new York
CNN
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The catastrophic Maui wildfires have destroyed homes, churches, businesses and important cultural sites on Hawaii’s second largest island. At least 36 people have died.
The fires also threaten to derail Maui’s economy, which was just recovering from the pandemic.
Maui’s economy depends heavily on tourists arriving from mainland America, Japan, Canada and other countries. According to the Hawaii Tourism Authority, Maui is the second most visited Hawaiian island after Oahu. In the first half of this year, 1.5 million people visited Maui, up 6% from the same period last year.
Maui authorities have urged tourists to leave the island and have strongly discouraged unnecessary travel to Maui.
It could take months to fully assess the economic impact of the wildfires. But tourism is the lifeblood of Maui’s economy. About 80% of this is generated by visitors spending their money on the island. According to the Maui Economic Development Board, that means $4 out of every $5 the island generates comes directly or indirectly from tourism.
Tourism “touches every aspect” of Maui and is “undeniably the island’s ‘economic engine’,” the agency says.
The industry accounts for 75% of all private sector jobs in Maui. Tourism-focused businesses — accommodation and food services, including arts and entertainment — account for the largest share of these jobs.
Maui commands some of the highest hotel and resort rates and occupancy in Hawaii. Local government uses taxes on these hotels to invest in supporting industries that depend on tourism.
The devastation caused by the wildfires could have a lasting impact on Maui’s economy, which was just beginning to recover from the pandemic. Tourism and spending on Maui this year have trended above pre-pandemic levels, and the island has become an increasingly important part of the Hawaiian economy.
In 2019, 3.1 million people visited Maui. However, that number dropped to 793,000 at the peak of the pandemic in 2020, according to the Maui Economic Development Board.
A year later, 2.3 million people visited Maui. Last year the number reached 2.9 million.
Tourists also spent more money when visiting Maui.
During the first half of 2023, total visitor spend was $3.5 billion, a 25% increase compared to the same period last year and a 33% increase compared to 2019.
But travel to Maui will be discontinued in the coming weeks. The Hawaii Tourism Authority is urging those planning to visit Maui in the coming weeks to reschedule their travel plans.
And some hotels, like the century-old Best Western Pioneer Inn in Lahaina, have burned down.
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