Hawaii Tourism at Risk as Volcano Eruption Continues

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By Douglas A. McIntyre Updated Published
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Hawaii Tourism at Risk as Volcano Eruption Continues

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Hawaii relies on tourism as much or more than any state. Hawaii, known as the Big Island, accounts for a large portion. The Kilauea volcano that recently erupted wildly is located on Hawaii. If the eruption continues for any long period, Hawaii’s tourism dollars will take a hit.

Based on several sources, Hawaii is the 10th most visited state by tourists. Given its geography and population, this is an outsized number. Total dollars from tourism last year were $17 billion, which generated almost $2 billion in taxes. Nearly a quarter of the state’s gross domestic product is from tourism. Of that number, about 20% goes to the Big Island, according to the Hawaii Tourism Authority. Over half goes to the more populated Oahu.

There is no way to know how much of the usual tourist traffic will cancel trips or book plans to go elsewhere, but there is no question some people will stay away. The most badly hurt businesses will be hotels and vacation spots, along with transportation.

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A report from CNN said the disputation of traveler plans has already begun:

Hawaiian authorities are urging sightseers to stay away as Leilani Estates residents return to check on their neighborhood, which is threatened by lava and toxic gases emerging from fissures in the subdivision.

Big Island’s Kilauea volcano erupted Thursday, spewing molten rock and high levels of sulfur dioxide.

Cracks emerged in the volcano’s East Rift Zone — an area of fissures miles away from the volcano’s summit. All residents of Leilani Estates, a community of about 1,700 people near Big Island’s eastern edge, and nearby Lanipuna Gardens were ordered to evacuate.

The eruption was followed by a 6.9-magnitude earthquake Friday.

The disaster is not over, and so far the signs hint that it may not be soon.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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