For Immediate Release: November 22, 2006
DBEDT Release News 06-32

HONOLULU--In its latest quarterly economic report and forecast, the Department of Business, Economic Development & Tourism (DBEDT) said it expects to see continued economic growth for Hawaii through the rest of 2006 and into 2007. Although DBEDT lowered its forecast of visitor arrival growth from the previous quarter, the continued strength of construction and other sectors should maintain the growth of the overall economy.

Personal income, total wage and salary jobs, and gross domestic product (GDP), formerly called gross state product (GSP), are all forecast to increase.

"Because of our vibrant economy, we are able to sustain solid job and income growth in Hawaii, despite some slowdown in residential housing activity and lower than expected growth in tourism," said DBEDT Director Theodore E. Liu. "Development of affordable housing for workers, increased economic diversification by promoting emerging industries, and improved competitiveness in global tourism market are crucial for Hawaii's economic future."

DBEDT is forecasting that Hawaii's tourism industry will host a total of more than 7.5 million visitors this year, up 0.3 percent from last year. Visitor spending is expected to exceed $12.5 billion in 2006; a 5.4 percent increase from 2005.

DBEDT expects real personal income to increase 2.1 percent in 2006, same as in its August forecast. Honolulu's consumer price index (CPI) forecast is left unchanged at 4.8 percent in 2006. Real personal income is expected to increase 2.3 percent in 2007, 0.2 of a percentage point higher than in the previous forecast because of a 0.2 percentage point downward revision in inflation.

Total wage and salary job growth is expected to be 2.5 percent in 2006 and 1.5 percent in 2007.

Hawaii real GDP is expected to increase 3.3 percent in 2006 and 2.4 percent in 2007.

The DBEDT report also notes that state tax revenues - a major indicator of the state's economic health - remain positive. For the first three quarters of 2006, State General Fund revenues increased by 4.9 percent compared with the same period last year. General Excise Tax Revenues were up 6.9 percent, with Net Individual Income Tax and Transient Accommodations Tax Revenues up 9.3 percent and 6.8 percent, respectively.

The DBEDT Quarterly Statistical and Economic Report contains more than 100 tables of the most recent quarterly data on Hawaii's economy as well as narrative explanations of the trends in these data. The full report is available at http://www.hawaii.gov/dbedt/info/economic/data_reports/qser/.

For more information, contact:
Dave Young
Communications
Phone: (808) 587-1212
Email: dyoung@dbedt.hawaii.gov