The Ripple Effect From Our Hawaii Tourism Industry

By
Real Estate Agent with Liberty Homes RS-#62825

In Hawaii, we are having a crisis of our own. The ripple effect from the declining tourism industry is on a roll. Because the housing market is so bad in many places on the mainland it's obvious that the number of our incoming vacationers has dropped over 17% for last month alone. No telling what this month's figures will bring.

Then starts the ripple effect of a declining tourism industry due to the decline in incoming visitors to Hawaii. Businesses related to tourism are losing money. Hotels, Restaurants, Transportation (tours and taxis), Entertainment, Retail Stores and the like continue to lose money and many are closing. From that point the tax office is collecting less money so there now becomes a issue of cutting spending on State and City & County programs. And so on and so forth.

On the other hand our malls are still thriving from our local consumers. On the other hand our residents are making the best of what they have and strive to keep our businesses running. On the other hand there are people that still have needs. On the other hand there are military deploying out and other Military PCS'ing in to the many bases on Oahu. On the other hand.....it depends on YOUR situation.

The big difference with the Housing Market in Hawaii is the fact that we have just so much buildable and usable landTherefore, there is always a need for housing and the decision to buy or sell will ALWAYS remain a 'situational' or 'circumstancial' event that leads the consumer to make their decision.

  • Military Relocating to Hawaii - and they would rather spend their housing allowance alloted to them by the government to put into their OWN home.
  • A Job Transfer and Relocation to Hawaii and they have outstanding credit and money to put down.
  • They know that if they are paying the same amount in rent as a mortgage payment it makes sense to get their own tax deductions at the end of the year.
  • They are Relocating to Hawaii and Retiring here and therefore have no use for throwing their money away on rent.
  • Prices are reasonable in some areas and they are able to get a good price and negotiate.
  • Hawaii Residents who are tired of paying rent and have no plans on leaving. They can afford a comfortable home and are not overextending themselves.

Due to the ongoing financial crisis there is still one thing left to consider.

THE BASIC NEEDS FOR ALL HUMAN BEINGS.

Food, Water, Clothing and SHELTER.

The Will to Survive.

~~~~~~~~~~~~~~~~~~~~~~

© 2008 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog. All rights reserved.

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Celeste "Sally" Cheeseman  is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.

 

 © 2007-2015 Celeste "Sally" Cheeseman's

Hawaii Real Estate and Relocation Blog.

All rights reserved.

     

 


 

 

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Ambassador
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Exactly Paddy! I (as many others) have the ability to change in changing times...what worked before may or may not work now...but as chameleon agents....we adapt to whatever is in our current local market. We take everything into consideration...including other businesses. And we Blog and remain active for that one client that is relocating to Hawaii. :)

 

Sep 28, 2008 04:37 AM #19
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Kelly: You're betting right. And it's costing many a business here too.  I don't vacation ...at all. Except here at home on my pc :)

Sep 28, 2008 04:38 AM #20
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Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate

I have often thought about how the current economic situation would affect Hawaii. Hawaii is certainly a destination point, and many people vacation there (including me - I love Hawaii). It is unfortunate that the local businesses are being affected. I know when I was in Maui in August, I was able to get  flight and hotel within a week of planning (unheard of). And the flight wasn't full. It just felt slower when I was there.

Sep 28, 2008 04:49 AM #21
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Sharon: I think it's nice that it's not all crowded (still crowded but not as much) all over the place...the traffic is less .....okay, maybe not. LOL. One thing is for certain...many businesses in town are suffering or closing.

Sep 28, 2008 04:59 AM #22
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally I would think that Hawaii is one of many places that tourism is down.  Costs are going up and incomes are not.  Vacations are most likely one of the first things that people cut back on.

Sep 28, 2008 01:01 PM #23
Rainmaker
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Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

I know many think it is expensive to come to Hawaii, but it really isn't.  I have traveled a fair amount and have found Hawaii to not be that bad compared to some of the places I have been.

Sep 28, 2008 02:54 PM #24
Rainmaker
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Kathy McGraw
CELLing Realty - White Water, CA
Riverside County CA Real Estate

Hey there.....the most basic of needs...food and shelter. We will again see the days when people can afford to not just feed their families but also go on those vacations......I know that I will be back there, not this year, but soon :)

Sep 28, 2008 03:47 PM #25
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

George: So....are you flying over to feed our economy :)

Randy: It really isn't if they shop for deals...:) We know how and we live here lol!

Kathy: Well, at my age I need the clothing too..heck if I'm going to be running aroun my house eating with no clothes on LOL!

Sep 28, 2008 03:52 PM #26
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Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Sally well thought out post. I do have one question, how many hands do you have? lol. Great job!

Sep 28, 2008 03:52 PM #27
Rainer
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Earl Johnson
Fort Lauderdale, FL

YOUR POSITIVE ATTITUDE GOES A LONG WAY... CONGRESSWOMAN SALLY CHEESEMAN...

Change we can believe in.

I can imagine once we start to see a decrease in military personnel abroad, Hawaii will see an influx.

Sep 28, 2008 03:54 PM #28
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Fred: LOL!  That's pretty funny. I guess I keep changing hands...not enough hands for what is possible :) :)

Sep 28, 2008 03:54 PM #29
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Hey Earl....wow...I really don't believe I would ever be a political big wig....but I sure love your words....

Change we can believe in....  and I'm SURE that our military will once again be protecting us way out here in the Pacific.  Thanks for your input Earl.  The simple truth.

Sep 28, 2008 04:03 PM #30
Rainmaker
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Kathy McGraw
CELLing Realty - White Water, CA
Riverside County CA Real Estate

Sally my friend you're pretty funny....and don't even bother writing that "W" word LOL :)  You win...food, shelter, and clothing for everyone over 50 :) :)

Sep 28, 2008 05:24 PM #31
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally, Hawaii is one place that I would like to return to, but it is going to have to waite a little longer. 

And OH YA if we all did the Adam and Eve thing we would not have to worry about shopping for cloths and that would leave more money for traveling ......... LOL

Sep 29, 2008 12:26 AM #32
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Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

Sally - I am glad that in spite of it all that you have a good outlook for your market.  Our's has it's problems too, but we really are fortunate in the Birmingham area, I am grateful for that!

I hope I can be one of your tourists sometime before too long!

Sep 29, 2008 03:42 AM #33
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Kathy: underlined the clothing now eh? lol!

George: So what does one do....board the plane with no luggage and a towel?  lol!

Ann: I hope so too....would be nice to meet you!

Sep 29, 2008 03:48 AM #34
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally if I got on a plane with nothing but a towel I would be the only one on it within minutes ....... LOL

Thank you for the coffee :) :) :)

Sep 29, 2008 09:30 AM #35
Rainmaker
96,200
Yvette Smith
LONG & FOSTER - Williamsburg, VA
Realtor In Williamsburg VA, Homes for Sale

HI SALLY!

We've felt the pinch here in Williamsburg this season.  So I totally understand.  Tourism was down in our area this season.  It will really slow down during the winter months.  We're hoping things change as the Spring nears. 

Why in the world are folks not going to HI?  I would come and never leave again!!!

All the best,

Sep 29, 2008 01:59 PM #36
Rainmaker
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Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon

we feel this with a lot of issues - living in a resort community where tourism is our main product - many things can tilt the tables

Sep 29, 2008 05:57 PM #37
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Sally - We also suffer here in Florida when the tourists forget that this is also a destination! We have been pretty lucky lately that our European and Canadian visitors have remembered where our state is!

Oct 05, 2008 04:13 AM #38
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