What Percent of Hawaii’s Economy Is Tourism?

By Michael Ferguson

Hawaii is a popular tourist destination known for its stunning beaches, lush greenery, and vibrant culture. The tourism industry has always played a significant role in the state’s economy. In this article, we will explore the percentage of Hawaii’s economy that comes from tourism.

Understanding Hawaii’s Economy

Hawaii’s economy is unique compared to other states in the US due to its location and geography. The state is isolated from the mainland and relies heavily on imports for goods and services.

Agriculture used to be a dominant industry in Hawaii, but it has declined over the years. Today, the state’s economy is dominated by the service sector.

Tourism Industry in Hawaii

The tourism industry is one of the biggest contributors to Hawaii’s economy. The state attracts visitors from all over the world who come to experience its natural beauty and cultural heritage. According to the Hawaii Tourism Authority (HTA), 10 million tourists visited Hawaii in 2019 alone.

The Percentage of Hawaii’s Economy That Comes From Tourism

Tourism plays a significant role in Hawaii’s economy, but what percentage of it comes from this industry? According to data from HTA, tourism accounted for 21% of Hawaii’s gross domestic product (GDP) in 2018. This means that one-fifth of the state’s economic activity can be attributed to tourism.

Impact of COVID-19 on Hawaii’s Tourism Industry

The COVID-19 pandemic has had a severe impact on Hawaii’s tourism industry. With travel restrictions and safety concerns affecting people worldwide, there has been a significant decline in tourist arrivals since March 2020. According to HTA data, visitor arrivals dropped by over 99% compared to 2019 figures.

The Future of Tourism in Hawaii

As vaccines become more widely distributed and travel restrictions ease, there is hope that Hawaii’s tourism industry will recover. The state has already implemented various measures to ensure the safety of both visitors and locals. However, some experts believe that tourism in Hawaii may never return to pre-pandemic levels.

Conclusion

Tourism is a vital industry for Hawaii’s economy, accounting for 21% of its GDP. However, the COVID-19 pandemic has had a significant impact on this sector, leading to a decline in tourist arrivals. While there is hope for recovery, it remains uncertain when and if tourism will return to pre-pandemic levels in Hawaii.