A new report looking at ways to diversify the local economy highlights potential in ocean-based industries, especially in fishing and aquaculture.
The University of Hawaiʻi Economic Research Organization report focuses on underperforming industries that are closely related to those that already exist. These weak industries not only have potential for growth but likely have the infrastructure in place to do so.
Water-based industries featured in the report include boat building, harbor operations and water transportation, given Hawaiʻi's strong existing ties to the ocean.
But fishing and aquaculture in particular could have the highest potential to add to the state’s economy.
“ We need to figure out exactly what has prevented that industry from emerging. … Water transportation makes sense because we have this big Pearl Harbor resource. Naturally, we've gotten a big water transportation freight industry out of Pearl Harbor that supplies the entire state. But for aquaculture, it really shockingly appeared quite small,” said UHERO Assistant Professor Steven Bond-Smith, who authored the report.
Aquaculture is one of the hottest — and only growing — industries in local agriculture. It hit nearly $90 million in sales last year, representing the second straight year of record sales.
Globally, fish farming is seen as an important tool to feed the growing population.
There’s only one offshore fish farm in the U.S., and it’s located on Hawaiʻi Island. But Bond-Smith noted that the state has the natural resources to do much more.
“There are some interesting opportunities also in Hawaiʻi with aquaculture because we have these really deep oceans around us,” he said.
“Deep oceans are good for doing offshore aquaculture, and in Hawaiʻi, we can do it at a relatively short distance from shore. Because you have these deep oceans, it means that you don't get the concentration of minerals and wastes that you get from inshore agriculture. And so you have a lot lower environmental effects from that type of thing,” he added.
Experts have said that a lack of government support and a slow permitting or siting process all hinder progress in aquaculture.
The larger goal of the UHERO report was to help guide the state away from its dependence on tourism, which it said has been a relatively stagnant industry. That dependence can lead to significant economic impacts if disrupted — as was the case during the early stages of the COVID-19 pandemic.
However, the report argued in favor of adding to tourism, instead of hindering it.
