In the aftermath of catastrophic wildfires that devastated Lahaina, Maui, the island’s tourism industry has been struggling to recover. According to the Hawaii Tourism Authority (HTA), tourist arrivals and spending statewide have experienced a decline in the first half of 2024. Maui, in particular, has seen a significant decrease in visitor arrivals and spending, with total arrivals down 23.8% year over year and spending dropping by more than 24%. Despite efforts by tourism officials and stakeholders to revitalize the sector, the recovery in Maui has been slower than expected.
Data from CoStar revealed that hotel performance in Maui has been lackluster. Occupancy rates in Maui were down approximately 1.5% in the first half of 2024, reaching only 66%. The average daily rate (ADR) for hotels in Maui fell by 10.5% to around $553 during the same period. Emmy Hise, CoStar Group’s senior director of hospitality analytics, noted that the decrease in occupancy during the summer months, when leisure visitors are typically more abundant, has been particularly concerning for Maui’s hotel industry.
Maui’s slow recovery has had a ripple effect 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 decreasing by 2.3% year over year to $2.8 billion. The sluggish recovery in Maui, coupled with a slowdown in domestic leisure demand and the continued absence of Japanese tourists, has posed significant challenges for Hawaii’s tourism sector. While Oahu has seen an increase in business, convention, and group demand, the rest of the state is grappling with a decline in tourism.
Jack Richards, CEO of Pleasant Holidays, echoed concerns about the lasting impact of the Maui wildfires on Hawaii’s tourism industry. Bookings for Hawaii through the end of 2024 have decreased by double digits, except for the festive season, which has shown a modest 2% increase compared to the previous year. Richards highlighted that travel advisors have reported low demand, citing hesitation among travelers to visit a destination still recovering from a disaster. Perception issues around the wildfires, combined with high hotel prices, have deterred visitors from choosing Hawaii as their travel destination.
Despite efforts to revitalize Maui’s tourism industry, challenges remain for the island and the state as a whole. Mufi Hannemann, CEO of the Hawaii Lodging and Tourism Association, acknowledged the triple challenge facing many hoteliers: higher operating costs, ongoing recovery from pandemic-related losses, and revenue setbacks from the wildfires. While rate cuts are unlikely, Hannemann emphasized the importance of offering value-added promotions to attract visitors. Targeted marketing campaigns, such as the one launched by the HTA and partner organizations, aim to convey a welcoming message to potential visitors and encourage them to return to Maui and other Hawaiian islands.
Lei-Ann Field, senior director of visitor public relations and communications at the Hawaii Visitors and Convention Bureau, highlighted the importance of focusing on the people and culture that make the Hawaiian Islands unique. The current marketing campaign, “The People. The Place. The Hawaiian Islands,” showcases the local artisans, chefs, and other individuals who contribute to the tourism industry. By emphasizing the welcoming and inviting nature of the islands, the campaign aims to attract visitors from key markets and promote a positive image of Hawaii as a travel destination.
The impact of the wildfires on Maui’s tourism recovery has been substantial, affecting not only the island but also Hawaii’s overall tourism performance. Despite challenges in the industry, concerted efforts by tourism officials and stakeholders to revitalize the sector and attract visitors are underway. By focusing on value-added promotions, targeted marketing campaigns, and highlighting the unique culture and people of the Hawaiian Islands, the tourism industry aims to overcome the current challenges and position itself for a more robust recovery in the future.