Hawaii Tourism Revenue Drops $140 Million After September Storms

Hawaii's tourism sector faced a sharp financial hit in September due to two consecutive tropical storms. The Department of Business, Economic Development and Tourism reported that visitor spending fell to $1.41 billion, a drop of approximately $140 million from the $1.55 billion recorded in the same month last year.

Hurricane Lowell moved near the islands in early September, causing flight cancellations and closing ports. Weeks later, rainbands from Hurricane Nolo added to the disruption. These events led to a 3.6% decline in total arrivals, with 672,990 visitors reaching the state. Jennifer Chun, the director of tourism research at the state department, noted that visitor numbers decreased across all major markets, including the U.S. West, U.S. East, Japan, and Canada.

The impact on local businesses was immediate and tangible. Sheryl Matsuoka, CEO of the Hawaii Restaurant Association, reported that dining sales fell between 20% and 30%. She described the situation as some of the lowest figures seen since the pandemic. Matsuoka explained that the lack of revenue prevents restaurants from purchasing produce from local farmers, which in turn affects suppliers and distributors. She added that smaller independent owners were hit hardest, with worker hours being cut from 40 to 30 per week.

Kauai suffered the most severe damage from the storms. After Hurricane Lowell closed Nawiliwili Harbor and disrupted air travel, visitor arrivals on the island dropped 35% to 60,224. Spending on Kauai fell 44.3% to $105.4 million. To assist affected operators, the state is distributing emergency funds through the Small Business Recovery Grant Program. Administered by the Chamber of Commerce Hawaii, this initiative provides grants ranging from $5,000 to $10,000 to small businesses and nonprofits affected by the weather.

While the number of visitors decreased, those who did travel spent more money per day. The average daily expenditure rose 5.4% to $283 per person. However, the average length of stay shrank from 8.25 days last year to 7.39 days this year. Chun attributed part of the spending pressure to inflation and rising airfares, which reduce the budget travelers have available for on-island expenses.

Despite the September setback, the annual trend remains positive. Visitor spending for the first nine months of 2026 reached $16.62 billion. This figure represents a 2.8% increase compared to the same period in 2025.