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Hawaii govt can’t get anything right.
Just the kind of news Hawaii Dems love to hear. Next move: Raise taxes!
lawmakers more cautious about spending yea right they will spend all of it on useless pet projects, its the liberal democrat way.
“Members of the state Council on Revenues were unable to explain why state tax collections have been lower than anticipated in the first five months of this fiscal year.”
How about this:
* The visitors aren’t spending as much per stay because *they* don’t have as much as they used to, or what the state thinks they have.
* Gas prices have gone up so we have less to spend on other items
* Amazon. Have you ever looked into the back of a UPS truck lately? Keep raising the prices and taxes here and people will flock to Amazon for more of their purchases. No tax, free shipping.
* We spend more on housing, so there is less to spend on everything else.
* Healthcare. 35% average increase in rates. Those premiums get paid first before any other spending.
* And then there is the age-old axiom: “The more you tax something, the less you get of it”. Something the democrats here like to ignore.
And of course let’s not forget that this does not bode well for the C&C’s and HART’s wild projection of 4.5% annual growth in GET surcharge revenue. They can’t even meet their current projection.
I think the economists who make these projections need to close their spreadsheets and get out and talk to the people to find out what is really going on in the economy.
Visitors have found out Hawaii does not represent good value for their travel money. Expensive flights, checked baggage fees, total dump of an airport, expensive hotels adding more expensive resort fees, on and on. Tourists can get a far better deal by going to the Caribbean on South Southwest, no baggage fees, money goes further. Or take a very cheap cruise there.
As brick and mortar stores are seeing declining sales, so will the Nei as travelers seek better deals. Changes are coming and our elected bureaucrats are woefully unprepared. Their standard.
Really, because visitor arrivals are still increasing…
Yeah, and swearing to never come back! After they experience sticker shock they refuse to buy anything here and book a trip to somewhere else the next time swearing to never return.
But the not the dollars each one spends.
Dragon, but if the numbers keep rising…sure you would want repeat, but I would take an increase in overall more than just an increase in repeat. As long as the total keeps growing.
Inlanikai, I believe you are correct,but I think the stats show that even though the amount per person is less, the increase in total arrivals outweighs that difference, so in total the amount spent increased.
advertiser1, the only reason the numbers are increasing is due to the WORLD population increasing. We’re about to hit 8 billion pretty soon. Percentage wise compared to tourism growth, I seriously doubt HI’s tourism is keeping pace with the rest of the destinations.
Dragon, I’m curious as to how you correlated population growth with the increase. However, even if that is true, then the numbers do keep rising don’t they? I think you bring a good point about keeping pace with the rest of the tourist destinations, unfortunately, I don’t have the longitudinal data so even if your theory is correct we cannot determine if this is a cyclical thing, or if we are continually losing ground.
advertiser1, yes the number continue to rise at pathetic single digits. Take Thailand as an example, from 2003 to 2016 they have increased tourism from 10 million to a whopping 30 million a year. A staggering 300% gain in tourism in a short 13 year span far out pacing population growth. Hawaii just keeps chugging along with tourism growth at anemic levels only keeping pace with natural population growth. Feel free to Google many countries and the tourism numbers and you’ll see that HI is no longer the top choice by any means with very few satisfied and swearing not to return unlike other places.
BINGO! Mainlanders from almost anywhere in the continental 48 states can fly to South East Asia (Thailand, Philippines, Indonesia, etc) for a mere $400-$500 round trip with free luggage and live like a king with cheap hotels, great weather and cheap food. Ohh yeah, and no bums taking a $h!t in front of their hotel entrance in broad daylight in front of tourists.
DUH how do we have such INCOMPETENT people running this state ? The locals pay the vast majority of the GET and WE are trying to cut back. This just shows the tourist % of the GET is VERY LOW. Not like the LIAR kirk boy who said the tourists pay 35% of the GET. ALL LAIRS and FRAUDS
The basic root of this problem, is that all of Hawaii’s governments, spend more, than they take in.
When they run out of money, they will raise taxes.
Why not spend, within their means ? This is what the government, always tells the General Public.
This is the Mantra for all our elected bureaucrats. “Do as I say not as I do.” Meaning it is ok for us to tax you and then waste your tax money. You on the other hand must live on a budget.
Except the bureaucrats pay taxes too.
BTW weren’t you a non-elected government bureaucrat?
Whatever, either way the people are getting jacked. Take a look at any State road or highway. Shameful.
It’s almost like this happens every single year.
Say, I wonder if the price of Ahi went up around New Year too…
What do you expect when more people in Hawaii are receiving benefits than are working and paying taxes. And the government is making it harder and harder to be in business. Looks like “Sugar Daddy” Hawaii government has just run out of other peoples money.
The problem with socialism is that you eventually run out of other people’s money.
not to worry, with the increase in minimum wages state tax revenue will increase as well.
oh, wait. forgot about section 8 workers electing to work less hours to avoid earning more than the maximum allowed income to protect their welfare payments for rent and food stamps.
oh, and also forgot about companies cutting hours of employees to avoid going bankrupt.
Guys, think back over the last thirty or so years. Do you ever remember an opening of the Legislature/contract negotiation season where the State did not start by saying something to the effect “Tax collections far below expectations?” In our town, this is the standard opening shot. They do it every year. It’s the baseline argument from which all of the budget appropriation requests proceed. Then, you will recall, after the budget is submitted, the departments are funded and the contracts are settled, miraculously, the State finds that things aren’t so bad after all and during the last quarter, “there were significant gains due to increased tourism.” It’s really predictable.
(Just like when, in the first year of the biennium, departments low-ball their requests and then come back in the second year with supplemental appropriation requests to make up for what they neglected to mention in the first place.)
irt cellodad. Sounds similar to a change order trick. Low ball to get the budget approved up front since it would create too much of an embarrassment to get a proposal rejected. Come in with the change order when things are in high gear and use that as leverage to request a supplemental. Boom.
Sounds like the rail. LOL
They vote on the projection and it’s often quite close to the actual figure.
A more germane question would have been to find out what kind of discussion that they had on the economy.
My opinion is that they’re somewhere between another Great Depression that some Democrats have been predicting with Trump’s presidency and the hope that Trump wont be that bad as expected.
We’ll get a better figure for their midyear projection.