Hawai'i improves in Forbes listing
By Sean Hao
Advertiser Staff Writer
Forbes magazine, which two years ago likened doing business in Hawai'i to financial suicide, significantly increased the state's ranking in its 2004 Best Places for Business Survey.
Forbes magazine's list of best places to do business can be found at www.forbes.com. Search for keyword "Hawaii." You will need to register to access recent articles.
In an article in its May 24 issue, the magazine ranks Honolulu number 113 out of 150 cities for business-friendliness. The ranking marked an improvement over last year's 142nd spot.
• Learn more
Hawai'i typically has not fared well with Forbes, which once labeled the state "The People's Republic of Hawai'i."
This year the magazine credits Gov. Linda Lingle, the state's first Republican in 40 years, for trying to turn that reputation around and opposing the state's pending gasoline price cap, although it acknowledged changes could take a while.
"Not great, but at least it's broken out of the bottom 10," the magazine said of the state.
The article points to Hawai'i's strengthening tourism sector and relatively low unemployment. However, Forbes said the state still needs to address such issues as high taxes and healthcare costs.
The magazine, which was once criticized as "far right" by former Democratic Gov. Ben Cayetano, pointed to the Democrat-controlled Legislature for blocking Lingle proposals on education, taxes and the state's methamphetamine problem.
But Ted Liu, director of the state Department of Business, Economic Development and Tourism, said the improved ranking was based on more than the state electing a Republican governor.
"I think they're doing it because it's a Republican governor and the economy in Hawai'i is doing much better," he said. "That's a credible jump. Anything more than that would have been unbelievable."
Liu said the magazine's criticisms of Hawai'i over the years haven't been entirely undeserved. "This is a magazine that's had it out for us," he said. But he added: "It's a reflection at least of perception, if not reality."
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
