Day Guests Absence Casts Shadow over Lanai Small Businesses
Ketrina Jayleen awaits customers to Blue Ginger Café. Photo courtesy of Anthony Kaaumo.
A small group of tourists stepped out of a parked white shuttle van. They were dressed in clean, muted pastel colors, sockless loafers and sun hats. After a brief exchange with the shuttle driver, they set off on foot, wandering the perimeter of Dole Park. “That was the first van I've seen pull up here since the fire,” said Phoenix Dupree, co-owner and manager of the Blue Ginger Café.
After the devastating August 8th wildfire swept through Lahaina, Maui has experienced substantial economic repercussions, which have also had a ripple effect across the channel to Lanai. Day guests, visitors typically from Maui who come to Lanai via the Expeditions Ferry, have been a crucial source of revenue for Lanai's eateries, shops, and attractions. These visitors usually arrive in the morning and depart in the late afternoon or evening. Since the fire, the number of day guests visiting Lanai has noticeably decreased.
Economic Toll on Local Businesses
“We're struggling,” said Vince Cabanilla, board member for the Lanai Art Center, “I actually did a deposit this morning, and it was just depressing because normally our deposits are about 75% more than what I deposited this morning.”
“Day trippers' impact is responsible for between maybe 30% to 50% of our business. That much has been cut — it’s a big drop,” said Dupree.
Mike and Kathy Carroll, of the Mike Carroll Gallery, track their visitors categorizing them by source, be it Four Seasons guests, day trippers, Hotel Lanai patrons, short-term renters, Lanai residents, or friends of residents. Kathy Carroll, co-owner of the gallery, explains, “After the fire, the drop in day guests was immediate.”
Keoni Vaughn, the Executive Director of Lanai Cat Sanctuary, spoke about the sanctuary's pre-pandemic success, welcoming approximately 16,000 visitors annually from around the world, with about 95% of them arriving on the ferry from Maui. They temporarily closed their doors during the pandemic for the safety of the community.
After gradually reopening, they saw a resurgence in visitors, with a peak of over 2,000 monthly visitors in June and July of this year. “In the beginning [of August], just before the fire, we were swamped,” Keoni said. However, the wildfire halted everything abruptly. “We went from 100 visitors a day to about ten or less a day. It's had a huge financial impact on us.”
"As for my numbers, for my inventory purposes, I've noticed a decrease. And that's overall, it's not just one particular dish," said Rowel Ganotisi, head chef of Ganotisi's Pacific Rim Cuisine.
Neil Rabaca, owner of Rabaca's Limousine Service, which operates transportation shuttles around the island, shared his perspective on the situation. “Basically, I'm probably down, like, 75% business right now, but I'm surviving,” he stated. He had to make adjustments by reducing the number of his drivers temporarily. However, he acknowledged that local stores were hit harder. “We brought in a lot of the day guests for the stores.”
The Mike Carroll Gallery tracks visit based upon guests’ origins. The number of day guest visits dropped notably after the Lahaina wildfire. Photo courtesy of the Mike Carroll Gallery.
Adjusting to Stay Afloat
For businesses like the Mike Carroll Gallery, long-term planning has become a way to weather immediate crises. “I'm going to keep painting no matter what for when things do turn around. It's like having a backstock, and that's a good thing to have going into the festive season. Although, I don't know if it's going to be super busy during that time,” said Mike Carroll. During the pandemic, the gallery also bolstered its digital footprint, enhancing its website as a way to offset the loss of day guests.
Ganotisi’s Pacific Rim Cuisine and Blue Ginger Café are finding relief through the island's current construction projects. Rowel Ganotisi noted, "Labor is usually number one that gets cut back. But right now, thank God, we have construction. So, we're kind of piggybacking off of that." Dupree added, "We're trying to pick up more construction business, more of the construction lunches. That's the one thing that's saving me from not letting go of staff right now."
Businesses have also expressed a hope that the Four Seasons resorts on the island might begin to encourage or actively bring their guests to visit the city to help spur economic activity — something that has not been promoted in the past.
As businesses look for local partnerships to improve their situation, they're also cautiously considering federal assistance. The Federal Emergency Management Agency (FEMA) visited Lanai offering loans to affected businesses. However, many are wary of taking on more debt, especially in the aftermath of the economic challenges brought on by the COVID-19 pandemic.
Kathy Carroll said, “If you already have a loan from COVID, you don’t want to get into more debt.” Dupree added, “If your business is struggling, then taking out a loan just means you're going to owe more down the road.”
Seeking alternative sources of support, including grants tailored to arts organizations, Cabanilla expressed concerns that grant evaluators do not understand the unique connection between Lanai and Lahaina. “Those who are selecting grant awards, they might just say, ‘Oh, well, you're not connected to Lahaina,’” said Cabanilla. “They don’t understand how close, how much of a lifeline [Lahaina] is to us.”
Complications in Travel
The question of when tourism will bounce back for West Maui and Lanai looms large, particularly in light of recent governmental actions. Governor Josh Green announced the lifting of travel restrictions to West Maui starting October 8, citing the necessity to support the local economy and employment. Mayor Richard Bissen has also advocated for a phased reopening of the area, focusing on the well-being of residents and the need for a manageable return to normalcy. These moves aim to revitalize the West Maui tourism industry, but uncertainties persist, especially for inter-island connections.
The wildfire's destruction of the Lahaina Small Boat Harbor necessitated Expeditions' move to Maalaea Harbor. While the new location is closer to South Maui resort towns like Kihei and Wailea, Maalaea lacks the tourist allure that made Lahaina a convenient gateway for visitors staying in West Maui areas such as Kaanapali and Kapalua. This shift creates new challenges in drawing day guests to Lanai.
Expeditions itself suffered extensive losses due to the flames, including the loss of their offices, warehouse, and critical equipment. Several staff members also lost their homes. These devastations necessitated Expeditions to adjust their operating schedule until they are able to fully recover. The altered schedule poses additional challenges for potential day guests from South Maui, complicating reliable planning for visits to Lanai.
Mixed Outlooks on the Future
"I'm not seeing a light at the end of the tunnel," Cabanilla said, emphasizing the immediate challenges that lie ahead for local establishments.
Vaughn offered a guarded yet hopeful view. While the cat sanctuary is preparing for what could be two to three years to return to normal visitor numbers, he emphasized that this is a conservative projection, not a definitive timeline.
Offering a more optimistic perspective, Kathy Carroll expressed hope despite current hardships. "There'll be a silver lining," she said. She also pointed out that they had successfully weathered the pandemic and other economic downturns in the past.
Gratitude Amidst Struggle
While the future remains uncertain, there's a consistent note of gratitude from Lanai's businesses. "I really want to express my thanks to all our local patrons. Without their support, we'd be in a worse situation,” said Dupree.
Kathy Carroll underscored this sentiment, emphasizing that while challenges exist on Lanai, they are acutely aware that the situation could be worse. “We have a lot to be thankful for. Our troubles are minor compared to those in Lahaina.”
While Lanai's businesses express appreciation, they also find it challenging to discuss their own difficulties when mindful of the greater hardships faced by Lahaina. This delicate balance is widely felt, yet it doesn't lessen the genuine challenges they encounter as they look toward an uncertain future.