Survey findings reveal that respondents see a strong and sustainable economy as one that is diversified, meets the basic needs of Hawaiʻi’s families, and no longer relies on economic drivers of the past.

A Diversified Economy

Native Hawaiians and non-Hawaiians alike identify a diversified economy as the most important factor in creating a strong and sustainable economy in Hawai’i.

The vision of a diversified economy differs greater from the pre-COVID-19 past, in which Hawaiʻi’s economy was heavily dependent on a limited number of industries. In fact, the top five sectors in Hawai’i accounted for 62.2 percent of the state’s total nominal GDP^[11] in 2019, in comparison to the contribution of the top five sectors nationally at 51.9 percent.^[12] Additionally, a 2011 study by the Department of Business, Economic Development, & Tourism found that Hawai’i was one of the least diversified states in the country and diversity was not increasing over time.^[13]

Figure 1 shows respondents’ rankings of components of a strong and sustainable economy, relative to total responses and broken down by Native Hawaiian and non-Hawaiian respondents. Survey respondents express that a diversified economy best describes a strong and sustainable economy, ranking diversification higher than all factors. Respondents describe the need to invest in different industries such as science, innovation, and conservation, and the need to incubate new local businesses. Furthermore, respondents view diversification and, in turn, the transformation of the economy and job industries as critical to improve finances for themselves and their ‘ohana.

Meeting Basic Needs

Both Native Hawaiian and non-Hawaiian respondents identify livable wages and income; local food production and agriculture; housing that is affordable, available, and accessible; and healthcare that is affordable, available and accessible as key components of a strong, sustainable future economy.

Livable Wages and Income

Low wage jobs dominated the local economy in 2018, with 51 percent of all jobs in Hawai’i paying less than $20 per hour and 42 percent of households struggling to afford their basic needs.^[14] The COVID-19 economic impact made it even more difficult for Hawai’i’s families to earn the income necessary to meet their basics needs. Among survey respondents, more than half (55 percent) report COVID-19 to have a ‘negative’ or ‘very negative’ impact on their household finances (defined as a change in income, expenses, etc.).

As such, when envisioning Hawai’i’s future economy, respondents agree that major change is needed to prioritize residents’ ability to make a living wage or obtain the income needed to meet their basic needs given Hawai’i’s high cost of living. Therefore, a livable wage and income is ranked as the second factor necessary for a strong and sustainable economy, overall and among Native Hawaiians and non-Hawaiians residents (Figure 1). This factor is also a priority across different respondent demographic groups and fell consistently within the top three factors among age groups, income categories, and counties.

Relatedly, a livable wage is not only a crucial component of a strong and sustainable economy, but also the highest priority among both Native Hawaiian and non-Hawaiian respondents for themselves and their families’ future. Figure 2 shows respondents rankings of future priorities for self and ‘ohana among all respondents and broken down by Native Hawaiians and non-Hawaiians. Over 75 percent of respondents rank finances among their top five priorities.

Further analysis reveals that finances are a top priority among those who are positively or negatively affected by COVID-19. Those who report a negative financial effect from the COVID-19 crisis are 2.4 times more likely to identify finances as a priority compared to those who report “no effect”. Similarly, those who report a very positive effect are 2.3 times more likely to identify finances as a priority. This suggests that any COVID-19 impact, positive or negative, on finances increases the likelihood that respondents will identify it as a priority. Respondents’ age also seemed to determine the likelihood of identifying finances as a future priority, with younger residents being more likely to prioritize finances compared to those over 65 years.

Finances is also a strong driver for individuals to identify social support as a priority for their future and future of their ʻohana. Individuals in lower income brackets (less than $35,000 annually) are 3.5 times more likely than those with incomes over $155,000 to identify strong social safety nets as a priority in the future. Income is so strongly related to this priority that, after considering income, no other factor (including financial situation, Native Hawaiian ancestry, and age group) is significant. This suggests that families who are struggling to meet their basic needs through low wage employment see the government’s role in meeting these needs as a more vital factor in Hawaiʻi’s resilient economy.

Respondents provided over 1,000 comments about how the economy would have to change to support residents’ finances (n=1,024). Of these, 275 (27 percent) comments are thematically categorized as “Income and Benefits.” The majority of comments in this category (n=245, 89 percent) suggest increasing wages and linking increased wages to the cost of living. The examples below represent the types of comments made regarding the cost of living.

“Have our income parallel the cost of living in Hawaiʻi so people don't live paycheck to paycheck or have to get a second job.”

“If the cost of living wasn't so expensive most people wouldn't need to live paycheck to paycheck. If we produce more locally then we can drop the cost of living by saving on imports and maybe then people can afford to feed their families and pay the bills and save money.”

Another prominent collection of comments (n=155, 15 percent) suggest that financial support in the form of low interest loans, emergency support, small business assistance and support, as well as more governmental personal assistance is needed to ensure better financial conditions. Common statements reflecting these suggestions include “access to low interest loans,” “access to grants,” “lower taxes,” “tax incentives for small businesses,” “student loan forgiveness,” and “lower property taxes.” To a lesser extent, respondents’ comments center around education, governance, and reopening. These suggest a variety of improvements needed to better the financial conditions of individuals, families, and the state. Education-related comments include providing opportunities to acquire financial literacy for adults and students, supporting workforce development, and supporting small business entrepreneurship, perhaps through the offering of courses or classes. Governance-related comments call for a reduction in government waste, holding leaders accountable, taxing the wealthy as well as tourists, and reducing the number of regulations on business. Many respondents recognize the integral role of tourism in Hawaiʻi’s current economy and thus call for resuming tourism under COVID-19 safety conditions, limiting number of tourists, and better pay for those in the tourist industry.

