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Hawaii Tourism Boom Bursts | Troubled Waters Lurking

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Hawaii Tourism Boom Bursts | Troubled Waters Lurking


Hawaii’s economic growth has turned lifeless and “will downshift this year” as the islands’ recovery boom is officially over. Changes are on the horizon with Hawaii tourism’s decline and the aftermath of the Maui fire. What comes next and what the means for visitors is our topic today.

The forecast, according to the latest report from the state’s research arm, attached below, suggests that Hawaii will transition to a much slower growth pattern rather than the breakneck speed at which it previously rebounded. In fact, instead of tourism being the driving force, it is a strong construction sector that will help provide any economic boost seen statewide, especially work on Maui following the wildfires. With that said, we never wanted to see a construction boom as a result of the Lahaina tragedy.

Should Hawaii Visitors Worry About These Latest Travel Outbreaks?

Hawaii tourism at saturation.

The report pointed to less U.S. visitor spending ahead and suggests that visitor arrivals will increase only slightly in the coming years. Significant growth in Hawaii travel is expected to end as the islands’ tourism industry reaches saturation. “Visitor numbers will also grow more slowly than in the past as the industry pushes up against capacity.”

Prices Went From $5,500 To $99 Since Air Travel Reshaped HawaiiPrices Went From $5,500 To $99 Since Air Travel Reshaped Hawaii

What wasn’t addressed in the state’s economic update?

Hawaii sits at the forefront of an important shift in its approach to tourism, moving away from the paradigm of more visitors, resorts, vacation rentals, and flights. The state remains challenged in many ways following decades of overtourism and a lack of planning and infrastructure and seeks a new direction. With limited resources and framework, Hawaii has long been hard-pressed to know exactly how to manage its tourism success. Some shifts toward more sustainable tourism are nonetheless evolving in the near-term.

These issues were outside the scope of the report.

Best Time to Visit Hawaii for Every Reason: Deals, Weather, Beaches, Culture & MoreBest Time to Visit Hawaii for Every Reason: Deals, Weather, Beaches, Culture & More

New $25 climate impact fee almost certain to be enacted.

The bill is intended to offset $16 billion in estimated Maui wildfire damage and mitigate the environmental damage caused by tourism. If that doesn’t happen, visitors should prepare for the alternative. That will likely take the form of an increase in the current 18% accommodations tax, as was recently confirmed by the governor.

Hawaii vacation rentalsHawaii vacation rentals

Another proposal from the governor for a potential moratorium on Maui vacation rentals should return to the news in the days ahead. Governor Green said that by March, he’ll either achieve conversion of 10% of Maui’s existing 27,000 short-term rental units to long-term rentals for Lahaina fire victims or take the next steps.

Anti-vacation rental sentiment runs high in Hawaii, and this will remain a hotly disputed topic for the foreseeable future. With Gov. Green strongly on-board against vacation rentals, this will move forward. At present, 5.5% of the entire state’s 557,000 housing units are vacation rentals, but that varies widely. Maui has the most, at about 15%.

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The push-back against vacation rentals is widespread. Joining the governor is the Hawaii Tourism Authority chair, Mufi Hannemann, who’s also head of the hotel industry’s Hawaii Lodging and Tourism Association (HLTA).

Hawaii’s Legislature is pursuing measures to phase out Hawaii vacation rentals as well. House Bill 84 seeks to give the counties more authority to start phasing out short-term rentals.

Will new efforts finally kill Hawaii’s golden goose?

The prospect of more taxes and fees and the elimination of vacation rentals is very concerning for many Hawaii visitors. There remains worry among stakeholders in the tourism sector that over-the-top vacation costs, plus real and perceived anti-visitor sentiment could have a negative impact on sustaining Hawaii’s visitor industry.

Expedia's 2023 Hawaii Travel Savings Hacks Are NonsenseExpedia's 2023 Hawaii Travel Savings Hacks Are Nonsense

A lack of tourism infrastructure perpetually haunts Hawaii.

Last week US Transportation Secretary Buttigieg visited Hawaii and viewed disaster recovery efforts on Maui. He also delved into what some consider two of Hawaii’s infrastructure boondoggles. Those include the old and decaying Hawaii airport system and an expensive, incomplete, and largely unused Honolulu rail system.

