The rise, or fall, of Hawaii’s economy rests on the strength of its major drivers — chief among them being tourism, government and the military. Public sentiment involving each of these sectors comes with complicated baggage, a perpetual love-hate balance. What increases the positives is the amount of benefit that local residents actually receive from the economic gains.
Such consideration of benefit comes to mind as discussions emerged this week about increases in lodging revenues over the last 20 years, and what those profits have meant to the local workforce.
Data presented at the Pacific Asia Travel Association Hawaii chapter recently by TZ Economics principal Paul Brewbaker showed that gross lodging receipts’ share of total visitor expenditures rose to 40% from 25% over the last two decades. However, Brewbaker said, lodging industry jobs have remained mostly stagnant, with workers’ average hourly earnings, when adjusted for inflation, staying the same over the past 20 years.
Those statistics will elicit head nods or shakes, depending on perspective. They resonated with hotel workers — who lament a sluggish post-pandemic restoration of full-service staffing, hours and reopening of facilities — and seek a fairer share of hotels’ profits. Meanwhile, lodging executives underscore how operations were kept afloat throughout the pandemic and overcame years of higher costs of doing business, from utility increases to pension benefits.
Indeed, Hawaii’s entire hospitality industry was mortally wounded by the COVID-19 pandemic, which in spring 2020 shut down nearly all businesses here. But when restrictions finally starting easing, Hawaii’s strict public-health protocols enabled tourism to recover fairly safely, steadily and swiftly. By September 2022, Hawaii was enjoying a 95.5% recovery from the same month in 2019; additional good news was that while fewer visitors were coming, overall tourism spending rose 18.5%.
As Hawaii’s visitor industry continues to find its footing post-pandemic, recalibration will be key as revenues rebound.
If corporate hoteliers are indeed reaping profits, the balancing act should include trickle-down to local workers — those on the front lines who help sow the seeds, and are the embodiment, of island hospitality.