Local Food Production, Agriculture and Food Security

In the pre-COVID-19 economy, the cost of feeding a family of four (two adults, two in childcare) for one month in Hawai’i was estimated at $1,512 or 14 percent of the monthly household stability budget and has increased at a rate of more than double the rate of inflation.^[15] As island communities, concerns over food security due to disruptions in transportation were particularly severe in the early stages of the COVID-19 crisis.

According to the data from this survey, about one in three respondents report their access to affordable, healthy food to be negatively impacted by the COVID-19 crisis. This negative impact is most greatly felt by the families already vulnerable to food insecurity. Respondents who were very unsatisified with food access prior to the pandemic are more than three times more likely to report a negative impact compared to those who were “neutral/not sure” about their satisfaction with food access. Those who were unable to financially make ends meet prior to the crisis are 2.5 times more likely to report a negative impact when compared to those with substantial savings.

Respondents view local food production and agriculture as vital to a resilient future economy in Hawai’i. This factor is ranked third overall in its contribution to a strong and sustainable economy by both Native Hawaiians and non-Hawaiians (Figure 1). It is also consistently among the top four factors across all age groups, income levels, and counties.

Relatedly, when asked to rank future priorities for themselves and ʻohana, Native Hawaiians rank access to affordable and healthy food as their third highest priority and non-Hawaiian respondents rank it as their second priority (Figure 2). However, pre-pandemic satisfaction with food and a negative effect of COVID-19 on food have the strongest effect on the likelihood that respondents identify food as a future priority. After controlling for pre-pandemic satisfaction and negative COVID-19 effects, Native Hawaiians and non-Hawaiians are equally as likely to identify food as a priority for themselves and their ‘ohana.

Moreover, respondents rank the Agriculture/Aquaculture/Forestry/Fishing sector as the top sector overall for Hawaiʻi’s future workforce (Figure 3). When looking across respondent’s age groups, income brackets, and county designations, this workforce sector was among the top two most ideal future workforce sectors for these different groups, signaling a shared importance across all respondents. This stands in contrast to the realities of agricultureʻs role in Hawaiʻi’s pre-pandemic economy, where the Agriculture/Aquaculture/Forestry/Fishing industry employed only 0.7 percent of the state’s workforce or 4,500 individuals in 2019, making it the smallest among the major industries in Hawai’i.^[16] Additionally, this sector is ranked as 19^th out of 20 industry groups in the generation of the nominal GDP, at $509 million dollars or 0.5 percent of Hawaiʻi's total nominal GDP.^[17]

Survey respondents were also asked how access to affordable, healthy foods could be supported. Respondents provided 741 (12 percent) comments related to food, nutrition, and local agriculture that primarily center around three themes: (1) accessing to healthy, local foods, (2) transformation of food systems and policies, and (3) improving food security. Related to accessing healthy, local foods, suggestions include individual opportunities to grow food, community opportunities to engage in collaborative gardening, and support for local agricultural businesses. Respondents also discuss providing kamaʻaina discounts, convening more farmersʻ markets, expanding options for food delivery, and increasing support for food assistance programs. Additionally, respondents comment on the need for ‘āina restoration and stewardship.

In the area of transforming food systems and policies, respondents suggest changing the current food system from dependency on exports to supporting and promoting local agriculture via subsidies, tax breaks, and investing in local food processing to ensure a sustainable food supply. Policies that address taxes and costs on the production as well as consumption of food are noted as improvements needed to transform and support a sustainable, local food supply.

Finally, the comments below are a few examples of respondents suggestions toward improving food security by supporting agriculture as well as various ideas to increase the capacity of individuals, families, and communities to make healthy lifestyle choices. Most notably, respondents discuss shifting Hawaiʻi’s economy to emphasize sustainable local agriculture. This aligns with respondents ranking of the agriculture industry as the top sector for Hawai’i’s future workforce.

“Further promote food security; increased support for local farmers and producers, and promotion of local produce; develop public funding and programming to develop vegetable gardens across communities.”

“Promote diversified agriculture and food security. Stop illegal diversion of water on all islands. Return stream flow to farmers.”

“Tax breaks or affordable land prices so that local farmers can pass the savings onto customers, not imported.”

“Increased support (funding, infrastructure, tax breaks, expedited/exempted permitting, etc.) for local farmers goods being cheaper than local.”

“Put more lands in food production and engage more opportunities for everyday people to learn more about growing food. Provide people access to land to grow food.”

“Local Food growing, processing, consumption embedded in pre-k to 12 curriculum with ʻohana and community involvement and participation.”

