Ka Wai Ola - Office of Hawaiian Affairs, Volume 28, Number 4, 1 April 2011 — THE ECONOMICS OF MERRIE MONARCH [ARTICLE]

THE ECONOMICS OF MERRIE MONARCH

Hilo was hit by a tsunami on May 23, 1960, taking 61 lives and leaving more than 500 buildings in ruins. In the wake of the devastation, an eeonomie recovery plan for the Big Island was needed. These thoughts initiated the humhle beginnings of the Merrie Monarch Festival, with the first event in 1964. The festival is now considered the world's ultimate hula eompetition with hālau traveling from around the globe to participate, and tickets sold out months in advance. Approximately 4,200 people attend the annual week of festivities, providing Hawai'i County with an increase in total sales of $5.9 million to $7.2 million, or an average of $6.56 million, according to Tlie Eeonomie Contributions ofMerrie Monarch Festivaī 2009, a study by Professor David Hammes of the Economics Department at the University of Hawai'i-Hilo, for and in collaboration with Randy Kurohara of Hawai'i County's Research and Development Department. Here are some highlights from the report: The breakdown of festival attendees are: Travelers f rom the East ( 14 percent) Travelers from the United States (15 percent) Hawai'i lsland residents (22 percent) Other Hawai'i residents (49 percent) The festival's approximate eeonomie benefits are that it: Creates an average of $3.36 million in new spending Generates an average increase in total sales of $6.56 million Creates an average of 72 new, annual jobs lncreasesearnings by $2 million Raises tax revenue by $467,600 Special events benefit industries in accommodations, rentals, transportation, retail, food and beverage, arts and entertainment, wholesale, processing and other services. This results in new jobs, increased earnings, higher tax revenues and extended impacts that help to boost the economy. Approximately $2 million in sales is on shopping and miscellany, the 2009 report states. It also said that craft fair activity alone may account for more than $1.2 million in gross sales revenues for the week. Many loeal shops and crafters have referred to Merrie Monarch Festival week as Christmas in April. In addition to the hnaneial gains the week provides, the Hawaiian language and culture are celebrated and perpetuated during the Festival, with many successful students that compete earning a reputation of excellence from their performances, and carrying the torch forward to perpetuate the Hawaiian culture. ■