What's Happening?
A recent economic impact report by the American Hotel & Lodging Association and the Hawai'i Hotel Alliance highlights the significant role of the hotel industry in Honolulu's economy. The study, conducted
by Oxford Economic, reveals that hotel operations and visitor spending in Honolulu generate $12 billion in economic activity. This sector supports 63,912 jobs and contributes $1.9 billion in federal, state, and local tax revenue. The report underscores the hotel industry's contribution to local communities, with visitor spending supporting various sectors such as restaurants, retail, and entertainment. Annually, hotel guests spend $6.5 billion in Honolulu, which translates to $760 per room night on lodging and other activities. The industry is also planning future investments, including the development of 997 new hotel rooms.
Why It's Important?
The hotel industry is a cornerstone of Honolulu's economy, providing substantial employment and supporting local businesses. The $12 billion economic activity generated by this sector highlights its importance in sustaining the city's financial health. The jobs created by the hotel industry offer significant wages, contributing to the overall economic stability of the region. Additionally, the tax revenue generated supports essential public services, benefiting all residents of Hawai'i. The industry's growth and continued investment are crucial for maintaining economic resilience and ensuring the prosperity of local communities.
What's Next?
As the hotel industry continues to expand, with nearly 1,000 new rooms in development, it is expected to further bolster Honolulu's economy. Continued investment and supportive policies will be essential to sustain this growth. The industry's success is closely tied to the broader economic health of Hawai'i, making it imperative for stakeholders to focus on strategic development and workforce support. The ongoing expansion of the hotel sector will likely lead to increased job opportunities and further economic benefits for the region.
