Like most of the nation, our economy in Hawaii is taking a hit. Hawaii Real estate prices have steadied, but not fallen like those on the mainland. Thanks to the bankruptcies of both ATA and Aloha, the cost of flying to Hawaii has dramatically risen. This, combined with the rest of the nation’s belt-tightening, has had a major effect on our level of tourism. Hotel and resort capacity is down and projected to stay down through the summer. Concerning Hawaii and Maui in particular, there are definite good and bad factors involved in our present economy.
THE BAD
Hawaii is the most oil dependant State in the most oil dependant Country in the World. The rising fuel costs affect everything in our lives. With everything being shipped from overseas, Hawaii’s economy is a slave to the oil industry. Signs of this changing are slim to none. With the rising costs, Hawaii is becoming ever more expensive to live and visit.
THE GOOD
Hawaii seems to get hit by a slumping economy a little later than the rest of our Country. Hawaii real estate is still highly valued because the people that can afford to buy here are of a different breed. Wealthy people tend to weather storms better than the masses, and the wealthy are the ones buying second homes in Hawaii, especially when the economy is struggling. Decreasing value in the dollar can only help Hawaii tourism and industry. A huge portion of visitors to Hawaii come from Canada and Japan. With the dollar becoming worth less, tourism will rise with international visitors. These visitors will help us grow and stay afloat through the rough times.
WHAT WE CAN DO
American visitors and residents of Hawaii both need to concentrate on buying American, and traveling in America. Keeping money in this country will ensure our prosperity. As the dollar falls, local production is more attractive and will help our economy. Signs of this are already present. The film industry rushed to Canada to save money in the last 5 years. Just in the last year, we’re seeing filming move back to the USA. With major tax incentives, the state of Hawaii has enjoyed industry revenue with recent filming on Kauai, Oahu, and Molokai.
With concentration on continued spending within Hawaii, this rough spot in our economy will be lessened, and we’ll be better prepared for the next wave of prosperity.
hawaii real estate
Now is the time to invest in US property, Don’t abandon it, invest in it.