Blogs

Funding the Hawaii Tourism Authority: TAT vs General Fund…Or?

June 28, 2021

By James Mak A majority of the states in the U.S. have a government tourism office (also known as Destination Marketing Organization, DMO) that markets their state. The National Council of State Legislatures (NCSL) notes that the most common way for states to fund their tourism offices is by appropriation from their general fund. [1] […]

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Is a Carbon Tax Viable for a Small Island Economy?

June 17, 2021

By Maja Schjervheim, Paul Bernstein, Sumner La Croix, Makena Coffman, and Sherilyn Hayashida For the third year in a row, a carbon tax bill fizzled out at the Hawaiʻi State Legislature. Perhaps it was the difficult timing of introducing a new tax in the wake of a pandemic. Perhaps it was due to qualms regarding […]

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Should the Counties Get a Share of the Transient Accommodation Tax?

June 16, 2021

By James Mak In the recently-concluded thirty-first legislature (2021), Hawaii state lawmakers passed HB 862 CD1 which would divert to the state government’s general fund (GF) $103 million from the state’s transient accommodation tax collections (TAT) that otherwise would have gone to the counties. In exchange, state lawmakers gave each of the four counties the […]

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How to Renovate Housing Policy in a Way that Works

June 15, 2021

How to Renovate Housing Policy in a Way that Works  On May 12, the University of Hawaii Better Tomorrow Speaker Series series hosted a discussion with Stanford economist Rebecca Diamond to address the crisis in housing supply and affordability. Below are some highlights from the conversation, which were condensed and edited for clarity. If you missed the […]

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How Bad? Labor Underutilization in Hawaii During the Pandemic

April 27, 2021

By James Mak The U.S. Bureau of Labor Statistics (BLS) recently issued revised estimates of civilian labor force and unemployment in Hawaii for all of 2020. The new numbers show that in December 2020 Hawaii had the unenviable distinction of having the highest state unemployment rate in the nation (10.3%).  For the entire year, Hawaii’s […]

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COVID-19 infections, vaccines, and economic recovery

April 16, 2021

By Carl Bonham, Peter Fuleky, Byron Gangnes, and Justin Tyndall A year ago Hawaii was operating under its first COVID-19 Stay at Home Order. As business activity contracted, the state quickly shed more than 150,000 jobs, and the unemployment rate jumped from 2% to 22%. Today there is hope that the devastation brought by the […]

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Mobility Data Shows Fewer Residents Staying at Home

April 15, 2021

By Joshua Hu and Justin Tyndall Hawaii has steadily moved forward with its vaccination initiative. Currently, the CDC reports that 26% of Hawai’i residents are fully vaccinated against COVID-19, slightly above the national rate of 24%. Despite progress in vaccinations, during the period from mid-February to early April, Hawai’i has undergone a rise in new […]

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Location, Location, Location! A uniquely Hawaiʻi economic development strategy

April 9, 2021

By Steven Bond-Smith* Hawai‘i’s vulnerability to economic shocks has become a paramount concern during the pandemic. Extreme specialization in the visitor industry exposes Hawaiʻi to risk and volatility when events such as a pandemic, recession or terrorist attack trigger collapses in visitor numbers. In response, policy-makers in Hawaiʻi are placing an increasing emphasis on diversification. […]

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The Hawaii Film Tax Credit: An Update

March 30, 2021

By Sumner La Croix and James Mak In 1997, Hawaii was one of the first states to grant tax credits to attract content producers to film their projects in the state. As of January 2021, 32 states offer tax credits to defray qualifying expenses of filming movie/TV productions. The competition to attract film/TV productions now […]

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