Volcanoes, Flooding, and Hawaii. Oh My!
Will Hawaii’s Economy Be Affected By The Recent Eruptions?
According to the University of Hawaii Economic Research Organization (UHERO), we may see a slowdown in our economy due to the eruption of Kilauea Volcano and the subsequent closure of a major portion of Hawaii Volcanoes National Park. The partial shutdown of the park, which is the second most visited tourist attraction in the state (second only to the USS Arizona Memorial) has greatly impacted surrounding businesses, and to a smaller extent, the Big Island economy. On a grander scale, the volcanic activity, combined with the flooding that destroyed hundreds of homes on three different islands recently, has definitely left many in the state questioning the impact these back-to-back disasters will have on our state economy.
Though most of the reports about tourism remain positive, it stands to reason that over time, we will all experience some trickle-down effect from these disasters. Whether a drop in visitors to our state, a tightening in the rental market due to displaced people, an increase in insurance rates, or higher construction costs, common sense dictates that when any portion of our state suffers, we all feel the pain. Of course, economic pain is one thing, but the emotional pain of watching friends, families, clients, and citizens lose their homes is quite another. As Realtors, we support our community and our aina. In an effort to help, donations can be made for both the Hawaii Island Recovery Fund and the Kauai Relief Recovery Fund through the Hawaii Community Foundation: