International Bureau: The haze of the Hawaiian fire shrouds the tourism industry, causing damage and litigation accumulation. Hawaii | Economy | Accumulation
On September 8th, according to comprehensive reports, a wildfire has been raging on Maui Island in Hawaii, USA for a month now. This is the most severe wildfire in the United States in a century, causing not only 115 deaths, but also a heavy blow to local tourism companies, leading to soaring unemployment rates and potentially triggering a "widespread economic disaster". At the same time, lawsuits related to fire liability continue to pile up.
The tourism industry has suffered a heavy blow
According to reports, since a large-scale fire broke out in Hawaii earlier in August, the number of tourists arriving on Maui Island has decreased by about 70% compared to before the fire, to around 2000 people per day.
Maoi Island Aviation Helicopter Company currently operates 1-2 flights per day, compared to 25 to 30 flights before the fire. In this situation, many employees of local airlines are facing unemployment.
According to government data, there has been a large-scale layoff phenomenon in Maui Island. In the last three weeks of August, nearly 8000 people in the local area applied for unemployment benefits, compared to 295 people in the same period of 2022. Economists at the University of Hawaii predict that the unemployment rate on Maui Island will climb to 10%.
The report points out that during the COVID-19 epidemic, this proportion reached a peak of 35%, but only 2.5% in July. In the current wildfire crisis on Maui Island, there were no salary protection program loans provided to businesses during the pandemic, nor were there any unemployment benefits provided for the unemployed.
According to reports, Hawaiian tourism officials are working to restart the tourism economy and provide financial support for the recovery and reconstruction of Maui Island. Local airlines have started offering significant discounts, and some resort hotels have begun to reduce room rates.
At present, it is unclear when the tourism industry on Maui Island will resume.
An economic disaster?
Local tourism practitioner Olston expressed concerns about facing a "comprehensive economic disaster". He said, "I know what a terrible disaster it was, but now we are in crisis mode."
According to the report, after the wildfire crisis had a widespread impact, Hawaiian officials on the 6th lowered the state's economic growth forecast for 2023 from 1.8% to 1.1%, and predicted that the state's economic growth rate would drop from 2% to 1.5% in 2024.
In addition, Hawaii's tax revenue is expected to be hit and may require the state to cut spending. Carl Bonham, an economics professor at the University of Hawaii, Manoa, believes that the state may lose $250 million this fiscal year.
Hawaii Governor Green stated that the Federal Emergency Management Agency has provided up to $19.4 million in aid to the local area.
At present, the authorities encourage tourists to avoid visiting the western part of Maui Island and support the economy.
Fire litigation accumulation
According to reports, since the Hawaiian fire broke out a month ago, lawsuits regarding the responsibility for the fire have been piling up in court. As of now, there have been about a dozen lawsuits accusing Hawaii Electric Power Company. This utility company provides services to 95% of the state's electricity customers.
According to the report, one of the lawsuits was filed by the authorities on the island of Maui, accusing the company of failing to turn off the power in a timely manner due to negligence in strong winds and dry conditions.
Other lawsuits come from local residents and business owners who have lost their homes.
One of the lawsuits claims that the authorities of Maui and the Bishop's estate failed to maintain their land by mowing or otherwise removing dry invasive grass, which occupied the former sugarcane and pineapple plantations in the area and contributed to the fire.
In another lawsuit, lawyers representing residents and business owners of Rahaina town on Maui claimed that local cable television and telephone companies had damaged the stability of some power poles, causing them to break in strong winds and trigger a fire.
