Moloka'i debates cost of tourism in wake of cruise-ship plans
By Sean Hao
Advertiser Staff Writer
Moloka'i's isolation and small size once worked against efforts to grow its economy. Now the island's remote, laid-back nature is boosting its commercial appeal, and dividing its residents over whether economic success would be beneficial or detrimental.
No issue in recent times has so sharply brought this debate into focus as the ongoing controversy over cruise ships. Holland America Lines and Princess Cruises both want to stop at Moloka'i, but they have agreed to wait until they meet with residents.
Their decision has postponed the impact of tour ships on Moloka'i's sluggish economy, fragile environment and country-style culture.
Holland America's Statendam was scheduled to make the first stop on Moloka'i in December, but was prevented by weather conditions. In January, the ship again planned a stop, but changed course to rescue a yacht in distress.
It was set to try again on April 15 and 18, but the cruise line canceled after state Senate and House transportation chairmen asked the cruise companies to hold a meeting with residents first.
The Statendam would have pumped an estimated $130,000 into the local economy on each daylong visit, benefitting restaurants, retailers, and bus and tour operators, according to Sandy Beddow, executive director of the Moloka'i Visitors Association.
"We had over 200 people signed up for activities on the Statendam ... and the average tour price was between $240 and $250," she said.
But critics of the cruise industry contend the economic benefits from ships are qualified, because it is the cruise lines themselves that are best positioned to sell passengers merchandise and tours.
Ships often maximize profits through large mark ups on tours and common practices such as charging local businesses to be on a list of recommended stops, said Teri Shore, a director with environmental activist group Bluewater Network.
"The cruise ships are really opportunistic, and I'm just not convinced that they're a great economic boom," she said.
Because of that, as well as concerns about their impact on an area's culture and environment, cruise ships are no windfall for local communities, Shore said.
That doesn't concern Mike Holmes, owner of Fun Hogs Hawai'i in Kaunakakai, who hopes to provide whale-watching tours to Statendam passengers. The cruise ship will charge $88 per adult for the tours, according to its promotional literature — a 60 percent markup on Fun Hogs' normal price of about $55 a person.
"There's no beef from me," Holmes said. "They're bringing the people here."
Like many local entrepreneurs, Holmes wants a share of the estimated $72.97 that each visiting passenger would spend while on the island.
The Moloka'i Visitors Association estimates 60 percent of the Statendam's passengers and 40 percent of the crew — 1,018 people — will inject $74,283 into the economy on their visit.
Factoring in the indirect benefits of that money, the total economic impact on one cruise-ship visit could amount to $130,000 — a sum Beddow called conservative.
Just what this additional business will mean for the island is unclear, because there are no estimates on the size of Moloka'i's economy or the value of goods and services produced by its 7,300 residents.
Still, when cruise-ship visits are infrequent, their impact is limited, said Ted Manning, an adjunct research professor at Carlton University in Ottawa, Ontario, who has studied the impact of the cruise industry on communities.
However, if arrivals are planned as events, Manning said, cruise ships can help to boost an economy. "Think tour scheduling to make this happen," he said. "For example, if the ship stays for lunch and dinner, then you may get new restaurants which can add to the lifestyle of the community when the ship is not in."
But that is if the ships actually stop. Because Statendam will ferry passengers to shore, there's no guarantee the weather won't prevent future visits. Even if the ship stops, Kammy Purdy, owner of Kamuela's restaurant and bar in Kaunakakai, isn't anticipating a boom in business. She expects passengers to dine onboard, where they won't have to pay extra for meals. "Now, if they were staying for a week, that would be nice," Purdy said.
In addition to debate about the economic benefits of cruise ships, some residents are concerned that an influx of visitors will destroy the island's environment and overwhelm roads and sewers.
There already are signs the island's resources may be stretched.
According to a draft version of a report on Moloka'i's infrastructure prepared as part of a statewide study on sustainable tourism, the island lacks adequate water for agriculture and needs to improve roads and waste-disposal facilities. The report also calls for improvements to the island's emergency services.
Beddow said environmental impacts never have been a problem during the annual men's Moloka'i Hoe and women's Na Wahine O Ke Kai outrigger canoe races, which each bring between 1,000 and 1,500 visitors to the island.
She did not know the economic impact of those events, but estimated that Statendam passengers would spend more. Also, since cruise-ship passengers are older, they'll be more interested in cultural pursuits and shopping than activities such as biking, hiking and horse riding that could impact the environment, Beddow said.
Moloka'i isn't alone in weighing the costs and benefits of cruise-ship visits.
Communities in Alaska, Mexico, Panama and elsewhere are grappling with similar issues, Manning said. It's not unusual for cruise ships to overwhelm the resources of smaller ports-of-call, he said.
Cozumel, a small island off the coast of Mexico, typically has as many as a dozen ships visiting at once. This traffic required construction of docks, water systems and transportation upgrades, Manning said.
Communities that deal with cruise lines as a united group tend to be more successful at getting ship companies and government agencies to address their concerns, he said.
"If the community is fragmented, you have little real negotiating power, and the boat can always go elsewhere if the terms are too strict," Manning said.
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
