Maui, one year after facing catastrophic wildfires, is still struggling with its recovery, which is negatively impacting Hawaii’s overall tourism performance. According to the Hawaii Tourism Authority (HTA), there has been a noticeable decline in tourist arrivals and spending in the Aloha State during the first half of 2024. The total visitor arrivals in Hawaii through June were just under 4.8 million, representing a 3.7% decrease from the previous year. Similarly, visitor spending was down by 4.8%, with Maui bearing the brunt of the decline.
The recovery in Maui has been slower than expected, with total visitor arrivals down 23.8% and visitor spending dropping more than 24% year over year. Efforts by tourism officials and stakeholders have not been able to revitalize the sector effectively. Hotel data from CoStar further highlights the challenges faced by Maui, with occupancy down roughly 1.5% and the average daily rate (ADR) falling by 10.5% in the first half of 2024. This decline is significant, especially during the summer months when leisure visitors typically flock to the destination.
Maui’s sluggish recovery has had a negative impact on Hawaii’s overall tourism performance. Statewide hotel occupancy remained stagnant at 74.7%, and hotel room revenue declined by 2.3% year over year in the first half of the year. The slowdown in domestic leisure demand, coupled with the delayed return of Japanese tourists, has further compounded the tourism challenges faced by the state. However, Oahu has been somewhat insulated due to a surge in business, convention, and group demand.
Jack Richards, CEO of Pleasant Holidays, pointed out that the negative impact from the Maui wildfires has been felt across all the islands in Hawaii. Bookings for Hawaii through 2024 have seen a double-digit decline, except for the festive season, which is showing a modest 2% increase compared to the previous year. Richards emphasized that there is still reluctance among travelers due to the perception of Maui as a disaster zone. Additionally, high hotel prices in Hawaii, despite some reductions, remain a deterrent for potential visitors.
Mufi Hannemann, CEO of the Hawaii Lodging and Tourism Association, highlighted the challenges faced by hoteliers in Hawaii. Higher operating costs, ongoing recovery from pandemic-related revenue losses, and revenue setbacks from the previous year’s wildfires have made it difficult for hoteliers to significantly cut rates. Instead, they are encouraged to offer value-added promotions to attract visitors. Despite this, Hawaii’s hotel rates are still comparatively high, affecting the destination’s overall value proposition.
Hannemann stressed the importance of targeted marketing efforts to attract visitors back to Maui and Hawaii as a whole. The HTA, in collaboration with partner organizations like the Hawaii Visitors and Convention Bureau, launched a campaign aimed at showcasing the people and culture of the Hawaiian Islands. The campaign, titled “The People. The Place. The Hawaiian Islands,” focuses on top feeder markets like Southern California and emphasizes a more welcoming message to encourage visitors to return.
Lei-Ann Field, senior director of visitor public relations and communications at the Hawaii Visitors and Convention Bureau, highlighted the shift in messaging to focus on the people and culture that make the Hawaiian Islands unique. The campaign promotes lei-makers, chefs, and other industry professionals directly or indirectly connected to tourism. The message is designed to be more inviting and welcoming, urging visitors to appreciate the beauty and hospitality of Hawaii despite the challenges faced during the recovery process.
Maui’s slow road to recovery after the wildfires in 2023 has had a significant impact on Hawaii’s tourism industry in 2024. Efforts to revitalize the sector, attract visitors back to the islands, and address challenges faced by hoteliers are ongoing, with a focus on targeted marketing and a welcoming message to highlight the unique culture and beauty of the Hawaiian Islands. While obstacles remain, the resilience and hospitality of the people of Hawaii shine through as the industry navigates through this challenging period.