Hawaii is one of the most popular tourist destinations in the world, known for its beautiful beaches, lush greenery, and unique culture. The tourism industry plays a significant role in the Hawaiian economy, but just how big is its impact? In this article, we will explore what percentage of Hawaii’s GDP comes from tourism.
What is GDP?
Before diving into the numbers, let’s first understand what GDP means. Gross Domestic Product (GDP) is the total value of goods and services produced in a country or region within a specific time frame. It is an essential indicator of economic growth and development.
The Importance of Tourism to Hawaii
Hawaii has a diverse economy that includes industries such as agriculture, technology, and manufacturing. However, the tourism industry remains one of the most critical sectors in Hawaii’s economy. Millions of visitors from around the globe come to Hawaii each year to experience its natural beauty and unique culture.
The Numbers
According to data from the State of Hawaii Department of Business, Economic Development & Tourism, tourism accounted for 21.3% of Hawaii’s Gross Domestic Product (GDP) in 2019. This figure represents a slight increase from 20.9% in 2018.
In terms of numbers, visitors spent approximately $17.8 billion in Hawaii during 2019. This spending supported over 200,000 jobs throughout the state.
Impact on Local Businesses
The tourism industry provides significant support to local businesses throughout Hawaii. Small businesses such as restaurants, souvenir shops, and tour companies rely heavily on tourist dollars to stay afloat.
Tourism also contributes significantly to tax revenues for both state and local governments. These funds help support public services such as schools and infrastructure projects that benefit residents and visitors alike.
Conclusion
In conclusion, tourism plays a crucial role in Hawaii’s economy. The industry accounts for over 20% of the state’s GDP, and its impact can be seen throughout the islands. While the COVID-19 pandemic has significantly impacted tourism in Hawaii, it remains one of the most critical sectors in the state’s economy.