State of Hawaii

To mālama our people and home by becoming a global model for sustainable, culturally vibrant island living.

State of Hawaii SWOT Analysis

Updated: October 2, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for State of Hawaii was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

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The State of Hawaii SWOT analysis reveals a critical inflection point. Its world-class brand and strategic location, long its core strengths, are now shadowed by deep-seated weaknesses like economic dependency and an affordability crisis that threatens its social fabric. The analysis underscores that the greatest opportunity lies in leveraging its cultural identity and federal funding to pivot towards a resilient, diversified economy. However, the existential threat of climate change and the persistent brain drain demand immediate, bold action. The core challenge is no longer managing tourism, but fundamentally re-engineering the state's economic and social model for the next generation. The path forward requires a disciplined focus on resident well-being as the primary driver of long-term prosperity, moving from an extractive to a regenerative model.

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Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To mālama our people and home by becoming a global model for sustainable, culturally vibrant island living.

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Strengths

BRAND: World-renowned 'Aloha' brand drives premium tourism revenue.
LOCATION: Strategic military and logistics hub for the U.S. in the Pacific.
NATURE: Unparalleled natural assets are the foundation of the economy.
CULTURE: Unique host culture provides an authentic, differentiated experience.
FEDERAL: Significant, stable economic inflow from federal spending/defense.

Weaknesses

COST: Highest cost of living in the U.S. creates hardship for residents.
DEPENDENCE: Over-reliance on tourism (~20% of GDP) creates volatility.
LOGISTICS: 90% of goods are imported, creating supply chain vulnerability.
HOUSING: Severe shortage of affordable housing displaces local families.
BUREAUCRACY: Slow permitting and regulatory processes stifle innovation.

Opportunities

DIVERSIFICATION: Grow tech, health, and creative sectors via state investment.
RENEWABLES: Leverage federal funds to accelerate transition to 100% clean energy.
REGENERATIVE: Shift tourism model to 'regenerative' to attract high-value visitors.
AGRICULTURE: Invest in local food production to improve food security.
REMOTE WORK: Attract high-income remote workers to diversify the tax base.

Threats

CLIMATE CHANGE: Increasing frequency of natural disasters (wildfires, hurricanes).
COMPETITION: Other global destinations are cheaper and innovating faster.
INFLATION: Persistent inflation erodes resident purchasing power and state budget.
BRAIN DRAIN: High costs and limited opportunities drive skilled workers away.
TOURISM SHIFT: Post-pandemic travel preferences may shift away from Hawaii.

Key Priorities

RESILIENCE: Fortify economy and infrastructure against external shocks.
AFFORDABILITY: Aggressively tackle the housing and cost of living crisis.
DIVERSIFICATION: Actively cultivate post-tourism growth industries.
SUSTAINABILITY: Lead in renewable energy and regenerative tourism models.

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State of Hawaii OKR

Updated: October 2, 2025 • 2025-Q4 Analysis

The State of Hawaii OKR plan is a masterclass in strategic focus, translating existential challenges into actionable, inspiring goals. It rightly prioritizes resident well-being and economic resilience over outdated metrics of visitor arrivals. The objectives—BOOST RESILIENCE, RESTORE AFFORDABILITY, DIVERSIFY BEYOND, and MĀLAMA TOURISM—form a cohesive narrative of transformation. The Key Results are sharp, outcome-driven, and directly address the critical weaknesses and threats identified in the SWOT. This is not an incremental plan; it is a bold declaration of a new operating model for Hawaii, one that leverages its unique culture to build a sustainable and equitable future. Its success will redefine what a thriving island economy looks like.

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No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To mālama our people and home by becoming a global model for sustainable, culturally vibrant island living.

BOOST RESILIENCE

Fortify our economy and infrastructure against shocks.

GRID: Reduce energy import dependence by 15% by funding 3 new large-scale renewable projects.
FOOD: Increase local food production to replace 10% of food currently imported from off-island.
WATER: Secure and protect freshwater sources by implementing the state water plan in 5 priority zones.
RESPONSE: Deploy an AI-powered disaster prediction system, reducing emergency response time by 25%.

RESTORE AFFORDABILITY

Aggressively tackle the cost of living for residents.

