Tourism is back — somewhat — but it’s going take months before the state parks system is able to enjoy any windfall from an increase in fees that went into effect Oct. 9.

Until then the Division of State Parks has been losing $500,000 a month in revenues from entrance, parking, concession, lodging and camping fees due to the COVID-19 clampdown on Hawaii’s visitor industry, meaning “a severe crisis right now in maintaining fundamental operations,” according to division Administrator Curt Cottrell.

Pre-COVID, state parks were collecting approximately $2.5 million in fees, he said. Officials conservatively estimated the higher rates would generate $8.5 million to $10 million annually for a start, increasing from there. Instead, the State Parks Division is in serious cost-cutting mode, with everything from coconut tree trimming to beach lifeguards on the chopping block.

“The public can expect over time less services more frequently,” Cottrell said.

The drastic drop in visitor revenues also led the Board of Land and Natural Resources last month to approve restructuring of revocable permits issued to companies that collect entrance and parking fees at eight major parks across the islands. Cottrell said that like many other tourism- dependent businesses in Hawaii, the permittees are struggling to survive, and the state can’t afford to have them just walk away because of the vital role they play in managing crowds and reducing crime.

The push for higher fees started last year to help cover insufficient funding for state parks from the transient accommodations tax and the Legislature, according to Cottrell.

“Our thinking was to start extracting more from visitors’ pockets” to offset the costs of maintaining and managing the parks, he said. “We were getting so inundated with over-tourism, and we hadn’t undergone substantial fee increases in some 20 years.”

The new rates, approved by the Land Board in August, charge nonresidents $10 per vehicle and $5 for walk-ins. Previous fees were $5 per vehicle and $1 for walk-in visitors. Fees for commercial vans and tour buses were increased to $15 to $90, depending on location and passenger capacity.

Parking and entrance fees to all state parks remain free for Hawaii residents.

“We were so close to an operating budget that we were really anticipating reinvesting in our campgrounds and some of our repair and maintenance projects,” Cottrell said.

Then COVID-19 hit.

“We went through the public hearings and got all the approvals, and now the fees are in place; however, the fees only make money if we have visitors.”

The division’s biggest moneymaker, Diamond Head State Monument, saw an average of 3,000 visitors daily in pre-pandemic times. Under its revocable permit with the state, Pro Park Inc. was paying $102,000 rent per month, or 87% of gross receipts.

Cottrell said the Waikiki landmark was bringing in $1.1 million annually from parking and entrance fees and was expected to collect at least $3.5 million under the higher fee system with tourism pumping.

Now and over the past seven months since closing, it’s collected zilch. While other state parks have opened to varying degrees, Diamond Head remains closed as officials figure out strategies for safely reopening amid the ongoing pandemic.

Also closed is another heavily visited spot, Nuu-anu Pali State Wayside, also known as the Pali Lookout, although Cottrell said plans call for reopening early this month. Fees there are $3 per car and $6 to $24 per commercial vehicle.

Terms of the revocable permits varied by location, with some requiring a base rent and/or a percentage of gross receipts. With tourism still staggering, “many can’t afford the current management arrangement,” Cottrell said.

The restructured permits approved Oct. 23 set a monthly rent of 99% of net operating income across all eight parks. Cottrell said even if permittees pocket only 1% of their net income, the new terms at least allow them to cover their expenses.

“They need assurance that they will at least break even,” he said.

If the economic situation stabilizes by spring, the state will consider putting the permits out to competitive bid, Cottrell added.

The eight parks are Diamond Head State Monument and Nuuanu Pali State Wayside (permittee: Diamond Parking Services LLC) on Oahu; Akaka Falls State Park (Diamond) and Hapuna Beach State Recreation Area (Republic Parking LLC) on Hawaii island; Makena State Park (Diamond) and Iao Valley State Monument (Republic) on Maui; and Haena State Park (Republic) and Kokee and Waimea Canyon state parks (Republic) on Kauai. (Waimea Canyon and Kokee state parks are counted as one since one parking fee covers both parks.)

At its Oct. 9 meeting, the Land Board authorized the issuance of a revocable permit under the same terms to Republic Parking for a new reservation system for parking and entry management at Waianapanapa State Park in Hana, Maui, whose limited facilities were being overwhelmed by tourists.

The tourism downturn also halted State Parks Division plans to bid out lunch wagon and other concessions, Cottrell said, further denying the parks systems much-needed revenue.

Some of the cost-cutting measures taken so far include reducing overtime, forgoing new vehicle purchases and deferring maintenance and repairs.

As an example, Cottrell said restrooms at Aiea Bay State Recreation Area were recently vandalized to the tune of $80,000, with virtually every fixture destroyed. Unable to afford repairs, “we just locked the bathrooms and closed them. As things get busted up and broken, we are doing that because we don’t have the spending to fix them.”

Other savings have come from less frequent septic tank pumping at park facilities that were never designed for hordes of tourists and “are always overflowing,” according to Cottrell. With far fewer tourists, though, the need to pump has lessened.

The state also can no longer afford the $3 million it pays to counties for lifeguard services at some beaches, he said. Of that amount, $1 million is spent on Maui. Unable to keep up its payments, the state and county agreed to pull lifeguards from Makena State Park, considered one of Hawaii’s most dangerous beaches due to a pounding shore break. But, again, with fewer tourists, there is less need for lifeguards, according to Cottrell.

Discussions with the other counties are ongoing, he said.

As for trimming coconut trees, the State Parks Division spends $60,000 a year for Hawaii island alone, “and we have only enough money for one more pass and then we don’t know when we’ll be able to go again.” Cottrell said he’s been talking with community groups about harvesting coconuts to promote food sustainability and help keep park users safe from falling coconuts.

He is hoping the Legislature will provide some relief in the next session by raising the spending ceiling to allow the State Parks Division to tap deeper into its special funds.