County of Hawaii: General Plan
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BILL NO. 163
(Draft 4)
(RAMSEYER VERSION – UNOFFICIAL)
ORDINANCE NO.

SECTION 1. Purpose. The purpose of this ordinance is to adopt a General Plan in compliance with Section 3-15, Hawaii County Charter and to repeal the 1989 General Plan adopted by Ordinance No. 89 142, as amended.

SECTION 2. The attached document identified as Appendix A, which also includes the Land Use Pattern Allocation Guide Maps and the Facilities Maps, is hereby adopted as the Hawaii County General Plan.

INTRODUCED BY:

Effective Date:

GENERAL PLAN REVISION

[AN ORDINANCE ADOPTING THE COUNTY OF HAWAII GENERAL PLAN AND REPEALING ORDINANCE NO. 439, AS AMENDED.

BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:

SECTION 1. Purpose. It is the purpose of this ordinance to adopt by ordinance a General Plan in compliance with Section 3-16, Hawaii County Charter.

SECTION 2. Requirements. Section 3-16, Hawaii County Charter, mandates that the General Plan contain the following:

"A statement of development objectives, standards and principles with respect to the most desirable use of land within the county for residential, recreational, agricultural, commercial, industrial and other purposes which shall be consistent with proper conservation of natural resources and the preservation of [our] natural beauty and historical sites; the most desirable density of population in the several parts of the county; a system of principal thoroughfare, highways, streets, public access to the shorelines, and other open spaces; the general locations, relocations and improvements of public buildings, the general location and extent of public utilities and terminals, whether publicly or privately owned, for water, sewers, light, power, transit, and other purposes; the extent and location of public housing projects; adequate drainage facilities and control; air pollution; and such other matter as may, in the council's judgment, be beneficial to the social, economic, and governmental conditions and trends and shall be designed to assure the coordinated development of the county and to promote the general welfare and prosperity of its people."

SECTION 3. Statement of Assumptions. The following Assumptions were the basis by which the General Plan was developed:

1. Agriculture

Agricultural employment, especially in the sugar industry has been declining over the past ten years. At best, employment in the sugar industry is projected to decline slowly if normal attrition through retirement continues. Alternatively, national and international economic and political forces could result in the demise of the industry. Factors affecting this decline will be the expansion and labor demands of the macadamia nut, papaya, flower and other diversified agricultural industries.

2. Tourism

The County's visitor industry is poised for rapid expansion, and employment in tourism is expected to increase substantially.

1. Other Basic Industries

There is tremendous potential for expansion in other industries such as aquaculture, astronomy, renewable energy, and research-development.

 

SECTION 4. Council Policies, Statement of Development Objectives, Standards and Principles. The Council's policies for the long-range comprehensive physical development of the county and the statements of development objectives, standards and principles with respect to the most desirable use of land within the county are set forth as follows.]

[SECTION 5. Courses of Actions. The courses of actions necessary to promote the policies, development objectives, standards and principles as incorporated in Section 3 are hereby set forth for the various elements within the designated districts.]

[INTRODUCTION

This section provides an overview of the General Plan with respect to its history, the program and planning process used in its development and the intended means of implementing the plan. The introduction also presents a discussion of the County's historical trends and alternative employment and population projections.

OVERVIEW OF THE GENERAL PLAN

The County of Hawaii's General Plan is the policy document for the long-range comprehensive development of the island of Hawaii. The General Plan provides the direction for the future growth of the County. It brings into focus the relationship between residents and their pursuits and institutions, offering policy statements which embody the expressed goals for present and future generations.]

History of the Plan

General [plan] Plan studies in the County of Hawaii were initiated in the late 1950's[.] and were limited to particular regions of the island such as the Hilo, Kona, Kohala, Hamakua, and Puna Districts. As such, these initial general plans lacked a comprehensive, coordinated, and integrated overview of the entire County. The first of these studies, "A Plan for Kona [,]", was completed in 1960 and encompassed the districts of North and South Kona. "A Plan for the Metropolitan Area of Hilo" was completed in 1961 for the districts of South Hilo and Puna. "The Kohala-Hamakua Region General Plan" was completed in 1963 and covered part of the district of North Kona and the districts of North and South Kohala, Hamakua and North Hilo. These regional plans were adopted by Ordinance No. 317 in July 1965, as the General Plan for the County. The district of Ka'u was the only area in the County not covered by this plan.

With the adoption and ratification of the County Charter in 1968, the General Plan emerged as a major policy document. Section 3-[16] 15 of the County Charter states:

"The county council shall adopt by ordinance a general plan which shall set forth the Council's policy for long-range comprehensive physical development of the County. It shall contain a statement of development objectives, standards and principles with respect to the most desirable use of land within the County for residential, recreational, agricultural, commercial, industrial, and other purposes which shall be consistent with proper conservation of natural resources and the preservation of our natural beauty and historical sites; the most desirable density of population in the several parts of the County; a system of principal thoroughfares, highways, streets, public access to the shoreline, and other open spaces; the general locations, relocations and improvement of public buildings; the general location and extent of public utilities and terminals, whether publicly or privately owned, for water, sewers, light, power, transit and other purposes; the extent and location of public housing projects; adequate drainage facilities and control; air pollution; and such other matters as may, in the Council's judgment, be beneficial to the social, economic, and governmental conditions and trends and shall be designed to assure the coordinated development of the County and to promote the general welfare and prosperity of its people.

(a) The Council shall enact zoning, subdivision, and other such ordinances, which shall contain the necessary provisions to carry out the purpose of the General Plan.

(b) No public improvement, project, subdivision, or zoning ordinances, shall be initiated or adopted unless the same conforms to and implements the General Plan.

(c) Amendments to the General Plan may be initiated by the Council or the Planning Director."

The first General Plan document to be completed after the ratification of the County Charter in 1968 was adopted by ordinance on December 15, 1971 by the County Council. Upon adoption of the General Plan in 1971, the Council laid the foundation for establishing a comprehensive planning program for the County of Hawaii. This program consists of three interrelated parts arranged in a hierarchy as described below[.] and illustrated in Figure I.

The General Plan represents the first level and encompasses long-range goals, policies, [and] standards, and courses of action for the entire County. The General Plan also provides the legal basis for all of the other elements of the County's planning structure. As such, the General Plan is the highest order, or "umbrella" plan. It establishes the outer limits or boundaries within which the County must operate.

The second level consists of short and middle range plans [which] that further define the long-range goals and policies of the General Plan. These plans are related to specific regions or districts (Hilo, Kona, Kohala, Ka'u, etc.), functions (recreation, agriculture, drainage, highways, etc.)[;], and [for] specific areas within a region (Kailua-Kona, Downtown Hilo, etc.).

The third level consists of specific mechanisms to implement the two higher levels of the planning hierarchy. These include the Zoning and Subdivision Codes[,] and both the operating and capital improvement program budgets.

Figure I

General Plan Program

The initial development of the General Plan program, undertaken between 1968 and 1970, [investigated, analyzed, and evaluated concurrently all aspects of the County under a common or standard methodology. The General Plan program] was funded through an agreement between the County of Hawaii and the [Federal ] U.S. Department of Housing and Urban Development through the former State of Hawaii Department of Planning and Economic Development[.] (currently the State Department of Business, Economic Development and Tourism). The initial General Plan study program was conducted over a 36-month period and [was] completed by the Planning Department with the technical assistance of professional consultants in the fields of drainage and flood control, historic sites, sewerage, economics, and water.

The General Plan program is structured to investigate, analyze, and evaluate concurrently all aspects of the County under a common or standard methodology. The preparation of the General Plan involves the process of planning and provides the opportunity to broaden the base of citizen participation, review, and understanding.

The 1971 General Plan required five and ten year comprehensive reviews and updates. The reviews and updates are intended to maintain the dynamism and flexibility of the General Plan and to accommodate major changes and trends [which] that may occur within the County. The County initiated a review of the Land Use Pattern Allocation Guide Map in 1978 [and which] that led to several changes to the map. Other changes [which were made include] included the addition of an Energy element and amendments to procedures for the comprehensive reviews and proposals for specific amendments to the General Plan.

The [Revised] Current General Plan Comprehensive Review Program

The planning process utilized for the current comprehensive review and revision of the General Plan included an assessment of the General Plan elements relative to new data, laws, and methods of analysis. Each study element was then analyzed and evaluated in relation to all other elements, County and district goals, and the land use pattern. Potentially, a change in one element could affect other elements as well as the land use pattern. Similarly, a change in County and district goals could potentially be reflected in all elements and in the land use pattern.

