Wednesday, June 12, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, March 10, 2023
UHERO Report predicts challenging year for Hawaii tourism
By Selected News Articles @ 7:09 PM :: 1964 Views :: Economy, Tourism

Report predicts challenging year for Hawaii tourism

by Kim Jarrett, The Center Square, March 10, 2023

(The Center Square) - The latest economic forecast from the Economic Research Organization at the University of Hawaii predicts a slight decline in tourism in light of other economic factors. 

The report released Friday says the Aloha state is in an economic slowdown but no recession.

"While international tourism will continue to recover, domestic travel will soften as the US economy contracts later this year," the report said. "Combined with high-interest rates and prices, this will cause local growth to weaken through the first half of 2024."

Inflation has improved in Hawaii, but higher interest rates from the Federal Reserve could lead to a "sharper slowdown" in the state, according to the report. 

Federal Reserve Chairman Jerome Powell told Congress this week he expects more rate hikes to get the nation back at its target inflation rate.

"The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell told the Senate Banking Committee.

The labor market has not recovered to pre-pandemic levels. Workers in the tourism industry see more significant gains in income, but fewer of them have returned to the workforce, according to the report. Wages in the accommodations and food industry have increased 16% in the past year, while other non-farm jobs have only increased by 4%. 

Despite the increase in wages, Hawaii still has a shortage of low-income workers, according to the report.

"The lagging return of lower-income workers likely reflects Hawaii's lag in economic recovery compared with other regions of the country," the report said. "Many workers in industries heavily affected by the pandemic may have relocated to states with better job opportunities. This is consistent with Hawaii's population data. While the state's population began to decrease prior to the pandemic, COVID-19 accelerated the decline. Since the fourth quarter of 2019, Hawaii has seen a loss of more than fourteen thousand residents. The outflow of lower-income workers means that the pandemic has had a disproportionately negative effect on this income class."

The state is now in a position to address long-term challenges, according to the report.

"These include the visitor experience, questions of tourism capacity, housing cost and availability, our aging population, and adjustment to climate change," the report said.

---30---

UHERO March 10, 2023: UHERO Forecast for the State of Hawaii: Hawaii’s Soft Landing Still in the Cards

SA: Hawaii to avoid recession, UHERO report says

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii