Experts expect Hawaii to fully reopen this summer. Is our workforce ready?

HONOLULU (HawaiiNewsNow) — Experts say the rapidly improving economy is bringing with it a new challenge: Can Hawaii‘s workforce keep up with pent-up demand?

The head of the University of Hawaii’s economic research organization said it was just a matter of timing.

“So can we deal with not enough rental cars? Can we deal with too few workers? Can we deal with childcare shortages, all these things?” said Carl Bonham, UHERO General Manager.

Bonham expects the state to fully reopen by the end of July as vaccinations continue to roll out. The governor plans to lift all COVID restrictions once 70% of Hawaii is fully vaccinated.

Right now the state is at 53%.

Bonham said Hawaii has never had a recession in terms of income because of federal aid — including stimulus money, PPP loans and unemployment benefits over the last year.

“And that wouldn’t happen if we didn’t have that kind of recovery,” Bonham said.

“The economic recovery has to be fast enough to make up for the end of the federal stimulus payments, all the federal money that was pouring in.”

With those funds running low and the economy moving so quickly, businesses are anxiously awaiting a full reopening date.

“So this is really helpful for the restaurants to start ramping up and prepare for reopening in August,” said Sheryl Matsuoka, executive director of the Hawaii Restaurant Association.

Sherry Menor-McNamara, CEO and President of the Hawaii Chamber of Commerce added, “The better prepared they can be to find the workers, ensure they have the products and services available for a full reopening.”

Hiroshi Lamansky, president of Tanaka of Tokyo restaurants, said like many restaurants, they have a hard time filling positions in all departments.

Lamansky said they’ve tried to hire as many as possible, but so far have only about half the pre-COVID workforce.

“Well, because we’re understaffed,” Lamansky said.

“They don’t want to overbook our restaurants and risk our customers having to wait a long time for a table or for the chef to show up.”

Restaurants are feeling the same strains from manufacturing shortages that are affecting other industries, and they’re not sure they’ll catch up before Hawaii hits 70%.

“Sometimes one of them wasn’t available and we kind of had to try to find either another or another supplier who could supply it at the last minute,” Lamansky said. “And it was quite a challenge.”

Bonham said ultimately it will come down to being prepared for the floodgates of tourism to open on the day Hawaii reaches 70% vaccination coverage.

“We have to make progress and we need the work to handle the tourism numbers that we’re going to be dealing with,” Bonham said.

Bonham said it will be a record-breaking summer of visitors to the islands.

While there are almost no international visitors at the moment, he says trips to Canada will be open in the fall.

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