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Although agriculture which has variety like flower cultivation, macadamia nuts and papaya, manganese nodule mining and film production have 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 but economist as 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 economy of Hawaii fluctuate with all coming season. 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 to the economy during low seasons. Second, 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).
Tourism and hospitality industry in Hawaii generates one out of every five jobs. The industry provides employments 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’ seasonally adjusted rates were, unemployment rate for November 2011,
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