Newly elected Governor Josh Green delivered his first State of the State Address this week to a session of Hawaii’s Legislature. In the address, we were anxious to hear about his plans for Hawaii travel. He spoke primarily, however, about other issues that are critical to the state, including a severe lack of affordable housing, help for low-income families, and homelessness.
What Gov. Green did and didn’t say about Hawaii travel.
The governor was concerningly short on words regarding Hawaii’s only viable economic engine, the Hawaii travel industry. He said these two brief things regarding his vision for Hawaii tourism. The first was “We will begin to move our economy beyond tourism. The second was, “In the coming years, we will reposition our economy to pursue global opportunities — retooling tourism.
Maybe more interesting than what Green did say was what he didn’t mention. That is regarding his planned $50 visitor arrival fee. He said as recently as last week that he would find a feasible method to implement that. But any concrete information about how and when that could happen hasn’t been discussed.
Does the governor value the Hawaii visitor industry? Perhaps not.
Something else we found interesting. Green never said that he or the state appreciated Hawaii travel and its visitors and what that has done to keep the state coffers afloat. Again, this is to a large degree the only money-making venture the state has, and when nothing is said, it makes it appear to be taken for granted. No matter how much Hawaii may want to evolve tourism, this can come across as insular, callous, and misguided by not saying something more. To best move Hawaii tourism forward, bringing the tourism industry stakeholders and visitors along with us on the journey seems the best way.
Hawaii has failed completely in any economic diversification.
UHERO (the state of Hawaii’s research arm at the University of Hawaii) previously said that Hawaii’s exclusive focus on tourism “Exposes the economy of Hawaii to external shocks that trigger collapses in tourist numbers. Furthermore, Hawaii’s economic growth has diminished for decades as the dominance of tourism has not generated productivity growth.”
And while Hawaii policymakers, including newly elected Governor Josh Green, continue to talk diversification, nothing is happened or is on the horizon of substance. As UHERO said, this isn’t entirely different than other similar, small, and isolated economies. The state’s research arm, UHERO, proposes that Hawaii target new industries that use related know-how or Hawaii-specific resources.
Even more concerning was when UHERO said, “That diversification policy will fund special interests rather than genuine economic development initiatives.”
UHEROwp2205
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You won’t need to worry about tourism. Prices are getting so high that there are many more comparable beach nations closer to contental us
If Gov Green or anyone is serious about diversification of the economy they should consider the following:
1) Eliminate the income tax (Hawaii makes enough money off tourism, property tax, the excise tax, and other fees collected)
2) Bring back the ferry (While building bridges between the islands isn’t feasible connected via ferry is. This would open up lands under utilized for business, housing, & other uses)
3) Open Hawaii to the big banks (Local banks have strangled Hawaii’s growth by contributing to mismatched wage to cost of living, limited capital availability and growth)
4) Create a hydrogen ecosystem (Shift off imported energy, create molten salt batteries, reduce cost of living
5) Rezone (Expand developable land)
6) Elect me
Enforce the laws against illegal STR, causing the majority of problems. Shut’m down, fine them, both. Of course that requires “work”! But instead the government continues to raise taxes on legal STR businesses (requiring No work) through their licenses. It’s a brain dead cash cow to govt. coffers, making Hawaii visitors pay the 2nd. highest TAT in the country…for now. While Gov.Green blows off tourism for what? To compete with Cal.agriculture? Alaska fishing industry? Hollywood?
Gov. Green sounds more like a non business man everyday. Hawaii is what it is, no politician will change it.
State lotto, recreational marijuana, speeding up the building permit process, supporting the air bnb and other rental business are just a few that would directly help Locals ( not the airlines or resorts).
Good points. However speeding up building permits has proven impossible for the bureaucrats for nearly 2 decades. Infected by nepotism, graft and lack of determination.
Perhaps tax incentives or credits for profit and non-profit businesses that have a small corporate footprint that hire locals and promote minimal use of carbon resources, use recycled consumables and office structures (used shipping containers), with natural parking areas (rolled dirt or rock instead of asphalt or concrete), rainwater collection for building water, to offset plumbing provided water use, small wind turbines and solar roof panels to lower costs of electricity and “hamster wheel” concept cardio machines in the fitness center to also generate electricity, further off-setting costs. Last idea to lower business impact on the islands, resources and community; set up eight hours a week salary to be paid by doing volunteer labor.
This State needs a lottery..The roads and schools need to be updated.
I’m new to Hawaii, only been hear 8months..I drive people through shuttle service..All I can say that I’m all in for affordable housing..If you dont get a grip on it,, this great state will loose big time..You will have less people working and that will become a huge problem.
