Visitor-funded ‘Mahalo Rewards’ program seeks to lower local cost of living

A new platform has launched on Maui, aiming to lower the cost of living on the island by redirecting tourism dollars into the local economy. Mahalo Rewards, developed by a Maui-born software engineer, eliminates marketing fees for local businesses by utilizing a visitor-funded model.

Founder Sterling Ross said the platform addresses two urgent post Lahaina fire challenges: (1) the high cost of living for residents; and (2) the high cost of customer acquisition for small businesses. He said, unlike global platforms that charge vendors for visibility, Mahalo Rewards is free for businesses and residents, funded entirely by a voluntary visitor contribution.

“I grew up in Lahaina,” said Ross. “Watching our local businesses struggle during COVID, and then fight to survive after the fires, I spent a lot of time reflecting on how technology could actually help. We need to overcome the message that visitors aren’t welcome. I wanted to build something that supports our economic recovery while creating a healthier, more sustainable way to embrace visitors.”

How it works

The Mahalo Rewards model operates on a “circular economy” system designed to benefit three distinct groups:

1. Frictionless relief for kamaʻāina: To address the rising cost of living, the app is 100% free for residents. It requires no accounts, no logins, and no identity tracking. Residents simply download the app to access instant discounts and Happy Hour specials from shops and restaurants across Maui.
2. Stewardship tools for vendors: Founders say more than 100 Maui businesses have joined the platform at launch. Vendors pay zero fees to list their business or post offers. In return, they receive enterprise-grade marketing tools, including “Smart Boost” technology that allows them to target specific days and times to smooth out slow periods.
3. The “Mahalo Pass” for visitors: The platform is funded by a “freemium” model for tourists. Visitors can use the app to find Happy Hours and discover local vendors using advanced filters such as “Made on Maui” and “Native Hawaiian Owned.” To unlock exclusive offers, they purchase a one-time $10 “Mahalo Pass,” valid for one year. This revenue directly subsidizes the free utility for residents and businesses.

“Visitors are becoming active participants in our recovery,” Ross said. “By paying a nominal, one-time fee, they directly subsidize the infrastructure of a free utility for the local families and businesses of Maui. It is a true Win-Win-Win.”

The nominal fee is typically covered by the savings from redeeming a single offer on the app, according to Ross.

“I wanted to take that enterprise-level experience and turn it into a tool that benefits everyone,” Ross said. “We needed a system where tourism supports the community directly, not just through tax dollars.”

Availability

• The URL: https://mahalorewards.co is live.
• The App: https://mahalorewards.co/app is updated on the app stores.

What’s in the name?
Founder’s ties to Lahaina

The new Mahalo Rewards program may sound familiar to some, but Ross said there’s no relation to the “Mahalo Rewards Card” from the South Park episode (Episode 11, Season 16) “Going Native” that gained somewhat of a cult following online for its satirical look at tourism and the perception of Native Hawaiian culture.

Ross said it’s in direct opposition to what he has pictured for his business and his hopes for healing the local / visitor divide.  

“I am aware of the South Park satire. That episode mocked the gentrification of empty gratitude by slapping a cultural label on something to sell it. My project was born from the exact opposite place, from total loss,” he said in an email communication.

“If this were just a corporate marketing choice, the name would be tone deaf and disrespectful. The truth is, the name has nothing to do with marketing and everything to do with survival,” he told Maui Now.

“Like many, the last few years stripped me of almost everything. My father’s first home in Lahaina burnt down, I wasn’t displaced, but so much of my youth was based there. That came in the wake of losing my business clients due to navigating a series of other deep personal losses. I hit a point where I was holding onto nothing, and I realized that the only thing I had left, the only thing that could pull me out of that darkness, was gratitude,” he said.

“I didn’t choose the name ‘Mahalo’ to be catchy. I chose it because, for me, gratitude wasn’t a slogan, it was a lifeboat. I built this platform because I saw our community drowning in the same despair I felt, the anger, the division between locals and visitors, and the economic fear. I wanted to build a tool that proves that gratitude is the reward,” said Ross.

Let’s reclaim the word from the satire. It is time we take “Mahalo” back from being a superficial “thank you” on a trash can and restore it to what it actually means: a reciprocal breath of life and gratitude that connects us.

“This isn’t a ‘CtPaTown’ [City Part of Town location from South Park] rebrand, it is a kid from Maui trying to build a ladder out of the ashes,” said Ross.

According to founders, Mahalo Rewards LLC is a community-focused venture dedicated to Maui’s economic recovery. Its flagship platform is developed and operated by Aloha Industries LLC, a Maui-based software company that seeks to “turn enterprise-grade technology into accessible local solutions.”