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Hawaii's Economic Recovery To Be Gradual

Hawaii's economic recovery will be a gradual one with modest growth returning by 2011, according to the State Department of Business and Economic Development.
/ Source: KHNL-TV

KITV.com

Hawaii's economic recovery will be a gradual one with modest growth returning by 2011, according to the State Department of Business and Economic Development.

The data were found in the department's quarterly report. The department expects personal income to increase by 1 percent, up from the 0.4 percent previously predicted. But state officials said increased unemployment benefits account for some of that.

The state's gross domestic product is forecast to decrease by 1.1 percent this year, instead of the 1.6 percent that was expected. But state officials said that's not because the economy is growing faster but instead because prices aren't increasing. So consumer dollars are going farther.

The department revised its forecast for jobs downward to a 3 percent decline in wage and salary jobs this year. It had been forecasting a 2.1 percent decline.

And visitor spending is expected to drop 11.5 percent instead of the 7.9 percent originally forecasted.

Visitors are looking for good deals. So how is a Waikiki business to survive? KITV visited one eatery to find out.

It's a familiar name in Waikiki -- Moose McGillycuddy's bar and restaurant has been around for 29 years. And despite the gloomy economy, they haven't had to lay anyone off.

"We've definitely seen a slowdown in overall business we've taken a percentage chunk, but not enough to knock us down. We're still keeping our head up," Moose McGillycuddy's Pub manager Kristen Thompson said.

Thompson said they are cost-conscious and know consumers are looking for a good deal.

"We've gotten pretty aggressive with our buy-one-get-one-free breakfast specials, things like that. We get a lot of return on that, but everyone that is out eating is generally looking for the best bargain they can," Thompson said.

Texas residents Sharon and Braxton Gilmore visit the islands every year and head to Moose's.

"They have a great breakfast menu. They have a two-for-one coupon so you can come in and eat breakfast at a very reasonable price. We love it," Braxton Gilmore said.

"Well, yes it is important as far as the economy is concerned, and we're very fortunate that there's a place like Moose's that does offer some good deals for us," Sharon Gilmore said.

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