The comprehensive review of the General Plan gathered and assessed the data related to each element [in order] to identify present conditions and problems and future possibilities. The study elements [which are] utilized in the General Plan included the following:

Economic [Activities]: Describes the human, capital, and natural resources used to produce goods and services for consumption in local and overseas markets.

Energy: Describes the energy situation for the County and explains the incentive for promoting energy conservation and the development of indigenous energy resources including solar, wind, hydrologic, and geothermal.

Environmental Quality: Identifies the factors affecting the island's environmental quality and describes the precautions and safeguards necessary to maintain and improve the quality of the environment for the physical, psychological, and social well-being of residents and visitors.

[Flood Control and Drainage:] Flooding and Other Natural Hazards: Pertains to the conservation and protection of life, improvements, and natural resources from excess runoff due to either man-made improvements, natural causes, or inundation from tsunamis and heavy seas.

Historic Sites: Identifies [artifacts and] sites and buildings of historical and cultural importance.

Natural Beauty: Identifies areas of unique natural beauty [which] that are a principle asset of the island, and [which require] encourages programs for their conservation, preservation, and integration with other elements.

Natural Resources and Shoreline: Describes the valuable and often irreplaceable natural assets of the island [which require] and encourages programs for their proper management and protection [and wise use].

Housing: Addresses the requirements for and the quantity, quality, and distribution of housing units in the County. [It] This element also addresses critical housing problems of the County.

Public Facilities: Pertains to the location and distribution of facilities for education, [and] public safety, [and for] social, [custodial and] health services[.] and other government operations.

Public Utilities: Describes the distribution of power, light, and water[,]; the collection and [disposition of waste, sewage,] disposal of solid waste and sewage; and the provision of other communication [facilities which] utilities that are essential to the efficient functioning of a [modern] community.

Recreation: Examines the requirements of the County for active and passive outdoor activities, cultural events and pastimes, as well as attendant facilities and areas.

Transportation: Describes the requirements for air and water transport terminal facilities linking the County with the rest of the State and overseas areas, and the island's network of streets, highways, and roads.

Land Use: Studies the relationship of human activities to the uses of land and the location, spatial relationship, and topography [of land uses]. This element is subdivided [according to uses] into the following designations[:] according to uses:

Agricultural: Encompasses all types of agricultural endeavors[,] and specified industrial uses, residential and ancillary community and public and accessory uses.

Commercial: Comprised of industries in the retail trade and service categories and certain non-noxious enterprises from other industrial classifications.

Industrial: Includes uses [which] that may not be compatible with commercial areas (such as manufacturing and processing, wholesaling, large storage and transportation facilities, power plants, and government baseyards) as well as other industrial, manufacturing, or wholesaling uses.

Multiple Residential: Includes duplexes, apartments, town houses [; all] and similar types of residential structures and ancillary community and public uses.

Open[:] Space: Includes conservation lands, forest and water reserves, natural and scientific preserves, and potential natural hazard areas.

Public[:] Lands: Includes Federal, State, County, and University owned lands.

Resort: Consists primarily of areas with basic amenities and attributes [which] that attract developments of visitor accommodations and related facilities.

Single-[family] Family Residential: Consists of single-family detached houses and ancillary community and public uses.

Each study element has been divided into sections [which are] described below.

Introduction and Analysis: Describes the element and summarizes findings, County-wide characteristics and features, trends, changes, and problems [are discussed], as well as the outlook and opportunities for the immediate and distant future. The analysis also addresses the element's interrelationships with other elements.

Goals: [Indicates the desired long-range directions and seeks to provide a cohesive and comprehensive framework within which social and economic programs and governmental effort can be coordinated.] Indicates the desired long-range directions and situations enunciated by community groups, officially expressed in the past or implied in governmental programs. Provides a cohesive and comprehensive framework for the coordination of social and economic programs and governmental effort.

Policies: States the methods or strategies [which] that should be undertaken to attain the stated goals [stated]. These are action and program oriented and involve the formulation of standard procedures, program evaluation and review, rules and regulations, ordinances and laws, budgeting, specific projects, etc.

Standards: Concerned with qualitative and quantitative criteria by which situations can be evaluated or benchmarks established. Standards are basically "yardsticks" or indicators, minimum conditions or levels of quality necessary for the well-being of the public.

Courses of Action: Many study [element] elements require a more precise and definitive discussion of community concerns and problems. These sections attempt to identify specific alternatives on a community, district or regional basis.

As an aid to the understanding of the inter-relationship of the components of the General Plan, the separate elements of the General Plan may also be described as follows:

The Introduction and the Economic element describe the foundations and factors [which] that generate population and economic opportunities and growth on the island of Hawaii. The Environmental Quality, Energy, [Flood Control and Drainage,] Flooding and Other Natural Hazards, Historic Sites, Natural Beauty, and the Natural Resources and [the] Shoreline elements describe those natural and social conditions [which] that influence and set parameters [to] for development opportunities on the island. The Housing, Public Facilities, Public Utilities, Recreation, and Transportation elements describe those services, facilities, and improvements [which are required] necessary to accommodate the growth of population and support the economy. The Land Use element describes the distribution, pattern, and location of the various activities addressed in the other elements of the General Plan.

[Plan Implementation

One of the most critical phases of the planning program is the implementation of the General Plan. It is the use of the plan rather than its mere existence which is of benefit. Public understanding and support are vitally necessary as the responsibility for the development of the island of Hawaii rests not only with the administrative and legislative branches of the County but with all people who live here. Widespread discussion will promote the understanding of unique and innovative concepts which are presented in the plan.

Implementation of the General Plan requires the development of middle and short range community, functional, and area plans. It also requires a systematic review of implementing ordinances such as the zoning and subdivision codes and the adoption of amendments to these codes in accordance with policies and standards of the General Plan.

The implementation of the General Plan is also related to the capital improvement and operating budgets. The capital improvements budget encompasses public improvements and facilities to accommodate the anticipated growth, and the County operational budget encompasses programs and services. Both are major components of the implementation of General Plan policies.

Implementation of the General Plan policies also require the adoption of ordinances to establish programs such as historic sites, housing, area improvement financing, areas of natural beauty and the like.

Although fifteen years have elapsed since the adoption of the County's planning program all of the major components have yet to be put in place. Furthermore, the planning process must be viewed as a continuous non-linear and dynamic process instead of a static and linear one. Unanticipated opportunities as well as unexpected delays necessitate adjustments to programs, standards, and policies. Nevertheless, standard procedures must be followed to insure implementation in a comprehensive and orderly fashion. The following procedures shall be required to provide the necessary guidance:

The General Plan, and any comprehensive review, should be widely distributed for review, discussion, and comments.

Input from community organizations shall be solicited to assist and advise the Planning Department, Planning Commission and Council.

The Planning Commission shall hold public hearings in the principal communities throughout the County.

After the completion of the public hearings for the revision program, the Planning Commission can suggest modifications to the Planning Director and/or submit the revised General Plan with recommendations to the Mayor for transmittal to the County Council.

After its deliberation, the Council shall adopt the revised General Plan ordinance as the official County of Hawaii policy.

After the enactment of the revised General Plan Ordinance, the Planning Department shall prepare drafts of revisions to existing and proposed new ordinances to address any amendments to the Plan. These drafts shall be submitted to the Planning Commission for review and recommendations prior to transmittal to the Council for consideration and action.

The County administration shall prepare a Capital Improvements Program which will insure that all County projects are in accord with the General Plan. The Capital Improvement Program budget shall be submitted to the Council for consideration and action.

Federal and State agencies should be officially requested to recognize the General Plan and any amendments thereto, in the formulation and implementation of their projects and programs.

Community Development plans and Urban Design Guidelines should be prepared or amended by the Planning Department for administrative purposes and adopted by resolution by the Planning Commission. These will show current and proposed public and private capital improvements and services, existing zoning, areas appropriate for allocative land use acreage and any other information which will assist the Planning Department and Commission to implement the General Plan.

The General Plan for the County of Hawaii should be thoroughly reviewed at intervals of not more than ten years. Land use acreage allocation should be reviewed at intervals of not more than five years. All review processes shall be a joint effort of the communities, residents, and the County government.]

 

COUNTY [TRENDS] PROFILE

The County of Hawaii encompasses the island of Hawaii, which is the southeasternmost and largest island of the Hawaiian archipelago. The land area of the County is approximately twice [that] the combined land area of all the other islands of the State.

The island of Hawaii has a diverse climate, topography[,] and scenic beauty. Environments [range from] include dense tropical forests; majestic snowcapped mountains; active volcanoes; black, white, and green sand beaches; deeply eroded valleys; and large expanses of grazing land. Each [of the districts provide] district provides a variety of settings for human activity, land and resource utilization, or wilderness areas of minimal human intrusion.

