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The Honolulu Advertiser

Updated at 4:53 p.m., Monday, October 16, 2006

Quake expected to have minimal impact on economy

By Sean Hao
Advertiser Staff Writer

Sunday's earthquakes were expected to have minimal impact on Hawai'i's healthy economy, according to economists.

The effects were mitigated in part because the earthquakes and subsequent substantial power outages occurred on a weekend, rather than a week day. That mostly affected retailers and Waikiki's tourism business. But overall, "the effect on O'ahu was marginal mainly because it was a Sunday," said Byron Gangnes, a University of Hawai'i associate professor of economics.

There was no estimate of the economic cost of Sunday's events available today. However, it seemed unlikely the cost would top the $75 million price-tag of the last O'ahu-wide power outage in 1991. That blackout occurred on a Tuesday and resulted in several failed lawsuits seeking damages from Hawaiian Electric Co.

As for Sunday's earthquakes, the lingering economic concerns were restoring power across the state and opening Kona's Kawaihae Harbor, which was closed because of structural concerns.

"In terms of any economic impact those are the two big concerns," Gangnes said.

The earthquakes, which garnered nationwide publicity, probably won't tarnish Hawai'i's image or the state's $12 billion tourism trade.

"I think there's a possibility it has a perverse positive impact," Gangnes said. "People are reminded that we're here. I don't think people are driven away especially since there was no loss of life or serious injury."

Pearl Imada Iboshi, the state's chief economist, agreed the impact of Sunday's events should have minimal impact on Hawai'i's economy.

"The impact was relatively concentrated and and the damage wasn't very large," she said. "Things should come back to normal pretty quickly."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.