By Angela Cifone

HONOLULU (Island News) — The state ranked 50th overall, finishing last in infrastructure and last in cost of doing business.

“I think Hawaii needs to figure out where it wants to be, and then you know the rankings will improve,” said Dane Wicker, Deputy Director at the Department of Business, Economic Development and Tourism (DBEDT).

It also ranked among the nation’s worst for cost of living, while its quality-of-life ranking dropped to sixth.

“Reality hits in. It’s just not an easy place to do business,” said Keli’i Akina, President and CEO of Grassroot Institute of Hawaii.

Business leaders say it’s no surprise. Experts point to Hawaiʻi’s isolation, high shipping costs, the state’s general excise tax, and complex regulations, that make it difficult to open and sustain a business.

“The GE tax. It’s a tax that keeps on taxing. Every aspect of the business transaction and production world gets taxed multiple times, and that adds up,” said Akina.

The Chamber of Commerce Hawaii says many of the challenges identified in the report have existed for years. The state received failing grades in areas including infrastructure, business costs, permitting and affordability.

“We just need to keep continuing to address the issues that matter the most because we do live in a very different place. We’re affected by different things: our location and our culture, as well as workforce development, housing, affordability, infrastructure, and permitting reform,” said Nicole Monton, Associate Vice President of External and Government Relations at Chamber of Commerce Hawaii.

State officials say there isn’t one simple fix, but agree lowering costs, investing in infrastructure, and making it easier for businesses to grow will be key to improving Hawaiʻi’s business climate.

“The CNBC ranking does provide a snapshot of where Hawaii is today, but that doesn’t determine where we go in the future,” said Monton.

CNBC says this year’s rankings placed greater emphasis on infrastructure than ever before. But experts here in Hawaii are hopeful that if we focus on the main problems, we can work our way up the rankings.

See the story here.