Each week Editorial and Opinion Editor Jeanne Mariani-Belding hosts The Hot Seat, our opinion-page blog that brings in elected leaders and people in the news and lets you ask the questions during a live online chat.

On The Hot Seat last week was David Carey, president and CEO of Outrigger Enterprises, one of the largest privately held leisure lodging companies in the Asia-Pacific region. Outrigger Enterprises also recently completed its Waikiki Beach Walk, the major $535 million revamp of the area bordered by Kalakaua Avenue, Lewers Street, Kalia Road, Beach Walk and Saratoga Road.

Here is an excerpt from that Hot Seat session.

Colin: It seems that our business community is not too worried about the economy, while people, including tourists, struggle to deal with fuel, higher food costs and more. What's your take on the economy as it relates to the visitor industry here? What can be done? Do you plan layoffs like other companies in Hawai'i?

David Carey: I am very concerned about the near term of tourism. The downward economic trends have always negatively affected Hawai'i's business. Fuel costs are a big issue.

Here's an analogy I like to use. If you have $2-a-gallon gas that suddenly jumps to $4 a gallon, it's shocking but you still have to drive to work. So, begrudgingly you grin and bear it. But, if the cost of airfare for a trip to Hawai'i from the West Coast goes from $500 to $1,000, you may or may not want to bring your family to Hawai'i until the price is right. With time, consumers may get used to higher airfare prices — but for now there is bound to be some disruption in our tourism market.

This will likely lead to a 10 percent to 15 percent drop in business. Handling it will be tough.

Donna: With the drop in tourism, what's your strategy for making the Beach Walk profitable?

Carey: Part of the strategy will be to continue to work with the HTA and the various visitor marketing agencies to promote the great things we have in Honolulu, particularly Waikiki Beach Walk.

The other part of the solution will be to continue to make Waikiki Beach Walk a welcome place for those of us who live here in Hawai'i. Waikiki Beach Walk has been extremely successful. What makes me the happiest is the fact that, one, residents have come down to explore and enjoy Waikiki's newest shopping, dining and entertainment district, which has turned out to be both a tourist and a local hangout, and two, we have been successful in incorporating a lot of the Hawaiian cultural aspects into Waikiki Beach Walk, not only in the general design of the space but in the music and entertainment we have been able to bring to Waikiki with our Na Mele No Na Pua Hawaiian musical heritage program. We believe that some people who may not choose to travel to the Mainland will stay home and have some fun.

Tyler: I never go into Waikiki. Too much traffic, too congested. What can you and other businesses do to make Waikiki, including Beach Walk, more attractive to local residents?

Carey: In reality, Tyler, we actually have made big improvements in parking and traffic. In Waikiki Beach Walk, for example, we added more than 200 new parking stalls and have a seamless valet parking system. Outrigger and other businesses have focused on moving deliveries off the streets and into loading areas. The results have been very good, particularly on Lewers.

The Yard House and other restaurants have finally given locals real choices full of good food and entertainment. We have regular entertainment schedules with entertainers on the Waikiki Beach Walk plaza and have other entertainers in the restaurants and hotels. The Na Mele Music series has featured many of Hawai'i's top talent.

Bill: I understand Outrigger is expanding internationally. What countries will you be opening properties in?

Carey: We expect to open in Thailand, Bali and in places like Hainan Island, China. We also will be re-establishing our presence in Australia and New Zealand. We have been steady in Guam and Fiji. In spite of the growth, however, our home is still Hawai'i.

Chris: Any chance of bringing Hawaiians and a Hawaiian feel back? This is what the tourists seek but find something else when they arrive.

Strong recruitment of local cultural practitioners and Hawaiian incorporation into every aspect of the hotels would attract a strong tourist base despite the poor economy. It would also attract many locals as well.

Carey: We have done much to encourage the renaissance of Hawaiian culture at Outrigger. We have been working on our cultural value process we call Ke 'Ano Wa'a, or the Outrigger Way, for more than 10 years. It was inspired by Dr. George Kanahele and is about teaching Hawaiian hospitality and culture throughout our system. We have also strongly supported cultural and entertainment programs throughout our properties. All of our renovations have endeavored to reflect a Hawaiian sense of place. Our efforts have been well-received by tourists and locals.

Richard: What impact will the new Chinese visitors have on tourism and the economy?

Carey: With the softening of tourism from North America and Japan, there will be ample room for the growing Chinese (and Korean) markets. What is exciting about this market for Outrigger is so many of our employees have strong Asian ties and are looking forward to the opportunity to provide our ho'okipa to our new guests.

Randy: Just curious as to what percentage of hospitality employees are paid a livable wage? Seems like a lot of funds and promotion go into tourism. I have an auntie who works three jobs in order to support her kids. She tells me when she was younger, they worked less.

Carey: You have hit on a tough problem we all face. Hawai'i is an expensive place to live. The price of paradise is indeed high. Having said that, I think most people would be pleasantly surprised at how well hospitality employees are paid. Our housekeepers make nearly $14 an hour with a very rich benefits package. In addition, at least in our company, people have a great opportunity to grow into higher positions as well.

Delia in Waikiki: I have lived in Waikiki for more than 20 years. What share of the visitor lodging does Outrigger have? Also, what does your company do to minimize that impact, or in terms of helping the community that has to live with the tourism and the noise?

Carey: Outrigger manages not quite 10 percent of the total visitor inventory in and around Waikiki. This issue of impact can be looked at in other ways. We provide an enormous number of jobs for local residents. The noise can be a problem, but many of our visitors also appreciate the action and vitality of Waikiki. An urban resort may not be like the North Shore, but many love the city experience.

Where we can, we help the Waikiki community through organizations such as the Waikiki Community Center. All of the hotels provide direct support to local charities though the Visitor Industry Charity Walk.

We and others also support the Waikiki Business Improvement District, which helps clean sidewalks, waters plants and keeps an eye on safety of residents and tourists.

Kyle: The economic trouble has made it clear to me there does not seem to be a long-term economic plan to make sure our tourism is vibrant in the future. What is your long-term plan for this for Outrigger? Did you change that plan due to the fuel costs and the impact on our economy?

Carey: Part of our plan has been to continuously improve our product so that we will be more attractive to today's international customers. I see support to our markets from Asia in addition to our traditional markets, but there may be periods when business is not as strong as we would like. With a national slowdown in the U.S., many places will see a slowdown.

Given that Hawai'i has such great people and if the private industry and government keep our physical plant up to date, we will get our fair share.

John K: How would you describe the changes in the tourism industry in the last 30 years? Is Hawai'i being overrun by other international destinations?

Carey: Hawai'i has changed as our population has grown. We have evolved from a quaint faraway place that served primarily a few upscale travelers to a place that makes dreams come true for thousands. With growth comes change and Hawai'i has in fact changed. We have many of the finest resorts in the world and, in spite of what some say, the best people in the world. I strongly believe the aloha spirit is alive and well, albeit perhaps a little more modern.

We compete every day with international destinations, but I believe if we keep our physical plant in good shape, with our year-round weather and great people, we will be competitive.

Greg: What are your future investment plans in Hawai'i? How would you describe the hiring landscape for your young people looking for jobs in the visitor industry and what advice can you share?

Carey: Outrigger intends to continue to invest in our properties and people. It does not appear at the moment there will be many new properties built, so we must make the ones we have the best they can be. That means renovated rooms, more amenities, great shops and restaurants, etc.

I worry about the young people here, as I believe we have let them down by not insisting on top-quality public education. I hope we can all fix that.

Reach Jeanne Mariani-Belding at jmbelding@honoluluadvertiser.com.