A new University of Hawaii economic forecast warns that global conflicts, oil price increases, and recent storm damage are slowing Hawaii’s economy and reducing visitor arrivals. Tourism growth is expected to drop sharply in 2027 after modest gains this year.
- Visitor arrivals projected to grow only 2% in 2026 before declining sharply in 2027 due to higher airfare costs.
- March Kona Low storms caused infrastructure damage and sharp drops in passenger counts.
- Rising oil prices from global conflicts are increasing fuel costs and driving airline capacity cuts.
- Canadian visitor arrivals continue declining while Japanese travelers face weakened yen purchasing power.
- Housing costs remain near $1 million median with insurance premiums rising after wildfires and storms.
Source: Hawaii
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