Economic prediction says stubborn recession won’t go away quickly

Forecast: Slow recovery ahead for Hawaii

HONOLULU — A new Hawaii economic forecast predicts Hawaii will make only lackluster gains next year followed by modest growth in 2011.

The Department of Business, Economic Development and Tourism’s report Tuesday said Hawaii’s economy continues to languish because of diminished spending by visitors on hotel rooms, souvenirs and meals.

Visitor spending is expected to fall by about an eighth of what it was last year, and more jobs will be lost this year than previously believed.

Other forecasts agree that the state’s economic malaise will persist into the first half of next year.

Any comeback will be slow. The state estimates a 2 percent rise in tourists will occur in 2010 following two years of setbacks in the visitor count.