Story perspectives

Hawai‘i Faces Recession: $1.6B Tourism Loss Looms

5/10/2025

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Summary

Story summary

Hawai‘i is experiencing a mild recession due to federal policy changes and high import tariffs, as reported by UHERO.
Visitor numbers may drop by 4% in the next two years, leading to a $1.6 billion loss in tourism revenue.
Employment is projected to decrease by nearly 1% by 2026, particularly affecting public and tourism sectors.
Inflation is expected to surpass 4% in 2025 and 2026, influenced by tariffs and economic uncertainty.
A slow recovery is predicted, with real income growth remaining below 1% until 2028.

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Story summary

Hawai‘i is experiencing a mild recession due to federal policy changes and high import tariffs, as reported by UHERO.
Visitor numbers may drop by 4% in the next two years, leading to a $1.6 billion loss in tourism revenue.
Employment is projected to decrease by nearly 1% by 2026, particularly affecting public and tourism sectors.
Inflation is expected to surpass 4% in 2025 and 2026, influenced by tariffs and economic uncertainty.
A slow recovery is predicted, with real income growth remaining below 1% until 2028.