HOUSING: Break ground on 10,000 new affordable housing units through policy reform and state funding.
COSTS: Reduce the median family's household costs by 5% via targeted tax credits and fee reductions.
WAGES: Increase the real median wage by championing policies that support high-growth industries.
SENTIMENT: Improve Resident Net Promoter Score (rNPS) from an estimated -10 to a positive score.

DIVERSIFY BEYOND

Cultivate high-growth, post-tourism industries.

FUNDING: Establish a $100M state-backed venture fund to invest in local tech and green startups.
JOBS: Create 5,000 new non-tourism jobs in sectors paying above the state's median wage.
EDUCATION: Double the number of University of Hawaii graduates in STEM and AI-related fields.
BRANDING: Launch a global campaign to position Hawaii as a hub for climate tech and remote work.

MĀLAMA TOURISM

Lead the world in regenerative tourism.

IMPACT: Implement visitor impact fee system, generating $50M annually for conservation efforts.
METRICS: Shift from 'number of arrivals' to 'visitor satisfaction & economic impact' as primary KPIs.
CERTIFICATION: Launch a 'Pono Traveler' certification for 1,000 hotels and tour operators.
MANAGEMENT: Use new tech to manage visitor capacity at 10 of our most sensitive natural sites.

METRICS

Resident Net Promoter Score (rNPS): 20+
Median Household Income (Real Growth): 3% Annually
GDP % from Non-Tourism Sources: Increase from 80% to 85%

VALUES

Aloha (Compassion, Love)
Mālama (To Care For)
Kuleana (Responsibility, Privilege)
ʻOhana (Family, Community)
Pono (Righteousness, Balance)

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State of Hawaii Retrospective

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

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No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To mālama our people and home by becoming a global model for sustainable, culturally vibrant island living.

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What Went Well

TOURISM: Visitor spending and arrivals exceeded initial post-pandemic forecasts.
REVENUE: State tax revenues remained robust, leading to a budget surplus.
FEDERAL: Secured significant federal funds for infrastructure and recovery.
EMPLOYMENT: Unemployment rate continued to decline toward pre-pandemic levels.
ENERGY: Continued progress on renewable energy projects across the islands.

Not So Well

HOUSING: Housing costs and homelessness reached new crisis levels.
INFLATION: Persistent inflation disproportionately impacted local families.
DISASTER: The Maui wildfire response exposed gaps in preparedness and communication.
DIVERSIFICATION: Economic diversification efforts showed limited tangible results.
TRUST: Public trust in government was strained by disaster response and crises.

Learnings

VULNERABILITY: Economic and environmental vulnerabilities are deeply interconnected.
PREPAREDNESS: Existing disaster preparedness infrastructure is inadequate for new threats.
COMMUNITY: Community-led initiatives are often more agile than government responses.
AFFORDABILITY: The economy cannot be healthy if residents cannot afford to live here.
COMMUNICATION: Proactive, transparent communication is critical during any crisis.

Action Items

HOUSING: Fast-track permitting for affordable housing projects statewide.
RESILIENCE: Create a cabinet-level Chief Resilience Officer position.
COMMUNICATIONS: Overhaul the statewide emergency alert and communication system.
DIVERSIFICATION: Allocate a dedicated fund for non-tourism startup investments.
BUDGET: Earmark surplus funds for a cost-of-living relief package for residents.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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State of Hawaii Market

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

Founded: Statehood: August 21, 1959
Market Share: ~1.5% of global tourism market, but a leader in premium Pacific travel.
Customer Base: 1.4M residents, 9-10M annual visitors, U.S. Federal Government.
Category:
State Government
SIC Code: 9199 Administration of General Economic Programs
NAICS Code: 921190 Other General Government Support
Location: Honolulu, Hawaii
Zip Code: 96813
Congressional District: HI-1 HONOLULU
Employees: 62400

Competitors

Mexico Request Analysis

Maldives Request Analysis

Tahiti Request Analysis

Costa Rica Request Analysis

Florida Request Analysis

Products & Services

No products or services data available

Distribution Channels

State of Hawaii Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

Problem

Balancing economic needs with finite resources
High cost of living for residents
Vulnerability to external shocks (climate, economy)

Solution

Public services (education, safety, health)
Infrastructure development and maintenance
Economic stewardship and regulation

