Hawaii is one of the most popular tourist destinations in the world. Its pristine beaches, lush green forests, and tropical climate attract millions of visitors each year.
The tourism industry is vital to Hawaii’s economy, and it contributes significantly to the state’s income. But how much of Hawaii’s income is from tourism? Let’s take a closer look.
The Importance of Tourism in Hawaii
Tourism has been a crucial part of Hawaii’s economy for decades. In 2019, the state welcomed over 10 million visitors, generating $17.75 billion in revenue. This revenue includes spending on accommodations, food and beverage, transportation, activities, and shopping.
How Much of Hawaii’s Income Comes From Tourism?
Tourism is Hawaii’s primary source of income. According to the State Department of Business Economic Development & Tourism (DBEDT), tourism accounted for 21% of Hawaii’s Gross Domestic Product (GDP) in 2018.
In addition to GDP contributions, tourism also plays a significant role in job creation in Hawaii. The industry employs approximately 216,000 people throughout the state.
The Impact of COVID-19 on Hawaii’s Tourism Industry
The COVID-19 pandemic has had a significant impact on the tourism industry worldwide, including in Hawaii. In 2020, the state saw a drastic decline in visitor arrivals due to travel restrictions and safety concerns. According to DBEDT reports from December 2020, visitor arrivals were down by 74% compared to December 2019.
The pandemic has also had an adverse effect on employment rates within the industry. Many hotels and businesses have been forced to close or reduce their operations due to decreased demand.
Conclusion
Tourism is a critical component of Hawaii’s economy and accounts for a significant portion of its income. While the COVID-19 pandemic has had a severe impact on the industry, Hawaii’s tourism sector has shown resilience in the past, and it is expected to recover in the future.