Water Consumption by the Visitor Industry: The Case of Hawaii

The visitor industry plays a pivotal role in Hawaii's economy, accounting for 30% of the gross state product. It is an important consumer of the state's freshwater supply, with a clear potential for substantial additional demand in the years ahead. Water consumption in hotels and golf courses that cater to the needs of the visitor was analysed. Regression analysis showed that size and price were important determinants of water use by golf courses. The numbers of units, swimming pools and golf courses were found to be statistically significant determinants in water consumption by the hotels. Pricing could be an effective instrument in efficient water allocation to golf courses. A small change in price, however, is unlikely to make a major impact on water use decisions by the resorts and hotels.