Latest Economic Forecast Shows State Economy Doing Better than Estimated

By Brianne Randle Article from KHON2

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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