Business Report: The end of the year economy - Hawaii News Now - KGMB and KHNL

Business Report: The end of the year economy

HONOLULU (HawaiiNewsNow) -

There is a peculiar economy that exists in the week between Christmas and New Year's.

First, there is what retailers call the Second Season - a time that used to be for returns - but now features people buying for themselves what other people didn't get them for Christmas. For some stores, especially clothing and electronics, what moves this week can save a less-than-forecast season.

Second, there is the mini-economy that has been built around New Year's celebrations - the sale of really expensive sashimi and all the accoutrements - and, of course, the fireworks - more people took out licenses this year.

Third, we have the end-of-year bump in tourism. Mostly couples, including many Japanese and Canadians, flocking here to ring in the new year in a nice hotel. It's complicated to get a quick read on it, though, because of locals flying home for the holidays. Ordinarily they make up about 13% of arrivals but it can be more this time of year.

Finally, there is an end-of-year spike in charitable giving. That's because it's tax deductible, and people are looking to reduce their taxable income before the calendar year ends, especially if they're on the cusp of a higher bracket.

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