Rising oil prices from Middle East conflict are increasing travel costs and slowing tourism growth, while Hawaii continues recovering from March storm damage. Economic growth is expected to weaken significantly through 2027.
- Tourism arrivals projected to grow only 2% in 2026 and just 0.2% in 2027 due to higher jet fuel costs.
- Airlines cutting capacity as transpacific airfares rise from oil price surge.
- Canadian and Japanese visitor markets particularly weakened by currency and fuel cost pressures.
- Hawaii job growth essentially flat with tourism-related sectors expected to be hit hardest.
- Construction sector remains strong bright spot for employment growth.
Source: Hawaii
Share this article
