The pervasive drought conditions gripping Hawaii have taken a severe turn, with even Hilo, a city celebrated for its abundant rainfall, now facing significant water shortages. This unexpected development, highlighted in a recent report from the Honolulu Star-Advertiser, underscores the severity of the situation across the entire state. The National Weather Service has issued drought information statements, which are updated regularly to keep the public informed on the changing conditions.
The impacts of the drought are far-reaching and are already being felt by various sectors of the Hawaiian economy. Agricultural businesses, particularly on the Big Island, are struggling with degrading field conditions, and ranchers are reporting significant agricultural impacts. “Drought conditions have gotten worse on Hawaiʻi island,” as indicated by the latest U.S. Drought Monitor map. Furthermore, decreased rainfall and streamflow has been a persistent problem over the past 30 years, according to Hawaii.gov, which cites that 90% of the state is receiving less rainfall than it did a century ago.
For entrepreneurs and business owners, this means increased operational costs and potential limitations on growth. Tourism and hospitality businesses might face challenges in maintaining their landscapes and meeting guest demands, while developers may encounter difficulties with water availability for new projects. The situation also presents opportunities, however; businesses focused on water conservation technologies, sustainable landscaping, and drought-resistant agriculture could see increased demand. The HFBF has also been closely monitoring the situation and its impact on the local industry.
Investors should be mindful of the potential risks associated with water-intensive ventures and consider sectors that are more resilient to drought conditions. Professionals in real estate and construction should be prepared for stricter water regulations and the need for sustainable building practices. As drought is the second most costly natural disaster, according to the NOAA, the state's response and long-term planning will be critical for mitigating the economic impact of this environmental challenge. The U.S. Drought Monitor map is jointly produced by the National Oceanic and Atmospheric Administration, U.S. Department of Agriculture, and National Drought Mitigation Center.
