By Sonia Isotov
Tourism sector is growing at high rates, but the rest of the economy is just not moving, according to the latest report released by the University of Hawaii Economic Research Organization (UHERO).
According to UHERO’s Annual Economic Forecast, the growth Hawaii is experiencing now in tourism growth is being “driven by robust income gains in commodity exporting countries, pent-up US travel demand, and success in tapping non-traditional markets.”
“After another year of near-16% visitor spending growth, we expect a more moderate 8% gain in 2013. At that point, annual spending will be 60% higher than it was in 2009.”
On the horizon, construction may take an upturn in 2013 due to numerous public projects, including the rail, and positive buildings conditions in general. Government contracts awarded have languished, but a pickup in recent months, along with military construction and the anticipated ramping up of rail work, augurs better times ahead, according to the report.
UHERO is predicting a 3% rate of inflation in the near term, which is based on a Honolulu consumer price inflation calculation.
Read the public summary of the UHERO Annual Economic Forecast, online at http://www.uhero.hawaii.edu/news/view/167.