Posted on: Friday, May 17, 2002
Island Voices
Once again a gathering place
Rick Egged is president of the Waikˆkˆ Improvement Association.
People on O'ahu used to take pride in saying they never went to Waikiki. Visitors too were disenchanted. They saw Waikiki as a decaying tourist enclave with nothing happening and no local residents. Renewal was long overdue.
Waikiki had two choices: change or steady decline. At this point, the city decided to invest substantially in Waikiki. Over the last five years, the city has committed millions to its rejuvenation.
The transformations of Kapi'olani Park, Kuhio Beach Park and Kalakaua Avenue are the most visible examples, but improvements also include upgrades to aging water and sewer lines, sanitation teams for public parks, anti-crime surveillance cameras and police bike patrols.
Primed by government's commitment, the private sector is investing over $700 million in new construction and renovation projects (completed or committed), creating jobs and opportunities that in turn will bring in additional revenues of over $6 million in future property taxes alone. Hilton Hawaiian Village's Kalia Tower and the DFS Galleria expansion led the way.
Financing many Waikiki capital improvement projects and programs is part of the current city and state budget debates.
Given its role in a healthy state economy, we cannot afford to neglect Waikiki's physical environment. It provides tax dollars and revenues that are put to use far beyond district boundaries. And it is still the best place to generate a return on investments. This is some of what Waikiki brings to the table:
• Beachside hotels and Kalakaua Avenue businesses occupy some of the most valuable real estate in the nation. Property taxes generated represent 15 percent of the collections islandwide.
• Add to this the $34 million in transient accommodations taxes allocated to the city. Together they account for more than 7 percent of the entire proposed city budget for FY 2003.
• In 2001, $5.1 billion was spent by an estimated 4 million visitors in Waikiki — half of the expenditures for the entire state.
• Waikiki visitor expenditures account for 23 percent of all jobs in the state.
• In all, this less than one square mile accounts for 13 percent of the entire gross state product.
And these are only the economic benefits generated directly by Waikiki's visitor industry.
New events and activities are sparking a real sense of community. Public/private partnerships such as Brunch and Sunset on the Beach have helped bring back residents and create new enthusiasm for Waikiki on the part of kama'aina.
News is spreading beyond O'ahu. Travel agents on the Mainland and in Japan speak of renewed enthusiasm for Waikiki, while their clients return with growing satisfaction regarding their Waikiki experience.
It is not hard to see the results of the city's range of investments not only in much-needed physical improvements, but in bringing Hawaiian culture and entertainment back to Waikiki.
Taken as a whole, the events and the investments have proven their worth. They attract more visitors to Waikiki because they offer the opportunity to interact with local folks. It makes for a very special vacation experience. They also give residents reason to rediscover Waikiki as a recreation and entertainment spot. In the process, they become genuine community events and add to the quality of life for all.
Waikiki is once again a gathering place. However, we are still playing catch-up in a highly competitive global environment. As the state's single most important destination, Waikiki needs a sustained capital budget commitment. Countless O'ahu residents, not to mention government coffers, rely on the economic activity it generates.