Housing that is Affordable, Available, and Accessible

Even prior to the COVID-19 crisis, housing represented a family’s largest expense in Hawai’i, with 41 percent of homeowners and 53 percent of renter households qualifying as housing cost-burdened, spending over 30 percent of their income on housing expenses.^[18]

Housing is reported to be the least negatively impacted by the COVID-19 crisis (30 percent of respondents report a negative impact); however, these impacts are not experienced in the same way across demographic and socioeconomic groups. Respondents’ pre-pandemic financial situation influences the likelihood of reporting a negative impact of COVID-19 on housing. Respondents who struggled to make ends meet before the pandemic are almost five times more likely to report a negative COVID-19 effect on their ability to pay rent or mortgage and access adequate housing for stay-at-home orders than those who have substantial savings. Similarly, those who were living paycheck to paycheck are almost four times more likely to report a negative effect of COVID-19 on their housing needs. Even after controlling for pre-pandemic financial situation, those with current annual incomes below $35,000 are 2.5 times more likely to identify a negative effect on their housing needs. In terms of age, those over the age of 65 are 1.8 times as likely to report a negative effect on housing compared to those between ages 40 and 65. Additionally, Native Hawaiians are slightly less likely to report a negative effect on housing, after controlling for factors such as pre-pandemic financial situation, income category, pre-pandemic satisfaction with housing, and age group.

Despite housing being the least affected by COVID-19, respondents indicate that housing is a high priority for them and their families in the future. Identification of housing as a future priority is largely based on respondents’ satisfaction with their housing before the pandemic and by the presence or absence of a negative effect of the COVID crisis on housing. Those who were very dissatisfied before the pandemic are almost six times as likely to identify housing as a priority. Those who report a very negative COVID-19 effect are two times as likely to identify housing as a priority and those who report a very positive effect are over 4 times as likely to identify this as a future priority. As discussed previously, this suggests that any impact, positive of negative, from COVID-19 on housing situations increases the likelihood that respondents will identify it as a priority.

The ranking of housing as a top priority for the future economy is further supported by survey participants responses on how to improve housing for themselves and their ‘ohana. Of the 925 (15 percent) comments about improving housing in Hawai’i, 37 percent (n=344) and 33 percent (n=306) center on affordability and availability, respectively. Comments reveal a desire to ensure affordable housing for locals, working class families, single parent families, and Native Hawaiians. Survey respondents recognize the need to change the definition of affordability to ensure that the aforementioned groups can acquire a home. Comments associated with how to improve availability reflect the general frustration among residents with Hawaiʻi’s current housing stock. Forty-four percent (n=136) of comments suggest prohibiting non-residents from purchasing housing/land, including foreign investors and the military is critical to ensuring availability of housing and land for locals and Native Hawaiians. The following comments reflect many of the suggestions made regarding housing (e.g., developing laws, residential requirement, military restrictions) as well as support for Native Hawaiian housing/land acquisition.

“Laws prohibiting foreign (anyone not a resident of Hawai'i) investment and purchasing of real estate. You should have to live in Hawai'i for a minimum of 5 years before you are eligible to own property with the exception of Native Hawaiians trying to return home to the islands. The high cost of housing in Hawai'i is a direct result of outsiders purchasing our land for their economic gain. This absolutely needs to be stopped. More development or availability of low-income housing will not solve the true issue of the cost of a housing in Hawai'i and ultimately will continue to lead to population growth which is currently unsustainable. The only thing that will actually make a difference for island residents is to put an end to non-residents being able to purchase in our islands. Military included. Military should have to live on base or rent. They should not be allowed to purchase properties so that they can make a profit in 2-3 years when they leave the islands.”

“Affordable and sustained homes, loans, etc. with priority given to native Hawaiians.”

“We need more affordable housing and affordable land for Native Hawaiians. Priority for affordable housing should be given to Native Hawaiians.”

Additional comments regarding housing availability for locals suggest the elimination of short-term rentals, housing stock increases, implementation of a higher tax for non-residents purchasing homes/second homes, the development of a law requiring minimal years of residency to purchase a home/land, development of innovative housing construction, and the implementation of new models and approaches to purchase or rent a home. A few examples of representative comments are provided below.

“Stop development of new resorts as there are already too many; rent control; affordable housing; higher taxes on second homes or homes not occupied by owner; limiting temporary vacation rentals.”

“Explore innovative and lower‐cost alternatives to traditional housing development such as micro‐apartments, accessory dwelling units built by homeowners on their properties, and adaptive reuse of existing buildings.”

“No more cookie cutter houses. Design for the least impact on the ‘aina. Decrease residential property tax and increase hotels and short-term rental property taxes.”

Respondents noted additional financial solutions to support housing and rent such as rent control, lower interest rates, easier qualification for loans, lower property tax, and implementing forms of mortgage or debt relief. Navigating the application processes for home loans and rental assistance was noted as a needed improvement.

“Rent control and stabilization policies, stricter limits and taxes on foreign/mainland part time or investment property ownership.”

“Lower property taxes, lower housing prices, low interest mortgages”

“Ability to keep home within the family without being priced out/taxed off. Access to low rate mortgages.”

Recognition of the connection between the issues of land availability and development policy are represented by comments suggesting lowering the blood quantum for Hawaiian Homelands, provision of free housing, and lessening regulations to increase housing stock. Another small cluster of comments suggest the importance of reducing homelessness through implementing self-housing projects as a tactic to reduce homelessness as well as providing immediate housing options for the homeless.

