How Much Does Tourism Contribute to Hawaii’s Economy?

By Michael Ferguson

Hawaii is a popular tourist destination that attracts millions of tourists every year. Its pristine beaches, crystal clear waters, and vibrant culture make it an ideal destination for those seeking relaxation and adventure.

But just how much does tourism contribute to Hawaii’s economy? Let’s take a closer look.

Overview of Hawaii’s Tourism Industry

Tourism is one of the main industries in Hawaii. According to the Hawaii Tourism Authority, the state welcomed over 10 million visitors in 2019 alone. These visitors generated over $17 billion in spending, which translates to approximately 21% of the state’s Gross Domestic Product (GDP).

Employment

Tourism also plays a significant role in providing employment opportunities for residents of Hawaii. The industry supports more than 200,000 jobs, which accounts for approximately 1 in every 4 jobs in the state.

Revenue

In addition to providing employment opportunities, tourism generates significant revenue for the state through taxes and fees. In 2019, visitor spending resulted in $2 billion in tax revenue for the state.

The Impact of COVID-19

The COVID-19 pandemic has had a significant impact on Hawaii’s tourism industry. In 2020, visitor arrivals decreased by more than 74% compared to the previous year, resulting in a loss of billions of dollars in revenue. The decline in tourism also resulted in widespread job losses and business closures.

Recovery Efforts

In an effort to revitalize the industry and bring back visitors safely, Hawaii has implemented various measures such as mandatory pre-travel testing requirements and health screening procedures at airports. These efforts have resulted in a gradual increase in visitor arrivals since mid-2020.

Conclusion

Tourism is an essential component of Hawaii’s economy, providing significant revenue and employment opportunities for its residents. While the COVID-19 pandemic has presented challenges, the state is working hard to recover and welcome visitors back to its beautiful shores. As visitors continue to return, Hawaii’s tourism industry will undoubtedly play a vital role in the state’s economic recovery.

Sources:

  • https://www.hawaiitourismauthority.org/media/4759/2019-year-end-final-statistical-report.pdf
  • https://www.staradvertiser.com/2020/12/29/breaking-news/hawaii-tourism-revenue-plummets-to-1-7b-in-2020-amid-covid-19-pandemic/
  • https://dlnr.hawaii.gov/dofaw/files/2019/03/Economic-Impact-of-Hawaiis-Sport-Fishing-Industry.pdf