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Writer's pictureEffie Lin

The Tremendous Fiscal Impact of the Hawaii Wildfire Losses

After the devastating wildfire that ravaged Maui, at least 115 people have died, with more being found wounded or deceased by the day. For those whom may be unaware, the fire began as a result of damaged power lines - a severe and oftentimes overlooked safety hazard, especially in lesser-developed parts of the globe.



Hours before the incident, officials at the West Maui Land Company reached out to the state with urgent requests to fill up one of the private reservoirs in case of a wildfire emergency. The reservoirs are there to help defuse a wildfire more effectively.

State officials were not concerned at the time, due to a lack of active fire and as thus, did not approve the request for hours after the initial submission was filed - a decision that would come to harm them greatly. As we know now, that very brush of fire contained that morning swept up again, and ravaged Lahaina - destroying everything in its path.


The Fiscal Impact of the Damages


After Moody's RMS evaluated all the damages, it was concluded the total losses to repair all damaged buildings, resources and ailments as a whole would range in the zone of approximately $4 billion to $6 billion. In 2021, the GDP for Maui was $8.34 billion. On top of the damages, Maui would pay property owners $3.2 billion for their losses incurred. Indeed, damage throughout Lahaina alone varied between $2.5 billion to $4 billion, a hefty sum for the city to gather alone.. As a result of its geographic location, Hawaii is far more expensive to rebuild when contrasted with the mainland, with eventual re-construction costs ranging 44% more than a typical, U.S. mainland nature-induced catastrophe.


The Strain placed on the Hawaiian Water System


Water has been a shortage in Maui. In Hawaii as early as the 1800's due to sugar plant plantations from European and American owners of the plants. Overtourism is also a big reason why there is a shortage. Due to overtourism, hotel chains were using an abundance of water in order to continue day to day operations. Hotels were encouraged to use the water which ended up harming the locals due to the government ordering them that they are not allowed to do activities such as: washing cars, watering lawns and other nonessential activities. Due to the shortage, Na Wai Eha which means the four streams and rivers has been experiencing shortage of water which is making it harder for farmers to cultivate taro plants and farm fishponds. Advocates are now saying that the governor using the water for the fire is undoing years of preserving said water. As a result of these recent developments, residents are hoarding water in lieu of potential future outbursts.


How can we help?


There are a few ways you can help the families and owners who lost their businesses and homes during the fire. Some funds and organizations are: Chef Hui, Maui Food Bank ,Maui Strong Fund, Maui United Way, The Salvation Army, and ‘Āina Momona.








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