A. Direct Contributions of Tourism to Regional GDP:
Tourism is one of the most significant sectors of the economy in Hawaii. It generates thousands of jobs and billions of dollars in annual revenue, directly contributing to the state's gross domestic product (GDP).
1. Spending by visitors: It is the single largest source of direct income for Hawaii. Tourists spend money on travel, accommodations, dining, transportation, and recreation, among others. In 2019, the total spending by visitors in Hawaii was estimated at $19.5 billion.
2. Employment in tourism: As one of the largest employers in Hawaii, the tourism industry provides over 210,000 jobs across all sectors. Of this, approximately 193,000 jobs are directly related to tourism.
3. Taxes and other indirect contributions: Tourism generates taxes, royalties, and other indirect income for Hawaii. The total tax revenue from tourism in Hawaii in 2019 was estimated at $1.1 billion.
B. Indirect Contributions of Tourism to Regional GDP:
Tourism also contributes indirectly to Hawaii's GDP by stimulating related industries, such as transportation, construction, and agriculture.
1. Transportation: Tourism generates significant demand for transportation, with airlines, cruise lines, car rental companies, and other operators serving millions of visitors each year. Transportation is a significant part of Hawaii's economy, generating an estimated $6.3 billion in revenue in 2019.
2. Construction: Tourism also drives construction activity, as hotels, resorts, and other tourism-related facilities are built or expanded to accommodate the growing demand for travel to Hawaii. In 2018, the tourism industry accounted for an estimated $1.2 billion in construction activity in Hawaii.
3. Agriculture: Tourism also generates demand for agricultural products, such as fruits, vegetables, coffee, and other crops, as well as specialty products like Hawaiian-grown flowers and macadamia nuts. In 2018, the agriculture sector in Hawaii generated an estimated $1.5 billion in revenue, with a significant portion of this driven by the tourism industry.
Explanation:
In conclusion, tourism is a critical sector of Hawaii's economy, generating billions of dollars in annual revenue, creating thousands of jobs, and boosting the state's GDP through both direct and indirect contributions.
Answers & Comments
Answer:
A. Direct Contributions of Tourism to Regional GDP:
Tourism is one of the most significant sectors of the economy in Hawaii. It generates thousands of jobs and billions of dollars in annual revenue, directly contributing to the state's gross domestic product (GDP).
1. Spending by visitors: It is the single largest source of direct income for Hawaii. Tourists spend money on travel, accommodations, dining, transportation, and recreation, among others. In 2019, the total spending by visitors in Hawaii was estimated at $19.5 billion.
2. Employment in tourism: As one of the largest employers in Hawaii, the tourism industry provides over 210,000 jobs across all sectors. Of this, approximately 193,000 jobs are directly related to tourism.
3. Taxes and other indirect contributions: Tourism generates taxes, royalties, and other indirect income for Hawaii. The total tax revenue from tourism in Hawaii in 2019 was estimated at $1.1 billion.
B. Indirect Contributions of Tourism to Regional GDP:
Tourism also contributes indirectly to Hawaii's GDP by stimulating related industries, such as transportation, construction, and agriculture.
1. Transportation: Tourism generates significant demand for transportation, with airlines, cruise lines, car rental companies, and other operators serving millions of visitors each year. Transportation is a significant part of Hawaii's economy, generating an estimated $6.3 billion in revenue in 2019.
2. Construction: Tourism also drives construction activity, as hotels, resorts, and other tourism-related facilities are built or expanded to accommodate the growing demand for travel to Hawaii. In 2018, the tourism industry accounted for an estimated $1.2 billion in construction activity in Hawaii.
3. Agriculture: Tourism also generates demand for agricultural products, such as fruits, vegetables, coffee, and other crops, as well as specialty products like Hawaiian-grown flowers and macadamia nuts. In 2018, the agriculture sector in Hawaii generated an estimated $1.5 billion in revenue, with a significant portion of this driven by the tourism industry.
Explanation:
In conclusion, tourism is a critical sector of Hawaii's economy, generating billions of dollars in annual revenue, creating thousands of jobs, and boosting the state's GDP through both direct and indirect contributions.