ABSTRACT
Hawaii was vulnerable to the COVID-19 pandemic due to its reliance on tourism. This article analyzes the pandemic's economic impact in Hawaii by comparing outcomes with the pre-pandemic forecast. We explain why Hawaii's experience differed from other states, suggest reasons for a slow recovery, and discuss the pandemic's lasting effects.
ABSTRACT
Many popular tourist destinations are on small islands whose resources are in limited supply, and the effects of climate change and burgeoning tourism tend to worsen the outlook. In this study, we identify the relationship between tourism and water use on the Hawaiian island of O'ahu. Hawai'i closed almost entirely to tourism during the COVID-19 pandemic, which provides a unique natural experiment to study the relationship between tourism and water use. We estimate a 1% decline in the number of tourists was associated with a 0.4% to 0.65% lower water use in the hotel sector. However, no such relationship was found in the Airbnb market, which we hypothesize is due to work-from-home arrangements in the residential sector during the pandemic.
ABSTRACT
COVID-19 dealt a formidable blow to the US economy. We present a joint analysis of the epidemiological and labor market outcomes across US states. We focus on the relationship across relevant indicators in the pre-vaccination era. As expected, we find strong correlation between changes in economic conditions and mobility. However, mobility fluctuations tend to be uncorrelated with local epidemics and occur simultaneously across most states. The magnitude of the mobility response is highly correlated with the rural vs. urban character of the area. Employment losses are most strongly associated with high population density and concentration of the leisure and hospitality industry. The relationship between job losses and the case fatality ratio is affected by the timing of the most severe COVID-19 waves.