Key Metrics

Gross State Product (GSP) growth
Resident satisfaction and well-being indices
Unemployment Rate and Median Household Income

Unique

The Aloha Spirit as a cultural asset
Only island state in the U.S.
Unique blend of American and Polynesian culture

Advantage

Strategic military location in the Pacific
Irreplaceable natural beauty and biodiversity
Strong global brand recognition

Channels

State departments and agencies
Digital portals and online services
County governments as implementation partners

Customer Segments

Residents (Kamaʻāina)
Visitors (Mākaʻikaʻi)
Businesses and Federal Government

Costs

Public employee salaries and benefits
Infrastructure projects and maintenance
Social services and healthcare programs

State of Hawaii Product Market Fit Analysis

Updated: October 2, 2025

The State of Hawaii is creating the blueprint for a sustainable future, balancing a world-class visitor experience with a thriving home for its people. By integrating indigenous wisdom with modern innovation, it's building a resilient economy and regenerating its precious natural resources, proving that prosperity and preservation can coexist.

A thriving home for our local people

A model of sustainable existence

An authentic cultural experience

Before State

Overwhelmed by high costs and tourism
Disconnected from authentic culture
Worried about climate & economic future

After State

Thriving in a balanced, resilient home
Deeply connected to culture & place
Confident in a sustainable future

Negative Impacts

Resident displacement due to high costs
Environmental strain from overtourism
Economic vulnerability to global shocks

Positive Outcomes

Affordable living for local families
Regenerated ecosystems and resources
Diverse, stable economic opportunities

Key Metrics

Resident Retention Rate

98% annual (high cost of exit)

Net Promoter Score (NPS)

Estimated 40-50 for tourism, lower for residents

User Growth Rate

Population growth near 0%; tourism recovery focus

Customer Feedback/Reviews

1000s on travel sites; resident sentiment mixed

Repeat Purchase Rates

~60% of visitors are repeat travelers to Hawaii

Requirements

Bold policy on housing and tourism
Investment in new economic sectors
Community-led resource management

Why State of Hawaii

Pass and fund housing initiatives
Incentivize green tech and agriculture
Empower local stewardship programs

State of Hawaii Competitive Advantage

Authentic host culture (Aloha)
Unique fusion of nature and innovation
Commitment to indigenous wisdom

Proof Points

Highest renewable energy goal in US
World-class natural resource management
Global destination for cultural travel

State of Hawaii Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

Strategic pillars derived from our vision-focused SWOT analysis

ECONOMIC DIVERSIFICATION

Shift from tourism to tech & renewables.

SUSTAINABLE TOURISM

Implement regenerative models; quality over quantity.

RESIDENT PROSPERITY

Prioritize affordable housing & cost of living.

INFRASTRUCTURE MODERNIZATION

Fortify energy, water, and digital grids.

What You Do

Provides governance, services, and stewardship for a unique island archipelago.

Target Market

Residents, visitors, businesses, and the natural environment of Hawaii.

Differentiation

Unique Aloha culture and indigenous host culture.
Unparalleled natural beauty and biodiversity.
Strategic mid-Pacific location for defense and science.

Revenue Streams

General Excise Tax (GET)
Transient Accommodations Tax (TAT)
Income Taxes
Federal Funding

State of Hawaii Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

Company Operations

Organizational Structure: Executive, Legislative, and Judicial branches with county governments.
Supply Chain: Highly dependent on maritime shipping for ~90% of all goods, including food.
Tech Patents: Hub for astronomy, oceanography, and renewable energy research.
Website: https://portal.hawaii.gov/

Top Clients

Board Members

N/A (Governed by elected officials)

State of Hawaii Competitive Forces

Threat of New Entry

LOW: Geographic isolation, high operating costs, and established infrastructure create formidable barriers to entry for a new 'Hawaii-like' destination.

Supplier Power

HIGH: Extreme dependence on a few shipping companies and airlines for goods and visitors creates significant pricing power for those suppliers.

Buyer Power

MEDIUM: While tourists have many choices (high power), Hawaii's unique brand and appeal create inelastic demand among certain segments (low power).

Threat of Substitution

MEDIUM: Substitutes include other vacation types (cruises, national parks) or choosing 'staycations'. Virtual reality experiences are a nascent threat.

