The University of Hawaii Economic Research Organization (UHERO) still forecasts growth in the state's visitor industry and overall economy, but believes that the pace will be slower than previously predicted. A weaker yen, high hotel room rates, and less federal government spending will slow Hawaii's economic recovery for the remainder of 2013. The report stated, "Overall, the level of visitor industry activity has been coming in a bit weaker than we had anticipated earlier in the year. Next year may be more challenging since there are signs that global growth is slowing. This has been another year of moderate, if unremarkable growth in Hawaii. As expected, the torch is gradually being passed from tourism to construction and the broader service economy."
The new forecast predicts a 4.3 percent increase in the number number of visitors to the Hawaiian islands in 2013. Previously UHERO predicted a 5.5 percent increase in the number of visitors. Visitor spending has also been downgraded to a 4.7 percent increase as compared to the 7.4 percent previously forecast. UHERO's Chief research economist and an assistant professor of economics, Peter Fuleky, added, "Consumer confidence has dropped quite significantly. All of these things are making consumers hesitant to go out and spend big-time on discretionary items. A trip to Hawaii is not a necessity. It's something you can put off."
Source: Honolulu Star Advertiser, 10-25-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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