As the first half of 2024 came to a close, statistics show that tourism took a fairly descent hit in the second quarter. After the second quarter tourism was both down in comparison to 2023 as well as 2019. While overall tourism is down, do not be discouraged because there are some statistics that are still positive for the tourism industry. Let’s take a look at some of the key statistics.
Total Visitors
This is the statistics that most people look at first and is the statistic that was most concerning. The State of Hawaii saw roughly a 3.9% decrease in comparison to 2023, but a 6.9% decrease on domestic visitors, which makes up the primary market for vacation rentals in the State of Hawaii. In comparison to 2024 the State of Hawaii saw a 7.5% decrease in visitors, but overall Maui took the biggest hit at -25% as they still are feeling the effects from the fires.
Overall of all the Islands, the Big Island of Hawaii seemed to fare the best when it came to visitors. It only saw a -1.6% decrease in visitors as compared to 2019 and also a -1.6% decrease as compared to 2023. The positive is of the major islands, the Big Island saw the greatest increase in average length of stay, which actually brought the total nights up 4% as compared to 2019, but down 3% in comparison to 2023 still.
Total Expenditures
This is an important item for vacation rental homeowners since at the end of the day it is not necessarily about how booked your property is, but about how much money you make. Total expenditures are still up 41% as compared to 2019, but are down 4% compared to 2023. Due to this we will have to watch pricing moving forward to make sure we are still in line with what is happening in the industry around the State of Hawaii.
Island of Choice
Unfortunately due to the fires, the island of Maui is still taking a big hit. The Big Island of Hawaii seems to be seeing the benefits from that. Oahu continues to see the largest increases year over year since international travel has opened up more and that is the island of choice for most international travelers.
Hotels vs. Vacation Rentals vs. Timeshares
Vacation Rentals continue to see a the greatest decrease in choice for accommodation type. While that can be alarming, if you keep up with the trends, it is somewhat expected. From 2021-2023 vacation rentals saw a steady increase in demand due to people wanting to travel to Hawaii, but not be mixed with large groups of people. Vacation rentals answered that demand. As COVID has become less of a concern many people have gone back to hotels. Another item that has caused the change is the change of hotel room types. Over the course of the last 6 years many of the hotels in Hawaii have modified a portion of their rooms to look for like condos with more space and a kitchen, which then gives guests the luxury of an accommodation similar to a vacation rental, but the amenities of a hotel.
Waikoloa Vacation Rentals
Overall we are still seeing better numbers than the industry as a whole, but are definitely overall seeing decreases in the same areas as the State of Hawaii is. We continuously watch the Hawaii tourism industry as well as have our own software that provides year over year comparisons to see how we are faring as a company. We suspect that things will stay consistent through this coming winter, but to stay competitive in the summer of 2025 we may have to decrease rates slightly.