You’re not alone if you feel priced out of paradise. As Hawaii’s prices continue to soar, frustrated visitors are left wondering: Who’s to blame, and can your voices even be heard? From hotels and airlines to state taxes and fees, a myriad of factors are driving up the cost of a Hawaiian vacation.
You forgot how the Hawaiian government applies additional taxes if you own a place you rent short term (STR’s) the property taxes are 10 tens higher for an STR than if you don’t rent short term, live in the property or keep it for your own use. The electricity in a two bedroom condo is over $1,000 a month
Great point! That’s why I don’t ever rent out anything, although I do have extra space. I wish there were a “locals only” co-op where we could trade a night or two, for free, to others who also have a vacant “Ohana” unit.
It’s not just visitors being hit with the crazy-high costs in Hawaii. The locals have to deal with it daily. I just got an email from a retirement planning group, listing all 50 States in affordability to retirees. Hawaii was dead last on the list, at #50 out of 50. Here’s more on my “worst of” list: (1) Hawaii has the highest cost of electricity of all 50 States, at 44 cents/kWh, mainly due to 80% of its electrical generation from fossil fuels (2) Hawaii is the only State with a “gross” (truly) General Excise Tax: at 4+ %, it compounds: local wholesalers pass this on to retailers who pass it on to consumers, etc.; (3) Hawaii has the highest cost of gas in the nation @ $4.67/gal.; (4) 90% of Hawaii’s food is imported. I could go on, but honestly, it’s too depressing. We could do so much better. But after 40+ years here, I’m not holding my breath.
State of Hawaii and local counties need to get their heads together. There doesn’t need to be a 18% TAT if they managed their property taxes correctly on spending and those costs passed onto operators. Because Hawaiian government notoriously cannot even manage a checkbook, I don’t expect much change. Ironically, they had this window during Covid to figure out plan B. Instead, like always..no big ting’.
As a multi-week time share owner (Marriott) on Kauai, I really reject paying daily occupancy taxes on our units like hotel guests pay. We are weekly owners who pay property taxes to Kauai County every year when we pay our annual maintenance fees, which have risen dramatically in the last few years. To me that is double taxation, and it’s wrong. Plus when we are on island each year, we contribute sales tax income and support many local businesses through our purchases.
My wife and I were married in Hawaii and have returned to the islands 15 more times. But last year was likely our last time. Prices are out of control. And places we loved to visit now require a reservation a year ahead and charge a fee to enter. We will look at spending our vacation money in other exotic places. Hawaii is slowly killing its tourism business and in doing so will also do serious harm to all the locals. Goodbye, Hawaii!
Econ 101 (or was it 102?) showed equations using the 2nd derivative of the equation to maximize profits. These businesses know it well. And they’re using it to maximize profits. Customers? If they can pay, they can play. If not, who cares? That’s their thought process. Welcome to capitalism.
‘If not, who cares?’
If their property remains vacant most of the year, who cares, right? Certainly not the people and businesses that work in support of their property, right? Locals that are employed by these businesses? Might they care?
One of the biggest problems I see with hotel prices is that many hotels are not updating/maintaining their properties at a pace that can demand the high prices.
We stayed at the Grand Hyatt Kauai a few weeks back and although it is a beautiful hotel with amazing grounds, it is showing its age and the rooms/hotel need updating if they are going to continue to demand 1000/nt for a king room.
On the other hand, the Sheraton in Poipu has been recently renovated and the rooms and property are quite nice at a more reasonable rate. The grounds aren’t as expansive, but they have put a lot of money back into the property.
Regarding staff and locals, we had great interactions with everyone that we ran into on Kauai.
So lets kill as the Maui Mayor is trying to do short term much more affordable rentals, try to force everyone into a overpriced hotel.
Another brilliant move to support the local economy.
They are digging their own grave.
I’m a resident. No offense to you & your readers, but this article is focused on a “First World” problem- vacation in Hawaii costs too much. The bigger issue is living in Hawaii costs too much and continues to get worse. So much so, that for the first time in Hawaii’s history more Hawaiians now live on the Mainland than in Hawaii. And more children born and raised in the islands leave for the Mainland to find good employment and affordable housing. And look at the hotel and restaurant staffs. Many are older & retiring. So where will the hotels, restaurants, shops etc get their staff in the future? The exorbitant cost of living in Hawaii is the baseline upon which the state and the hotels, restaurants, airlines, etc. pile on their costs and fees. Just lowering the 18% tourist fee is not going to solve the underlying problem. Mahalo
The world is full of island economies that are healthy with livable costs for locals. You need to ask why Hawai’i is different.
Stop voting for economically clueless politicians whose only solution to any need is an additional fee on tourists. As they continue to increase costs, fewer tourists will produce less revenue. As the cycle repeats, the economy goes down the drain.
So what’s the solution? Leaving is economical. It’s called economics. If the local economy can’t support locals, those with an education or rational (critical) thinking will move to a place where it makes sense. It’s really not different than when people moved when the water or food dictated that they move. Nothing to see here. Been going on for thousands of years. I get the short term, non-critical thinkers out there, but seriously? Simple math. Simple execution. Stop being beholden to the past. Thing small, fail big. Hawaii leadership is a great example of that.