The Transportation Secretary’s visit sought to highlight key infrastructure investments in Hawaii, and reaffirm the federal government’s commitment. At Hawaii airports, problems range from outdated, inflexibly designed, and maintained terminals, to damaged and poorly constructed runways, among other things. He acknowledged how important airports are to Hawaii’s island economy, and said bluntly regarding the Honolulu airport, ‘it needs work.”

While rarely mentioned by officials, these problems and others are inconsistent with both vitalizing existing Hawaii travel and attaining the new high-value tourism model that the state seeks.

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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser

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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser


The third-ranked Hawaii men’s volleyball team had no problem recording its 11th sweep of the season, handling No. 6 BYU 25-18, 25-21, 25-16 tonight at Bankoh Arena at Stan Sheriff Center.

A crowd of 6,493 watched the Rainbow Warriors (14-1) roll right through the Cougars (13-4) for their 11th straight win.

Louis Sakanoko put down a match-high 15 kills and Adrien Roure added 11 kills in 18 attempts. Roure has hit .500 or better in three of his past four matches.

Junior Tread Rosenthal had a match-high 32 assists and guided Hawaii to a .446 hitting percentage.

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UH hit .500 in the first set, marking the third time in two matches against BYU it hit .500 or better in a set.

Hawaii has won seven of the past eight meetings against the Cougars (13-4), whose only two losses prior to playing UH were in five sets.

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Hawaii has lost six sets all season, with five of those sets going to deuce.

UH returns to the home court next week for matches Wednesday and Friday against No. 7 Pepperdine.




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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.

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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.


Hawaiian Airlines’ passengers are back in federal court trying to stop something most people assumed was already finished. They are no longer arguing about whether they are allowed to sue. They are now asking a judge to intervene and preserve Hawaiian as a standalone airline before integration advances to a point this spring where it cannot realistically be reversed.

That approach is far more aggressive than what we covered in Can Travelers Really Undo Alaska’s Hawaiian Airlines Takeover?. The earlier round focused on whether passengers had standing and could amend their complaint. This court round focuses on whether harm is already occurring and whether the court should act immediately rather than later. The shift is moving from procedural survival to emergency relief, which makes this filing different for Hawaii travelers.

The post-merger record is now the focus.

When the $1.9 billion acquisition closed in September 2024, the narrative was straightforward. Hawaiian would gain financial stability. Alaska would impose what it described early as “discipline” across routes and costs. Travelers were told they would benefit from broader connectivity, stronger loyalty alignment, and long-term fleet investments that Hawaiian could no longer fund independently.

Eighteen months later, the plaintiffs argue that the outcome has not matched the pitch. They cite reduced nonstop options on some Hawaii mainland routes, redeye-heavy return schedules that many readers openly dislike, and loyalty program changes that longtime Hawaiian flyers say diminished redemption value. They frame these not as routine airline integration but as signs that competitive pressure has weakened in our island state, where airlift determines price and critical access for both visitors and residents.

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What is different about this filing compared with earlier debates is that it relies on developments that have already occurred rather than on predictions about what might happen later.

The HA call sign has already been retired. Boston to Honolulu was cut before competitors signaled renewed service. Austin’s nonstop service ended. Multiple mainland departures shifted into overnight red-eyes. And next, the single reservation system transition is targeted for April 2026, a process already well underway.

Atmos replaced both Hawaiian Miles and Alaska’s legacy loyalty programs, and readers immediately reported higher award pricing, fewer cheap seats, no mileage upgrades, and confusion around status alignment and family accounts. Each of those events can be described as aspects of integration mechanics, but together they form the factual record that the plaintiffs are now asking a judge to examine in Yoshimoto v. Alaska Airlines.

The 40% capacity argument.

One of the more interesting claims tied to the court filing is that Alaska now controls more than 40% of Hawaii mainland U.S. capacity. That figure strikes at the core of the entire issue. That percentage does not automatically mean monopoly under antitrust law, but it does raise questions about concentration in a state that depends exclusively on air access for its only industry and its residents.

