Rich Harrill: What effects will the wildfires have on Maui’s tourism economy?

2023-08-11 20:10:07

Wildfires on the Hawaiian island of Maui have killed dozens of people and caused extensive damage, particularly in the historic town of Lahaina. The state has asked all visitors to leave Maui and those planning to travel there to reschedule their trips, a blow to a destination whose economy depends heavily on tourism. University of South Carolina professor Rich Harrill, a hospitality and tourism expert, explains how these events affect places like Maui in the short and long term.

– How dependent is Hawaii on tourism compared to other popular destinations?

– Compared to other destinations, Hawaii is highly dependent on tourism: it accounts for about 25% of the state’s economy. According to the Hawaii Department of Business, Economic Development and Tourism, visitor spending in the archipelago was projected to be $20.8 billion in 2023 and $23.4 billion in 2026.

Tourism plays an even bigger role on Maui. Maui County is the most dependent on tourism in the entire state, with 51% of its jobs dedicated to industries directly associated with tourism. This means that household income and purchasing power are greatly influenced by that sector.

What are the main actions Maui tourism businesses will need to take in the coming days and weeks?

The first step any business owner should take is to ensure that their business is open in accordance with all state laws and protocols related to the safety, health, and well-being of residents and visitors.

In the short term, the top priorities are helping visitors return home, managing cancellations, and assessing damage to facilities and property. Then, in the weeks that follow, the companies will clean up and make repairs. They will have a variety of sources for help, including the county, state and federal governments, non-profit organizations, and private insurers.

As we saw during the covid-19 shutdowns, downtime can give business owners a chance to reflect on their product or service and how they market it. So some businessmen decided to close down and retire. Others redoubled their efforts to adjust to the post-pandemic rebound in visitor demand.

– Maui is asking visitors to leave and delay planned trips: will many tourism-related jobs be lost?

Businesses and corporations may offer some types of coverage to workers. But historically, many jobs in the tourism sector are cut in the short term when a crisis shuts down business. Then, when conditions improve, companies gradually rehire employees.

– How do local governments decide when to start welcoming visitors back?

This is a process led by groups known in the tourism industry as destination marketing and management organizations. Often called tourist offices or convention and visitor offices, they help promote and market local attractions.

In collaboration with the destination’s promotional department, local governments should make a cautious decision to advise visitors that they can revisit the site. Above all, they must take into account the health, safety and well-being of all those involved: residents, visitors and hoteliers. All of these groups must be involved in the decision, which must be communicated through carefully crafted marketing messages to reach globally diverse audiences.

Once the needs of the community and its residents are met, a new marketing campaign takes place that often presents the destination revitalized, open and ready to receive visitors. This message can emphasize new and improved aspects, or simply show that your most beloved and iconic qualities are still there for you to enjoy. That includes making sure that transportation is available to get to and that good quality accommodation and restaurants are readily available for all price points.

– In your experience, does interest in blue-chip destinations like Hawaii usually return to pre-disaster levels?

Globally, tourism revenue is projected to grow by almost 5% per year through 2027. Unlike other forms of economic development, travel and tourism has proven its resilience after many types of crises.

Even destinations that have suffered severe damage can recover their markets, although rebuilding can be a process that takes several years. New Orleans managed to become a major destination again a decade after being inundated by Hurricane Katrina. The same thing happened to the Hawaiian island of Kauai after Hurricane Iniki swept through it in 1992.

Tourism is a unique experience in the human condition. It sustains our hopes and dreams, offering relaxation and tranquility, or excitement and adventure, through good times and bad.

This article has been published in ‘The conversation‘.