LIHU’E – Air passenger arrivals have increased by nearly 14% compared to November 2019, but many tour operators have still not been able to return to full capacity after more than a year of strict tourist restrictions which closed or reduced businesses across the island.
The labor shortage is hitting tour operators hard.
Prior to the pandemic, Kaua’i Backcountry Adventures had approximately 105 employees. Now they work with only 63.
According to general manager Sean Stogner, he only receives about two applications a month.
“We throw away everything but the kitchen sink and we just can’t find any employees,” Stogner said. “It’s pretty tough.”
Despite raises and overtime, the company can currently only work at around 80% capacity.
Small businesses are also struggling to hire.
Na Pali Coast Hanalei Tours is down 47% in gross volume from 2019 due to operating half of its staff in 2019.
Hanalei businesses have been particularly hard hit by labor shortages due to the ‘Hanalei Hill’ landslide works in March which limited access to Hanalei and outside until in mid-October.
On the east side, Kayak Wailua is looking for a few guides and a driver. They make it work with the staff they have and haven’t had to cancel any tours due to labor shortages, but operations can be difficult at times.
For example, if a guide calls in sick, sometimes the management comes to guide him on his day off or uses a guide from another company.
“All the owners of the company get along very well,” said Pete Fisher, owner of Kayak Wailua. “So sometimes when we need help from another company, we can borrow an employee from someone else among our competitors.”
Several tour operators reported employees moving off the island during the pandemic when tours were closed or operating at reduced capacity. Some of these positions still remain vacant.
Mauna Loa Helicopter moved two out of four office workers off the island and the remaining office workers work six days a week.
“We had at least 20 interviews. People don’t show up, no call. People say they’re not interested,” Kaua’i office manager Shantell Durante said.
The company also lost several pilots from other countries who were unable to renew their work visas due to pandemic-related travel restrictions. However, the company does not face a shortage of pilots. They hire directly from their flight schools located on the island of O’ahu and Hawai’i.
Companies are raising wages to attract workers, and that’s not the only cost increase. Inflation, especially the growing rise in oil prices, has dealt a big blow to tour operators. Most tour operators depend on fuel in one way or another, whether it’s to run a shuttle service or fly a helicopter. And other basic supplies can be hard to get and expensive.
According to Fisher, kayak prices have doubled or tripled since the start of the pandemic and it takes six months to get new boats for his rental fleet. At Kayak Wailua, they have invested in repairing and maintaining their current fleet of kayaks while they wait for their new arrivals.
For some businesses, supply chain issues can cripple operations.
At Kaua’i Sea Tours, according to reservations manager Jessie Kahepuu, the company was well prepared with extra parts to handle boat maintenance, but struggled to replace spare parts. “We’re pretty much at the bottom right now, hoping and praying that nothing else breaks because it’s hard to get it through the channel,” Kahepuu said.
Most of the companies that responded to The Garden Island’s interview request said they had yet to pass the cost on to consumers.
“Our pricing is pretty much the same in all areas as it has been for three or four years. Because there’s a lot of competition on the West Side,” said Steven Baptiste, owner of Na Pali Coast Hanalei Tours, owner of Steven Baptist.
Not all visitors returned to Kaua’i. “We are a little slower because there are no cruise ships. Cruise ships make a big difference,” said Durante of Mauna Loa Helicopter Tours.
Despite the challenges, tour operators are grateful to once again have a thriving tourism scene.
“We have been very fortunate to be able to work and to have our company and our team back to work. Definitely (visitors) are here now, that’s for sure! said Avelina Kuhaulua, Na Pali Coast Hanalei Tours office manager.
