The last 3 years has been very interesting for the tourism industry in Hawaii and specifically the vacation rental industry. 2020 began on pace to be the best year Hawaii vacation rental owners had ever seen and as everyone knows it turned out to be the worst. Then 2021 and 2022 both were rebound years and were the two best years vacation rental homeowners had ever seen.
2023 and 2024 are looking to be very different for vacation rentals and there are several factors to consider.
Built Up Demand
There was a great deal of people ready to take a post COVID19 vacation and tourism was not yet recommended outside of the United States so that left most people choosing between Hawaii and Florida. As COVID19 global restrictions have decreased there are more options for people to travel to.
Economy
The post COVID19 economy had plenty of people looking to spend money. Not only did demand go up, but most vacation rental homeowners saw an increase in nightly rate. While it was great for 2021 and 2022, the state of the economy is in a different place. Vacationers are looking to pay less and vacation rental homeowners have not decreased the rates so many people are choosing to stay in hotels or go to another destination.
Tourism Is Down in Hawaii
While many businesses around Hawaii are saying that they are busier than ever, that does not necessarily mean that tourism is up. In fact, tourism is not only down from 2022, it is down from 2019. The feeling of businesses being busy is more so related to the labor issues. Through April tourism was down 1% from 2019 and while the numbers are not released yet, it is speculated that through May it will be even more.
Inventory of Vacation Rentals
The change in inventory of vacation rentals in Hawaii has also had an effect on things. While there are less available vacation rentals than 2019, there are more vacation rentals available than 2022. While at the same time supply went up, demand when down. In April 2023, the total monthly supply of statewide vacation rentals was 739,400 unit nights (+17.2% vs. 2022, -12.6% vs. 2019) and monthly demand was 418,300 unit nights (-8.3% vs. 2022, -32.4% vs. 2019)
Waikoloa Vacation Rentals is one of the leading vacation rental companies on the Big Island of Hawaii and continuously studies the Hawaii tourism data to make sure their homeowners get as much out of their vacation rental as they can.
