Hawaii’s Tourism Industry Years Away from Recovery
Tuesday, October 13th, 2009
The recession has left many countries that once relied on their tourist industry in a state of economic turmoil, andfor some regions, the rebound may take several years. According to economists at the University of Hawaii, the islands will not recover from the recession until several years from now because of the sharp decline in demand for trips and cruises to Hawaii over this past year.Hotel occupancy rates, booking rates of sightseeing and tour packages, and flights to all of the Hawaiian islands have been on a sharp decline for the year, reaching record lows and leaving the Hawaii tourism board with few resources to regain a strong position in the industry.
This reduction in demand means that there are fewer options for workers in tourism and travel, and the real income for anyone working in Hawaii may continue to drop substantially over the next few months, making job opportunities even less attractive to foreigners and migrants.
Hawaii’s major resorts and hotels have been making attempts to increase demand by rolling out attractive packages and discounts for guests, offering free upgrades, and introducing incentive programs for future bookings. Still, the entire state’s tourism industry has slowed down to a point where unemployment levels and lower income are becoming a mainstay of Hawaii’s economy.
Economists predict that the upswing could take several years to happen, and it will take a significant amount of time for the state to even get back to its pre-recession level of revenue. While some experts are saying that the recession is over, others think that the economy will continue to remain in slump through the end of the year. Still, inflation is not something that the tourism board of Hawaii needs to worry about in the near future, which means that low energy prices and rental rates may still attract travelers and investors in the oncoming months.
Image via
