In the aftermath of the catastrophic wildfires that engulfed Maui in 2023, the Hawaiian island is making concerted efforts to revive its tourism sector. Over 18 months since the devastating event, the state government has announced a substantial investment in marketing efforts aimed at jump-starting Maui’s struggling economy. With $6.3 million earmarked for this purpose, Hawaii’s leaders acknowledge that the road to recovery is crucial—not only for the island’s businesses but also for the livelihoods of its residents.
Recent statistics paint a stark picture of Maui’s tourism landscape. According to insights from CoStar, a prominent real estate analytics firm, the island experienced the most significant downturn in hotel revenue across the United States, with a staggering 13.2% decline in revenue per available room (RevPAR) reported last year. Contributing to this downturn were declines in both hotel occupancy and average daily rates (ADR). Comparatively, Fort Myers followed with a distant ADR drop of 8.4%, primarily due to another natural disaster—hurricanes Helene and Milton.
Michael Stathokostopoulos, a senior director at CoStar Group, expressed concern about Maui’s sluggish recovery. Specifically, he noted that while hotel room demand had rebounded to 87% of 2019 levels by 2022, the subsequent year saw a sharp decline to only 77%. This signifies not only a loss of visitors but raises doubts about Maui’s ability to attract tourists who might have otherwise chosen to explore its natural beauty and hospitality.
The Hawaii state government, spearheaded by Governor Josh Green, aims to reverse these negative trends through a significant boost in marketing efforts. The Department of Business, Economic Development and Tourism (DBEDT) is the designated agency receiving these crucial marketing funds. This targeted marketing strategy is essential not only to recovery but also to restoring confidence among potential travelers who might hesitate due to the wildfires’ aftermath.
DBEDT director James Kunane Tokioka highlighted the urgency of addressing the situation, especially in light of additional challenges posed by recent wildfires in Los Angeles County, Hawaii’s largest source market for tourism. With visitor numbers declining across the board, particularly in West Maui, the stakes are high for the local economy. Tokioka emphasized the importance of rebuilding Maui’s image and attracting visitors back to the region.
Despite the ongoing challenges, there are indications of recovery. Jeff Wagoner, CEO of Outrigger Hospitality Group, highlighted a trend of increasing occupancy rates in Maui’s hospitality sector during the early months of 2025. Operating two resorts in West Maui, Wagoner noted, “Maui is starting to recover.” However, he qualified this hopeful news by stating that while progress appears to be underway, a complete rebound will require time, as occupancy levels remain significantly impacted.
Wagoner underscored the importance of the new marketing funds, suggesting that a portion would be specifically allocated to support the recovery of Maui’s travel sector. The broader implication is that as Maui’s tourism rebounds, so too will the economy of the entire state, as travelers often visit multiple islands during their Hawaiian adventures.
Expectations are rising regarding the marketing initiatives that will roll out in response to these challenges. As Tokioka indicated, the strategy will focus on tried-and-true channels that have historically proven effective in drawing visitors to the islands. This multi-faceted approach underscores a significant consideration: most visitors to Hawaii entertain plans that include several islands. Therefore, marketing efforts focused on Maui could yield benefits not only for that island but also for the state as a whole.
While Maui faces significant hurdles in recovering from the recent tragedies, the proactive steps being taken by state leaders offer a glimmer of hope. A strategic infusion of marketing funds, coupled with positive trends in hospitality performance, illustrates a pathway forward. However, the ongoing monitoring and adaptability of strategies will be crucial in the coming months to ensure that Maui once again becomes a destination of choice for travelers around the world.
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