LAHAINA, Hawai‘i — As West Maui grapples with the deadliest wildfire in the U.S. in more than 100 years, state economic officials are estimating staggering financial losses to the island, its residents and the state at large — including nearly one-half billion dollars in home damages alone.
The Department of Business, Economic Development and Tourism (DBEDT) estimated that approximately 1,700 homes were damaged in Lahaina as a result of the fire last week that claimed at least 99 lives, resulting in $493 million in solely home damages. These estimates do not include personal property damages.
“It brings tears to your eyes to see the devastation, the people who have lost everything in just a short amount of time,” said DBEDT director Jimmy Tokioka.
The department’s estimates may even be low, according to preliminary numbers released by the University of Hawai‘i’s Pacific Disaster Center (PDC) and the Federal Emergency Management Agency (FEMA). The PDC and FEMA estimate that approximately 2,338 Lahaina homes were damaged, representing 86 percent of an estimated 2,719 structures exposed to inferno. The researchers suggest as much as $5.52 billion could be required to rebuild in Lahaina.
With nearly all of the historic town reduced to ash, early DBEDT estimates of the fire’s economic impact reflect the region’s structural devastation.
“It’s not like we’re guessing that there’ll be some business here or some business there, because a lot of it is just gone,” Tokioka said.
According to the department, Hawai‘i’s economy has lost an estimated $8.5 million every day in sales revenue since the wildfire began. Approximately 10,000 jobs were also lost as a direct result of the fire, according to the department.
Much of this estimated financial loss can be tied to a decrease in tourism — a sector which accounts for approximately 80 percent of Maui County’s revenue, according to the Maui Economic Development Board.
With approximately 3,600 fewer visitors arriving on Maui every day, DBEDT estimates the island has lost around $1.05 million in direct daily visitor spending. With factors like supply and demand considered, the department suggests actual financial losses could be closer to $1.96 million every day.
Additionally, Tokioka expressed concern that tourists unaware of Hawai‘i’s geography may cancel their plans to islands unaffected by the fires out of an overabundance of safety.
“Many people might not know the difference between Kaua‘i and Maui, so they’re (going to think), “Oh, we’re going to go someplace else because Maui had a disaster,’” Tokioka said. “Most people who have been here before and most people who are educated travelers understand, but some people just lump everything in, and that’s not something we can always control.”
To avoid additional impacts to the state’s economy, Tokioka said visitors to other islands shouldn’t worry about canceling their vacations.
“The rest of the state, including Hawai‘i Island, O‘ahu and Kaua‘i, are still accommodating guests,” he said. “So please, if you’re thinking about coming to Hawai‘i, don’t change your travel plans because of what happened on Maui, especially if you weren’t staying on Maui … that’s not good for the economy when people change their travel trips, especially during this summer period.”
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Jackson Healy, reporter, can be reached at 808-647-4966 or jhealy@thegardenisland.com.
I don’t want to hear another word on the economy. There’s only a few in government who’s in touch with the local ins and outs of the county and finances of running it. All the others are showmanship and has no use in their office. Basically a worthless crew of politicians if you’ve ever seen one. You’ve seen one already. But that’s the story now. Who will pay for all of this failure? I call them failures because politicians are failures. I blame politics for this disaster.