How Much of Hawaii Depends on Tourism?

By Alice Nichols

Hawaii is a state that has a reputation for its pristine beaches, volcanoes, and lush green forests. It’s a popular destination for tourists from all over the world.

But how much of Hawaii’s economy depends on tourism? Let’s delve deeper into the topic.

The Importance of Tourism in Hawaii

Tourism is the largest industry in Hawaii, contributing significantly to its economy. According to the Hawaii Tourism Authority (HTA), in 2019, over 10 million tourists visited Hawaii, spending a total of $17.75 billion. This generated over $2 billion in state tax revenue.

Employment Opportunities

Tourism in Hawaii also provides employment opportunities to its residents. In 2018, it was reported that tourism generated around 204,000 jobs in the state. This means that roughly one out of every five jobs in Hawaii is related to tourism.

Industries Supported by Tourism

The impact of tourism goes beyond just hotels and restaurants. It also supports other industries like transportation, retail, and agriculture. For example, many farmers on the islands are able to sell their produce directly to hotels and restaurants.

The Impact of COVID-19

However, since the outbreak of COVID-19 pandemic in early 2020, tourism has taken a severe hit worldwide – and Hawaii is no exception.

In March 2020, Governor David Ige issued an emergency proclamation requiring all visitors arriving in Hawaii to undergo a mandatory 14-day quarantine period upon arrival. This led to a sharp decline in tourist arrivals as many canceled their plans or postponed them indefinitely.

As per HTA reports for August 2021:

  • Total visitor arrivals were just over 62000 which is less than half as compared to August last year.
  • The average daily spending by visitors also declined by almost $100 per person.

Conclusion

In conclusion, tourism is the backbone of Hawaii’s economy. It provides jobs and supports various industries like agriculture and transportation.

However, the COVID-19 pandemic has had a significant impact on Hawaii’s tourism industry, leading to a decline in visitor arrivals and revenue. As the world continues to grapple with the pandemic, it remains to be seen how long it will take for Hawaii’s tourism industry to recover fully.