The University of Hawaii Economic Research Organization has revised their prediction for the number of visitor arrivals in Hawaii for 2013. Originally, UHERO had predicted a 6.6 percent increase in the number of visitor arrivals, but has since reduced that estimate to a 5.5 percent increase this year. This reduction is due to higher hotel room rates and a weaker yen, which is reducing the number of visitors from Japan. Carl Bonham, the lead economist for UHERO stated, "In the wake of last year's record setting performance, the tourism sector has downshifted to a more measured pace of expansion. While the large rise in room rates is good for hoteliers, higher room bills are squeezing spending on other tourism activities, dining, shopping, and so forth." The report noted that the Japanese yen has dropped by nearly 30 percent against the dollar in the past year. For many tourist from Japan, this means that either staying for a shorter period of time in the Hawaiian Islands or forgoing a trip to Hawaii entirely. It is estimated that Japanese arrivals will increase by only 1.3 percent in 2014 and by 0.6 percent in 2015.
The UHERO economists forecast that Hawaii's economy as a whole will increase by 3.3 percent in 2013 and by 4.4 percent in 2014. The report stated, "Hawaii is moving onto a strong expansion path. The islands are poised for several years of moderately rapid growth that will bring measurable improvements for many local families." The construction industry is expected to be the next industry to boom with a 9 percent increase in jobs for 2013 and an additional 11 percent increase predicted in 2014.
Source: Honolulu Star Advertiser, 8-9-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
