High-Class Tourism

Honolulu, Hawaii has became overcrowded with tourists. In the past year the island had a little over seven million visitors come spending billions of dollars. Of course this is good for the economy, but marketers are worried that their 'aloha' image will suffer. They are trying to target 'active-seeking' travelers and make the island more exclusive. The type of people who have no money problems.

All of the inns are constantly booked, and are starting to be more selective in the types of guests they receive. Along with hotel space, available plane seating and perserving natural resources are issues that dictate capacity. With the island overcrowding, marketers are worried that the product will suffer and they will become like any other sand destination.

Is making the island more exclusive worth the opportunity cost? Is the marginal benefit of a less crowded beach worth the cost of lost customers? Is it fair to only target the "best" customers, leaving it unaffordable to others?