The County of Hawaii has expanded into new fields of industry such as astronomy, high technology, renewable energy, health and wellness, agricultural and eco-tourism, diversified agriculture and aquaculture. The County’s continuing support of research and development in these emerging fields will ensure a promising future for the island’s economy and its residents. Specific examples include the establishment of the Agricultural Research Center of the Pacific, conversion of the old sewer treatment plant near Puhi Bay in Hilo to an aquaculture facility, and the construction of an agricultural water system in Ka’u.

The County’s overall economic outlook remains mixed due to the County’s dependence on the condition of the State's economy. Since 1990, the State’s economy has been in a period of decline. While there are opportunities for expansion into new and existing industries, external factors such as the world economy may have an impact on the County’s future economy.

[Agriculture] Throughout the County's history, agriculture has played an important role in the County's economy [throughout its history]. In the late l700's, [Hawaii] Hawaii's agricultural industry began by provisioning ships. During the 1800's, sugar production and cattle ranching emerged as leaders of the modern agricultural industry. These industries dominated the island's economy and social fabric well into the 1900s. The 1980's and 1990's saw the demise of sugar cultivation and the steady decline in cattle production. These once dominant industries have been replaced by fully diversified agriculture including flowers and nursery products, coffee, macadamia nuts, tropical fruits, vegetable crops, orchards, aquaculture, and forestry. Import replacement and expansion of export products and markets are increasing. The three leading agricultural industries within the County are flowers and nursery products, vegetables, and macadamia nuts. Combined, these three agricultural industries accounted for over 50 per cent of the total value of agricultural production in the County in 1997. When compared statewide, the County of Hawaii produces 35 per cent of fresh vegetables, 72 per cent of bananas, 30 per cent of coffee, 95 per cent of macadamia nuts, and 51 per cent of flowers and nursery products. Agriculture’s future remains favorable with the strong diversification and development of new export protocol and technology.

[Sugar, ranching and diversified agriculture continues to be an integral part of the County's economy. Commercial growing of nearly every tropical and semi-tropical product have been attempted here. From early experiments, the coffee, macadamia nut, papaya, and cut flower industries have emerged. Experimentation with new agricultural products will continue to contribute to the island's agricultural economic base. In addition, many of the County's manufacturing concerns are closely associated with agricultural activities.]

Within the past [twenty-five] forty years, tourism has emerged as the primary economic activity on the island. Much of the economic growth experienced during this period can be linked with the expansion of the visitor industry. Both the statewide and local economies have been faced with an economic downturn since 1990. Visitor arrivals to the island peaked in 1991 at 1,189,000 and subsequently declined to a low of 1,079,000 in 1994 before rebounding to 1,286,000 in 1998. The mainland economic recession of the early 1990’s and the Asian economic crisis in 1997 significantly impacted Hawaii's visitor industry. These events emphasized the dependency of the local economy upon the visitor industry and its vulnerability to external influences. While the tourist industry is expected to continue growing, it has matured to a point where healthy growth will demand a reinvestment in the infrastructure supporting the visitor industry. The County must continue to preserve, protect and enhance the unique qualities of the Big Island and promote the island as a vacation and business destination to respond to growing competition from tourist destinations around the world.

In 1970, just prior to the initial adoption of the General Plan, the population in the County of Hawaii numbered 63,468. The 1970 census count was the first to show an increase, albeit small, since 1930 [. Population in modern history] when the population peaked at 73,325 [during that year], largely as a result of the importation of labor for the sugar industry. The population decline between 1930 and the 1960s was primarily due to the increasing mechanization of the sugar plantation, limited job opportunities in other economic sectors, and the out-migration of residents. This decline was reversed during the 1960s with a modest growth of 2,140 residents between the 1960 and 1970 census.

Since 1970, the County's population has continued to grow. The 1980 census registered an island-wide resident population of 92,053 people representing a growth of 28,585 residents or a 45 per cent increase over the 1970 census. The 1990 census revealed a resident population of 120,317 residents, or an increase of 31 per cent over the 1980 resident population. [Estimates prepared by the Department of Planning and Economic Development suggest a population of 106,400 in l985] The census registered 148,677 residents in 2000, a 24 per cent increase over the 1990 resident population. [These estimates represent the County's population approaching the island's native population in l779 estimated to have been between 100,000 to 150,000.] The County anticipates that its resident population will grow at an annual rate of 1.95 per cent to 2005, 2.04 per cent between 2005 to 2010, and 2.1 per cent between 2010 and 2020. Projected estimates for 2020 indicate an island resident population of 217,718, or an increase of 46 per cent over the estimated 2000 population of 148,677.

Table 2 summarizes the growth in Hawaii County's job count, by industry, from 1970 to [1984.] 1997. [The data indicates a shift of employment from agriculture towards tourism and other service categories. While there have been substantial increases in non-agricultural categories, farm and agricultural employment have also increased, particularly in those districts which are not primarily dependant on the sugar industry. Another noticeable change is the absolute decline in construction and manufacturing jobs between 1970 and 1984.] Since 1980, employment trends within the County have appeared to shift from the non-service industry to the service industry in jobs such as wholesale and retail trade, finance, hotels, etc. In 1980, the service industries accounted for approximately 61 per cent of the private industry workforce and 49 per cent of the total wages earned. By 1997, the service industries have dominated the private industry, accounting for 79 per cent of the workforce and 74 per cent of the total wages earned. This growth in the service industry is mainly attributable to the growth in the County’s tourism sector.

[The value of sugar, diversified agriculture and construction output increased during the 1970s. These increases together with net gains in the travel industry provided support for a period of unprecedented growth in employment and population in Hawaii County.

Hawaii County's employment expanded at an average rate of 3.4 percent annually since 1970 as compared to 2.3 percent between 1960 and 1970. The County added a total of 16,050 new employees since 1970. Since 1970, statewide employment increased at an average rate of 2.8 percent or more than 10,000 new jobs annually, compared to an average rate of 3 percent and about 6,500 jobs added annually during the previous decade.] Employment within the County in 1980 totaled 40,850 on a population base of 92,053 residents. In 1990, employment increased to 55,200 on a population base of 120,317, representing a 3.05 per cent and 2.71 per cent annual compounded increase, respectively. The 2000 census showed a population of 148,677 and an employment base of 69,937. For the year 2020, the Planning Department anticipates a population of 217,718 with an employment base of 106,492. Average annual employment growth rates are anticipated at 2.05 per cent between 1999 and 2005, 2.11 per cent between 2005 and 2010, and 2.16 per cent between 2010 and 2020. These employment projections are below the robust 3.05 per cent average annual employment growth rates during the 1980s, but above the 1.61 per cent average annual growth rate during the 1990s.

Unemployment rates for the County of Hawaii dropped drastically from 1980 (6.2 per cent) to 1990 (3.8 per cent) due to the strong economy during this period. As the County entered the economic downturn that extended throughout the 1990s, its unemployment rate increased to 10.2 per cent by 1997. Per capita income during these same periods also saw a corresponding strong increase during the 1980s and a decline in growth during the 1990s.

Table 1. Population, Hawaii County

[1930 - 1985] 1930-2000

Change from Previous Census

Table 2. Job Count By Industry

1970-[1984] 1997

• Agriculture

Since the mid-1980s, the County of Hawaii has seen a dramatic shift in its agricultural employment profile. The sugar industry was the island's most significant economic contributor from the mid-1800s to its peak production year of 1983. Since 1983, the sugar industry steadily declined until its ultimate demise in 1997 with the closure of the last sugar operation in Ka’u. The island of Hawaii has since established itself as the center of diversified agriculture production, research, and education in the State. Hawaii’s new agriculture industry is characterized by a few large operations such as agroforestry and ranching along with many smaller family-owned farms that produce a multitude of high quality fresh and processed products for local and export markets. Agricultural employment will increase significantly as former sugarcane lands are brought into production with import replacement, export and value added crops and products. Additional employment will be derived from expanding agrotourism enterprises. The expansion of the industry will be facilitated by the establishment of a new air cargo distribution center and post-harvest processing facilities that will allow for significant increases in the volume and types of products exported to the continental United States and foreign countries. Agricultural research and education will be greatly enhanced.

• Tourism

The County will continue to pursue the development of a strong multi-market base for the visitor industry that includes direct oversea flights to Kona, growth of the cruise ship industry, strong resort-based employment centers and integrated product development for local products that can generate a healthy small business economic base. The County's visitor industry will continue to successfully grow and expand. Likewise, employment in the visitor industry and its related industries will continue to grow.

