BOSS Survey: Optimism & Concern
Hawaii companies forecast overall economy and reveal staff and spending plans for coming year
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Everyone was asked which of three statements best describes their firm’s spending plan for the coming year.
One-third (33%) of the businesses polled expect more cost cutting in the coming year. Half expect no substantial changes in spending while 14% expect to see spending increases.
Two-thirds report lower revenues
Eighteen percent of the firms taking part in the study reported increases in gross revenue over the last year. Fourteen percent reported no change, while 64% reported declines. The percentage of declines is the worst in 12 years of these QMark surveys.
Pre-tax profits down for 2nd year
Twenty percent of the businesses polled report increases in profit before taxes compared to the prior year. Sixteen percent report profits before taxes have remained the same while 55% report a decline. When the data is tracked we find the results relatively unchanged from a year ago.
Visitor industry reflects overall Hawaii economy
We focus here on companies that rely on tourists. Among the 403 firms surveyed, 292 say they get most or some of their income from the visitor industry (19% say most and 46% say some income). Separate indices were run just for these businesses.
Revenue, profit and staffing
Visitor-industry-related businesses were also compared against the overall sample for certain key measurements for the past year.
The research shows two-thirds (62%) of these businesses expect revenues from the visitor industry to remain stable over the next year. Of the reminder, 11% think revenue from this segment will be substantially more while remaining 27% think it will be substantially less than a year ago.
Forecast for coming year
These same firms were asked to estimate the revenue they will generate this year from visitor industry sales.
Real estate prices
Businesses were asked for their thoughts on the local real estate market. One in four (24%) respondents feels prices in the residential market will rise in the coming year. Half (54%) feel things will remain stable while 21% expect the residential real estate prices will decline further in the next year.
More businesses thought that commercial real estate prices and rents would decline in the coming year. Nineteen percent think commercial real estate prices will increase along with rental rates. Forty-one percent think they will remain stable while 38% think prices will decline in the commercial sector.
Who we surveyed
Percentages may not add to 100 because of rounding or no reply.
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