Categorized | Etcetera

Heavy reliance on Tourism hurting Hawaii economy…

Posted on 17 August 2009

Hawaii is facing its worst recession since becoming a state 50 years ago, dragged down by its reliance on a single industry, says The Wall Street Journal. As much as a third of Hawaii’s economy is driven by tourism, say state finance experts, and a recent state report showed that from January to June, spending from visitors who arrived by air dropped 15% to $4.97 billion from a year earlier.

 

Tourism officials say several factors have kept sightseers away. Two major airlines and two cruise ships stopped operating in the Aloha State, reducing options for visitors. High fuel prices last summer deterred travel. Then recessions in Japan and the U.S., as well as California’s economic meltdown, slowed the flow of tourists. Tourist arrivals from Japan dropped 15.5% from 2008 when news of the H1N1 virus broke. Japanese tourists account for a fifth of Hawaii’s visitors.

Source: Wall Street Journal

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