Trave and Hotel Industry in Hawaii - Research Paper Example

Although agriculture which has varieties like flower cultivation, macadamia nuts and papaya, manganese nodule mining and film production has extended Hawaii’s economic base tourism still plays a major role ( Hawaii 9 pp3). Indirect employment is in sectors like transport and retail. When employed individuals spend their wages and salaries on goods and services, it leads to more jobs creation. This is referred to but economists as the multiplier effect. Tourism brings in foreign exchange; international tourists change their currency into Hawaii currency to be able to pay for their experience. Therefore, the host country gets foreign exchange to spend on its expenses such as educational and medical facilities (Tourism and the economy, 12).

Tourism is often seasonal; this makes the economy of Hawaii fluctuate with all coming seasons. The unstable economic system makes it hard for the government to estimate yearly budgets because other seasons will be very high as compared to other years. Over-dependence on tourism will have a negative effect on the economy during low seasons. Second, the tourism sector is always affected by current affairs; insecurity issues affect tourism negatively which eventually affects the economy. For instance, the September 11 attack reduced the visitor number in Hawaii (Tourism and the economy, 12). The tourism and hospitality industry in Hawaii generates one out of every five jobs. The industry provides employment in restaurants, hotels, car rental companies, security services, entertainment, retail stores, airlines, airport and many other operations that supply goods and services to tourists (Sharma, pp 127).

During high tourism seasons in Hawaii demand for workers is high. In this case, more people are employed in the tourism and hospitality sector. In determining the employment rates, situations statistical techniques adjustment is used. Hawaii’s seasonally adjusted rates were the unemployment rate for November 2011, 5.5%. Consequently, during high tourism seasons in Hawaii demand for workers is high. In this case, more people are employed in the tourism and hospitality sector. In determining the employment rates, situations statistical techniques adjustment is used. Hawaii’s seasonally adjusted rates were, the unemployment rate for November 2011, 5.5%

According to the department of labor and industrial relation in Hawaii, there were 606,950 employed and 35,550 unemployed population in October 2011, for a total seasonally adjusted labor force of 642,500. Nationally, the adjusted seasonal unemployment rate was 7.9 percent, up from 7.8 percent in September. Several sub-industries are projected to provide annual job openings of around 7,030 between 2004 and 2014. This continues to show the importance of tourism and hospitality industries in Hawaii’s workforce as the 7030 job openings are equivalent to 30 per cent of total annual job openings projected in the country.

The travel industry is responsible for goods transportation which is used by visitors. Hawaii’s travel industry is well developed. Due to the isolated geographical location of Hawaii, the travel industry somehow faces challenges. In order to attract tourists the government of Hawaii invests highly in the mode of transport available that is; air, sea and land. Most of the visitors who visit get to Hawaii by air carriers, cruise ships, private transport, ferries, rental cars and private cars. Since visitors use transport to move around and experience Hawaii, it impacts the travel industry positively. This eventually means the travel industry is at its peak during high tourist seasons and low in low seasons of tourism. Tourism being a back borne of Hawaii's economy has resulted in better development of the transport infrastructure (Sharma, pp 129).

According to Hawaii Tourism Authority, Hawaii’s hotel industry generated $2.45 billion in the first nine months of 2011, representing a profit of 14.8% from the period of time the previous year. When adding all other sales like beverages, food, retail and other sources, the total revenue industry totals to $3.62 billion through to September 2012.

Tourism and hospitality are one of the biggest industries in Hawaii, it affects the Hawaiian economy, jobs and travel industry. Hawaii‘s economy rely on so much on tourism and hospitality, therefore, all measures to ensure visitors keep flowing should be taken by the government. Tourism significantly affects either positively or negative industries relating it. Some of these industries include; hotel and lodging services, food and beverage industry, retail market, warehousing and transport industry and industries dealing with finance real estate, leasing and insurance. Lastly, tourism and hospitality affect the economy of Hawaii due to their wide linkages with other key sectors of the economy (Mak, Tourism and the economy, 12). Read More