Healthcare that is Affordable, Available and Accessible

As a state, Hawaiʻi boasts one of the highest rates of health insurance coverage nationwide.^[19] However, shortages of health care providers in many communities across the islands make it hard for families to access the affordable health care they need. Additionally, monthly out-of-pocket health care spending (which does not include health insurance costs) more than doubled over the past 11 years for a family of four, increasing from $359 in 2007 to $756 in 2018 (which comprises 10 percent of a monthly household budget).^[20] In 2019, the healthcare and social assistance service industry employed 11.1 percent of Hawaiʻi’s workforce.^[21]

During the pandemic, issues surrounding health and inequitable access to healthcare were brought to the forefront. In this survey, 55 percent of respondents report a negative impact on their physical health and 64 percent report a negative effect on their mental or spiritual wellbeing due to COVID-19. Pre-pandemic dissatisfaction with physical or mental and spiritual health increase the likelihood of reporting a negative effect. Respondents who were very dissatisfied with physical health prior to the pandemic are 4.1 times more likely to report COVID-19 to have a negative effect in this area when compared to participants who were not sure or neutral about their pre-pandemic physical health satisfaction. Similarly, respondents who were very dissatisfied with mental or spiritual health prior to the pandemic are 5.6 times more likely to report COVID-19 to have a negative effect in this area when compared to participants who were not sure or neutral about their pre-pandemic mental or spiritual health satisfaction. When asked which factors best describe a strong and sustainable economy, respondents ranked the basic need of affordable, available, and accessible healthcare in 6^th place overall (Figure 1). This finding is consistent across Native Hawaiians and non-Hawaiians, all age groups, and all income levels. Additionally, respondents in all counties, except for Maui county, rank healthcare in 6^th place. In Maui county, this ranking falls to 7^th place with sustainable tourism moving to 6^th place.

Looking to the future, residents rank physical health as the 5^th highest priority for themselves and their ʻohana overall (Figure 2). Respondents’ who report COVID-19 to have a very negative effect on physical health are 1.8 times more likely to select this as a priority, suggesting that the negative effect of COVID-19 on physical health impacts the likelihood of it being a future priority.

In terms of mental and spiritual health, pre-pandemic satisfaction and the reported COVID-19 effect in this area influence the likelihood of reporting this as a future priority. Respondents who were very satisfied before COVID-19 are 2.6 times more likely to identify mental/spiritual health as a priority compared to those who are “neutral/not sure.” Respondents who report a very negative or very positive effect are 2.7 and 2.9 times more likely to identify this as a future priority. Similar to earlier findings, it appears that experiencing any impact, either positive or negative, of COVID-19 on mental/spiritual health makes it more likely for respondents to identify it as a future priority.

When respondents were asked how the economy could be improved to meet the basic needs of physical health, the majority of comments on improving physical health (n=525) are clustered into accessibility (n=174), affordability (n=114), and prevention (n=108). Many respondents cite the need for more doctors and health practitioners including a need for specialists on the neighbor islands. The disparity of health insurance and medical costs are cited as reasons for various proposed solutions. Additionally, many comments note the need to have insurance cover alternative and holistic approaches to treatments such as la’au lapa’au, lomilomi, ho’oponopono, nutritionists, and mid-wives. The following comments represent comments associated with the aforementioned themes and the interconnections between these themes.

“More doctors!!! More medical care for all islands w/out going to Oahu. Increase availability of specialists on outer islands.”

“We need more AND better doctors. We also need to change the way the insurance companies are allowed to dictate what procedures are required for a patient. They are second-guessing PCPs.”

“[Insurance] Riders for better medical coverage for people who work. More affordable medical. Paid time to exercise or do preventative health management.”

“Universal healthcare with a mix of western and alternative practices.”

“Establish more cultural and natural remedies for health care and physical well-being.”

“Invest in Hawaiian and Pacific healing practices, incentives for doctors and nurses to work here, adopt a statewide MEDICARE FOR ALL program (make Health care a right not a privilege), make all health providers DATA reporting MANDATORY including data segregation for EACH ethnicity/race not grouped (right now is not mandatory).”

“Allow health savings account so I can actually use my healthcare funds for things I choose (fitness, vitamins and supplements, yoga/meditation classes). As a business owner, we are fixed to use western medicine when we largely only use for emergencies. I could manage my own health much better if the funds were in my own pocket.”

“Establish within the universal pre-school and cross generational day care centers, physical activity and wellness programs. Establish within the community centers, social/mental health programs that also incorporate health/wellness/physical activity programs as a priority focus.”

Exercise, often defined as working out at the gym, walking, and bicycling, is mentioned in relation to improving physical health. Respondents also note the need to re-open parks, beaches, and hiking trails for local residents. Quality of healthcare (n=45) is also associated with physical health and described by respondents as the accountability of physicians and hospitals, quality of facilities, and a physician's patient care (e.g., listening, attentiveness).

Economic Drivers of the Past and Future

The largest pre-COVID-19 sectors are viewed as less desirable industries for Hawaiʻi’s future economy.

Land Development

Prior to the COVID-19 crisis, many economic indicators pointed to Hawaiʻi’s reliance on land development and new construction for commercial proposes. In 2019, the Real Estate/Rental/Leasing sector, including rent from residential and non-residential buildings, was the top industry in the state, contributing $19.8 billion or 20.3 percent to Hawaiʻi’s nominal GDP. This percentage is dramatically higher than comparable contributions across the U.S. (13.4 percent), indicating that the state’s economy was even more dependent on this industry then the national economy. This sector was responsible for the largest contribution to Hawai’i’s economic growth, but this impact was partly due to the rapid increase in rents (10.6 percent per year), which did not create additional jobs for Hawai’i’s workforce.^[22] In fact, this large sector employed only 13,300 individuals or 2 percent of Hawaiʻi’s workforce.^[23] Additionally, construction placed 6^th in Hawaiʻi’s GDP contribution, generating $5.6 billion or 5.7 percent of the state’s nominal GDP.^[24] In 2019, non-residential and hotel building permits were valued at $353 million, or 22.5 percent of the total building permit value.^[25]

However, when looking to Hawaiʻi's economic future, respondents rank land development for commercial use as the least useful component in re-designing an economy that will be strong and sustainable (2 percent of respondents identify this factor among their top five components of a strong and sustainable economy) (Figure 1). Respondents also agree that Real Estate/Rental/Leasing is not an ideal sector to employ Hawaiʻi’s population, with Native Hawaiians ranking this sector as less desirable than non-Hawaiians. As with commerical land development, only 2 percent of respondents identify this sector as one of their top five sectors for Hawaiʻi’s future workforce (Figure 3).