Competitive Rivalry

HIGH: Intense competition from global sun-and-sand destinations like Mexico, the Caribbean, and Southeast Asia, often at lower price points.

Analysis of AI Strategy

Updated: October 2, 2025 • 2025-Q4 Analysis

The State of Hawaii AI SWOT analysis highlights a powerful asymmetry: world-class, unique data assets constrained by a nascent talent and infrastructure ecosystem. The state's future competitive advantage hinges on leveraging its unparalleled environmental and astronomical data for high-value AI applications, particularly in climate resilience and renewable energy optimization. The primary focus must be on cultivating a local AI talent pipeline through the university system and targeted investment. By creating a strategic, ethically-grounded plan for AI adoption in government services and disaster management, Hawaii can transform its operational efficiency. The risk is not being outcompeted in general AI, but failing to capitalize on the specialized AI applications where its unique data gives it an unfair advantage. This is a strategic imperative for long-term resilience and economic diversification.

Mexico Maldives Tahiti Costa Rica Florida

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To mālama our people and home by becoming a global model for sustainable, culturally vibrant island living.

Strengths

DATA: Unique datasets in astronomy, oceanography, volcanology, and ecology.
UNIVERSITY: University of Hawaii as a research hub for AI applications.
MILITARY: Presence of sophisticated defense AI research and applications.
ENERGY: Rich data from renewable energy grids for AI-powered optimization.
TOURISM: Massive visitor data pool for demand forecasting and management.

Weaknesses

TALENT: Shortage of local AI engineers, data scientists, and ML experts.
INFRASTRUCTURE: Lack of large-scale, local data centers and compute power.
INVESTMENT: Insufficient venture capital and state funding for AI startups.
ADOPTION: Slow adoption of AI technologies within state government agencies.
CONNECTIVITY: Undersea cable dependency creates a single point of failure.

Opportunities

GOVTECH: Use AI to automate services, improve efficiency, and reduce costs.
DISASTER: AI-powered predictive modeling for wildfires, tsunamis, and hurricanes.
AGRICULTURE: Precision farming via AI to boost yields and food security.
ENERGY: AI-driven grid management to stabilize and optimize renewable sources.
TOURISM: AI tools for managing visitor flows and promoting sustainable travel.

Threats

BIAS: AI models trained on mainland data may not fit local cultural context.
AUTOMATION: AI-driven automation could displace workers in hospitality sector.
SECURITY: Increased vulnerability to cyberattacks on AI-managed infrastructure.
COMPETITION: Other states/nations building more attractive AI ecosystems.
ETHICS: Lack of clear policy on AI use in governance and surveillance.

Key Priorities

GOVERNANCE: Develop a statewide AI ethics and implementation strategy.
PREDICTION: Prioritize AI for disaster prediction and climate resilience.
EFFICIENCY: Deploy AI to modernize government services and cut waste.
WORKFORCE: Fund AI education and talent development at the University of Hawaii.

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State of Hawaii Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) reports.
Hawaii State Legislature budget documents and session reports.
Governor's office press releases and strategic priority statements.
University of Hawaii Economic Research Organization (UHERO) forecasts.
Reputable news sources covering Hawaii's economy, politics, and social issues.

Profit: $1.9B (FY2023 Budget Surplus)

Market Cap: N/A

Stock Performance

Annual Report: State of Hawaii Comprehensive Annual Financial Report (CAFR)

Debt: $14.2B (Total Outstanding State Debt)

ROI Impact: Social ROI: Resident well-being, environmental health, economic stability.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Challenged Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Hawaii possesses a world-class brand and an ambitious, society-shaping vision. However, its path is constrained by severe internal weaknesses (cost of living, dependency) and external threats (climate), reflected in a low SWOTFactors score. The OKRs are strong and directly address these issues, boosting achievability. The 'Challenged Leader' tier signifies its immense potential is at risk if it cannot execute this difficult but necessary transformation.

SWOT Factors

Upside: 70.0 Risk: 83.3

OKR Impact

AI Leverage

Top 3 Strategic Levers

SOLVE HOUSING: Aggressively executing the affordability OKR.

DIVERSIFY REVENUE: Reducing tourism dependency via new industries.

FORTIFY INFRASTRUCTURE: Leveraging federal funds for climate resilience.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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