The University of Hawaiʻi’s Economic Research Organization, or UHERO, recently released its economic forecast for quarter 3 of 2026 — and the outlook paints a sobering picture of slow growth and job loss.
To see what these economic impacts look like on the ground, HPR traveled to Waikīkī to speak with two retail workers who shared their firsthand experiences.
Hymie and Nakayla have long witnessed how foot traffic has ebbed and flowed in the area — and they say that the tourist economy has made a slow comeback since the COVID-19 pandemic.
“It seems like they're bringing more businesses,” Nakayla said. “Little food places, food trucks, little bars, ice creams, and it's kind of insane how much Waikīkī has changed over time.”
It’s a time when more attention is turning towards supporting local businesses, Hymie said.
“Made in Hawaiʻi, that was like a big hit too,” he said, referencing the 32nd Annual Made In Hawaiʻi Festival that took place in August.
“So it's slowly coming, and it's also bringing a lot of tourism to buy Hawaiʻi-made products.”
Rising prices in the U.S. have made tourists think twice about spending their money while visiting, however.
“We do see that a lot with the Japanese, since the yen is a little bit on the weaker side,” Hymie told HPR. “You see them always calculating American prices on their calculator and converting it to yen to see what the conversion rate is.”
More of HPR’s coverage on Hawaiʻi’s economy and tourism can be found here.
This story aired on The Conversation on Oct. 8, 2026. The Conversation airs weekdays at 11 a.m. Jinwook Lee adapted this story for the web.
