LAHAINA, Maui — The day after Maui County tamped down the annual Lahaina Halloween bash, it was local business owners who said they were feeling a financial hangover, The Maui News reported.

The crowds came out for certain, and the party was on. But most veteran costumed revelers, merchants and police estimated attendance to be about a third to a half fewer people than in recent years. The party has been drawing an estimated 30,000 people during what is traditionally an off season for tourism.

"We were down 12.5 percent in sales from last year; it might not sound like a lot, but down is down," said Jerry Kunitomo, owner of BJ's Chicago Pizzeria and president of the LahainaTown Action Committee.

Lahaina Inn owner Toni Johnson said her hotel was usually booked three months in advance of Halloween. But this year she had to resort to accepting gift certificates to fill her hotel, said.

Stephanie Christensen, owner of Lahaina Lingerie, said she earned $20,000 less in costume sales this October than in previous years.

Charles Morales, owner of Island Parking Management, said his 120-space lot was only at 50 percent capacity.

"Everything is crazy, bro," Morales said to Kunitomo while shaking his head.

Dozens of Maui police officers also lined Front Street, keeping people on the sidewalks and off the roadway. For the first time since the 1990s, Front Street was left open to traffic.

The town's business association, the LahainaTown Action Committee, was not allowed to set up its music stages, vendor booths, dozens of portable toilets and off-duty police. The costume contest, a main attraction for revelers, was canceled.

The changes were the result of an unanimous vote by the Maui County Cultural Resources Committee in July to deny the permits for the LahainaTown Action Committee to sponsor Halloween events in the historic district, saying the party atmosphere and risque costumes are culturally insensitive to what was once the seat of the Hawaiian monarchy.

County spokeswoman Mahina Martin said last week that 2008 will begin a period of transition to a time when Lahaina's Halloween celebration may some day no longer exist.

"With the economy as tough as it's been, this is unconscionable," Kunitomo said. "The county and mayor are refusing to see both sides."

Many Maui residents interviewed on Friday night said they were upset by attempts to take away a party that grew on its own, beginning back in 1980s.

"Why don't we just hang a sign on the side of the island that says, 'Tourists Not Welcome,' '' said party-goer Chris Cookeman of Haiku. "And then let's literally shoot ourselves in the foot."

After the Cultural Resources Commission vote this summer, member Kalei Moikeha said the decision was about protecting Lahaina's legacy as the host culture's home of the ali'i or royalty. The historic district is not appropriate for a Halloween party.

The conflict had been simmering for years, but some residents on Friday said they were still confused about how one night of celebrating Halloween could be viewed as offensive, when Native Hawaiians were out and about with the rest of the crowd Friday night.

"What culture are we trying to preserve, the Native Hawaiians' or the towns'?'' asked Robert Sajdak of Ha'iku. "The historic district includes both. I just don't see this as an assault on culture."

Seven-time costume contest winners, Bunt and Ann Burkhalter, collected names for a petition to bring the issue back before the Cultural Resources Committee. Ann Burkhalter, dressed as Lady Liberty, stood atop a pedestal inscribed with the words: "We the undersigned feel that the county Cultural Resources Commission should review their decision to kill the well organized, renowned and loved Halloween party in Lahaina."

Longtime Lahaina resident Devin Sylva laughed off the idea that the county or anyone can prevent Halloween in Lahaina.

"They've been trying to cancel Halloween here for as long as I can remember," Sylva said. "Look around, these aren't the people who didn't get the memo. These people got the memo and didn't care."

State Sen. Roz Baker, who was a marshal for the Keiki Parade, said the problem with the commission's decision is that now it puts the burden of managing the party back on the taxpayers. The people aren't going anywhere, she said, but now the county will have to pay for police protection and sanitation.

Speaking of toilets or a lack thereof, Jesse Marshall of Marysville, Wash., was in a rush to find one for his six-months pregnant wife, who was denied use of the restroom in a high-end restaurant off Front Street. She was wearing a modest summer dress but was not a paying customer.

With the sidewalks choked, people also complained that there was little room to socialize and take pictures of the creative costumes without causing a jam up.

But no one was injured by the cars, which appeared to be mostly taxicabs, local gawkers and parents picking up their kids. Police Capt. Charles Hirata, commander of the Lahaina Patrol District, said the much smaller crowd made it safe enough to keep Front Street open to vehicles all night.

Hirata also said that police made 18 arrests, mostly for disorderly conduct and drunken driving. Last year, police arrested 24 people.

"Who knows what it will be like next year," Hirata said. "If the economy improves, the people might all come back."

Halloween in 2009 will fall on a Saturday.

For more Maui news, visit www.mauinews.com.