Hawaii Governor Talks Sports Tourism, Climate, Rentals

25.10.2024 - 18:43 / skift.com / Josh Green / Dawit Habtemariam

Tourists will see a new, more resilient Maui next year, thanks to billions in spending from the Hawaiian government, according to Hawaii Governor Josh Green.

It has been over a year since a wildfire destroyed thousands of buildings and homes and killed over 100 people in Maui’s western region, making it one of the deadliest disasters in U.S. history.

Even though it affected only 10% of the island, news coverage of the event left the public with the impression that the island was closed to tourism.

Visitor spending in Maui totaled $3.5 billion between January and August, down 20% from last year, according to the state government’s latest data. Maui is Hawaii’s second most popular island for tourism.

Green spoke with Skift about rebuilding Maui, reducing short-term rentals, attracting sports tourism events, and financing climate resilience.

According to the governor, 2024 was about laying the “groundwork” for recovery, while 2025 will be about the “deployment” of resources.

All disaster debris has been removed. Hotels are ready to accommodate visitors, and the FEMA is joining local governments to build new housing units.

“Thousands of houses will go up, and small businesses will gradually return. People will see the recovery in real-time,” said Green.

Green predicted significant interest from repeat tourists who had previously visited Maui for their honeymoon, anniversary, or special events.

“They’re going to want to come back and see the joy that comes with rebuilding people’s lives,” he said.

The wildfire crisis spotlighted Maui’s affordable housing shortage. Over 8,000 people were displaced. The government initially contracted with hotels to temporarily shelter them. Over time, the government needed to find more alternative accommodations. It paid short-term rental owners “very competitive rates” to house them, Green said.

However, the governor said it became evident that the demand for short-term rentals was so high it was crowding out housing for locals.

“People who own short-term rentals have made about 385% more than they do from regular rentals,” said Green. “I’m a capitalist like everybody else, but we have to have housing for local families. That’s why we have hotel rooms and entertainment districts.”

Green wants to “gradually move some” short-term rentals into the residential housing market. “We hope people will decide to sell their short-term rentals if they can and invest in other parts of the state or on the mainland,” he said.

To free up more housing, earlier this year, Green signed a bill clarifying county governments’ authority to regulate the time, place, manner, and duration of land uses, particularly transient accommodations, including short-term rentals.

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