Economy
Time to End the Preferential Taxation of Timeshare Occupancy?
Timeshares comprise a significant percentage of visitor accommodations in Hawaii. There are currently over 11,000 timeshare units in the state, and unlike traditional hotel accommodations, their number keeps growing. Timeshare visitors represented almost 10% of all visitor arrivals in Hawaii during the third quarter of 2017. In Hawaii timeshare owners are required to pay an […]
Read MoreUHERO State Forecast Update: Not much lift from tax cuts in Hawaii’s soaring economy
Hawaii’s economy continues to grow, but with expected slowing as the cycle matures. Tourism is booming, construction remains on a healthy plateau, and jobs are plentiful. The big story this quarter is the federal tax cuts that went into effect on January 1. These will provide a modest boost for Hawaii families, who have seen […]
Read MoreAnnual Hawaii Forecast with Asia-Pacific Outlook: Hawaii’s Long Expansion Gets Global Economic Lift
Improving global conditions provide a favorable environment for continued expansion in the Islands. Visitor arrivals are surging to record highs, and unemployment is reaching new lows. While families are benefitting from the improved employment prospects, many have yet to see significant income growth. The expansion is now well into its eighth year, and all indications […]
Read MoreSustainable Tourism Development and Overtourism
Everyone agrees that tourism should be developed in a sustainable way. Yet, nearly 25 years after the term “sustainable tourism” became fashionable, sustainable tourism development remains elusive. Residents in many popular destinations around the world complain about being overwhelmed by too many tourists, or “overtourism”. The United Nations World Tourism Organization blames the problem on […]
Read MoreUHERO State Forecast Update: Slowing Ongoing, Despite Arrivals Boom
The Hawaii economy is decelerating. Job growth this year will come in at less than 1%, down from nearly 2% just two years ago, the consequence of a flattening construction path and the natural effects of tightening labor markets. Despite surprisingly persistent gains, even the robust tourism industry will move to a lower growth trend […]
Read MoreHawaii Construction Forecast: Construction Easing, But More in the Pipeline
After several years of rapid expansion, the pace of building has eased. A number of significant condo and retail projects have wrapped up on Oahu, while fewer new buildings have broken ground, resulting in an overall reduction in construction activity and employment. But statewide there remain enough new projects in the pipeline to maintain construction […]
Read MoreA New Perspective on Hawaii’s Economy: understanding the role of clusters
Clusters are regional concentrations of related industries that arise because firms can benefit from being geographically close to one another. Proximity lowers transportation costs and fosters knowledge and labor sharing. As a result, the spatial concentration of economic activity is often a defining characteristic of regions. To better understand Hawaii’s economy and prospects for growth, […]
Read MoreUHERO County Forecast: Economies Still Growing, But Slowing
Prospects are good for continued growth in each of Hawaii’s four counties, if at a slower pace than in recent years. The tourism expansion has staying power, but capacity constraints will necessarily limit future gains. Construction is approaching or settling at the peak for this cycle, and tight labor markets will mean a deceleration of […]
Read MoreUHERO State Forecast Update: Growth Continues, For Now
Hawaii’s economy has started the year in fine form. Moderate job and income growth are continuing, and generally favorable global and national conditions are maintaining impressive tourism numbers. The construction buildup has eased, but the industry remains very active. While developments in Washington could hurt us, for now prospects look good for continued growth, if […]
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