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The Honolulu Advertiser

Posted on: Friday, October 5, 2001

Diversity keeps Big Island economy afloat, Kim says

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — Diversity in the Big Island economy is helping to soften the blow of a downward turn in tourism following the Sept. 11 terrorist attacks, Mayor Harry Kim said.

Kim and local business leaders yesterday discussed some of the positive things that are happening in Hawai'i County.

For example, 600 people from around the world will attend this week's Hawai'i Export Nursery Association convention in Hilo. Paula Helfrich, president of the Hawai'i Island Economic Development Board, said flower growers account for $60 million in statewide sales, with Big Island farms accounting for about 90 percent of that figure.

Although West Hawai'i is more heavily dependent on tourism than East Hawai'i, Kim said the Kona area is sharing in other kinds of growth as well.

He cited the installation of a $21 million ocean pipeline at Keahole's Natural Energy Laboratory-Hawai'i to carry deep, cold water from offshore to commercial ocean farming projects upslope. Deep-ocean water is desired because it is free of pathogens and considered rich in nutrients.

Kim described the Natural Energy Laboratory "as the most exciting project on this island."

Meanwhile, J.W.A. "Doc" Buyers, who is retiring as head of C. Brewer at the end of this year, has announced new projects north of Hilo and in Honomu.

Earlier this week, Buyers revealed plans for an upscale hotel near Brewer's company headquarters at Wainaku. He expects 350 jobs at the hotel eventually.

Further off in the future is an assisted-living project for well-heeled retirees.

Also surfacing this week was a proposal for $88 million in construction for the University of Hawai'i-Hilo. The projects would include a 10,000-seat events arena, costing $55 million, that could double attendance at the annual Merrie Monarch Hula Festival; a $25 million science center; and an $8 million student services building.

On the tourism front, Kim has recruited his predecessor, Steve Yamashiro, to accompany Gov. Ben Cayetano and other state leaders on a mission to Japan next week to urge visitors to start coming again.

The Japanese Chamber of Commerce and Industry of Hawai'i will send its own delegation to Japan this weekend. President Barry Mizuno said the group is sending five people to Hiroshima for a trade show that annually draws 250,000 people to promote the Big Island and the University of Hawai'i-Hilo.

It is the first time Big Islanders will have taken part in the trade show.

Kim praised Helfrich and others from the economic board for initiating almost daily "Imua" updates to reflect some of the good news, including the fact that this weekend's Ironman Triathlon has lost few of its 1,500 entrants.

That has kept Kailua hotels in Kona busy this week, though operators worry about what will happen after that.

Despite the optimistic outlook, some segments of the Big Island economy are continuing to struggle with events that have nothing to do with the terrorist attacks.

North Kohala rancher Herbert "Monty" Richards said the livestock industry is "slowly being ground down" by a persistent drought now in its third year.