Council's move seen as a setback for Hawai'i

By Sean Hao
Advertiser Staff Writer

The Pacific Basin Economic Council's decision to move its international headquarters from Honolulu to Hong Kong by year's end sets back the state's efforts to promote Hawai'i as a place to do business.

The move involves the loss of a small number of jobs, but perhaps more importantly deals a blow to the state's efforts to establish Hawai'i as a hub for commerce in the Asia-Pacific region.

PBEC is considered an important resource for business executives looking for contacts in the Pacific Rim. It has about 1,000 members, all of whom are corporate executives.

The PBEC board, which had been meeting in Bangkok, Thailand, said it "selected Hong Kong based on its position as the leading regional business center."

The council has been based in Honolulu since 1992. However, both Singapore and Hong Kong had pitched subsidies to land the five-person PBEC headquarters.

The annual $100,000 in rent for the group's Fort Street offices was one reason PBEC looked at alternative locations.

The council originally planned to decide on moving its headquarters in August, but that was delayed after leaders for the Department of Business, Economic Development and Tourism and the East-West Center met with PBEC officials in Seoul, South Korea.

The state offered a number of incentives, including help in recruiting additional members for the group's Hawai'i chapter and discounted rent at the East-West Center.

Hawai'i' also offered to conduct issue studies, position formulation and policy analyses that could supplement the group's activities of mainly networking opportunities, said DBEDT Director Ted Liu.

In essence, the state put up its intellectual assets, which includes groups such as the East-West Center, against the aid offered by Hong Kong and other cities.

"We really can't compete with the financial assets I think a place like Hong Kong has," Liu said. "I don't think we want to play that game. It's not a responsible approach."

In turning down Hawai'i's offer, PBEC President Arthur Kobler cited Hong Kong's convenient geographic location, the presence of international media and "exceptionally strong" support from the Hong Kong business community.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.