Hawaii is known for its beautiful beaches, stunning landscapes, and warm tropical climate. Tourists from around the world flock to the islands to experience the unique culture, delicious cuisine, and breathtaking scenery.
As a result, tourism plays a significant role in Hawaii’s economy. But just how much of Hawaii’s economy is dependent on tourism?
The Importance of Tourism in Hawaii
Tourism has been a crucial part of Hawaii’s economy for decades. In fact, it is the largest industry in the state and employs more than 200,000 people. According to the Hawaii Tourism Authority, in 2019 alone, over 10 million visitors traveled to Hawaii spending a total of $17.75 billion on their trips.
The Percentage of Hawaii Economy That Is Tourism
So what percentage of Hawaii’s economy is dependent on tourism? According to recent data from the U.S. Bureau of Economic Analysis (BEA), tourism accounts for approximately 21% of Hawaii’s Gross Domestic Product (GDP). This means that one out of every five dollars generated in the state comes from the tourism industry.
While this may seem like a large percentage, it is important to note that other industries such as real estate, finance, and healthcare also play significant roles in Hawaii’s economy.
The Impact of COVID-19 on Hawaiian Tourism Industry
However, it is important to acknowledge that COVID-19 has had a major impact on the Hawaiian tourism industry. With travel restrictions and safety concerns limiting travel, many businesses have been forced to close or reduce their operations significantly.
According to data from the University of Hawaii Economic Research Organization (UHERO), visitor arrivals to the state dropped by more than 74% between March and December 2020 compared to the same period in 2019. This has resulted in a loss of billions of dollars in revenue for businesses across various industries including hotels, restaurants, and retail.
Conclusion
In conclusion, tourism is a significant contributor to Hawaii’s economy, accounting for approximately 21% of the state’s GDP. While this percentage may fluctuate over time, it is clear that tourism will continue to play a crucial role in the state’s economic future. However, with the ongoing impact of COVID-19 on the industry, it is important for businesses and policymakers to work together to find innovative solutions to encourage safe travel and support the recovery of Hawaii’s economy.