Potential opportunities to diversify the economy of Hawai‘i

Steven Bond-Smith, Economy, Reports

Read the summary blog post.

The economy of Hawai‘i is extraordinarily concentrated in the tourism industry. As a result of tourism’s dominance, Hawai‘i’s economy faces short-term risks from shocks that impact visitor numbers and long-term stagnation from flat and volatile tourism spending over the last three decades. In response to these issues—which became especially salient during the COVID-19 pandemic—policymakers in Hawai‘i increasingly emphasize the need to diversify. Still, it is not clear which industries Hawai‘i could diversify into.