The issue is with-in the State. States are Independent, their Governments elected by the residents, not the tourists. The Governor, the House, the Senate, the Mayor’s are elected by the citizens of Hawaii. These are the people who are responsible for the lifestyle of the citizenry, their failure to grasp, what has become a Tourist driven Economy, with minimal Exports, Pineapple, everything, everything has to be shipped in, from Bricks, to Glass, to Wood, to Food, Clothes, whatever! As everyone in the 48 contiguous States is finding out, Green, like Ige and others has no grasp on business, and sadly the residents are the one’s squeezed first!
Agreed Randall R.
Nothing will change until residents get so fed up with their incompetent state and local governments that they vote them all out.
Hawaii is way overdue for a total house cleaning. Vote them all out. Until that happens things will continue to get worse for everyone.
Sooner or later the people will realize that Hawaii cannot survive with just billionaires like Zuckerberg, Oprah, and elitist out of touch Hollywood celebrities.
We have been coming to Maui for over 40 years. The real problems are with the local government and huge corporations that control the hotels. The islands need to tax them and use the money for local housing, they need to pay livable wages, forced on them by the state or local government. As tourists we pay more for less. They underpay locals. Very simple. Also spend the tax dollars better.
Unbelievable that all are being priced out over greed. I was born and raised in Hawaii and know that even the locals are being priced out of the community. You can blame outside corporations but the blame is actually on the local Government that allowed this to get out of hand. I am going back to visit my family and again the Island is on strike obviously because they can not live on the wages but also because your economy is not realistically affordable for the working class. To blame the corporations without actually doing something such control on price gouging which will ultimately push much need revenue away to other places affecting the hospitality industry and the purchasing power of those living there because of lack of funds which is simple economics. Hmm need to get your act together cause even with My Ohana there I will be considering PR, Bahamas ect ect.
You nailed it! “blame is actually on the local Government that allowed this to get out of hand”
We save for years for each trip to Hawaii. Then who wants to spend twice as much as the last trip when there are so many other, friendlier places to go? We’re left questioning whether it’s worth the cost anymore.
Aloha, Josh Green has made it clear that he doesn’t want middle income visitors, wants everything high end. The visitors group more or less has said the same. So you end up with the Oprah’s and the uber wealthy that buy up land and homes, bring in their own chef’s and staff and have their own playground. One side to that is that they don’t “bother” the locals, of course, that means no $ locally either.
That’s the plan… Ultra rich and their own staff. Force out the local people so they can have their own private playground.
This will be our last trip to Hawaii too, sadly. The animosity, anger, and price gouging are a big turn-off. We’ll choose to spend our hard-earned money elsewhere, at places that appreciate visitors supporting their economy.
Thanks so much for printing this article. When Josh Green said he only wanted high end tourists, he didn’t put any tourism money into promoting and helping businesses. Instead he offended tourists, drastically increased tourist taxes, and put no money into maintaining Hawaii. Tourists are being treated like outcasts. It’s obvious where the problem lies but the ones that created the problem are not capable of fixing it
Is there anything that can be done to bring back mid-range visitors? Drop prices across the board on food, car, and hotel costs. We’ve been coming for years, but now the costs are out of control. It all adds up, and it’s making people like us rethink their trips.
I dunno, but when car dealers started selling cars at lower profit margins they made more money due to the increase in the volume of sales, or so my car dealer friends told me.
I believe Southwest Air is building an alternate fuel plant for themselves in the Mid West, just saw it on the daily Farm Report. This will decrease operating costs in the long run.
I am so frustrated as a resident, that we, who live here permanently, cannot afford an hotel.
I wanted to do a birthday night for my son here on Big Island.
The hotel cost for one night, not in a tourist location was $386 total per night. I can not afford that. It is the whole deal is based in tourists, and we are just the workers, who have crummy wages and cannot even afford, where we live.
Yep, a staycation on basically any island other than O’ahu is out of reach for most local residents.
Back in the day, kamaainas were usually offered special rates at hotels. Fly/drive packages for inter island travel were awesome deals with Aloha Airlines. My wife and I took advantage several times. Those daze are long gone.
Auwe!
The King Kamehame resort in Kona has a $170 deal for Kamaaina with a waived resort free, and free parking. My grandmother stayed there just last month. I don’t know what the grand total turned out to be. But I hear you. Everyone is so concerned about the tourist. Government should be concentrating on improving the lives of locals. It doesn’t seem to me all the money generated from tourism is going for that.
So True! I no longer visit any other island, unless I have friends there that let me stay for free. Right now that only means Maui. I wish there were a “locals only” co-op where we could share & trade an ohana room with others, for free.
Sadly, yes, I am priced out. The costs skyrocketed, and trips to Hawaii are now just too expensive for me as a retired person. I’m lucky to have experienced the islands so many times, but it’s sad not to return. At least I’ve got great memories.
This will be our last trip to Hawaii. Costs are too high—flights, condo, fees, added taxes. We may just have to stay at the condo and swim in the pool. Do they charge more for that too?
Please don’t give the Governor any new ideas-otherwise he will charge a tourism tax to any visitor, based on the visitor’s weight, to swim in their own condo pool (Daily!).
Complaining to elected officials when they know you don’t vote for them is pretty much a non-starter. The electeds will always cater to their voters, right? So making the bad tourists pay high taxes makes the voters feel good and the electeds look responsible.
The market will be the biggest bearer for change. People will let their pocketbook speak for themselves. No tourists, no high fees, no jobs. 🤷♀️
Count me in the group who this year abandoned our 2 trips to Hawaii Went to Tennessee and had a blast for a whole bunch less Last week a short drive to San Diego, also a great location and I still have $ left
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