Latest economic forecast shows state economy doing better than estimated

Reported by: Brianne Randle
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Updated: 2/20/2011 6:35 pm

An increase in visitor arrivals, visitor spending and jobs - the state's latest forecast shows a stronger economic growth this year, than previously estimated.

But, some say it's too soon to call it recovery.

Instead some are calling it "stabilization," which they argue isn't a bad thing.

Others say, whatever you call it, they're hopefull the positive trend keeps going.

Hawaii economic growth is expected to pick up this year. The biggest telltale sign: tourism.

The state's Department of Business and Economic Development says visitor spending increased substantially last year compared to two years ago.

"You're comparing to '09 numbers, but none the less, growth over any previous period is good news," said Keith Vieira of Starwood Hotels & Resorts.

And travelers are expected to spend 9.2-percent more in 2011, up about 1-percent more than the state's earlier estimate.

"Things are much better, still a lot to work to be done," Vieira said.

The owner of Hula's Bar and Lei Stand believes Hawaii has to stay on top of its game to keep the upward trend going.

"It's really important for us to keep it interesting over here and the nightlife is as important the fun and the sun," said Hula's owner Jack Law.

Vieira says hotels and resorts are making strides to keep travelers interested while drawing higher spending visitors to the islands - especially from China and South Korea.

The state forecasts new jobs will also be added.

"We have people that have been either laid off or working part-time schedules now working back full-time and also created new jobs," Vieira said.

It's not just in tourism, the state says jobs in construction were also added at the end of last year. But some in the industry are hesitant to call it real growth.

"What I see is that there's more stabilization and that what was there is coming back a little bit. I don't see a new wave of job growth," said real estate analyst Stephanie Sofos.

Sofos says for the economy to really recover - it will take time.

"It's all a good thing, still going to take time we're not back where we were still going to take a few more years," Sofos said.

In the state's forecast, they argue that the economy could move from recovery to expansion as early as next year.

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Here are the most recent story comments.View All

normajeanvas - 2/22/2011 1:19 AM
1 Vote
Hehehehe! Welcome Gays! We accept your tourism dollars! They're just as green as the heterosexual dollars. Hehehehehee!

The Trinity - 2/21/2011 3:46 PM
0 Votes
That is one way to look at it........and another way to look at it is that "many prominent and smart people" don't really know. What crystal ball are they looking at? Last year was "the gloomy ball," the last six months was "the hazy ball," and now "the I don't know ball." PLEASE, whoever got "the real crystal ball, give it up," or tell "them" to open their eyes and use common sense and stop screwing around with the People of Hawaii."

ffejhonolulu - 2/21/2011 2:41 AM
1 Vote
Then are you saying that homeless all over Waikiki really aren't bothering the tourist trade???

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