• Other Basic Industries

There is tremendous potential for expansion in other industries such as aquaculture, astronomy, renewable energy, research and development, and special events such as cultural festivals and athletic events.

 

 

 

EMPLOYMENT AND POPULATION PROJECTIONS

The County's General Plan is a policy document [which] that sets forth [guidelines] the direction for future activities [in] on the island of Hawaii for the next few decades. In order to plan for the future, it is necessary to understand both historical [trends] and future trends related to the number of residents and visitors to be served and the kinds of facilities and resources needed to fulfill their needs.

In traditional public planning efforts, entire plans have been based on the achievement of the projected levels of population. In many of these cases, where population numbers are goals, plans become obsolete when the projected number of residents is not achieved or is surpassed. Thus, the population projections presented within the General Plan are not intended to be used as goals. Rather, this General Plan effort uses the projected levels of population as a guideline in land use planning. The projections represent what could reasonably be expected to occur in the future. The goals, policies, standards, and recommendations of this plan are intended to be flexible enough to [cope with] accommodate population levels below or above the projections stated in this section.

Employment and population projections for the County of Hawaii were developed through the analysis of relationships between economic activity, employment, and population. The analytical approach used entails the forecasting of employment in basic industries and the relationship that changes in employment have [relative to] upon population. [An econometric model was developed and utilized to project total employment and population.]

[Basic industries which receive] Primary Income Generators are those industries that generate income from outside the County. They are assumed to be the foundation of the local economy and the key to the development of the island. [Industries which are considered basic are] Primary Income Generators include agriculture, tourism, the manufacturing of export products, and research and development. These Primary Income Generators, in turn, "drive" the secondary industries, or those enterprises that service the Primary Income Generators or the local population and includes wholesaling, retailing and services. The Primary Income Generators determine the long-run pattern of population and income growth for the County.

[Secondary industries are those enterprises which service basic industries and/or population. Retail and wholesale trade, bakeries, utilities, financial institutions, and local government are examples of industries in this category.]

Three sets of projections were developed for the comprehensive review program, Series A, B, and C. The major variables in each of these projections [was] were the rate of growth of the visitor industry[.], the construction of the proposed State prison, the expansion of the University of Hawaii at Hilo, and the utilization of a post-harvest treatment facility for export agricultural products. [Plans for resort complexes and other factors were considered in the forecast of hotel rooms.] It should [again] be emphasized that the projections are not statements of goals. The population projections, and the strength of the correlation between primary economic generators and population growth, must be viewed with caution. The 1989 General Plan contained a similar set of economic and population projections. Visitor arrivals from 1990-2000, a primary economic generator, grew far less than projected. The 1989 "Series A" projected a 35 per cent growth in westbound visitor arrivals in the 1990-2000 period; the actual number barely increased. Agriculture, the other major primary economic sector, lost jobs because of the loss of the sugar industry. During the same time period, the county’s population grew about 24 per cent, just slightly less than the 1989 Series A projection of 27 per cent. It appears that there has been substantial population growth not driven by economic opportunities in the primary industries. This may be due to in-migration of people seeking other amenities such as a clean environment and rural lifestyle.

Series A

Series A is the most conservative projection. It assumes [the demise of the sugar industry and modest expansion] a 1 per cent annual growth rate in the visitor industry. [The overall 1985-2005 rate of growth for Series A of 2.0 % per annum is less than the 2.9% rate of growth of employment in the County during the last five years.] It also assumes that the proposed State prison will not be constructed, job growth at the University of Hawaii at Hilo will be limited to 16 positions per year, and the papaya industry will grow at an annual rate of 1 per cent. Without the construction of the proposed State prison on the island, 2,000 construction jobs over three years and approximately 1,000 permanent jobs to run the facility will not be realized.

SERIES A

PROJECTIONS, HAWAII COUNTY 1985- [2005] 2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

HAWAII COUNTY, 1985-[2005] 2020

Series B

Series B projections were developed as a medium series. These projections represent a moderate growth rate [lie] between Series A and C. [Sugar employment is maintained and the] The overall per annum employment growth rate anticipated in Series B [is approximately 3.7%.] ranges between 2 per cent and 2.2 per cent. It also assumes a modest 2 per cent annual growth rate for visitor arrivals, compared to a historical growth rate of 1.45 per cent between the years 1977 and 1998. This projection also assumes that an additional 70 new positions will be created at the University of Hawaii at Hilo to accommodate the additional 1,000 students expected to be enrolled within the next ten years. Finally, the establishment of the Hilo Call Center will ultimately create an additional 300 new jobs.

SERIES B

PROJECTIONS, HAWAII COUNTY 1985 - [2005] 2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

 

EMPLOYMENT PROJECTIONS

HAWAII COUNTY, 1985- [2005] 2020

Series C

Series C [is an optimistic outlook of the County's future. It is assumed that 17,800 hotel rooms plus additional condominium units will be built in the County by 2005. The average annual growth rate of employment in Series C is 4.7%.] projects a more rapid growth. It assumes that visitor growth rates are in the 3 per cent-plus range as compared to the Series B assumption of a 2 per cent growth rate. The construction of the proposed State prison will generate 2,000 construction jobs over three years and 1,000 permanent jobs to support the facility. This projection also assumes that the papaya industry will grow at 4 per cent, rather than 2 per cent, because of the utilization of a post-harvest treatment facility.

SERIES C

PROJECTIONS, HAWAII COUNTY 1985- [2005] 2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

 

HAWAII COUNTY, 1985- [2005] 2020

[The economic activity experienced by the County over the past five years reflects growth in the County's population and employment. The projections indicate that there will be heavier dependencies on tourism.] Economic activity within the County is anticipated to grow at a moderate rate with a continuing, although declining, dependency upon the tourism industry. [At present 9.1%] In 2000, approximately 9.3 per cent of the County's employees [work] were employed by [in] hotels. By [2005] 2020, hotel workers may account for employment in the total workforce ranging from [10.7%] 7.7 per cent in Series A to [14.8%] 7.3 per cent in Series C.

Population Distribution

From the estimates of the islandwide resident population, other estimates have been made [which attempt] to project the distribution of population over the districts of the island. These are not intended to be included as population achievement levels for the districts, nor as firm statements or descriptions of future conditions. They are based on assumptions of potential employment growth rates described in the previous islandwide employment and population estimates, past district growth trends, and trends in the distribution of population [over] on the island.

District Resident Population Distribution

Year [2005] 2020

[Series

INTRODUCTION AND ANALYSIS

The development of sound public policy requires an understanding of the economic factors affecting the planning area or region. Such factors are largely responsible for growth or lack of growth, and any planning effort which does not take them into account cannot be very effective. In varying degrees the other elements of the planning process are affected by the local economy.

[The existence of population in any given area is based in part on economic reasons.] Population usually settles, expands or declines within a given area in some correlation to economic opportunities or the lack of them. Besides affecting the number and density of population, economic activity has a direct bearing on income level, which to a certain extent determines the standard of living of the individual.

Different types of employment influence the social character of communities. The size and character of [the population in turn] a community will define its [needs] need for housing, transportation, public utilities and facilities, special combinations of land use, recreation, and [so forth.] other forms of public and social services and facilities. Economic studies are thus one of the necessary first steps in developing plans for public and private actions.

Government has a responsibility to identify, understand, forecast, protect and promote local economic sectors and to balance economic growth with desired environmental, social and other objectives of the [host] community. Government has many policy instruments available to influence and guide developments, investment, and operation of private and public interests.

The economy, however, should not be considered as the [only goal] primary focus of the General Plan. The planning process is geared towards the achievement of a higher quality of life for the residents of the County. Working towards the goals, policies, and standards of [this] the economic element are only one aspect of accomplishing this desired end.

The [Island] island offers several amenities conducive for economic growth. Many of these are natural amenities such as a favorable and equitable climate, scenic vistas, high mountains, deep [oceans,] ocean, active volcanoes, large land areas, and an environment [fairly] generally free of pollution.

Despite these amenities, there have been a number of problems that [tended to retard or limit growth on] have limited the growth of the island. Most imported goods [have to] must be [transhipped] transshipped through Honolulu. The distances from the population [center] centers of Honolulu, the mainland, and other major markets have limited the growth of export products from the Big Island. [With the exception of sugar, only products] Products [which] that are unique and/or have high value (such as macadamia nuts, flowers and nursery products, coffee, and papaya) [are] have been successfully exported [, such as macadamia nuts, flowers, coffee, and papaya].

