One year after catastrophic wildfires ravaged Lahaina, Maui, the slow recovery is weighing heavily on Hawaii’s overall tourism performance. The impact of the wildfires is evident in the state’s declining tourist arrivals and spending, with numbers consistently dropping every month in the first half of 2024. According to the Hawaii Tourism Authority (HTA), visitor arrivals were down by 3.7% compared to the previous year, while spending decreased by 4.8%.
Maui, in particular, has been hit hard by the aftermath of the wildfires. Total visitor arrivals on the island were down by 23.8% in the first six months of the year, with visitor spending plummeting by over 24%. Despite efforts by tourism officials and stakeholders to revitalize the sector, the recovery has been slower than expected. Hotel data from CoStar further highlights the challenges faced by Maui, with occupancy rates down by 1.5% and average daily rates falling by 10.5%.
Emmy Hise, CoStar Group’s senior director of hospitality analytics, noted that Maui’s sluggish recovery has had a significant impact on Hawaii’s overall tourism performance. Statewide hotel occupancy remained stagnant at 74.7% in the first half of the year, with hotel room revenue declining by 2.3% year over year. The slowdown in domestic leisure demand, coupled with the delayed return of Japanese tourists, has further exacerbated the state’s tourism challenges.
Jack Richards, CEO of Pleasant Holidays, confirmed that the negative effects of the Maui wildfires have been felt across all the Hawaiian islands. Bookings for Hawaii have seen double-digit declines for every month through the end of 2024, except for the festive season, which shows a modest 2% increase. Richards highlighted that some travelers are hesitant to visit Maui due to lingering concerns about the impact of the wildfires on the local community.
High hotel prices in Hawaii have also been a deterrent for visitors. Despite some rate reductions in recent months, Hawaii’s hotel rates remain significantly higher than pre-pandemic levels. Maui, in particular, has the highest 12-month average daily rate in the nation, with rates up almost $170 compared to 2019 levels. This disparity in pricing has made Hawaii less competitive compared to other destinations like Mexico and the Caribbean.
Mufi Hannemann, CEO of the Hawaii Lodging and Tourism Association, acknowledged the challenges faced by hoteliers in Hawaii, including higher operating costs and revenue losses from the pandemic and wildfires. While significant rate cuts are unlikely, hotels are encouraged to offer value-added promotions to attract visitors. Targeted marketing efforts, such as the recent campaign launched by the HTA and its partners, aim to promote Hawaii as a welcoming destination and encourage visitors to return, especially to Maui.
The campaign, titled “The People. The Place. The Hawaiian Islands,” focuses on showcasing the unique culture and hospitality of the Hawaiian Islands. Lei-Ann Field, senior director of visitor public relations and communications at the Hawaii Visitors and Convention Bureau, emphasized the importance of highlighting the people and traditions that make Hawaii special. The campaign aims to convey a message of invitation and warmth to potential visitors, reassuring them that Hawaii is ready to welcome them back.
In conclusion, one year after the devastating wildfires in Maui, the slow recovery continues to impact Hawaii’s tourism industry. Efforts to revitalize the sector are ongoing, with a focus on addressing challenges such as declining visitor numbers, high hotel prices, and lingering perceptions of the aftermath of the wildfires. Through targeted marketing campaigns and value-added promotions, Hawaii aims to attract visitors back to the islands and showcase the resilience and beauty of the Aloha State.
