There is no overstating the interwoven threads of tourism in Hawaii’s economic fabric, and in recent years, no island has felt that weave more than Maui.
So even as Lahaina struggles with unimaginable loss from the Aug. 8-9 wildfire — and West Maui remains closed to leisure travel — it’s now abundantly clear that welcoming visitors elsewhere in Hawaii must be a critical part of recovery.
Already, cancellations and other visitor losses are hurting local businesses beyond the West Maui fire zone. For example, Kihei-based Maui Dreams Dive Co. and Island Style Diving lost $25,000 to cancellations in the first three days post-fire and 40% of its staff has already been furloughed or laid off, reported Star-Advertiser writer Allison Schaefers.
And since the wildfires, Maui’s initial unemployment claims surged to 6,663 from Aug. 9-17 — compared with a weekly average of 700-800 since May. In the short term, state unemployment insurance will help laid-off or furloughed workers, but the 2024 Legislature will need to assess this additional strain on the fund as well as the unemployment tax schedule for employers.
After Hawaii’s economic collapse from the COVID-19 pandemic, it was Maui that led the tourism rebound. During the first half of this year, 30% of all Hawaii tourists visited the Valley Isle, generating $3.5 billion, which was 32.3% of visitor spending in Hawaii.
That recovery imploded after the Lahaina disaster that leveled the historic town. At least 115 died, and another 850 are still missing. More than 2,200 buildings were destroyed and another 500 damaged, at an estimated cost of nearly $6 billion. The Retail Merchants of Hawaii’s president said the Maui wildfires burned down 176 retail stores and affected 1,372 retail workers, causing an estimated $312 million in lost sales.
The grieving for Lahaina is palpable, and it should be members of that community who determine reopening down the line. But stemming economic damage beyond ground zero will be necessary.
Even before the Lahaina wildfire, Hawaii’s love-hate relationship with tourism was evident. Immediately after the inferno, conflicting messages emerged, from “Do not travel to Maui” to “Hawaii is open for business.” Today, the message is more nuanced — but clearer.
“What we’re saying now is travel should not be to West Maui — but the other parts of Maui are safe,” said Gov. Josh Green. “And the rest of the state, of course, is also safe.”
It’s crucial to keep tourism robust — not just the hotels and airlines, but also community businesses such as restaurants and cafes, boutiques and other retail. And since Maui is Hawaii’s most tourism-dependent island, its visitor fortunes, and misfortunes, deeply affect the rest of the state.
“General fund collections are dropping already. This is going to have a huge impact not just on the county of Maui but on the entire state,” state Rep. Sean Quinlan, the House tourism chairman. “We are in a state budget crisis. Right now people don’t realize it, but we are having to cut state government everywhere.”
That’s an alarm that should get everyone’s attention. Just a few months ago, Hawaii enjoyed a healthy surplus; now, money for new shoots — think preschools expansion and Aloha Stadium redevelopment — will be viewed through austerity lenses.
For Maui’s fire-devastated businesses, a major key to economic recovery will be government assistance and grants, such as via Small Business Administration and Federal Emergency Management Agency programs. To that end, it was necessary to hear the pledge from President Joe Biden, who toured Lahaina on Monday: “I will do everything in my power to help Maui recover and rebuild from this tragedy. And throughout our efforts, we are focused on respecting sacred lands, cultures and traditions.”
Too much death has occurred in Lahaina — but life must go on. That includes livelihoods, many now in need of travelers’ support to survive.