As the [island of Hawaii's] County's population and its tourism industry [grows] grow larger and the export volume increases, more favorable rates on overseas carriers may be instituted.

The relatively small population in the State, coupled with the distance to mainland markets, creates a disadvantage for local businessmen. [This situation is commonly called a "pocket market".] The size of the State's population does not allow for efficient operations, and when exportation is considered in order to expand [the] a particular market, the entrepreneur is faced with high transportation costs.

[Physical catastrophies,] Natural disasters, such as tsunamis, volcanic activity, flooding, and droughts, [have also retarded growth on the island.] are events that have and continue to shape the economic development on this island. For example, while volcanic activity has destroyed homes and historic features, it is also the County’s largest single tourist attraction. In addition to actual physical damage, the fear of the recurrence of natural hazards [presented] presents a psychological barrier for investment. Measures to protect life and property have been planned and instituted throughout the County. Further [control] hazard mitigation measures are reported in this plan.

The economy of [Hawaii] the County has experienced significant changes over the past [two] three decades[.] since the adoption of the County's first comprehensive General Plan in 1971. [While agriculture remains an important part of the County's economy, it has been eclipsed by tourism as the primary contributor to the County's economy. Despite these changes, most of the communities maintain a rural character.] Sugar cultivation was the leading agricultural activity during the 1970s and early 1980s. The latter half of the 1980s and throughout the 1990s saw the decline and eventual demise of the sugar industry on this island. Tourism replaced sugar as the County's primary economic generator during the mid-1980s and saw its peak visitor arrival numbers in 1989. Since 1990, external factors such as the Asian economic crisis, the Persian Gulf War, and a brief economic downturn in the U.S. Mainland have contributed toward the State continuing in a protracted economic doldrum. Nevertheless, the County was still successful in attracting several world-class events and saw the completion of several major projects including the opening of the 351-room Hapuna Beach Prince Hotel and the 243-room Hualalai Resort, the start of direct national and international flights to Kona, the filming of the movie Waterworld, and the arrival of the PGA Seniors MasterCard Tournament of Champions at the Hualalai Resort and Golf Course.

Agriculture

[With sugar as its leader, agriculture] Agriculture currently constitutes a major economic sector of the island of Hawaii. Including processing, the agricultural industry accounts for about [10 percent] 9.5 per cent of the island's employment. [Besides sugar cultivation and processing, local] Local agricultural pursuits [consist of] include the raising of cattle and other livestock, the growing of coffee, macadamia nuts, papaya, flowers and nursery products, vegetables, aquaculture, forestry and several processing plants [which] that utilize locally grown products.

[Agribusiness is basically conducted on two levels. On one end of the spectrum are the three sugar plantations which account for a large percentage of agricultural employment. At the other end are the small, family-operated farms and ranches. The latter accounts for about three-fourths of the people engaged in agriculture.] Some large corporate agricultural ventures such as macadamia nut plantations, operate on the island. However, diversification of the industry has led to smaller operations producing an ever increasing array of fresh vegetables, fruits, forestry, and aquaculture products.

Hawaii County accounts for approximately one-third of the [sugar] fresh vegetables produced in the State of Hawaii, over half of the beef consumed, [all] one-third of the coffee grown, most of the macadamia nuts, and varying percentages of the other crops and livestock. The total value of agricultural [marketings rose 181 percent from 1970 to 1984, in part a result of higher prices.] marketing declined approximately 20 per cent between 1985 and 1997. The number of farms and livestock operations during this same period increased from [2,500 to] 2,650 [in the same period.] to 3,319 operations. Acreage in farms, however, declined [15 percent during the 1970 - 1984 period.] 57 per cent between 1985 and 1997. [Diversified agriculture (non-sugar, non-pineapple)] Agriculture has shown substantial growth on the island [of Hawaii]. The island accounted for [56 percent] 55 per cent of the [diversified] crops in the State in [1984] 1997 while livestock on the island accounted for [27 percent] 18 per cent of the State total. [These shares have remained relatively constant since 1970. The island's total diversified agricultural sales total has risen by 271 percent between 1970 and 1984.] While the County's share of statewide agriculture production has remained relatively constant, its livestock production has been steadily declining since peaking in the late 1980s. Much of this decline can be attributed to the closing of all feedlots within the State by 1993 due to the high cost of importing feed. Approximately 90 per cent of all beef cattle are now exported to mainland feedlots to be "grain-finished" before slaughter. New ventures in forestry and aquaculture have expanded opportunities and show promise for the future.

One of the most pressing problems faced by today's agricultural industries is their ability to attract labor. Agriculture is facing increasing competition for labor from other sectors of the economy, such as the [rapidly expanding] visitor, retail and construction industries. There is also a demand for a greater number of personnel with technical and professional agricultural training. A related problem is the housing shortage [which is found throughout the island.] for both minimum wage and seasonal labor.

Competition from urban [forces] uses for agricultural lands has intensified. The protection of [prime] important agricultural lands, however, has long been a policy of the County [of Hawaii].

The [pocket market situation and transportation difficulties mentioned earlier in this section ] relatively small population of the State and its isolation from overseas markets are limiting factors for the production of agricultural products for local consumption and export. The State Department of Agriculture, the Department of [Planning and] Business, Economic Development[,] and Tourism, the University of Hawaii [, the] - College of Tropical Agriculture, and the County have programs to assist the industry.

The opportunities for the expansion of agriculture on the Big Island seem to be immense. The demand for fresh, locally grown products continues to grow as restaurants, grocery stores and hotels seek the highest quality products for their guests. Export products grown mostly on the Big Island, such as coffee, papaya, macadamia nuts, and flowers, [have expanded rapidly over recent years.] also continue to expand. These commodities and others, such as ginger, guava and other tropical fruits, have potential for growth. There are also new high value crops which have the potential to be successfully cultivated [here]. One such high value crop is Kava (Awa), a medicinal plant which has the potential to be a viable cash crop. Locally, small growers as well as a few large growers are producing Kava. Vanilla bean, cacao, nutraceuticals, hard wood forestry products, and medicinal plants are other types of high value crops that hold much promise for growth.

The expansion of the agriculture industry can also be measured by the success of overcoming some of the restrictive governmental regulations that prevent many locally grown products from being exported to domestic or foreign markets. Concerns regarding the transmission of plant pests and diseases during export have or could be adequately addressed by current treatment or processing technologies. The development of new protocol and processing facilities for quarantine treatment will assure the further expansion of the agricultural industry.

[With the introduction of intensified pasture management and a feed lot operation located on the island coupled with changes in consumer patterns, there is also a potential for cattle ranching expanding.] In order for Hawaii's cattle industry to strengthen, new techniques need to be developed for raising forage-finished cattle to compete in the marketplace with grain-finished cattle. Hawaii cattle will then be able to finish grazing on island pastures and remain for consumption within local markets. Local producers also need to find new venues such as processed meats and pre-fabricated meals to market locally raised cattle. By creating a market niche for forage-finished beef, ranchers will be able to keep cattle in Hawaii, increasing production weights and revenues for the State economy.

Fishing and Aquaculture

Fishing and aquacultural activities are also basic economic sectors. The commercial fishing industry on the island accounted for [$3.7 million in 1984.] $6,100,000 in 1997 and remains the second largest commercial fishing producer in the State. The County's commercial fishing industry has shown a stable catch and poundage sold during the past five years ending in 1998. This stability in the local fishing industry is expected to continue for the foreseeable future. [Fishing has long been a part of the island's economy while aquaculture has shown renewed emphasis only in recent times. This industry remains in its infancy with only a few operators. Recent activities at Keahole may hold promise for significant future expansion.]

The deep cold coastal waters off Keahole Point are nutrient rich and pathogen free. [Experiments with the water have proven successful growing media for a variety of marine products.] The Natural Energy Laboratory of Hawaii Authority (NELHA) is a State-funded facility located on 870 acres of land at Keahole, North Kona. The facility provides support for various research, commercial and educational programs that seek to locate at the Natural Energy Laboratory of Hawaii Authority project site to take advantage of its unique resources, including its cold, nutrient-rich ocean waters and high solar insolation. Microalgae, lobsters, abalone, ornamental fish and other sea vegetables and animals are grown at Natural Energy Laboratory of Hawaii Authority.

The Pacific Aquaculture and Coastal Resource Center is a joint effort by the University of Hawaii at Hilo, the County, State and the Keaukaha Hawaiian Homelands Community Association to establish a research and training facility in Hilo for local aquaculture farmers and university students. The center has the capacity to create water of any salinity or temperature necessary to raise fish. Operation of this center is expected to generate approximately $650,000 annually to the local economy. Value added benefits are expected to add another $3,000,000.