Hawaii is not a region where travelers have options. Every visitor, every neighbor island resident, and every business traveler depends on our limited air transportation. The plaintiffs contend that consolidation at that scale reduces competitive pressure and gives the dominant carrier far more leverage over pricing and scheduling decisions. Alaska says that competition remains robust from Delta, United, Southwest, and others, and that share shifts seasonally and by route.

Competitors reacted quickly.

While Alaska integrated Hawaiian’s network under its publicly stated discipline strategy, Delta announced its largest Hawaii winter schedule ever, beginning in December 2026. Delta’s Boston to Honolulu is slated to return, Minneapolis to Maui launches, and Detroit and JFK to Honolulu move to daily service. Atlanta also gains additional frequency. Widebodies are appearing where narrowbodies once operated, signaling Delta’s push into higher capacity and premium cabin layouts.

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Those moves complicate the monopoly narrative. If Delta is expanding aggressively, one argument is that competition remains active and responsive. At the same time, Delta filling routes Alaska trimmed may reinforce the idea that structural changes created openings competitors believe are profitable, and that markets respond when gaps appear.

What changed since October.

In October, we examined whether the case would survive dismissal and whether passengers could refile. That moment felt more procedural than what’s afoot now. It did not alter flights, fares, or loyalty programs.

This filing is different because it is tied to post-merger developments and seeks emergency relief. The plaintiffs are asking the court to prevent further integration while the merits are evaluated, arguing that each added step toward full consolidation this spring makes reversal less feasible as systems merge, crew scheduling aligns, fleet plans shift, and branding converges.

Airline mergers are designed to become embedded quickly, and once those pieces are fully intertwined, unwinding them becomes exponentially more difficult, which is why the plaintiffs are pressing forward now rather than waiting any longer.

The DOT conditions and the defense.

When the purchase of Hawaiian closed, the Department of Transportation imposed conditions that run for six years. Those conditions addressed maintaining capacity on overlapping routes, preserving certain interline agreements, protecting aspects of loyalty commitments, and safeguarding interisland service levels.

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Alaska will point to those commitments as evidence that consumer protections were built into the core approval. The plaintiffs, however, are essentially claiming that those conditions are either insufficient or that subsequent real-world changes undermine the spirit of what travelers were told would remain. That tension between formal commitments and actual experience is at the core of this dispute.

Hawaiian had not produced consistent profits for years.

That is the actual financial situation, without sentiment. Alaska did not spend $1.9 billion to preserve Hawaii nostalgia. It purchased aircraft, an international and trans-Pacific network reach, and a platform it thinks can return to profitability under tighter cost control.

What this means for travelers today.

Nothing about your Hawaiian Airlines ticket changes because of this filing. Flights remain scheduled. Atmos remains the reward program. Integration continues unless a judge intervenes.

However, Alaska now faces a renewed court challenge that points to concrete post-merger developments rather than speculative harm. That scrutiny alone can bring things to light and influence how aggressively future route decisions and loyalty adjustments occur.

Hawaiian Airlines’ travelers have been vocal since the start about pricing, redeyes, lost nonstops, and loyalty devaluation. Others have said very clearly that without Alaska, Hawaiian might not exist in any form at all. Both perspectives exist as background while a federal judge evaluates whether the integration should be impacted.

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You tell us: Eighteen months after Alaska took over Hawaiian, are your Hawaii flights better or worse than before, and what changed first for you: price, schedule, routes, interisland flights, or loyalty programs?

Lead Photo Credit: © Beat of Hawaii at SALT At Our Kaka’ako in Honolulu.

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Lawsuit claims Hawaiian-Alaska Airlines merger creates monopoly on Hawaii flights

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Lawsuit claims Hawaiian-Alaska Airlines merger creates monopoly on Hawaii flights


HONOLULU (HawaiiNewsNow) – An effort to break up the Hawaiian and Alaska Airlines merger is heading back to court.

Passengers have filed an appeal seeking a restraining order that would preserve Hawaiian as a standalone airline.

The federal government approved the deal in 2024 as long as Alaska maintained certain routes and improved customer service.

However, plaintiffs say the merger is monopolizing the market, and cite a drop in flight options and a rise in prices.

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According to court documents filed this week, Alaska now operates more than 40% of Hawaii’s continental U.S. routes.

Hawaii News Now has reached out to Alaska Airlines and is awaiting a response.

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