Hawaii's small businesses are facing a tough time as the state shifts its focus to attract higher-spending tourists. This holiday season, traditionally a peak period, is shaping up to be slower than usual, with fewer visitors overall. But here's where it gets controversial: while overall visitor numbers are down, those who are visiting are spending more.
Jeff Robertson, owner of Maui Sunriders, shared his concerns, stating, "Everyone’s keeping their fingers crossed that between now and Christmas and into the New Year’s, it’s going to be good." His business, like many others, experienced a soft summer following a strong holiday season in the previous year. To adapt, they've had to be cautious with inventory, highlighting the economic strain.
The situation in Maui is particularly challenging. The island is still recovering from the 2023 fires, with mixed messaging and negative social media posts contributing to the struggle to attract visitors. Robertson's new store in Kapalua saw extremely slow business, especially when the Kapalua Resort golf courses closed.
Despite a slight improvement in November and December, Robertson remains worried about the post-holiday season. He points out that many businesses are forced to be very cautious.
But this is just the beginning. For six consecutive months from May to October, Hawaii experienced a year-over-year decline in visitor arrivals. Even the summer months, typically the busiest, were slower than the previous year.
The most recent data from October 2025 shows a 2.9% decrease in visitor arrivals compared to October 2024. However, visitor spending rose by approximately 28% compared to October 2019. The state's strategy of attracting higher-spending travelers seems to be working, but some worry about the impact on middle-class visitors.
Lower daily airline passenger counts in November and December suggest the trend is continuing, but official visitor data for the rest of 2025 won't be available until the end of January.
Even with Thanksgiving, a popular travel period, some businesses didn't see an increase in visitors.
Joan Channon, owner of Bamboo Restaurant and Gallery on Hawaii Island, reported that November was the worst month since COVID. She hopes December will be better. Her restaurant has significantly changed its operations, serving far fewer lunches and opening for dinner only one night a week. Channon believes the high cost of vacationing in Hawaii is a problem and questions the focus on high-income visitors.
"If our tourist base is high-end Americans, Hawaii will fold. I will be astonished if I can keep my restaurant open another year, and god, I hope I’m wrong," Channon said. She added that high spenders tend to isolate themselves, not supporting local, mom-and-pop businesses. She fears an extraordinary closing of small businesses in the coming year.
Robertson also confirmed that his business isn't benefiting from the increase in spending. He advocates for aggressive marketing campaigns and new events to attract more visitors. He emphasizes the need for a positive campaign and positive news media about the Islands.
What do you think? Is Hawaii's strategy of targeting high-spending tourists sustainable? Do you believe the focus on luxury is hurting the local economy and small businesses? Share your thoughts in the comments below!
