Why So Expensive?
Hawaii is an amazing place that every person wants to visit. However, one thing that stops them from even making plans is the high expenses! As a person coming from Mainland, you will find the cost of small things such as bread or a carton of milk higher than what you pay for in your hometown.
From property costs to state-side services and goods, everything costs extra.
Most tourists don’t know that everything in Hawaii is shipped from other states. 90% of the goods in Hawaii, which include food, furniture, luxury items, fuel, and more, arrive via boat. There are limited ports in Hawaii, and it takes a lot of time to import all the goods. Since Hawaii relies solely on this trade, the costs in this state keep rising.
Here are some of the reasons why Hawaii is so expensive:
Many of the Necessities Are Imported
Hawaii has an island economy, which means that many of the common necessities people use in their everyday lives are not manufactured here. As a result, people have to import many things they consume. There’s little to no farming because of the lack of space. Since grocery items are some of the top items exported here, they cost 66% more than they do in other parts. As a result, visitors pay an exorbitant price when they vacation in Hawaii.
Labor Is Seldom Found
Life in Hawaii follows a vicious cycle. We have already told you that the cost of living in Hawaii is pretty high, so this state doesn’t attract many workers. As a result, labor is scarce. Hawaii has an unemployment rate of 2.8%, and it keeps shifting between the 4th and 5th position on the list of cities with the lowest unemployment rate in the US.
It is tough to come across a competent worker. The unemployment rate here is so low that they can’t access the neighboring labor pools as mainland states do
Import Raises Utility Costs
After housing, utilities cost the most in Hawaii. This also includes transportation. Since the state depends on petroleum, which is imported, to generate electricity, it can be difficult to keep the lights running. The power grids are isolated, which contributes to the high cost.
Does this mean that long-time residents in Hawaii are suffering the brunt of this high cost too? Yes! Energy cost in the Aloha state is 72% higher than the average rate in other US states. Do you want to hear something even more mind-blowing: Even though Hawaii has the lowest energy consumption, the electric city rates are still very high!
Most people tend to travel to Hawaii during summer vacation. They stay for at least a week in this prime season Maxwell Drever says, allowing locals to raise prices. Since hotel owners know that tourists will prefer to stay in a luxury resort, they double the accommodation cost.
And this is why Hawaii is so expensive! As one of the most popular tourist locations that imports all its goods, it makes sense that the state would charge such high prices.