Downtown Honolulu's historic Hawaii Theatre Center is battling for its survival as insurance premiums have skyrocketed by an astronomical 4,500%, forcing the 103-year-old cultural landmark to slash programs and scramble for the $6 million needed annually to keep its doors open. The financial crisis has transformed daily operations from a manageable challenge into a desperate fight for existence.
According to Honolulu Star-Advertiser, the surge meant that the theater's operating costs, excluding major capital repairs, rose from around $10,000 a day to some $15,000 a day. Gregory Dunn, president and CEO of the Hawaii Theatre Center, revealed that insurance premiums jumped last year by 4,500%, with property insurance for the coming year now costing around $430,000.
Coverage Slashed as Costs Soar
The numbers paint a devastating picture of Hawaii's insurance market collapse. Hawaii News Now reported that Hawaii Theatre Center Board Chair Timothy Howell said insurance for the 103-year-old theater last year cost $2 per $1,000 of coverage, which enabled them to carry a $45 million policy. But this year, the premium was $90 per $1,000, so they could only afford $5 million in coverage, far less than replacement cost.
"It was gutting certainly to see the number and see where we were," Howell told Hawaii News Now. "We can't afford more coverage and we can't afford to have a catastrophic event at $5 million or more. That would put us in a very difficult situation in terms of keeping the theater alive."
Programs at Risk
The insurance crisis has forced painful cuts across the organization. As reported by Honolulu Star-Advertiser, the Hawaii Theatre's youth theater program, produced in partnership with the Pacific Academy of Performing Arts, had planned on staging big-scale children's musicals this fall, next spring and next summer — plans now in jeopardy as federal funding and private foundation grants have dried up simultaneously.
Celebrity Lifeline
Fortunately, high-profile supporters have stepped up to help bridge the financial gap. Joe Moore and Pat Sajak donated the proceeds from their recent production of "Prescription: Murder" to the Hawaii Theatre Center, with Moore also covering the show's production costs. Dunn noted that "(Moore and Sajak) have brought in over $1.5 million in support to the theater over the years of their relationship to the theater. This year their show is on track to bring in almost $250,000 in ticketing sales for us, so it's really helpful, and it helps close the gap."
In September, comedian Ronny Chieng will headline a two-night fundraiser, "Ronny Chieng & Friends – Century of Inspiration," featuring surprise guests. When Chieng filmed his Netflix special at the Hawaii Theatre last year, five shows sold out. "Having him willing to come back and give back to the community and help support us is nothing short of amazing," Dunn said. "To have someone like Ronny willing to donate his time and talent, and then also invite his friends, some of which are superstars who do arena shows, to come and join him on our stage to help raise money for us really is life saving."
Statewide Insurance Crisis
The theatre's struggle reflects broader turmoil in Hawaii's property insurance market. According to Honolulu Civil Beat, some condo owners have seen annual premiums double to $300 from $150 over just the past year, while master policies for entire complexes have jumped from $75,000 to $500,000 annually, resulting in $5,000 special assessments for individual owners.
Multiple factors are driving the crisis. The MortgagePoint reports that weather events, rising construction costs, and reinsurance availability are pushing insurance premiums higher. The 2023 Maui wildfires, which caused property losses in Lahaina alone exceeding $3 billion, have further destabilized the market.
Seeking State Support
Faced with the crisis, theatre leadership has turned to lawmakers for help. As detailed by Hawaii News Now, theater leadership reached out to lawmakers who have been moving a resolution urging the state to acquire the property. The measure, SCR 131, passed the Senate with only one negative vote and was approved by the House Culture and Arts Committee.
Per Aloha State Daily, the resolution notes that the state "has invested approximately $30 million in public grants and assistance for the renovation and preservation" of the theater. The nonprofit Hawaii Theatre Center proposes that the state own the building while they continue managing operations.
Fighting for Survival
Despite the mounting challenges, the theatre remains committed to its mission. The reality is that the Hawaii Theatre doesn't receive any ongoing operating support from the city or from the state, Dunn explained. We have to raise all of the money ourselves in order to balance our $6 million-plus-a-year budget. We are grateful for all of the generous donors who step up year after year to support the theater and help keep it going, but we have to ask everyone in the community, whether it's someone that rents the theater or someone who comes to the show, to help us balance the budget, remain sustainable, and keep the theater going.
The Hawaii Theatre's immediate future hinges on upcoming fundraisers and potential state intervention. What remains certain is that this beloved cultural institution faces one of the most challenging periods in its century-plus history, caught in the crossfire of Hawaii's insurance market meltdown. For those interested in supporting the Hawaii Theatre Center or attending the Ronny Chieng fundraiser, tickets and donation information are available at hawaiitheatre.com or by calling (808) 528-0506.