Aquaculture operations County-wide have grown from eight operations in 1982 to forty-three in 1996. During this same period, annual revenues have grown from $90,600 to $13,200,000. The County accounts for 37 per cent of the total aquaculture operations within the State but accounts for over 80 per cent of the total production and over 84 per cent of the production value. While most of the production from aquaculture farms is now sold locally, there are large markets overseas that these producers would like to tap. To assist the export of products overseas, the State has an Aquaculture Development Program (ADP). This organization provides a variety of support services to the aquaculture industry, such as information dissemination, business counseling, marketing, animal health management, and research and development funding. The key to the future growth and success of the aquaculture industry in the County is the ability of Natural Energy Laboratory of Hawaii Authority to obtain funding to increase the flow of deep sea water to its facilities and tenants and the expansion of its support facilities. These improvements will encourage longer residency at the facility by its current tenants as well as attract additional projects.

The Federal government has shown its support of Hawaii’s aquaculture industry by approving $9,000,000 for Hawaii aquaculture initiative in July 1997, of which $1,600,000 has been appropriated for Tropical Aquaculture Research. In addition, the venture capital partnership HMS Hawaii Management Partners announced in December 1998 their commitment to contribute up to $10,000,000 to help island entrepreneurs finance their aquaculture operations.

Manufacturing

[Manufacturing or processing activities in the County of Hawaii have mainly been related to the agricultural industry. About 50 percent of the employees in the manufacturing sector are involved in the processing of sugar. Other forms of manufacturing associated with agriculture include the processing of macadamia nuts, the production of jams and jellies, and preserved vegetables. The food processing enterprises, excluding sugar processing, accounted for approximately 700 employees in 1984, 30 percent of the total manufacturing employment.] Congress recently funded construction and committed to staffing the USDA’s ARS (Agricultural Resource Services) Pacific Basin Agricultural Resource Center in Hilo. The purpose of the facility is to improve the well-being of Hawaii and the Pacific Basin by strengthening the agricultural sectors, fortifying small farm profitability and sustainability by increasing efficiency of farming practices, identification of preservation and improvement of germplasm adapted to island environments, the development of pest controls and post-harvest technology, and increasing the value of products through the development of value added processing.

Other manufacturing activities are service-oriented, such as bakeries, printing and iron works. These operations are usually located close to population centers or transportation facilities.

Visitor Industry

[The visitor industry has become the County's major economic activity in the past decade. The number of westbound visitors to the island of Hawaii in 1970 was 446,400. By 1984, the count showed 760,900 visitors. The hotel inventory during the same period grew from 3,200 to 6,944 rooms. Employment in hotels, services, and trade also experienced similar increases.] Tourism became the primary economic generator in the County during the 1980s. From 1982 to 1990, visitor arrivals grew at an average annual rate of 5.66 per cent. Visitor arrivals started to decline in 1991 due to recessions in the United States and Japan and the advent of the Persian Gulf War. These external events impacted visitor arrivals until 1996, when direct flights from Japan to Kona International Airport at Keahole were initiated. In the eight years ending in 1998, the annual visitor arrival growth rate was 1.18 per cent, much less than the previous eight years.

The growth of Hawaii County in terms of employment, population, income and economic activity during recent years has been more closely tied to the visitor industry than any other sector of the economy. Employment opportunities spurred by the growth of this industry has been the catalyst for economic growth in the County. As tourism became the primary economic generator during the 1980s, a shift in employment from the non-service to the service industry sector was evident. In 1980, the service industry accounted for approximately 60.6 per cent of average employment, rising to 71.3 per cent in 1990 and 78.5 per cent in 1997. The County experienced the largest growth in hotel job count statewide with an average annual growth rate of 5.2 per cent between 1981 and 1997.

The principal visitor destination area of the Big Island is the South Kohala-North Kona region in West Hawaii. The single most popular attraction is Hawaii Volcanoes National Park.

[There is] The island continues to attract substantial investor interest in the visitor industry [on the island of Hawaii. To date, over one billion dollars of planned construction of resort-residential complexes have been announced in addition to the substantial investment already in place. Most of these plans are for the Kohala-Kona coastal areas. Resort developments have also been announced for the district of Ka'u. By and large the west side of the island has dominated the visitor market and this trend is expected to continue into the future]. Various resort and resort-residential complexes are currently under construction or are planned for construction in the near future. Most of these developments are concentrated in West Hawaii in the Kohala and Kona Districts, which will continue to accommodate the majority of the visitor market within the County. Visitor accommodation units within the County totaled 9,655 units in 1998, up from 8,952 units in 1990. Bed and breakfast units, although not a significant part of the total visitor unit count, have been the fastest growing segment of the industry, growing from 55 units in 1990 to 171 units in 1998. Historically, the County records the lowest visitor unit occupancy rates of all the major Hawaiian islands. Only in 1998 did the County’s occupancy rate finally surpass that of Kauai.

Continued investor interest in resort and resort-residential development in the County suggests an economic future that promises new jobs and more commercial, recreational, and cultural activities. Along with these promises of a "better" life is the realization that the visitor industry is sensitive to exogenous factors, such as the national economy. High quality development, however, seems less subject to these factors. The key to orderly growth lies in proper planning and controlled development.

The cruise ship industry is a potential growth area for the County. In recent years, the total number of visitors to the County from cruise ships has increased substantially from 124,000 in 1997 to 184,000 in 1998. Based on 1998 visitor counts, cruise ship visitor annual expenditures are estimated to range from $16,000,000 to $23,000,000. Cruise ship visitors are expected to continue to increase in the future due to the recent resurgence and popularity of this industry along with the projected construction of additional cruise ships.

The County’s natural beauty, historical and cultural attributes and its numerous educational institutions and programs lend themselves to provide the catalyst to allow new niche markets to flourish. Niche markets for the County’s visitor industry, such as ecotourism, health and wellness tourism and educational tourism, have growth potential. The health and fitness resources of the various luxury hotels look towards health and wellness tourism as one of its target markets. The expansion of tourism should include careful planning to identify, promote and preserve the island’s unique resources.

Research and Development

[To a limited degree,] Hawaii County has participated in the research and development industry through the Mauna Kea and Mauna Loa Observatories, the University of Hawaii Cloud Physics Laboratory, Hawaii Volcano Observatory, and various agricultural research centers. The University of Hawaii at Hilo [College has become a four-year institution] has and will play an increasingly important role in this community. The university complex itself is an important economic force. The University of Hawaii at Hilo’s Long Range Development Plan (1996) envisions a target enrollment of 5,000 full-time equivalent (FTE) students by 2025, or roughly twice the 1995 enrollment. The plan outlines the program and facilities requirements necessary to accommodate the projected growth in enrollment.

The Natural Energy Laboratory of Hawaii Authority [(NELH)] (NELHA) at Keahole, North Kona is currently involved in research and development in energy, materials and aquacultural projects. Hawaii Ocean Science and Technology (HOST) park, an integral part of the Natural Energy Laboratory of Hawaii Authority, is located adjacent to [NELH] NELHA and is being developed for similar projects on a commercial scale. [NELH will soon be involved in geothermal-related research at the Hawaii Geothermal Project site in Puna.]

The County is also participating in the development of the Pacific Aquaculture and Coastal Resources Center at Keaukaha, South Hilo for research in the spawning activities of several fish species and providing a research and training facility for university students and local farmers. The USDA’s PBARC facility will bring substantial research resources to Hawaii.

[Further, interest has been expressed for several years in developing a space launching facility in Ka’u.

Technological advances are occurring in many sectors and is not limited to the "high tech" computer industries. These changes brought by such advances have and will continue to affect Hawaii's industries.]

The summit area of Mauna Kea has the worldwide distinction as the best international center for observational astronomy. Mauna Kea currently accommodates twelve of the world’s most state-of-the art telescope facilities. The newest telescope is the $300,000,000 Subaru telescope developed by the National Astronomical Observatory of Japan. The recent completion of the University of Hawaii-Hilo Institute of Astronomy complex at University Park will support the relocation of the Institute of Astronomy staff from UH-Manoa to UH-Hilo. The UH-Hilo is also working to offer a Bachelor of Science degree in astronomy to allow observatories to hire local astronomers. Approximately $619,000,000 of capital investments into the County have been made by the astronomy industry, including the creation of approximately 270 permanent jobs. Astronomical activities contribute approximately $50,000,000 annually to the County’s economy.

