The past couple of years have marked trying times in the state of Hawaii but many will be happy to hear that leading economists are pointing to early signs of recovery. The University of Hawaii Economic Research Organization announced that despite low visitor figures, Hawaii is on the path to recovery.
As the tourist industry continues to slump, experts from the University are predicting a 2.9 per cent gain in arrivals for 2010 along with improvements in gross domestic product (GDP). Indeed, figures for Hawaiian GDP call for a contraction of about negative 0.2 per cent this year but point out that this is actually an improvement on the 1.3 per cent contraction that was estimated for 2008. Likewise, 2009 saw a GDP contraction of 0.4 per cent so while economists are cautiously optimistic there are early signs of improvement. Moreover, by 2011 these same economists predict GDP growth of 0.5 per cent.
The past year has certainly been a turning point for many businesses in Hawaii. The mostly unexpected economic downturn has prevented development and wreaked havoc with the tourism industry. Yet, as world and national economic conditions continue to improve, leading economists see bright things for the future of the Hawaiian tourism industry. At the moment, Hawaii is still suffering from serious state budget woes and job loss statistics whose impact is just starting to be felt.
Still, the University of Hawaii Economic Research Organization sees improvement in jobs figures in the near future. This year may see continued job losses, up to about 0.8 per cent, but as tourism improves the main job sources in Hawaii (retail, the visitor industry, and government) will see more jobs returning to the market. And while noticeable increases in jobs isn’t forecasted until 2011, visitor spending, construction employment, and building permits all seem to be recovering suggesting more future jobs.
Even inflation has been halted by the struggling economy, but the University is expecting a slight bump in inflation this year.
Posted in Hawaii Real Estate, Hawaii Tourism |
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
