One year after catastrophic wildfires ravaged Lahaina, Maui’s tourism sector is still struggling to recover, with serious repercussions for Hawaii’s overall tourism performance. The Hawaii Tourism Authority (HTA) reported that tourist arrivals and spending statewide have been on a decline every month in the first half of 2024. The number of visitors to Hawaii dropped by 3.7% compared to the previous year, with spending down by 4.8%. Maui, in particular, has been hit hard, with total visitor arrivals down by 23.8% and spending decreasing by more than 24% over the same period.
Hotel occupancy in Maui for the first half of 2024 was down by approximately 1.5%, with the average daily rate (ADR) falling by 10.5% to about $553. These figures indicate a slower recovery than expected, especially during the summer months when leisure visitors typically flock to the destination. Maui’s sluggish hotel performance has been a drag on Hawaii’s overall hotel occupancy, which stood at 74.7% through the first half of the year, with hotel room revenue down by 2.3% year over year.
Jack Richards, CEO of Pleasant Holidays, a California-based tour operator, confirmed that the negative impact from the Maui wildfires has been felt across all islands in Hawaii. Bookings for Hawaii through Pleasant Holidays are down by double digits for every month of 2024, except for the festive season, which is showing a modest 2% increase compared to the previous year. The slow recovery has been attributed to a combination of factors, including ongoing recovery from pandemic-related revenue losses and the perception of Maui as a disaster zone.
One of the major challenges in revitalizing tourism in Maui is the high hotel prices, which remain significantly above pre-pandemic levels. Although rates have dropped slightly in recent months, Maui still has the highest 12-month ADR in the nation, with prices up almost $170 compared to 2019 levels. This disparity in pricing compared to other destinations like Mexico and the Caribbean has made Maui less attractive to potential tourists, leading to a further decline in bookings and revenue.
Mufi Hannemann, CEO of the Hawaii Lodging and Tourism Association, highlighted the importance of targeted marketing efforts to attract visitors back to Maui. The HTA and its partner organizations have launched a campaign aimed at showcasing the unique culture and people of the Hawaiian Islands to potential visitors, particularly in key feeder markets like Southern California. The campaign, titled “The People. The Place. The Hawaiian Islands,” emphasizes the welcoming nature of the destination and aims to entice visitors back to Maui.
As Maui continues to face challenges in its tourism recovery, stakeholders and officials are working towards finding solutions to revitalize the sector. While significant rate cuts may not be feasible for hoteliers facing rising operating costs and revenue setbacks, offering value-added promotions like a free night stay can help attract visitors looking for a quality experience at a reasonable price. By focusing on targeted marketing efforts and showcasing the unique culture and hospitality of Maui, the tourism sector hopes to bounce back and regain its appeal among travelers.