HONOLULU — Experts are troubled by the Hawaiian economy’s growing dependence on tourism.
Almost all the growth in the state’s economy remains in tourism, meaning that Hawaii’s economy is relying more on the mainland’s economy, according to a report titled “Hawaii’s Growth Down, but Not Out,” from the University of Hawaii’s Economic Research Organization.
Researchers looked at economic data for the first six months of this year, Hawaii News Now reported.
Growth in other sectors in Hawaii’s economy — including construction, military and government employment — has halted or reversed, economics professor Carl Bonham said.
“What we are seeing is lots of growth in accommodations and food service jobs and not a lot of growth in most of the rest of the economy,” Bonham said.
The tourism sector has continued to grow despite the Kilauea eruption and recent storms.
The problem with having the majority of the economy’s growth in the tourism sector is that if tourism where to slow down significantly, the rest of the economy would slow down with it, Bonham said.
At the same time, the strong mainland economy is causing more Hawaii residents to leave, Bonham said.
“People who live in Honolulu who maybe aren’t real happy about how expensive it is to live here, they have great opportunities elsewhere,” Bonham said.
Although less population growth means a decline in rents and lower inflation, it also translates into slower job growth, he said.
So . . . what else do we have to sell? Lava? Saltwater? In terms of any kind of industrial or business activity, it would all be internal, since it makes zero sense to make something here, all raw materials would have to be imported. Tourism and retirement in the tropics, under the American flag. That’s what we have to sell. Not much you can do about that.
Tech. Can be done from anywhere.
-Duh. This is a very predictable result of higher taxes which produces a larger government that can’t continue to grow. In the last 10 years the state and local government costs have grown dramatically. In addition the government expansion has been used to increase regulations that have stymied the economy. Under a large government the servant class is the only opportunity, this increases inequality, and the smart get out. Take a look at third world countries the preferred job is to to work for the government. If you do not work for the government you are part of the servant class. Public assistance is used for the government to keep its power.
Don’t worry help is on the way.. The Californian’s are going to save us with the high speed train to no where, double decker buses for the servants, and the new tax on income property!
Our masters in County gov’t and State gov’t have decreed over and over again that agriculture and farms(especially family farms) must be encouraged to grow. That is a way grow the economy internally. That’s why the County gov’t tweaked the tax rates so that family farms pay the same rate now as mainland owned farms. In essence, doubling the property tax for farmers who own and live on their farms. What’s a farmer to do? Start a B&B to try and keep up. Per our County thinking, doubling taxes on local farmers is going to make them want to farm more. ????
The Tax Dept. now gives a farmer a choice. Take the homeowner tax rate or take the appropriate ag rate depending on what has been planted. This encourages a farmer to not to do anything but throw a cow on his lot and take the grazing rate. This gives him(her) the lowest ag rate on his land but he pays the same rate as a mainlander for his house. He still gets a few bucks off because of the standard homeowner deduction of the home’s assessed value, but that’s it.
We have to support farmers. Growing our own food is such a “DUH!” idea. Everyone complains about the high cost of living in Hawaii. The high cost of importing ALL the food is a very big part of it. So if we supported food ag it would get more people into farming (more employment) and the double whammy of reducing the cost of food for us and the tourists. A WIN WIN scenario it seems to me.
tourism is it…that’s the main thing Hawaii can offer…or government…maybe soon a larger more corrupt useless ..regulation machine…a government of useless overpaid tax making political hacks…..WOW…and Hawaii such an amazing beautiful island…being ruined by the goddam goverment
Since almost 70 percent of the annual budget is to pay for wages and perks for past and present employees of the State and County of Hawaii (oh and a thousand baseball fields) it will only be a few more years till we implode. Already we only get like 2% for health and 2% for welfare…
Until people are happy with what they have, there will be some crazy need to make billions of dollars. Relax, we live Hawaii, we don’t need to keep up with the Jonses!