With the economic troubles that have plagued the nation lately, people are being more frugal and spending less. This means that many families and individuals are cutting back on luxuries and extras such as vacations. For a tourism hub like Hawaii, that’s definitely not good news. While economists have previously predicted a downturn for Hawaii’s visitor industry, the University of Hawaii Economic Research Organization now estimates that it will take a number of years before visitor numbers return to their past high levels.
This forecast has resulted from a combination of a loss of interisland cruise ships as well as significantly reduced consumer spending across the country. While the impact of this downturn is expected to result in only a modest decline of total jobs on Oahu, areas such as Maui County which are more dependent on the tourism industry will likely experience a greater negative effect. For instance, economists are expecting a 6 per cent decrease in jobs in the service and lodging industries in both Maui County and Kauai County. The Maui construction industry is also expected to be one of the most negatively affected sectors. Overall, Maui County is expected to experience total job losses of 4.4 per cent.
Of course, there are other factors which could influence the above economical predictions. Most notably, the impact that the swine flu will have on Hawaii’s tourism industry remains uncertain. Past experience with the SARS virus has shown that an epidemic in Asia can have a significant effect on Hawaii. However, economists say that it is still too early to determine exactly what impact the swine flu will have on Hawaiian tourism and economics.
Despite all of the bad news, however, there is still reason for hope. Certain sectors of the Hawaiian economy, such as health care and social assistance, are still expanding. Also, while it’s believed that visitor numbers will take several years to fully recover, the downturn is expected to stabilize before the end of the year. This means that it may not be too long before we start to see the situation beginning to move back in the right direction.
Posted in Hawaii Real Estate, Hawaii Tourism | 2 Comments »
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