Government and Military

Prior to the COVID-19 crisis, the government sector, including military economic contributions, was the second leading industry in Hawaiʻi, generating 19.7 percent ($19.1 billion) of the state’s nominal GDP. As is the case with land development, this percentage is markedly higher than comparable contributions across the U.S. (12.3 percent).^[26] In 2019, this sector employed 136,300 individuals or 19.1 percent of the state’s workforce and was the second largest employer in the state.^[27]

Military development and investment are ranked as the second least important factor in the development of a resilient future economy in Hawaiʻi, with only 3 percent of survey respondents identifying this as one of their top five components of a strong and sustainable economy (Figure 1). Additionally, respondents rank the military in 20^th place in terms of workforce desirability (Figure 3). As in terms of workforce desirability, the government sector is ranked in 13^th place. Although Native Hawaiians are slightly more favorably inclined toward employment in the government sector than non-Hawaiians, the difference is small. Again, this low prioritization demonstrates respondents’ interest in dramatically shifting the current Hawai’i economy.

Tourism

The Accommodations and Food Service industry, which is often used as a marker of tourism, was Hawai’i’s third largest industry, contributing $8.8 billion or 9.1 percent to the stateʻs nominal GDP in 2019. Again, these figures represent a greater reliance on this industry in Hawaiʻi then in the rest of the country, where it generates only three percent of the national GDP.^[28] All direct and indirect contributions of the tourism industry (which includes other sectors in addition to the Accommodations and Food Service industry)^[29] to the state economy were estimated at $15.5 billion or 16.9 percent of the state GDP and $1.9 billion in state taxes or 23.6 percent of the total state taxes.^[30]

Native Hawaiian and non-Hawaiians’ ranking of Tourism as a component of a strong and sustainable economy differ significantly. Although Contemporary/Mainstream Tourism is ranked low for both groups (only 6 percent of respondents identify this as one of their top five components of a resilient future economy), Native Hawaiian respondents rank this industry as less important than non-Hawaiians (3 percent compared to 8 percent respectively) (Figure 1). However, this difference is small given the low number of respondents who identify Contemporary/Mainstream Tourism as one of their top five components of a resilient economy. Sustainable Tourism is identified as one of the top five components of a resilient economy by 19 percent of all respondents. Like contemporary/mainstream tourism, it is ranked as less important in the creation of a resilient economy by Native Hawaiian respondents (11 percent compared to 29 percent of non-Hawaiians), perhaps reflecting an overall perception by Native Hawaiian residents that tourism in general is not a highly desirable sector in reshaping Hawaiʻi’s future’s economy. There is also a significant difference in the ranking of Sustainable Tourism between counties, with Maui County respondents ranking Sustainable Tourism in 6^th place, a higher ranking than in Hawai’i County (9^th place), Honolulu County (9^th place), and Kauaʻi County (10^th place).

In general, respondents seek less dependence on tourism and more investment in alternative industries. However, some respondents feel that changes to tourism could be leveraged to improve numerous aspects of their lives. Specifically, their comments center around general limitations to tourism, limiting the number of tourists and their length of visit, increasing taxes on tourists, implementing green fees, investing in sustainable tourism, and resuming tourism. The comments below represent many comments related to the need to transform Hawai’i’s economy.

“Less emphasis on returning to the pre-COVID-19 economy and more of a focus on creating a new economy that works for the people of Hawai`i. Less catering to tourism corporations. Tourism has a place in the economy, but in a green/sustainable model both ecologically and culturally. Large tours should be replaced with person to person structures. More of the profits from hotel stays should stay in the state through additional taxes on needed. Government should work more for the people and less for the corporations.”

“We need to differentiate our economy. The state is to heavily dependent on tourism. In addition, majority of jobs created through this industry are service related and pay minimum wage. Residents cannot survive in Hawai'i off of minimum wage. We need to invest in industries that will provide desirable and high paying jobs for our islands residents that are also culturally appropriate. We also need to become less reliant on imports and increase sustainability in our islands. We should look to industries such as agriculture, engineering (research and development), renewable energy (such as solar), niche marketing (less tourism but at a higher price), software development, education.”

Retail

The Retail sector is also a significant industry in Hawai’i, contributing 6.4 percent to the nominal GDP and employing 10.8 percent of the workforce (equivalent to 71,100 individuals) in 2019.^[31] Similar to the previously discussed sectors, the Retail industry is ranked among the bottom three sectors for Hawaiʻi’s future workforce. A total of 3 percent of respondents identify retail as one of their top five preferred employment sector in the future (Figure 1).

Although the impacts of the COVID-19 crisis on mental and spiritual health and social support are felt by ʻohana across Hawaiʻi, Native Hawaiians appear to be somewhat more resilient in these areas than non-Hawaiians.

