Tourism drives strong Maui economy

By Timothy Hurley
Advertiser Maui County Bureau

Beachgoers enjoy Maui's Ka'anapali Beach, which was proclaimed "America's Best Beach" in the yearly ratings by coastal expert Stephen P. Leatherman. Visitor arrivals were up 7 percent on Maui in the first half of the year. Advertiser library photo • May 22, 2003

Hawai'i Pacific University economics professor Leroy Laney told a Maui Chamber of Commerce forum yesterday that arrivals were up on the Valley Isle almost 7 percent in the first half of the year, compared with big declines on O'ahu and smaller ones on the Big Island and Kaua'i.

"Maui is doing a lot better than the rest of the state in many respects," said Laney, a consultant to First Hawaiian Bank.

With tourism leading the way, Maui's economy is showing strength in job growth, declining unemployment and construction bolstered by record low interest rates, he said.

Laney said total Maui air seats were up almost 15 percent in the first half of the year because of new direct flights. Retailing associated with tourism also is doing well. For example, he said, the new Shops at Wailea now has 70 tenants and is 98 percent leased. Sales there increased 25 percent in the first half of the year.

Laney said Maui continues to benefit from its long-standing upscale image and lower dependence on weak Japanese tourism.

"But also important in today's uncertain world is the fact that it is U.S. soil and perceived as a safe destination," he said.

Terryl Vencyl, executive director of the Maui Visitors Bureau, attributed the glowing visitor numbers in part to continuing efforts to advertise Maui on the Mainland — not only to the traveling public but directly to travel agents.

At $6.5 million, the Maui visitor budget exceeds the budgets of all the other island visitor bureaus, she said, and Maui County provides the greatest portion of the budget at $3.6 million, more than other counties give their visitors bureaus.

Vencyl said the ample money allows the Maui name to be "top of mind" in the marketplace, she said.

"I've been in meetings over and over, and I hear people say they don't talk about Hawai'i, they talk about Maui," Vencyl said.

Laney noted two burgeoning trends with uncertain impacts on Maui's tourist economy: time-shares and cruise ships.

Time-share visitors, he said, provide stability because they have paid already and come despite shocks to global tourism. But some point out that they take air seats from independent tourists, provide lower tax revenues and generate fewer jobs because of reduced services, he said.

Cruise passengers are a similar mixed bag, Laney said. They take air seats to Hawai'i but may spend less retail and restaurant dollars.

"Still, they take advantage of many tourism activities during their short stay ashore, and many Maui activity operators report double-digit sales gains this year," Laney said.

Reach Timothy Hurley at thurley@honoluluadvertiser.com or (808) 244-4880.