The state's data is now out there regarding June travel, and it's a tip. Reading between the lines provides more information about what is really happening here in Hawaii.
First, the numbers. Visit0r visitors from the West Coast hotspot are still down 4.5% compared to June 2021, although the eastern US secondary market is up 3.9%. This downturn is primarily the result of economic concerns. But we say there is more than that.
Beat of Hawaii friend Jerry Gibson, president of the Hawaii Hotels Alliance (whom your editors know when he lived on Kauai), was quoted as saying, “I don't see any shining stars over the coming months. The holiday season (December 23 - January 3) will always be strong. The rest of the year Much softer than I expected."
The often out-of-fact and controversial Hawaii Tourism Authority said, “Our current visitors are spending far more on their trip to Hawaii, in the face of the misperception that we are seeing underspending and a budget traveler.
Even with these big-spending visitors, we should To continue our efforts in destination management to ensure that the economic benefits are balanced with the well-being of the environment and society.”
What bothers you in Hawaii?
Problem 1: The demise of a high-value but affordable vacation in Hawaii
Visitors from the crucial West Coast spent $963.3 million in June, which is a whopping 39.4% increase over pre-pandemic June 2019. Visitors from the eastern US spent $662.5 million, up 34.9% compared to June 2019.
A jump of nearly 40% in the cost of a vacation in Hawaii is not sustainable. One of the reasons Hawaii has always been there has been to offer high-value, affordable, exotic local vacation. Is Hawaii really ready for something else if this model is completely out the window?
Problem 2: There is no marketing agency to help guide Hawaii tourism.
HVCB (Hawaii Convention and Visitors Bureau) was unceremoniously kicked out several months ago. The state's Hawaii Tourism Authority has awarded most of the marketing role to the Native Hawaiian Advancement Board.
But this has led to the now contested conflict over who will be ultimately responsible for marketing Hawaii's tourism. Their expulsion was protested by HVCB, which has extended a short-term 90-day marketing contract that expires in September.
Meanwhile, their marketing efforts have been largely scrapped as the dispute progressed toward the courts.
Problem 3: Hawaii Forward reservations collide with skis
It has already been widely reported that the pace of pre-booking creeps in in the late summer and fall seasons.
The holidays are always going strong, but then we don't see great signs ahead, and it looks like 2023 will be a very competitive and problematic travel environment with many visitors to Hawaii instead opting for long-term international destinations.
And while slowing down tourism may be somewhat desirable, free fall will not. Remember that tourism is the largest driver of income in Hawaii, providing hundreds of thousands of jobs and billions in tax revenue.
Problem 4: The challenges of over-tourism leading to traffic, flight delays, airport congestion, and lack of availability
Maui is rising to numbers not seen since Covid. There were nearly 300,000 visitors last month, the highest level in two and a half years. But when Maui's airport is widely reported to feature lines of up to 3 hours, that doesn't bode well for returning visitors.
Maui is also intent on curbing tourism and is considering finding ways to limit it to a fraction of the current numbers.
But the challenges are greater than that and affect all islands. Traffic was worse than it had been in years, while staff shortages led to unexpected availability of places across the islands. Airlines have their own set of issues, but arrive early and be patient when traveling.
Problem 5: the persistence of anti-tourist sentiment, at least for the time being
There is one thing about this. As long as there is a lot of tourism, this feeling will continue. But most likely, once there is a significant drop in tourism in Hawaii, which seems possible and probably will continue into the future, that sentiment could change dramatically.
The way Hawaii tourism is managed is still complex and clearly a process in progress
Hawaii is seeking to transition to a more sustainable form of tourism. However, it is not yet clear how this will develop.
One issue is the visitor-only fee or the green fee. See the controversial Haena State Park controls theme show Peter Greenberg. New controls and increased visitor fees are also in effect at Hanauma Bay and Diamond Head, among others. These are spread throughout the islands at the county and state level.
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