How Much of Hawaii Is Tourism?

By Michael Ferguson

Hawaii is known for its stunning beaches, lush greenery, and vibrant culture. It’s no surprise that tourism is a significant contributor to the state’s economy.

In fact, Hawaii relies heavily on tourism to sustain its economy. But just how much of Hawaii is tourism? Let’s take a closer look.

The Importance of Tourism in Hawaii

Tourism is the largest industry in Hawaii. According to the Hawaii Tourism Authority (HTA), visitor spending reached $17.75 billion in 2019, making up 21.3% of the state’s gross domestic product (GDP). In addition to generating revenue for the state, tourism also supports jobs and businesses across various industries.

Visitor Arrivals

The number of visitor arrivals to Hawaii has been steadily increasing over the years. In 2019, there were over 10 million visitor arrivals to the state, which was a new record high. The majority of visitors come from the United States, with Japan and Canada being other significant sources of visitors.

Tourism-Related Jobs

Tourism supports jobs across various sectors in Hawaii, including accommodations, food services, retail trade, transportation, and recreation. In 2019, tourism-related jobs accounted for approximately 23% of total employment in Hawaii.

The Impact of COVID-19 on Tourism in Hawaii

The COVID-19 pandemic has had a significant impact on tourism worldwide, and Hawaii is no exception. With travel restrictions in place and many businesses closed or operating at limited capacity, visitor arrivals have drastically decreased. According to HTA data from August 2021, visitor arrivals were down by 73% compared to pre-pandemic levels.

Effects on Employment

The decline in tourism has had a ripple effect across various industries in Hawaii. Many businesses have had to close permanently, resulting in job losses. In 2020, the unemployment rate in Hawaii reached a record high of 23.8%.

The Future of Tourism in Hawaii

As the world continues to grapple with the COVID-19 pandemic, the future of tourism in Hawaii remains uncertain. However, the state is taking steps to safely reopen to visitors while prioritizing public health and safety.

Sustainable Tourism

There has been a growing focus on sustainable tourism in recent years, and this trend is likely to continue. Sustainable tourism aims to minimize negative impacts on the environment and local communities while maximizing economic benefits.

Diversifying the Economy

While tourism will likely remain a significant industry in Hawaii, there has been a push to diversify the state’s economy. This includes encouraging growth in industries such as technology, agriculture, and renewable energy.

Conclusion

Tourism is undoubtedly a crucial part of Hawaii’s economy. However, the COVID-19 pandemic has highlighted the need for diversification and sustainability. As Hawaii works towards safely reopening to visitors and rebuilding its economy, it will be essential to balance economic growth with environmental and social responsibility.