LIHU‘E — While the island greeted several new businesses in 2009, many others were forced to bid aloha to Kaua‘i amid a struggling economy. Some left silently like Coconuts Restaurant and the Aveda Spa in Kapa‘a, while others, like Blossoming
LIHU‘E — While the island greeted several new businesses in 2009, many others were forced to bid aloha to Kaua‘i amid a struggling economy.
Some left silently like Coconuts Restaurant and the Aveda Spa in Kapa‘a, while others, like Blossoming Lotus, went out with a bang. The vegan fusion eatery in Kapa‘a celebrated its final day ringing in the New Year by hosting an all-you-can eat buffet party Dec. 31, 2008.
“In all honesty we made, as fledgling business owners, some mistakes,” said Gabe Zingaro, one of the restaurant’s owners, when discussing their economical turn of events in 2008.
This past year also marked the end of the plantation era on Kaua‘i.
“Although the writing was on the wall for years, Kaua‘i experienced heart ache when it’s last sugar plantation, closed its sugar operations for good,” wrote county Office of Economic Development Director George Costa in an e-mail Thursday.
However, Costa said he is “encouraged” that Pacific West Energy will generate employment after launching a sugar-to-ethanol business on some 4,000 acres of G&R land.
Other enterprises admittedly expressed concern over their financial future in 2009. Kaua‘i Products Store Owner Mary Rich said in February that sales were down some 40 to 50 percent. Though she exuded optimism that her financial tides would change, the store’s shelves are now empty, much to the chagrin of many individuals who will now have to search a little harder to find a locally owned business at Kukui Grove Center.
“There have been many business closures during the year and mostly because of their reliance on the visitor industry,” Costa said. “Several restaurants, boutique shops and activities companies have not been able to sustain themselves in this economy and have opted to walk way from growing debt.”
One business that sent shock waves through the visitor industry community when it slipped away without a trace was Anini Aloha Vacation Rentals and Management — a division of Arizona-based business Solcrest Properties, LLC — formally located in Kapa‘a. With reported outstanding debts and unfulfilled rental agreements, owners Frank and Teri Klenner left behind several angry clients.
On the other hand, while some businesses left, others stepped up and took their places. The Green Light Creative Arts Center in Kapa‘a is being replaced by another creative outlet for children and adults: Aloha Dance Studio.
“I’m a risk-taker,” said Aloha Dance Studio director Tiffany Dodge when explaining why she chose to expand her operation in the midst of a recession.
“As they say, ‘When one door closes, another one opens,’” Costa said.
Other entrepreneurs who braved the sluggish economy last year and opened up shops were Pink’s Creamery owners David Baker and Mark Goodman, as well as Kaua‘i Nut Roasters owner Christine Bayley-Wortley and Sean Moore.
“People want quality and having the right price points is also key because people don’t have as much disposable income as they used to and even if they do, I don’t think they want to spend it as freely as before,” Bayley-Wortley said in an interview in May when asked how she found such a marketable niche in a tight economy.
Koloa Rum Company is another business opening in recent months aiming to offer something unique to patrons.
“We started this business to give back to the community and economy,” said Koloa Rum Company Chief Executive Officer Greg Schredder earlier this year in regards to Kaua‘i’s first distilled spirits company, which officially launched in August.
This is one example of the “entrepreneurial spirit alive and well on Kaua‘i,” Costa said.
One opening last year which amassed a handful of new businesses was Kukuiula Shopping Village. One-of-a-kind boutiques like Bunglow 9 and Palm Palm as well as eateries such as Bubba’s Burgers and Dude Dogs opened in August.
Hot dogs are “recession proof,” said Dude Dogs owner Dale Morris this summer.
Another new business which has reportedly managed to beat the recession’s woes is Princeville’s St. Regis Resort.
Not only has occupancy already exceeded expectations, said General Manager Milton Sgarbi at the resort’s official opening Oct. 2, but around 96 percent of former Princeville Resort employees returned to work Sept. 9 after nearly a year of unemployment.
“Provided there are no major incidents as they relate to stable oil prices, optimism on Wall Street and a steady upward trend in the housing market, people on the mainland, especially in the Western states and Canada, will travel to Hawai‘i” Costa said when asked if he had any economic predictions for the upcoming year. “Airlines and hotels will continue to provide affordable trips and vacations, and continue their aggressive marketing campaigns. Keeping our visitor industry stable will continue to provide much-needed jobs for the majority of Kaua‘i’s residents.”
• Coco Zickos, business and environmental writer, can be reached at 245-3681 (ext. 251) or czickos@kauaipubco.com.
