Forecast expects Hawaiʻi to draw in more tax revenue this year
The state Council on Revenues expects Hawaiʻi to draw in more tax revenue this year.
The council now forecasts tax revenue to increase by 21% for the 2022 fiscal year. That’s up from its last forecast of 15% made in January.
Economists say visitor bookings are higher this year than in 2021, and there is anticipation that international travelers will return to the islands.
Carl Bonham, the executive director of the UH Economic Research Organization, says visitor spending mostly will not be affected by inflation.
"Most of the plans for the rest of this fiscal year for tourism have already been booked. And if you look at the bookings data, it’s pretty surprising. All the way through the summer. We’re talking about 40-50% growth in statewide bookings compared to last year. And you remember how strong last year was," he said.
Bonham says sanctions against Russia, rising interest rates and inflation will eventually have an impact on the state’s tax revenues, but that will likely happen in fiscal year 2023.