The September 11th attack
Job loss at hotels foremost concern

By David Briscoe
Associated Press

Unemployment claims among the Islands' hotel workers have ballooned to 20 times last year's level, and Hawai'i could face its steepest economic decline in modern history a month after terrorists attacked the United States, the state's top economic development official said yesterday.

"This is much more serious than the post-Gulf War period, and it calls for swift action," said Seiji Naya, director of the state Department of Business, Economic Development and Tourism.

Naya outlined gloomy scenarios that could see a loss of up to $1 billion in the state's total economic output by the end of the year.

Unemployment filings in the air transportation industry are at seven times the typical levels and retail unemployment filings are at eight times last year's numbers, according to statistics being updated daily on the department's Web site.

Most disturbing, Naya said, is the number of hotel workers filing for unemployment benefits — 20 times the number a year ago.

In the two-week period following the Sept. 11 terrorist attacks, 3,607 workers in hotel and related industries filed for unemployment benefits. In the same period one year ago, there were 184 applicants.

As of Monday, unemployment filings had fallen to half the level of the previous two weeks — an encouraging sign, but too early to tell if it's a longer-run trend, said Tom Jackson, spokesman for the state Department of Labor and Industrial Relations.

More than 600 people applied for unemployment benefits on Monday, compared to more than 1,200 the previous two Mondays.

More than 95 percent of employment losses are in industries dependent upon tourism, Naya said. He said hotel jobs account for 50 percent of the increased jobless claims, with retail taking up 23 percent, transportation 13 percent and eateries nine percent.

Leading to the employment losses is the sharp decline in travelers to the Islands — down 20 percent from the Mainland and even more from Japan.

A year ago, 5,000 to 6,000 Japanese tourists arrived in the Islands each day. This year, inbound tourists from Japan number 3,000 to 4,000.

Even if tourism improves through the rest of the year to no worse than the depressed level after the Gulf War — an overall 13 percent decline — losses could total 11,000 layoffs and $470 million from the gross state product, Naya projected.

Gross state product is considered real income, after costs. Losses in sales and services provided by businesses would be even greater.

If tourism losses bring a 30 percent downturn for the rest of the year, as some observers predict, the state could suffer layoffs exceeding 25,000, and as much as a $1 billion loss in gross state product, Naya said.

• On the Web

Department of Business, Economic Development and Tourism: www.state.hi.us/dbedt/index.html