A recent report issued by the County Council last week shows that Kaua‘i’s tourism, construction and service sectors were among the healthiest in the state. But the report shows that slow economic diversification, rising home prices and clogged roads will
A recent report issued by the County Council last week shows that Kaua‘i’s tourism, construction and service sectors were among the healthiest in the state.
But the report shows that slow economic diversification, rising home prices and clogged roads will continue to challenge Kauaians to consider “lifestyle choices.”
“These needs may strain the County budget over the longer term,” it read. “Because the island’s economic heart will continue to be tourism, it will also continue to be vital to provide the infrastructure necessary for higher-revenue tourism growth.”
The annual study is done by the University of Hawaii Economic Research Organization under a contract with Kaua‘i County.
Construction jobs were up almost 14 percent in early 2004, while the service sector expanded over 5 percent and education around 3.8 percent, the report read.
While Kaua‘i’s unemployment rate of just under four percent is by far the best of the neighbor islands, job growth for the next few years looks mild: just under 2 percent this year, compared with 3.8 percent last year, 1.5 percent in 2005 and 1.2 percent in 2006.
Still, with only 60,000 residents, the report indicates it should be enough to keep unemployment low.
Kaua‘i is becoming more of a “celebrity destination,” read the report.
“Along with this changing image will come higher expectations,” it read.
Hence, the need for older hotels to be renovated in the coming years to attract a more sophisticated traveler.
Also, the report read that time share visitors here are a “blessing in uncertain times because time share visitors often come regardless of negative developments.”
In other words, they’ve already paid for it, so they might as well come.
The report touched on sociological factors like the in-migration of “well-educated and highly paid professionals” who “bring both promise and pain.”
Kama‘aina are concerned about maintaining a relaxed lifestyle and “chafe at the construction of gated communities or ostentatious homes” that drive up housing costs for everyone, the report read.
“Growth of a healthy diversified technically sophisticated economy cannot occur without attracting and maintaining a skilled professional workforce,” it read.
“In this sense, welcoming and integrating new residents into the local economy may be important to foster Kaua‘i’s broader economic development goals,” the report said.
What are the solutions to Kaua‘i’s future difficulties?
In sum, better education opportunities, including a four-year university, more roads, renovated hotels and a welcoming population. The Garden Island will continue to mine data from the report over the next few weeks.
Phil Hayworth, Business Editor, can be reached at 245-3681 (ext. 251) and mailto:phayworth@pulitzer.net