The answer is simple. Give tax breaks to tech and non polluting companies that relocate here.
So is being a tourist bad? I’m confused. I love visiting Hawaii. I would move there if I could. And not just the touristy places. I love the land. The culture. They don’t want visitors now?
Right.
I am wondering if he will consider allowing a State Lotto. Instead of raising taxes on the residents and charging a fee to visitors.
Here’s a valuable website where you can see the data of tourist numbers, domestic and international. dbedt.hawaii.gov/visitor/daily-passenger-counts/
Also, Hawaii has a law that states if the budget has a 5% surplus, excess must be returned to the taxpayers. In September 2022, my husband and I received $600 back from the state. Hawaii is on solid financial footing, at least for now.
We watched this happen on beautiful Puerto Rico for years. Island economy first developed under the tourism umbrella. Being in a militarily significant area, the military presence grew over decades adding jobs. Searching for more sources of revenue, PR attracted businesses, and wealthy entrepreneurs, with tax breaks. One such industry was big pharma. But all of that new revenue could not forever offset bad government, labor unions, corruption, and local disenchantment with “visitors”. Soon PR forced out most of the huge military presence, caused Congress to eliminate tax breaks causing biz closures, and have difficulty recovering from natural disasters that hit. This book has already been written. HI government should read it.
Governor Green is about 20 years late. Hawaii should have addressed their single point of failure much earlier
Hawaii is an island. The so called Golden Goose has to be managed. We do not have the room Las Vegas or Orlando does for mass tourism. Allowing us to become a tropical Las Vegas strip will destroy Hawaii and simply profit a few large business conglomerates and create a huge degradation of the quality of life for those that live here. Don’t know how, but diversification is the key to Hawaii’s future. Investment in education would be a good start.
What about banning nonresidential cartrafic at “road to hana” and similar places? and banning cars in national parks. People can walk,ride a bike or take a bus.
As a few people have noted, we (tourist) already pay the state government plenty of money with no say (we don’t vote in Hawaii) and no accountability to the state government for the money already extracted by them. Nor does there appear to be any accountability to the residents of the state. The answer always appears to be raise taxes with no firm commitment to how the money will be spent. Until I see some benefit to paying more money to the state, count me in the list of people who do not support the governor’s idea. BTW, lest someone think I am a newcomer to Hawaii, this is our 27th trip so far.
Governor Green wants to move beyond tourism, with almost no solution or vision besides exporting more local products.
He also stated “We have been working with partners to convene Japanese and local businesses in key sectors for Hawai‘i’s economy, like the international wedding industry, which brings in over 20% of all visitors from Japan.
Welcoming more visitors like our Japanese neighbors means we can generate more revenue for local businesses while taking in fewer tourists overall”.
There it is!
Problem Solved!
Disregard for the tourist will eventually lead to the demise of the golden goose, the tourism industry. And then what?
The entire speech is available at “governor.hawaii.gov”
Has anyone who is unhappy with ‘all those tourists’ bother to look around their island, and notice all the resorts/hotels that have been built? They were not built illegally, they all had ‘permits’ to construct them. As demand grew (or not), more hotels and resorts were built to ‘accommodate the demand’ for lodging. More rooms equals more tourists. Just look at Waikiki. What a congested zoo!
Remember the mantra from the movie, “Field of Dreams”? “If you build it, they will come.” Well folks, tourists don’t go places, in numbers, if there is not a place to stay. Don’t like tourists? Blame the hotel/resort owners. They make tourists possible.
Correct me, if I’m wrong, but didn’t you say from previous discussions that a $50 visitation fee is illegal? Why would I want to pay a visitors fee? Hawaii is paradise, prices for everything are sky high already! Mexico is looking better!
So is much of the Carribean. And there’s always Guam, Bora Bora, Tahiti, Fiji, Vanuatu, the Solomons, and Papua for those who prefer the Pacific.
I don’t understand why the government and some of the people of the great state of Hawaii would want to piss all over the largest source of state income. Especially when their is no realistic alternative source of revenue.
Long term resident, Ph.D. Electrical Engineer, ex Physics professor, and hands on technical designer of electronics and data processing equipment here: I ‘threw in the towel’ at the events and government reaction during the TMT protests. I do understand feelings of others, but the overall messages were and remain clear. Big investments here can be overturned by some relatively small set of angry and resentful people—and the government is not going to protect these investments. (yes, I do know about the nature of the objections). General attitudes toward modernity would need to change to get a different result. Or we can just be some other island in the middle of the Pacific.
Yes, Hawaii is very special, there are few places with its beauty and accessibility to much of the world. But there are wonderful places to visit other than Hawaii…..the National Parks, a very diverse country, the Carribean, the South Pacific, etc. Those in power could price the Hawaiian experience right out of existence. With the exception of the wealthy, who are buying up he islands and making it unaffordable to buy property.
