2023 Hawaii Travel Ignites | Bedeviling Issues Remain

Visitors spent $17.4 billion here, according to data from January to November 2022. This was him +9% compared to 2019. The actual number of tourists was 9.4 million, or -11%.

West Coast visitors spend 46% more.

Hawaii’s Meat and Potatoes visitors continued to arrive in droves last month, with 416,000 visitors in November, an 11% increase over 2019.

A significant slowdown in tourism is unlikely.

Over the past six months, some have been concerned about visitor statistics related to the cooling economic environment and Hawaii’s lack of diversity. increase. However, our senses do not indicate a significant slowdown.

As you may remember, we mentioned that the next benchmark for Hawaii travel in 2023 will be Christmas and New Year. It will be a few more weeks before we see these numbers, but we expect them to be very strong based on the November data and what we see here in action. Concerns were expressed about the lack of bookings for typical well-earned holidays.

Neighboring islands rely primarily on strong domestic tourism, but Honolulu in particular has suffered much-needed delays in arrivals from overseas. increase. International issues are not going to be helped by the upcoming plan to Covid-test all Chinese visitors (and travelers from China) before they arrive. Lack of demand for group business and meetings.

Hawaii continues to go all-in on travel.

Clearly, Hawaii did not take advantage of Covid-time to become more diversified economically. The state’s UHERO says the lack of diversity “will expose Hawaii’s economy to external shocks that will cause a collapse in tourist numbers.” In addition, Hawaii’s economic growth has declined for decades because its tourism dominance has not generated productivity gains.

Here are the issues facing visitors to Hawaii in 2023.

1. High Hawaii prices, taxes and fees. Room rates and car rentals are up 50% from pre-coronavirus, just like any other tourist destination in the US. We recently said that we pay more for cars in LAX than in Hawaii.
2. US inflation and looming recession. It is not clear to what extent a recession is likely or how long it will last. It all depends on who you ask. Inflation appears to be stabilizing, but remains an important factor when it comes to vacation spending.
3. Airfare is expensive. Prices are up significantly from pre-Covid, with the exception of West Coast markets that are still feeling the Southwest effect.
4. Service and staff issues. Across the industry, it is difficult to hire and retain travel industry employees, from ramp agents to housekeepers to waitstaff to front desk staff.

Coming to Hawaii in 2023?

We are looking forward to your plans.