At its quarterly membership meeting Thursday, the Kaua‘i Chamber of Commerce, along with First Hawaiian Bank, presented the 33rd annual Kaua‘i County Business Outlook Forum to nearly 330 attendees. The event, held at the Grant Hyatt Kauai Resort & Spa,
At its quarterly membership meeting Thursday, the Kaua‘i Chamber of Commerce, along with First Hawaiian Bank, presented the 33rd annual Kaua‘i County Business Outlook Forum to nearly 330 attendees.
The event, held at the Grant Hyatt Kauai Resort & Spa, featured keynote speaker Dr. Leroy Laney, professor of economics and finance at Hawaii Pacific University and consultant for First Hawaiian Bank.
Laney addressed the strength of Kaua‘i’s economy in 2007, saying it has been a strong year, despite a downturn in the housing market and especially when compared to the slowdown seen throughout the state.
Laney noted the following:
• The construction industry is booming with tourism-related projects.
• Building permits remain strong.
• The housing market slowdown is finally taking place.
• Job creation remains robust. However, Kaua‘i’s current unemployment of 2.4 percent marks an increase on-island, which he attributed to “the inability of employers to find workers.”
• Visitor arrivals as a percentage lead the state in growth.
• The cruise industry continues to face challenges, noting that Norwegian Cruise Lines will pull the Pride of Hawaii from state ports in the beginning of 2008.
• The Pacific Missile Range Facility remains a strong contributor to the island’s economy by providing higher income and highly skilled jobs.
• The agriculture sector continues to diversify with Gay & Robinson’s shifting focus from sugar to ethanol. In addition, Laney noted that ranching has become the predominant use of former sugar cane lands.
• The 75-acre parcel in the Crater Hill area of Kilauea, which will serve as an agricultural park, as well as the re-opening of the disinfestation facility near the airport will add to a substantial increase in papaya production and export, he predicted.
Across the state, Laney said the economy as a whole is still expanding, though at a slower rate. This is especially true in the real estate sector, he said, which has cooled residential construction, development planning and even consumer spending.
Hawai‘i inflation increased at the ratio of 2:1, primarily because of energy and home prices, Laney added.
Speaking on global terms, keynote presenter Dr. Jack Suyderhoud, professor of business economics at the University of Hawai‘i, said that global economic growth remains good, especially in Asia. Suyderhoud noted that commodity prices are feeling the effects of a seven-year global economic expansion, including an increase in oil demand from developing economies such as China and India.
In addition, Suyderhoud said that concerns about inflation are affecting both central bankers around the world and world financial markets. He added that U.S. interest rates will not come down until the Federal Reserve is satisfied that U.S. growth has slowed.
For a copy of the economic forecast, visit First Hawaiian Bank at www.fhb.com or a nearby branch.
The Kaua‘i Chamber’s next event will be Business After Hours from 5 to 7 p.m., Thursday. To make a reservation, call 245-7363 or visit www.kauaichamber.org.
