New UH report shows 25,000 jobs could return in Hawaii this year

HONOLULU, Hawaii (HawaiiNewsNow) – Experts say Hawaii‘s economy is doing better than expected.

The University of Hawaii Economic Research Organization’s latest report, released Friday, estimates there will be thousands more visitors and tens of thousands of additional jobs to the islands by the end of the year.

“In this forecast, we are talking about the creation of an additional 20,000 to 25,000 jobs in 2021,” said UHERO Executive Director Carl Bonham.

While the report says full recovery is several years away, Hawaii’s economy is on the upswing.

The forecast is great news for small businesses that are still hanging.

“We really appreciate every report that says things are getting better because we need it, we need it today,” said Rock Island Cafe owner Michael Gelfo.

Gelfo says he used up all of his life savings to save his small business in Waikiki.

“We’re kind of hanging on here and not moving, and hopefully we’re going to rock and roll this summer,” Gelfo said.

That’s exactly what economists at the University of Hawaii are predicting.

UHERO expects visitor arrivals to offset half of its pandemic losses by July and visitor spending to offset nearly 70% of losses by the end of the year.

“There is a pent-up demand and as more vaccines are distributed the more that pent-up demand will be unleashed. So we’re really looking at a pretty significant recovery by the summer,” Bonham said.

Bonham says the recovery is being fueled by federal aid to individuals, governments and small businesses like the Rock Island Cafe.

Gelfo says the federal government’s stimulus and aid packages kept him afloat. The second round of the Paycheck Protection Program was his lifeline.

“We are so grateful that we were able to take advantage of the various federal programs and also the local state programs that were offered to us. That’s what kept us here,” he said.

The report indicates that there is still an exceptional level of uncertainty about the future.

Economists say the speedy recovery will depend largely on the rollout of the vaccine.

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