I do think Hawaii needs to diversify…..to what…..I don’t know. But there has to be a balance or the golden goose could be killed. Then, sadly all suffer.
Thank you Beat of Hawaii for sharing what is happening on the islands and providing an o-en forum. Well done.
Hi S C.
Thanks for many comments including today’s. And those nice words.
Aloha.
There is precedence for a fee. Yosemite charges $30/vehicle and Yellowstone charges $25/car for 7 days. The bottom line is that all of Hawaii could be considered to be a national treasure warranting the protections of a state-wide national park.
Personally, while I don’t relish paying more for any vacation, I do acknowledge the need to pay for, support and preserve something that is precious to all of us to ensure that it will be there in future years.
I would have no objection to paying a green fee to keep the islands beautiful, but $50 a head is a little steep in my opinion. Maybe they could use the money to fix the roads and clean up all the junked, rusted out old cars scattered around the island.
“…bottom line is that all of Hawaii could be considered to be a national treasure warranting the protections of a state-wide national park.” Is everyone going to pay? Locals and visitors alike?
I Can t agree with your comments any more. But how can you diversify when you no longer have a working population or a population that does not appear to want to work. You have a manufacturing disadvantage in that the transportation of your products will add expenses other sites do not have and your workforce is already the most expensive in the country. Exploit what you have but when you turn the expense dial beyond others the tourist will react and fewer will come
Hawaii should be looking at other industries besides the making and transportation of goods for the very reason that you outline….higher costs. There are other options. They could work to establish Hawaii as a financial center. They could foster technology. Whatever it is they need to take advantage of Hawaii’s benefits (desirable place to visit and live) and minimize its disadvantages (high cost of living, remote location, etc).
By rejecting the 21st century, and making the past narrative pervade the present and future, a result would be a place falling into misery and poverty…not a paradise. The world moves on, a set of islands can’t use a time machine, or a set of someone’s wishes to create their own special utopian reality. That is virtually impossible. Sensible laws, sensible limits, and sensible practical paths to optimize the present….that would be best. Myths are fine…but the are going to stay myths. Beautiful ones maybe…but still myths. Realistic, open-eyed, forward looking alternatives consistent with the world as it is, not as some would wish it to be, or walled of…that is the way to go.
It’s true, beyond tourism and military, Hawaii does not have a diverse economy.
And, it will always be so. They will be the top 2. Hawaii is too far away from markets to be an economically viable source.
So do what other places do – make your “product” even better, play to your strenghts. For Hawaii, that’s fixing the infrastructure. And, don’t waste time and dollars chasing windmills.
As a tourist I have no problem with the $50.00 fee for visitors. If it helps your economy I’m all for it.
I would nt care about the $50 either it’s just the other overall expenses $15/gal milk $10/doz eggs etc. and just looks like no one wants to work. Service is horrible
Years ago when I was a visitor, I got stuck on the plane next to a guy who kept talking about “Hawaiians do not want to work”. He was traveling to Kauai to help his friend do a project, yada, yada, yada. As my sister and I were driving around it became a standard joke to repeat, “Hawaiians do not want to work” as we saw Hawaiians working everywhere: along the roads, in the stores, at tourist venues, lifeguard stations, etc. “Look! More Hawaiians not working!” This myth continues. Hawaiians not only work hard, but do it with Aloha.
Joy, this is a great post for defining the times. People pointing fingers and making gross generalizations about others often says more about who they are rather then anything about the people they are talking about.
Aloha
The problem with the tourist fee is they already have a ton of tourist taxes. I have been going to Maui every year since 2006 and I see no improvements in the roads or infrastructure. The people of Hawaii need to ask where that money is being spent. I am not against the fee but like alo governments they waste what they are already getting.
Vicki, the economy has absolutely no issues and is flying high. For instance, the Maui County budget for 2023 passed 1 Billion dollars for the first time. That’s for 150K people.
New fees are not being imposed because of an ailing economy. They are being imposed out of sheer greed, and the goal of reducing tourism. And it’s working.
Now tourist fees on top of the highest tourist accommodation fees (18.5%) in the entire U.S. Don’t forget to add the plan for the tourist only parking terminals that are currently being built for all the Kihea, Kahana and Wailea beaches. Despite all these fees and taxes on the number 1 industry of the island, the infrastructure of the Island is in extreme decline, the education and health care system is second or third rate, wages are are third world with many homeless and zero affordable housing. The big question is not why do we need so many tourists but what are your elected officials doing with the money? Maui is beautiful but not worth the cost or the disrespect of its people and its elected officials