Hawaii Economy Is Recovering But In Fragmented Manner
It is being forecasted by economists of University of Hawaii that in the forthcoming
year of 2011 the state will see a recovery thanks to return of the tourists. Among the islands however, Oahu obably will benefit the most.
A report released by UH Economic Research Organization stated that during the past few months a rebound in tourism has been observed. The numbers are vying with those during the booming years that preceded the recession.
It was noted by the authors of the report that 590,000 tourists visited the state during the previous four months. The volume resembles the period prior to the filing of bankruptcy by Aloha as well as ATA airlines. The report read, "The good fortunes of tourism are providing all the lift this year as the Hawaii recovery inches forward".
There was "dramatic improvement" in expenditures of tourists in comparison to the previous year's pale spending figures. It reflected the period prior to 2008 exceeding $3 billion for the last third quarter, according to the research.
The majority of the tourists arrives at Oahu and enjoys their holidays. As such Oahu is the primary beneficiary from this increase in international tourists against the background of the fast stabilization of the wider economy.
However the economies of the other island are falling behind. It will take many years for them to bridge the gap with more privileged Oahu, according to the predictions of the economists. Hawaii economy is recovering but in fragmented manner.
There has been a sharp increase in job generation in Oahu - it being the highest here. The weakest numbers are In Big Island. The latter has largest proportion of poverty stricken families as per the figures of the Census Bureau reported by Hawaii Tribune-Herald very recently. The UH report notes, "Hawaii's economy continues to recover, but in a very uneven fashion".
The recovery does not have wide range - it is focused on the tourist sector. Thus the "rest of the state's economy is going nowhere".
It is anticipated that things will look up from 2011. The construction sector is slowly picking up. A building with a budget of $132 million is coming up in the regional headquarters (Pacific region) of National Oceanic and Atmospheric Administration at Pearl Harbour. Another is the ground breaking rail transit system with a budget of $5.5 billion for Honolulu.
The report ended by observing, "Moderate growth will gradually take hold throughout the island and begin to generate significant improvements in labor market conditions and in the standard of living for Hawaii residents".