Military presence within the County is represented by the United States Army. The U.S. Army operates a field training facility at the Pohakuloa Training Area on Mauna Kea and a recreational camp at the Kilauea Military Camp-Joint Services Recreation Center located within the Hawaii Volcanoes National Park. Permanently stationed military units are not located on this island. The Department of Defense appropriated direct expeditures or obligations of $37,800,000 within the County in 1997, an increase of 84.4 per cent over 1987 appropriations. However, the Federal government's downsizing and restructuring of the U.S. military may eventually lead to base closings. As a result, military activities may not be a major economic sector in the foreseeable future.

Secondary Industries

Secondary industries, such as government, construction, trades (retail and wholesale), utilities, financial institutions, and professional services are most often located close to population centers. Population usually locates close to employment centers [which,] that, in turn, are based on primary income generators, such as tourism or agriculture. Major transportation facilities also attract secondary industries.

Annual employment in the secondary industry between 1980 and 1990 increased a healthy 4.54 per cent. Latest census information from the State Department of Labor and Industrial Relations reveal that employment within the secondary industry between 1990 and 1997 increased by only 1.2 per cent annually, a dramatic slowdown in the growth of employment within the secondary industry due to the protracted growth of the local economy. The secondary economic sector employment accounted for 67.8 per cent of the County’s workforce in 1997, compared to 69.7 per cent in 1990 and 60.5 per cent in 1980.

The largest secondary employment sector is the wholesale and retail trade, which reported the greatest percentage gain in average employment of 78.6 per cent between 1980 and 1990, but a mere 2.8 per cent between 1990 and 1997. The services sector has replaced the government as the second largest secondary economic sector in the County.

The major governmental, service, commercial, transportation, and educational center on the island of Hawaii is the city of Hilo. Of the island's population, approximately 30 percent [resides] reside within the city limits. Key to the growth of the city [have] has been [the] its transportation facilities. Until Kawaihae Harbor was constructed on the west coast of the island, Hilo Harbor was the only deepwater port in the County. [Hilo's General Lyman Airport] The Hilo International Airport has been improved to accommodate [inter-continental jets] larger aircraft while [Kona's Ke-ahole] Kona International Airport at Keahole has been receiving direct national and international overseas flights.

[In addition to the developing urban center at Kailua, there are many other communities throughout the island, which, for the most part, are small and rural in nature. These communities, ranging in population from 300 to 1,500, constitute the remainder of the "urban" areas of the County.]

The future economic outlook for the County is uncertain due to the state of foreign economies and its impact on tourism. Tourism is expected to continue as the primary economic generator in the near term. As a result, the services industry is expected to also be a dominant factor in the future of the County.

The County’s vast quantity of natural resources and land will support the future growth of the County’s non-service industries, especially agriculture. The willingness of the County and its residents to innovate and expand into new fields of industry will help the future expansion of the entire economy. As the primary sectors of the economy expand, the expansion of the secondary economic sectors will follow accordingly.

Enterprise Zones

The Hawaii Enterprise Zone (EZ) program is a partnership between State and County governments and the private sector to stimulate, via tax and other incentives, certain types of business activity, job preservation, and job creation in areas most appropriate or needed. To be eligible for EZ benefits, at least half of a firm’s annual gross income must be derived from one or more of the following activities – agricultural production or processing, manufacturing, wholesale/distribution, aviation or maritime repair/maintenance, telecommunications switching and delivery systems, information technology design and production, medical research/clinical trials/telemedicine or for-profit training programs in international business management or environmental remediation. Within the County of Hawaii, businesses that satisfy all of the requirements will qualify for the following tax benefits for up to seven consecutive years: 1) 100 per cent exemption from the General Excise Tax (GET) and Use Tax every year (contractors are also exempt from the GET on construction done within an EZ for an EZ-enrolled business); 2) an 80 per cent reduction in State income tax the first year (this reduction goes down 10 per cent each year for six more years); 3) an additional State income tax reduction equal to 80 per cent of annual Unemployment Insurance premiums the first year (this reduction goes down 10 per cent each year for six more years); and 4) a three-year exemption from any increase in County property taxes resulting from new construction in an EZ by EZ-enrolled businesses.

Within the County of Hawaii, Enterprise Zones have been established within portions of the Hilo, Hamakua, North Kohala, North Kona, South Kona and the Ka’u districts. In 1999, there were approximately 40 EZ-enrolled businesses located throughout the island.

Employment

Employment opportunities have increased by over [13,000] 22,700 jobs [during the period] from 1970 through [1984.] 1997. The 1980s saw employment grow at an annual compounded growth rate of 3 per cent. From 1990 to 1997, employment grew at an annual compounded rate of only 1.61 per cent, a reflection of the County’s recessionary economy during this period. [The industry category experiencing the largest increase was hotel employment, followed by retail trade. This is evidence of the impact that the visitor industry has had on stimulating the County's economy.] Employment in secondary industries also expanded. The largest employment decrease was in the sugar industry which [reduced labor needs in harvesting and processing.] saw the closing of the island’s last sugar processing facility in 1997.

Unemployment rates during the 1980s and 1990s followed a similar trend as employment. Unemployment rates dropped drastically from 1980 to 1990 (6.2 per cent to 3.8 per cent, respectively) due to the County’s strong economy during this period. As the economy slowed during the 1990s, unemployment increased to 10.2 per cent by 1997. For 1997, the districts of Puna and Ka’u experienced the highest unemployment rates at 15.6 per cent and 14.8 per cent, respectively.

The following table depicts the shifting of employment between the major sectors of the County's economy. It indicates that the County's economy has shifted from an economy dominated by agriculture in 1960 to a more diversified economy with a significant service-oriented component.

Estimates - County of Hawaii Planning Department

[Much of the increase in employment, especially in hotels and retail trade, has been absorbed by the women in our population. The current ratio between Hawaii County's total employment and population is the highest in the State. The participation rate indicates that the County's labor supply has been largely utilized. This situation indicates that new labor demands may have to be partially met through in-migration.]

[Rising wage levels and more secondary workers caused per capita personal income to rise from $4,059 in 1970 to $9,396 in 1983.] Per capita income in the County grew at an annual compounded rate of 5.18 per cent during the 1980s and 2.91 per cent through 1996. The increase during the 1980s are reflective of the strong economic conditions that existed at the time with a corresponding decrease in per capita income growth during the recessionary periods of the 1990s. Median household income also increased at a healthy rate from 1980 to 1990, increasing from $16,975 to $29,712 at an annual compounded rate of 5.76 per cent. During this period, every district within the County also recorded increases in median family household income with the greatest increases occurring in the districts of South Kohala and North Kohala (8.43 per cent and 8.29 per cent, respectively).

According to statistics from the State Department of Labor and Industrial Relations, there has been a shift in employment trend from the non-service industry to a dominant service industry within the County. In 1980, service industries (wholesale/retail trade, finance, hotels, etc.) accounted for approximately 61 per cent of the private industry workforce and 49 per cent of the total wages earned. By 1997, the service industries dominated the private industry, accounting for approximately 79 per cent of the total workforce and 74 per cent of the total wages earned. This shift in employment trends has significantly changed the economic make-up of the County as workers have in-migrated to the Big Island to meet the demands of employment growth in the service industry, which is primarily fueled by the tourism sector. Additionally, non-service industry workers, primarily in agriculture, adjusted and shifted to new employment opportunities in the service industries as agricultural jobs dwindled.

Upon completing high school, an increasing proportion of the County's youth have pursued higher education. However, despite this trend, there is still scarcity of employment opportunities for the college-educated who desire to return to the island.

Population

The population of Hawaii County has grown steadily since [1970. District estimates for 1984 also show changes in the distribution of population. The South Hilo district still contains over 40 percent of the island's population. The remainder of the nine judicial districts have resident counts ranging from 1,576 in North Hilo to 18,226 in North Kona.] 1980. According to the 2000 U.S. Census, the County’s population increased 23 per cent between 1990 and 2000. During the same period, the State’s population grew by 9 per cent. The district of Puna saw the largest increase at 51 per cent, followed by South Kohala (44 per cent), North Kohala (41 per cent), Ka'u (31 per cent), North Kona (28 per cent), South Kona (12 per cent), North Hilo (12 per cent), Hamakua (10 per cent) and South Hilo (6 per cent).

Utilizing Series B, the County’s population is projected to grow 46 per cent to 217,718 from 2000 to 2020. South Hilo, currently the most populous district within the County, will be eclipsed by the Puna District in 2020 with an estimated population of 58,246 compared to South Hilo’s 49,791.

