Hawaii travel industry execs say the Islands are falling behind

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A beach on Lanai. A UHERO report highlights travel industry executives' concerns about declining competitiveness due to high costs, infrastructure issues, lack of marketing and negative public perceptions.
A beach on Lanai. A UHERO report highlights travel industry executives' concerns about declining competitiveness due to high costs, infrastructure issues, lack of marketing and negative public perceptions. Photo Credit: Pierre Leclerc/Shutterstock.com
Christine Hitt
Christine Hitt

A report released Sept. 18 by the University of Hawaii Economic Research Organization (UHERO) reveals the perspectives of senior executives in Hawaii's tourism industry. 

As part of the study, UHERO spoke with 19 anonymous senior leaders representing a range of industry sectors — lodging, transportation, attractions and wholesale tours — and spanning the Islands

"The most widely shared concern was Hawaii's declining competitiveness, driven by a growing perception that high costs are misaligned with the quality of the visitor experience," the report said. Many executives expressed views that Hawaii is falling behind other destinations, like Mexico and Southeast Asia. And a lot of them complained about Hawaii's infrastructure, "with airports, roads and beaches seen as outdated, crowded and poorly maintained," the report said.

Marketing spend lags other destinations

Some executives said there isn't enough marketing support and legislatures aren't understanding the importance of marketing. One executive explained, "When you look at other tourism destinations like Mexico and the Caribbean, they outspend us 4 to 1 in marketing. I've never been one that said we had to match that funding, but [we had] no funding for two years, which is practically what happened after Covid."

The report goes on to share the industry leaders' views on the Hawaii Tourism Authority (HTA) and the state's tourism strategy, regenerative tourism and, also, on the negative public opinions of Hawaii's tourism industry.

"Executives expressed frustration with what they viewed as one-sided portrayals of tourism's impacts and argued for messaging that acknowledges both its benefits and burdens," the report said. 

Many are also concerned about how some visitors don't feel welcome by Hawaii residents. "Although HTA's VSAT [the Hawaii Tourism Authority's Visitor Satisfaction and Activity] surveys show that most travelers still report very positive experiences, executives pointed to a rise in negative messaging, particularly on social media and in public commentary, that may be shaping perceptions before visitors even arrive .... Some described a growing sense of tension, where guests are unsure of their place or feel judged for simply choosing to vacation in the Islands."

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