Tuesday, July 23, 2024
Hawai'i Free Press

Current Articles | Archives

Tuesday, July 2, 2024
UHERO: Where can Hawaiʻi diversify its economy?
By UHERO @ 10:26 PM :: 565 Views :: Agriculture, Economy, Tourism

Where can Hawaiʻi diversify its economy? UHERO finds areas

UH News,  July 2, 2024

Hawaiʻi‘s economy depends heavily on tourism, and is therefore vulnerable to sudden drops in visitor numbers as well as inconsistent and slow growth in tourism revenue for the past 30 years.

A new report by the University of Hawaiʻi Economic Research Organization (UHERO) identifies potential opportunities to diversify the state’s economy by analyzing the variety of industries across counties in the U.S. and Hawaiʻi.

PDF: See entire report

Based on industries already in Hawaiʻi, the study shows Hawaiʻi has great potential for ocean-based industries—such as fishing, fish farming and hatcheries, boat building, port and harbor operations, and seafood packaging. Diversifying into these industries can create long-term stability and support growth beyond tourism. Additionally, the study highlights opportunities to grow industries that align with Hawaiʻi’s traditional strengths while also offering potential for diversification, such as hospitality, water transportation, and video production.

The report authors—UHERO Assistant Professor Steven Bond-Smith and UHERO graduate research assistant Sumit Ilamkar—developed these possible opportunities after studying the industrial composition of all counties in the U.S. to measure relatedness between industries. To find diversification opportunities they examined the industrial composition of Hawaiʻi’s counties to identify underperforming industries with a higher probability of being more robust because they are related to existing strengths.

“The information in this report will be useful for policymakers and legislators seeking advice for economic development policy and for businesses and entrepreneurs seeking new opportunities,” said the report. “It also presents Hawaiʻi as a case study of an approach that will be useful for other places looking for strategies to diversify.”

Diversification challenges

Diversifying Hawaiʻi’s economy is challenging due to the advantages small, open economies gain by specializing in their strengths. The report identifies industries with significant growth potential that are currently facing obstacles such as inadequate infrastructure, skills shortages, and market and government failures. To achieve greater economic diversification, the report suggests adopting a more ambitious approach that targets these barriers instead of concentrating on already successful sectors. For long-term effectiveness, these policies must also include ongoing monitoring and strong governance.

“We show how Hawaiʻi initially benefited from specializing in the tourism industry, and how this specialization now exposes Hawaiʻi to short and long-term risks,” according to the report. “In this way, diversification is not an end in itself but aims to build a more resilient economy that is less exposed to these short- and long-term risks.”

PDF:  Read the entire report on UHERO’s website.

SA: ‘Niche’ industries could help diversify Hawaii’s economy, study finds




TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


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


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


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


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


Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii


Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii