One year after devastating wildfires ravaged Lahaina, Maui, Hawaii's tourism industry continues to struggle with a slow recovery, dragging down the overall performance of the Aloha State’s visitor economy.
Statewide tourism data reveals a concerning trend: the first half of 2024 saw a 3.7% drop in visitor arrivals, with just under 4.8 million tourists, while spending fell by 4.8%, according to the Hawaii Tourism Authority (HTA). Maui has been hit particularly hard, with visitor arrivals plunging 23.8% and spending down over 24% year-over-year, despite efforts to revitalize tourism.
Hotel occupancy in Maui also declined, dropping approximately 1.5% to 66% in the first six months of 2024, accompanied by a significant 10.5% decrease in the average daily rate (ADR), which now stands at around $553, as reported by CoStar. Emmy Hise, CoStar Group's senior director of hospitality analytics, highlighted that Maui’s slow recovery has heavily impacted the entire state’s tourism performance.
The effects of Maui’s struggle are evident across Hawaii. The HTA reported stagnant statewide hotel occupancy at 74.7%, and hotel room revenue dipped 2.3% to $2.8 billion. Jack Richards, CEO of Pleasant Holidays, a major tour operator, confirmed the statewide impact, noting that Hawaii’s bookings are down double digits for most of 2024.
"We thought it would be a one-year recovery, but we don't see it getting better till 2026," Richards said, emphasizing the continued hesitation among travelers, many of whom are uncomfortable visiting an area still recovering from disaster.
High hotel rates also pose a challenge. Despite some reductions, Maui’s ADR remains the highest in the nation, deterring potential visitors who find better value in competing destinations like Mexico and the Caribbean. Mufi Hannemann, CEO of the Hawaii Lodging and Tourism Association, noted that significant rate cuts are unlikely due to ongoing recovery challenges, but hotels are encouraged to offer value-added incentives instead.
To counteract these challenges, Hawaii is ramping up targeted marketing efforts. A campaign launched by the HTA and the Hawaii Visitors and Convention Bureau, under the tagline "The People. The Place. The Hawaiian Islands," aims to attract visitors back, especially to Maui, by highlighting the unique culture and people of the islands.
"We’re just trying to let visitors know that it’s not only OK to visit, it’s a great time to come, and we welcome visitors," said Lei-Ann Field, senior director of visitor public relations at the Hawaii Visitors and Convention Bureau.
As Hawaii’s tourism industry navigates these complex challenges, the state remains hopeful that these efforts will help turn the tide and revive its crucial visitor economy.
