Will Lahaina be rebuilt? Steep cost of Maui's economic recovery explored in wake of raging wildfires

The entire town of Lahaina has been covered in flames since August 8, 2023, and has led to the loss of lives and property. The number of casualties will witness a rise in the next few days. As per AccuWeather Inc., the economic loss is estimated between $8 billion and $10 billion.

Governor Josh Green has assured that Lahaina will be rebuilt, although it is expected to take many years. He said that the cost will be in the billions and that the electricity restoration process might take a few months or weeks. He added that there could be a few issues while rebuilding the entire town, which includes the process of claiming insurance, permitting, and federal financial aid.

According to regional Federal Emergency Management Agency administrator Robert J. Fenton Jr., anyone who has suffered losses can claim federal funding, which includes financial help for temporary housing like rent assistance and home repairs.

The federal assistance was requested from The White House by Green, and the request was approved on Thursday morning. Green stated that the authorities will do everything in their power to support the residents, and they will be lowering the flags to half-mast in honor of those who lost their lives.

"And we will be there day and night, hand-in-hand with the City and Country government to make sure that whatever can be done to decrease people's suffering is done."

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What could be the estimated cost of rebuilding Lahaina? Time, complications, and more explained

Lahaina's economic loss is stated to be worth billions, and the recovery is expected to take a long time. Mayor Richard Bissen revealed in a news conference on Thursday that the town is completely gone and nothing is left now.

The fire will take a bad toll on the economy, as reported by member of the Hawaii Chamber of Commerce, Sherry Menor-McNamara. Green said at the news conference that buildings and utility poles were also badly affected.

Many grocery and retail outlets have discontinued operations due to the unavailability of power, and their recovery could take a month. General Manager of Atlantis Submarines Maui Jim Walsh said that a majority of the offices and shops have been destroyed, adding that the loss could be worth $20 million or more.

A major complication for the recovery is the population of Maui, which is too small. Green is also planning to offer help to people with the help of state money, and he will soon organize a legislative session to take a call on the same.

Around 80% of Lahaina is currently covered in flames, and more than 1,000 buildings have been destroyed so far. The hurricane winds were believed to be the reason why the fire was spreading at a rapid pace, and most of the residents jumped into the ocean to save themselves.

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Lahaina wildfires have destroyed buildings of historical significance

The Lahaina wildfires started on Tuesday, and according to The New York Times, residents did not receive any warning of the fire in the beginning.

By August 11, 2023, around 11,000 residents had lost access to power. Historical buildings that were established hundreds of years ago, including the Waiola Church, Pioneer Inn, and Baldwin Home, have been destroyed.

The Maui County Facebook page shared a few pictures on Facebook where Mayor Richard Bissen and a few other officials were inspecting the losses. One of the pictures revealed that an old banyan tree was also destroyed.

Rescue operations are currently ongoing, and the public has been requested to stay away from the place until authorities declare it safe. According to CBS News, residents are being shifted to safe places by buses.