Economy

What Should Be the Appropriate Tax Base for Online Travel Companies’ Hotel Room Sales?

September 8, 2012

This essay examines the current dispute between state and local governments in the U.S. and online travel companies (OTCs) over the appropriate hotel occupancy tax base for online hotel bookings. It addresses the question of what should be the appropriate tax base in designing hotel occupancy tax statutes. It argues that the appropriate tax base should be the full […]

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Q & A: Generous Tax Credit Leads to Lower Revenue Forecast

September 7, 2012

1. THE STATE COUNCIL ON REVENUES MET YESTERDAY AND LOWERED ITS PROJECTION FOR GENERAL FUND TAX REVENUES. WHATS UP WITH THAT? I THOUGHT THE TOURISM BOOM WAS ALSO GENERATING TAX REVENUE GROWTH. It is true that the boom in tourism spending and arrivals have contributed to a surge in tax revenues. Transient accommodations tax revenue […]

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Positive Growth in Hawaii’s Visitor Industry

August 31, 2012

The Hawaii Tourism Authority released Monthly Visitor Statistics for July 2012 today. This year the Hawaii visitor industry has moved into a strong expansionary phase and July proved to be no exception. In general, all major market areas saw positive growth and growth was spread across all four counties during the month of July. Total […]

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Q & A: The Never-Ending Euro Crisis

August 24, 2012

1. YOU ARE A PROFESSOR AT THE UNIVERSITY OF HAWAII, BUT YOU ARE GOING TO BE IN PARIS FOR THE NEXT FOUR MONTHS. HOW IS THAT POSSIBLE?  I am teaching two courses in a study abroad program at the American Business School in Paris. I’m hoping to have a great time living in Paris and to […]

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Hawaii jobs report improves in July, just not fast enough

August 17, 2012

The Bureau of Labor Statistics released the State Employment and Unemployment Summary today, and just like the national numbers for July, the numbers for Hawaii were an improvement over the past few months. Employers added 2,800 net jobs during the month, making up part of the 5,400 jobs lost during the previous two months. And Hawaii was […]

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Opening the Floodgates of Chinese Visitors

August 10, 2012

Mainland Chinese are travelling abroad in huge numbers. Twenty years ago, fewer than 4 million Chinese traveled abroad each year. Most of these were traveling for business, official travel, or education. They were not allowed to go abroad just for fun. Not any more. Bolstered by exploding numbers of leisure travelers, China now boasts 70 […]

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US Employment Report— more of the same

August 2, 2012

As the election heats up, the US economy is doing everything it can short of an outright recession to dampen President Obama’s re-election prospects. In the first seven months of 2012, an average of only 144,000 jobs have been added each month. The July  Employment Situation released this morning by the US Bureau of Labor Statistics was […]

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It’s the Economy, Stupid! (Or Is It?)

August 1, 2012

The popular media is frequently citing opinion polls that indicate preferences for one presidential candidate or another.  Historically, analysts have found that economic conditions are among the most important factors influencing voting behavior, and this may be especially true this year amid ongoing economic challenges.  In order to find a causal link between economic conditions […]

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Q & A: Annual Hawaii Forecast: Tourism Hot, But Broader Growth Still Elusive

July 27, 2012

1. UHERO RELEASED ITS ANNUAL HAWAII FORECAST TODAY WITH THE TITLE, “TOURISM HOT, BUT BROADER GROWTH STILL ELUSIVE.”  THIS HAS BEEN THE STORY FOR QUITE A WHILE, RIGHT? Yes, tourism continues to expand at an impressive rate, and in many ways has more than recovered from the 2008-2009 downturn. But with a few exceptions, the rest […]

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