We’re not alone. As far as islands far too dependent upon tourism, we’re not the only ones grappling with this issue and its effects on our populace. Iceland, the Maldives, Puerto Rico, the U.S. Virgin Islands, actually- the entire Caribbean- all economically dependent at some level on visitors. All looking at supplemental business options, including pharmaceutical production, renewable energy, tech parks, agribusiness, health sciences, and professional services.
Tax incentives provide an attractive lure if we are serious about finding incremental business to ensure our economic well-being locally. IBISWorld (an industry research firm) ranked Hawaii #47 in business growth among states from 2017-2022. Our gross state product was ranked #49. In business opportunity terms, we rank #45, according to U.S. News & World Report. These numbers are not surprising nor encouraging, exacerbated by the emigration issue we’re experiencing with six consecutive years of net population loss.
Well-known local economist, Paul Brubaker, recently reminded us that our local economy was shrinking before COVID exacted its still-being-felt toll. Tourism numbers should improve when Japanese visitors return and also when government officials finally clamp down on O`ahu’s 8,000+ illegal, short-term rentals. For those who dream of limiting visitor counts, Brubaker opines that unless we substitute with beaucoup new jobs for those who’d lose out if we experience a tourism regression, local hospitality industry workers may abandon Hawai`i to find work and more affordable environs. We need options and solutions, not bitterness and resentment. Big picture thinking and sustainable action.
We seem perennially stuck on square one when seeking economic diversification. Hawai`i needs to research like-minded, tourism islands (as examples) to gain insight into manageable opportunities, success stories, and existing stumbling blocks. While no single industry or entity will provide the economic base that tourism provides, finding a half-dozen, new economic enterprises would make a big difference in the decades ahead. But the clock is ticking…
And yes, we’re going to have to offer some eye-opening deals and tax concessions as we encourage people/business to uproot from 2,500+ miles away from their home office and extended families. Remote work? Let’s encourage more people to live in Hawai`i as they work for mainland firms. The recent increase in and positive vibes related to upcoming housing developments provides hope. We now need to find high(er)-paying jobs (and industries) to ensure that our working population stays, and that locally-raised, mainland college-educated graduates return. Now is the time.
Think about it…