Native Hawaiian respondents are somewhat less likely than non-Hawaiian respondents to report negative effects of the COVID-19 crisis on their mental and spiritual health and social support (about 0.4 times less likely to report a negative effect), after differences due to age, income, previous levels of satisfaction, and financial situation are statistically controlled. This suggests that being Native Hawaiian in itself is a small but significant source of resiliency despite greater economic difficulties, experiencing less satisfaction with mental and spiritual health and social support before the pandemic, and being younger.

Mental/Spiritual Health

Figure 4 shows the percent of respondents reporting a negative or positive impact of COVID-19 on their ʻohana. For example, 60 percent of Native Hawaiians (shown in shades of blue) report a negative impact on their mental/spiritual health, while 15 percent report a positive impact (the remaining 25 percent, not shown in the figure, report “no effect”). A total of 69 percent of non-Hawaiians (shown in shades of brown) also report a negative effect on mental/spiritual health and 10 percent report a positive effect (indicating 21 percent said there is no effect).

Respondents provided 537 (9 percent) comments regarding mental/spiritual health and social support. When discussing mental/spiritual health and social support, many comments reflect a desire for COVID-19 lockdown restrictions to be eliminated so they can gather with family and friends, attend church, or participate in spiritual practices. Regarding other improvements, suggestions include a desire for greater access to mental health services, spaces for gathering (such as community centers), more community programs and events, and space, time, and quiet environment to have moments of peace. The comments below represent spiritual/religious connections, cultural connections, access to care, and social supports sought out by respondents during this time.

Spiritual/Religious Connections

“My spiritual well-being and values are a big priority! Understanding the COVID-19 pandemic, of course churches needed to close but I yearned to be back in the house of God. Services have re-started with social distancing guidelines and it's great to be back.”

“Wanting to go to church & fellowship; connect with our friends.”

“Support integration of spiritual and cultural practices into programs and initiatives; give incentives to religious based organizations and faith-based groups to assist with mental health, housing, homeless and addiction type program.”

Cultural Connections

“Emphasize and celebrate Hawaiian spiritually, which honors nature and living peacefully and sustainably.”

“Ua mau ke ea o ka ‘Āina i ka PONO. This says it all. If we live PONO, then Ea and ‘Āina will become a reality for our Lāhui.”

“Supporting the natural environment and non-tourist based understanding of aloha can support spiritual health in Hawaiʻi.”

“Hoʻi i ka poko. Cultural identity crises is probably the biggest reason why our people suffer. Drugs, violence, prison, homelessness in Hawaiian communities often derive from cultural and spiritual disconnection. ….My hope is that more cultural puʻuhonua in EVERY kaiaulu can help to serve, shelter and nurture our people who suffer in this area.”

Access to Care

“Access to alternative health options such as lomi and hooponopono.”

“Increase access to free mental health care, especially in rural areas, and for kids. Our children need mental health support too.”

“Online options to engage in indigenous spirituality; community-based outreach.”

“Overhaul, greatly increase mental health services, providers and facilities at every level. Online, therapeutic counselling, psychiatric services, mental hospitals, etc."

Social Supports

“I miss my ‘ohana— I've seen only a few people— can't wait to meet in large gatherings and hug everyone.”

“More social groups for those who do not have family here, more social support here for those who do not have an 'ohana.”

“More state and county parks, walkways and gathering places.”

“COVID-19 gave light to how difficult it is to be separated from family & friends.”

Abundant ʻĀina

Native Hawaiians and non-Hawaiians alike report on the positive impact of the COVID-19 crisis on the ‘āina and envision this impact as the pathway to building a better future economy.

Due to travel restrictions in place to protect Hawai’i residents from COVID-19, tourism in the state virtually halted during the pandemic. Total visitors arriving in Hawai’i by air decreased by 98.2 percent from June 2019 to June 2020.^[32] Due to a decrease in additional individuals on the islands, combined with stay-at-home orders, there has been a marked decrease in human interaction with wildlife. The Hawai’i Department of Land and Natural Resources reports a healthy rebound in Hawai’i’s natural environments, indicated by significantly more native species such as opihi and Hawaiian monk seals.^[33]

Likewise, in this survey, nearly 40 percent of respondents report a positive or very positive COVID-19 impact on the 'āina, defined as experiencing a healthy land, ocean, and natural environment (Figure 4). Notably, a higher percentage of respondents from Kauaʻi (62 percent) report a more positive or very positive impact of COVID-19 on the ʻāina compared to respondents from other counties.

As Hawai’i residents observe these positive changes of the ‘āina and kai (ocean water) as a result of the COVID-19 crisis, they believe that continuing to mālama or care for the natural environment will be an important factor in creating a resilient economic future. Both Native Hawaiian and non-Hawaiians rate healthy and thriving ocean and land ecosystems as the 5^th most important factor in creating a strong and sustainable economy (Figure 1).

Additionally, Hawai’i residents rank sectors which protect the ‘āina within the top three sectors for the future workforce (Figure 3). Overall, Agriculture/Aquaculture/Forestry/Fishing is ranked as the top sector for Hawaiʻi’s future workforce and is among the top 2 most ideal future industries across age groups, income brackets, and counties. Clean Energy is ranked within the top three sectors by respondents, while environmentally damaging Oil-based Energy and Transportation are consistently ranked last by residents. Natural Resource Management is also ranked relatively high in future workforce sections, at 6^th place by Native Hawaiians and 8^th place by non-Hawaiians.

