last summer.
Vacationed last month in Europe (France, Spain, Portugal) and hotels (and every other expense) were sooo much cheaper. Crowds everywhere.
Haven’t been back to Hawaii since 2020. It’s just too expensive. It saddens me as I loved the islands but it just isn’t affordable for the regular joe anymore.
It doesn’t take a rocket scientist to figure this out. Well, in Hawaii, it might actually.
Hotel prices are currently insane, particularly on the neighbor islands, where modestly priced hotels start at around $300/night and resorts start at $600/night.
To add insult to injury, virtually none of that money stays here. It all gets transferred to corporate offices, most of which are on the mainland.
It isn’t a price problem for us, it’s the politics and unwelcome atmosphere. Most of us remember how we were shunned from the Hawaiian Islands during Covid for being unvaccinated. We also see the obvious resentment and rude behavior directed towards mainlanders.
I ‘m not sure who those complaining about rude behavior by locals are coming into contact with. We have come every year for the past 35 years and are currently on Maui. I have not encountered any negativity on the part of locals whatsoever. As ye sow, so shall ye reap? Just a thought.
It’s not always that simple. Reality is usually more nuanced.
Guys. Look. The USD is extremely strong right now. Is a great time for US residents to visit other countries instead of Hawaii. Europe, Canada, Australia, Japan, etc., and enjoy a 33%+ discount on prices.
Conversely, is very expensive time for international travelers to come to the US, especially Hawaii, which is already more expensive. They are paying 33%++ more.
I’m surprised Hawaii travel has only dropped a few percentage points. I would expect it to be greater.
These are numbers for May, not the high season. Summer may indeed be worse as travellers find less expensive alternatives.
I thought the post from Lisa was really on point. Actually they pretty much all were. I have a strong feeling that the summer visitor counts are still going to trend downward. The negative comments from your posters have greatly influenced the readers to vacation elsewhere. Even lower airfare prices will not lure them back when everything else is so expensive. At least the locals will be happy to see less tourists overcrowding their island. But the economy is going to suffer and unemployment will rise. It will soon become too expensive for even them to live there. Lose-lose situation for everyone.
I forgot to say on the comments I just shared that I wonder if the lack of aloha on the Big Island is one reason for their downturn on tourism. Mahalo for the additional clarification post.
I have long been a traveler to Hawaii annually, even sometimes twice a year since 1977 and have seen an ebb and flow of the costs and availability that impact all islands.
True, after Covid, visitors flew out of a cannon and the islands were even overwhelmed with people looking to revisit their dream vacations. But, as international travel opened with amazing offers, most traveled on to other destinations leaving many islands unbooked but with no special offers to return to! Average Hawaiian hotels and even rentals skyrocketed with taxes, fees and other charges to average over $450 per night and with a car, is not sustainable for a $3,150. vacation without airfare, car, food and hotel! Even Maui is missing the mark post fires. While thousands of tourists poured donations to their beloved island, there was nothing remotely affordable to come back to.
Hawaii needs to rethink their plan, Aloha means hello but it also means good-bye. It’s up to them which way their spirit is returned.
Politics in Hawaii have created too much uncertainty for the traveler. Hotel prices, keep climbing, and as consumer tastes change, they are looking for more value. It’s not just the price of the hotel room, it’s the cost of the restaurants and the mediocre service, the cost of cocktails at the hotel, the parking and the taxes. I think we are going to see more and more tourists look for alternative accommodations. You’re still going to have people that will stay in the hotels but more and more of that revenue will move to alternative lodging.
“The consistent decline in key performance indicators suggests that Hawaii’s tourism recovery has faltered…”umm isn’t that what the citizens want? We are sad to say we are taking other options for vacation, and are quite happy. As a former visitor-I am tired of being labeled as disrespectful, uncaring, a litterbug…whatever. We volunteered for the whale count, sent money to Maui Strong , only to find a corrupt government, obscenely expensive hotel rates, and angry native Hawaiians. Aloha
Aloha! Just returned from a first time visit to the Big Island. It was beautiful, but we were stunned how unwelcome we were. The staff at the Royal Kona and Grand Naniolo, as well as the staff at Ultimate Burger, were fabulous, but the Hawaiians elsewhere on the Big Island that we encountered were not friendly, compared to those on Oahu and Kauai. I promise we were showing aloha and being very respectful of the aina. When we return to Hawaii for our next trip, it will not be the Big Island. We are sad about the lack of aloha, as we just knew it would be friendly! Mahalo for allowing this post to be shared and for your continued updates that we subscribe to on Hawaii!
Of the islands I’ve visited over the years, all four major islands, the Big Island has the most local feel to me. That means that outside of the tourist spots, you end up with people who are just living their lives and are not bending over backwards to show friendliness to the visitors. However, they are generally open to genuine personal connections when the opportunities arise. The Big Island remains my favorite and I can’t wait to go back.