The foremost economic driver in the State of Hawaii is tourism. The Hawaiian archipelago consists of 8 islands, namely Hawaii, Maui, Oahu, Kauai, Molokai, Lānai, Niihau, and Kahoolawe. Niihau has only 84 residents while Kahoolawe is uninhabited. Situated on the busiest tourist island of Oahu, Honolulu, the capital, has a metropolitan population of 1,016,508. The islands combined, annually, have between 9 and 10 million visitors.
Other lesser industries include the Department of Defense, and agricultural products like sugar, molasses and pineapple.
The number of visitors to Hawaii pales in comparison to that of other States:
New Jersey 120.5 million
Texas 122 million
Michigan 128.3 million
Florida 142.9 million
Tennessee 144 million
Georgia 171 million
Pennsylvania 196.6 million
Ohio 238 million
California 271.1 million
New York 306.3 million
Unlike these states, where visitors are attracted by historical sites, sports, scenery, music, and theatrical productions, in Hawaii, it is the climate, irrespective of season, as well as the beaches, scenery, and Polynesian culture. The other aspects benefiting tourism in the contiguous USA are that flights are typically much shorter, and cars can be driven to desired destinations. The only transportation method to Hawaii is by a long flight or cruise line, plus there can be as much as a 6-hour time differential.
Honolulu has the highest taxes for tourists in the United States, but they are getting even more expensive. Hawaii Senate Bill 1396 recently approved by Democrat Governor Josh Green raises taxes on hotel and other accommodation rates by .75%, increasing by 1.75% in 2027. Assuming tourism numbers remain the same, this measure enhances the Hawaiian treasury by $100 million each year, a portion of which would go to their “Climate Mitigation and Resiliency Special Fund”.
The Hawaii House of Representatives has 42 Democrats and 9 Republicans, while Senate seats 22 Democrats and 3 Republicans, which made the passage of this bill relatively easy. In essence, this tax increase on accommodations is comparable to a carbon tax. While it is intended not to cause monetary injury to full-time Hawaiian residents, a reduction, resulting from the increased tax burden in tourism would.
Like the federal “Inflation Reduction Act of 2022”, largely a climate change bill, no one really knows where the funding ends up. Again, climate change is a political issue, growing the size of government, and increasing government’s lavish spending addictions.
