The Current Hawaii Economy
Tuesday, July 1st, 2008
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. 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.
After 60 years of travel to and from Hawaii, Aloha Airlines has closed it’s doors. ATA Airlines followed suit shortly afterwards causing enormous travel issues for customers. Those who payed with cash or a check have been left high and dry with no refund for unused tickets as well as many stranded from home. Neither airlines gave any warning before closing shop, while still accepting reservations up until the moment of their announcement. The selfishness of the airlines has hurt its loyal customers, the credit card companies that will have to foot the bill, our tourism industry, and the economy as a whole.
Ever wonder why you seem to get sick every time you jump on a plane? Here’s a little hint. A 747 pilot friend of mine told me the scoop, or lack there of. In the recent past, airplanes used to scoop up some air from the outside and work it into the ventilation system. This would keep the air from constantly recycling itself. Since gas prices have come to such ridiculous highs, airlines have had to cut corners in every place they can. One of these places is in fuel efficiency. Cutting out the fresh air intake causes less drag and saves a few bucks per flight. Unfortunately, this forces the plane to recycle air and germs throughout the aircraft. Your chances of catching a cold from the 5-15% of the plane that’s probably sick have just gone up exponentially. Will this ever change? That’s a good question.