Of the 759 comments provided by respondents when asked how ʻāina could be improved, 80 percent (n=608) centered on protecting and regenerating ‘āina and transforming economic systems including tourism. Previously, it was noted that respondents expressed a desire to shift the economic sectors in Hawai’i away from the economic drivers of the recent past to sectors that protect, restore, and rejuvenate ʻāina and kai. Respondents cite the positive effect of very limited tourism on the ‘āina, including kai. The comments below are representative of respondents’ statements.

“The COVID-19 pandemic has really allowed our ʻāina to heal. Now all we have to do is protect it from overuse and abuse from tourism.”

“Our oceans and environment have healed during COVID-19. We need to create rules that allow our environment to rest. We used to have seasons and times of kapu to let our ʻāina rest. I think we need to go back to having regulations on beaches on other overused spaces. People have said they have not seen our oceans so happy in over 30 years.”

“We have seen the effects of tourism on our natural resources by seeing our environment thrive without tourist overuse, how can we better mālama our ʻāina the way it should be?”

“Keep tourism to a minimum! Our ʻāina is healing and let’s keep it that way.”

“Sustainable,” ”restoration,” “stewardship,” and “malama ka ‘āina” are commonly used to describe the actions needed to improve the health of our ‘āina. Specific actions include: sustainable and limited tourism, rest periods for heavily visited sites, increasing conservation jobs, supporting non-polluting industries, and restoring ahupua’a based economic systems. These actions reflect respondents’ desire to move toward an alternative way of managing and interacting with our ʻāina. While there are 759 comments associated with ‘āina, statements regarding access, stewardship, use, and education of our ʻāina are also noted when respondents were asked about ways to improve in the areas of finances, education, food, physical health, cultural practices, social support, and mental and spiritual health.

Food Security

Positive impacts of the pandemic on access to affordable, healthy foods are also reported by respondents. This is consistent with a desire for an increased focus on agriculture in the future, specifically tied to increasing consumption of local foods.

Among Native Hawaiian respondents, 14 percent report a positive or very positive COVID-19 impact on food access. This is significantly higher than the 10 percent of non-Hawaiians who report positive impacts in the same area (Figure 4). However, not surprisingly, respondents who earn less than $55,000 per year report more of a negative or very negative impact on food access, compared to those who earn more than $105,000 per year. According to the U.S. Census Bureau Household Pulse Survey, a smaller percent of Hawai’i residents are experiencing food scarcity during the COVID-19 crisis (6.7 percent) than the national percent of 10.5 percent. In fact, Hawai’i has one of the lowest rates of food scarcity in the country, ranking 46^th out of 50 states and the District of Columbia from September 2 to September 14, 2020.^[34] This difference may reflect local efforts in Hawai’i to ensure food access during this time.

Again, as Native Hawaiians and non-Hawaiians experience some positive impacts of the COVID-19 crisis on their access to food, they see the need to focus on this in designing a post-COVID-19 economy that is resilient to future crises. As seen in the results in Finding 1, when respondents look to the future, local food production and agriculture are ranked as the third highest priority (of 15 factors) in the creation of a strong and sustainable state economy. Similar trends are present when asked about Hawaiʻi’s future workforce, with Agriculture/Aquaculture/Forestry/Fishing being ranked as the most desirable industry for the next generation of Hawaiʻi workers (Figure 3).

Finally, access to food is ranked as one of the top three future priorities of Hawaiʻi’s ʻohana (Figure 2). As highlighted in Finding 1, respondents comment on the need for more local food in grocery stores, farmer markets, food delivery, food drives, and food banks as ways to continue this resiliency into the future economy.

Although there is a high level of agreement between Native Hawaiian and non-Hawaiian respondents on the top priorities for themselves and their ʻohana, there is a significant difference between respondents on the prioritization of education. Native Hawaiians identify education as the 4^th priority for their ‘ohana, after finances, housing and food (Figure 2). In comparison, non-Hawaiians rank education as their 6^th priority, behind the additional factors of ‘āina and physical health.

The difference in the proportions of Native Hawaiian and non-Hawaiian respondents identifying education as a priority is explained by differences in their level of satisfaction with education before COVID-19 (Native Hawaiians are significantly less satisfied), differences in the negative effects of COVID-19 on education (Native Hawaiians are much more likely to report negative effects), and differences in age distributions with younger respondents more likely to identify education as a priority, (consistent with population-level data, Native Hawaiian respondents are younger than non-Hawaiians respondents).

This difference is relevant as substantial research shows that Native Hawaiians experience much poorer outcomes in K-12 and post-secondary education.^[35] In school year 2018-19, approximately 46,800 students or 24 percent of the entire public-school student body are Native Hawaiian students.^[36] These students were directly impacted by the closure of all 289 public and charter schools in the state due to COVID-19. Additionally, Native Hawaiian students have historically lower proficiency rates in reading (34.2 percent) and math (26.7 percent), due to compounding factors which already place these students at a greater disadvantage.^[37] Students receiving special education services were also more dramatically impacted by school closure, as they were not able to receive those additional services delivered in a physical environment. These students are also more likely to be Native Hawaiian, as 14.8 percent of Native Hawaiian students receive special education services, in comparison to 8.6 percent of the non-Hawaiian student body.^[38]

Despite differences in the ranking of education as a future priority among Native Hawaiians and non-Hawaiians, both groups see its importance in Hawaiʻi’s future workforce. Native Hawaiians rank education in 2^nd place while non-Hawaiians rank it in 3^rd place (Figure 3).

The importance of education as displayed in the rankings of future priorities and workforce, is reflected in respondent comments—12 percent (n=804) of comments on how the economy could be improved is focused on education. These comments were classified into the following categories: (1) quality of schools, (2) cost, (3) curriculum & career path, (4) teacher support, (5) access, and (6) community and partnership. Most comments associated with quality of schools are about improving and funding public schools. Additional comments range from the strengthening infrastructure, decentralizing the organizational structure as well as expanding funding based on taxing wealthy residents and tourists. Comments regarding the cost of education are predominantly centered on ensuring affordable higher education by lowering or offering free tuition, increasing scholarships, and eliminating student debt. Survey respondents suggest increasing trade education as well as STEM pathways to improve curriculum and career pathways. Supporting cultural practices and ‘ōlelo in education as well as learning models that include project and place-based learning are also associated with curriculum. Respondents’ comments support increasing teacher pay, lowering teacher-student ratios, developing programs for home-grown teachers, and ensuring respect for the profession. A number of respondents identify increasing access to a variety of educational options such as charter schools, online schools, home schooling, and community colleges as key to improving education. Improving the school-family relationship, developing community education programs, and forging partnerships to benefit education are also offered as ways to improve educational experiences and outcomes. There are several comments related to the need to reopen schools, especially for disabled students.

This report illuminates Native Hawaiian and non-Native Hawaiian perspectives on the economy captured in June 2020, between this year’s first and second spikes in COVID-19 cases. While this report provides the perspectives of thousands of Hawaiʻi residents who responded to these questions, some interpretation is required as the discussion transitions to how policymakers, foundations, and others can use this manaʻo (ideas, thoughts, or suggestions) to influence the economy as critical systems change agents. For example, respondents rank “finances” as the highest priority for their ʻohana, while concurrently expressing a preference for a future economy that is much more diversified, led by industries that have not previously generated the kind of financial productivity as real estate, tourism, and federal spending sectors, but which respondents expect will contribute to a more sustainable and equitable economy. How do we reconcile what some would consider to be divergent opinions?

Rather than moving immediately to zero-sum frameworks, our public and private institutions should seek creative solutions that contribute to Hawaiʻi’s economy while at same time contributing to greater diversification of our industries and job market. This is especially important as Hawaiʻi appears to move into a difficult phase of the current economic contraction—during which federal resources are expiring and state and local policymakers will have significantly less revenue. During this period of expanding need and shrinking resources, it is essential that organizations with capacity target solutions that respond to our urgent needs while also pivoting our economy towards greater diversification, self-sufficiency, and the industries described by respondents as most desirable. An emerging priority based on responses to the survey is a more resilient and sustainable economy that is more reliant on a robust local food and agriculture system and an economy that works for all residents in Hawaiʻi, regardless of ethnicity, age, income, and geographic background.

Similarly, respondents express strong views on how the COVID-19 public health emergency had a positive impact on our natural resources by temporarily reducing the pressures on them. This says more about the direction Hawaiʻi was headed environmentally prior to COVID-19 than the COVID-19-inspired pause itself. Throughout our history as a state, communities have expressed concerns about economic expansion at the expense of environmental wellbeing and cultural resources. We have also been reminded that ultimately Hawaiʻi’s economy cannot afford to over-exploit Hawaiʻi’s environment, or we lose the natural beauty that is essential to maintaining industries like tourism and that is essential to quality of life among residents.

Prior to the COVID-19 pandemic, community organizations have been building awareness and support for numerous ideas about how to manage the added stress that is being placed on natural resources, and educating the public about anticipated sea level rise, other effects of climate change, and Hawaiʻi's conservation deficit. More than before, this is the time for policymakers and others to think creatively: first, about how to further add necessary protections to avoid returning to the level of overuse and under-conservation of natural and cultural resources and second, about how to ensure a reasonable quality of life for the workers upon whom these industries depend. Policymakers and others should consider the ideas that have been in place since before the pandemic that would achieve this together with—though not necessarily at the expense of—revenue generating activities. Ideas range from expanding “rest” periods for sensitive areas to recover from overuse, community-based subsistence areas, a more proactive approach in favor of traditional and customary practices, and targeted fees or other revenue sources to pay for the cost of natural resource management.

Lastly, given the confusion and concerns throughout the state and the world this summer, it is no surprise that respondents raise additional concerns about education. There is no shortage of local or national research that shows the disparities in educational outcomes that existed long before the shift to online learning and how that shift has exacerbated the disparities. If unchecked, this will cause further lifelong damage to educational outcomes, earning potential, and overall wellbeing of the individuals and communities adversely affected. These cumulative negative effects damage the social and economic wellbeing of the entire state. What is urgently needed is a greater response from public and private organizations to mitigate these harms and to develop strategies to ameliorate the disparities now and in the coming years. Further, efforts must be made to address harms by pre-pandemic inequities in educational outcomes if we are to move forward. Such investments should include attention to social-emotional development as well. They should also normalize innovative approaches that incorporate the increased use of online learning that has occurred during the pandemic in ways to create greater equity.

This brief was produced through a collaboration by the Office of Hawaiian Affairs, Liliʻuokalani Trust, Kamehameha Schools' Strategy & Transformation Group, Hawaiʻi Leadership Forum, and KUPU.