Hawaii County Department of Research and Development

[The growth of district populations in the last twenty years is closely associated with the existence of visitor industry facilities in an area. North Kona and Puna experienced the largest increases. The population of North Hilo and Hamakua declined. The district of Puna, in spite of the closing of the Puna Sugar Company, grew at an annual rate of 8.7 percent reflecting the continuing settlement on relatively less costly lots created decades ago.] The Puna District will continue to experience relatively strong population growth due to the availability of relatively inexpensive lots that were created around the 1960s. The growth of the population in North and South Kohala, North Kona and South Kona are closely associated with the continuing growth of the visitor and agricultural industry within these districts.

GOALS

• Provide residents with opportunities to improve their quality of life[.] through economic development that enhances the County’s natural and social environments.

• Economic development and improvement shall be in balance with the physical, [and] social, and cultural environments of the island of Hawaii.

• [The County of Hawaii shall strive] Strive for diversity and stability in [its] the economic system.

• [The County shall provide]Provide an economic environment [which] that allows new, expanded, or improved economic opportunities that are compatible with the County's cultural, natural and social environment.

• Strive for an economic climate that provides its residents an opportunity for choice of occupation.

• Strive for diversification of the economy by strengthening existing industries and attracting new endeavors.

• Strive for full employment.

• Promote and develop the island of Hawaii into a unique scientific and cultural model, where economic gains are in balance with social and physical amenities. Development should be reviewed on the basis of total impact on the residents of the County, not only in terms of immediate short run economic benefits.

POLICIES

• [The County of Hawaii shall assist] Assist in the expansion of the agricultural industry [,especially diversified agriculture,] through the protection of important agricultural lands, development of marketing plans and programs, capital improvements [and other programs], and continued cooperation with appropriate State and Federal agencies.

[· The County of Hawaii shall strive for an economic climate which provides its residents an opportunity for choice of occupation.]

• [The County of Hawaii shall continue to encourage] Encourage the expansion of the research and development industry by working with and supporting the [university,] University of Hawaii at Hilo and West Hawaii, the Natural Energy Laboratory at Hawaii Authority [private sector], and other agencies' programs [developed to aid the County of Hawaii.] that support sustainable economic development in the County of Hawaii.

• [The County of Hawaii shall encourage] Encourage the development of a visitor industry [which is consistent] that is in harmony with the social, physical, and economic goals of the residents of the County.

• [The County shall require] Require a study of the significant cultural, social and physical [impact] impacts of large developments prior to approval.

[· The County of Hawaii shall strive for diversification of its economy by strengthening existing industries and attracting new endeavors.]

• [The County shall encourage] Encourage the [expansion] sustainable development of the fishing industry, various forms of aquaculture, and other fresh and [ocean] sea water-based activities.

• [The County shall support] Support all levels of educational, employment and training opportunities and institutions[for its residents].

[· The County of Hawaii shall study the feasibility of establishing a business development loan program.]

• [The County’s capital] Capital improvements program [should] shall improve the quality of existing commercial and industrial areas.

• The [County of Hawaii's] land, water, air, sea, and people shall be considered as essential [economic] resources for present and future generations and should be protected and enhanced through the use of economic incentives.

[· The County shall strive for full employment.]

• [The County of Hawaii shall] Continue to encourage the research, development and implementation of advanced technologies and processes [in existing and potential economic endeavors].

• Support the development of high technology industries.

• [The County shall continue] Continue to encourage development and utilization of by-products from alternate energy conversion projects.

[· The County shall conduct a re-evaluation of all economic goals and policies, particularly in the area of tourism, coincident with any County-initiated overall land use acreage allocation and General Plan review.]

• [The County shall identify] Identify and encourage primary industries that are consistent with the social, physical, and economic goals of the residents of the County.

• [An] Encourage active liaison [between the County and] with the private sector [should be encouraged] with respect to the County's requirements for establishing [business] businesses on the island.

• [The County of Hawaii shall encourage] Encourage the [continuing] development of the retirement industry.

[· The County shall support efforts to stabilize and maintain the viability of the sugar industry.]

• [The County shall promote] Promote a distinctive identity for the island of Hawaii to enable government, business and travel industries to promote the County of Hawaii as an entity [separate and] unique within the State of Hawaii.

• Identify the needs of the business community and take actions that are necessary to improve the business climate.

• Support research and development that would lead to the removal of marketing restrictions on Hawaiian fruits and other perishables.

• Assist in the development of a film and video industry program to market Big Island sites and coordinate film and video activities on the Big Island.

• Assist the further development of agriculture through the protection of important agricultural lands.

• Assist in cooperative marketing and distribution endeavors to expand opportunities for local agricultural products for export as well as to the local market.

• Encourage the further development of the overseas capacity of Hilo International Airport for the exportation of agricultural crops.

• Encourage the health/wellness industry.

• Encourage new industries that provide favorable benefit-cost relationships to the people of the County. Benefit-cost relationships include more than fiscal considerations

[STANDARDS

· The island of Hawaii should be developed into a unique scientific and cultural model. The island should become a model of living where economic gains are in balance with social and physical amenities. Development should be reviewed on the basis of total impact on the residents of the County, not only in terms of immediate short run economic benefits.

• New industries which provide favorable benefit-cost relationships to the people of the County should be encouraged. Benefit-cost relationships as used here include more than fiscal considerations.]

DISTRICTS

The following is a brief analysis by judicial district for each district. The entire County, however, is an economic system [and there are] with many interrelationships and [interdependencies] interdependence among the various districts. Each district is an integral part of the County and is treated as such. The courses of action shall be consistent with and supportive of the goals, policies, and standards set forth in the overall economic element.

Profile

Hawaii County Department of Research and Development

[Population] The population increased in Puna as a result of employment opportunities in agriculture as well as job opportunities in [the city of] Hilo [and in agriculture within the district]. Also contributing to this increase was an in-migration into subdivided areas due to the affordability of parcels within Puna. The table above reflects the continuing population growth within the Puna District. The population in Puna during the past 30 years has increased at a substantially higher rate than the growth in employment.

Puna is primarily an agricultural district. The area also includes part of the Hawaii Volcanoes National Park, large [undeveloped] substandard subdivisions, forest reserves, and several small concentrations of population. Most of the subdivisions were created prior to the adoption of the [Comprehensive Zoning Ordinance] Zoning Code in 1967 and are in agricultural zones.

[Diversified agriculture] Agriculture in the form of truck farming in the Volcano area; papaya [groves] in the Kapoho area; and flowers, principally anthuriums and [vanda] orchids, in the Mountain View, Pahoa and Kapoho areas are important. The papaya and flower industries [have experienced rapid growth in recent years] continue to experience moderate growth. Factors currently [inhibiting the] limiting growth of these industries are the shortage of labor, housing, processing requirements, and plant disease. Over 90 per cent of the State’s papaya production comes from this County, with the majority from the Puna district. The infestation of Puna papaya by the ringspot virus in the 1990s resulted in 1997 production levels falling 55 per cent from 1992 production levels. It also resulted in the dispersion of papaya acreage to other areas of Puna, South Hilo and Hamakua to escape the virus. With the acceptance of the genetically-engineered and disease-resistant Rainbow variety and the recent opening of a post-harvest treatment facility, the future production of papaya within the Puna district is expected to increase. The County also produces most of the State’s bananas, with the Puna district accounting for a large percentage of production. The banana industry in Puna is expected to grow at a moderate rate.

Geothermal resource utilization is a small part of the existing economy of Puna. Future [potentials remain uncertain though they may be] expansion of the geothermal industry within the district is promising [if implemented properly].

Except for the Kulani Prison project, there are no major government installations in the Puna district.

The Kamehameha Schools East Hawaii Campus opened in the Fall of 2001. The campus will be able to accommodate an overall student population of approximately 2,300 students in grades K-12, and become a major employment generator in the Puna District.

The visitor industry has very little visible effect on the Puna district other than some roadside stands[.] and a few visitor accommodations, such as bed and breakfast and vacation-rental operations. There are a number of visitor attractions frequented by tourists, such as the lava-inundated former Kaimu Black Sand Beach[,] area, portion of the Volcanoes National Park, and the Painted Church.

Puna's population will probably continue to grow [at its past rate.] at a rapid rate. The major sector of its economy will continue to be agriculture, such as papaya, macadamia nuts and flowers. However, there are several problem areas [which] that have already been mentioned as well as others such as capital requirements [which] that have to be overcome for expansion. There is also potential for a limited amount of visitor facilities in the form of small accommodations and support facilities, such as recreational areas, botanical parks, and others. Puna also will continue to serve as a residential area for [some] people working in [the city of] Hilo.

Courses of Action

• [The County shall assist] Assist the further development of the agricultural industry by providing support services [, such as co-operation with other agencies in developing manpower training programs,] to commodity groups and other organizations such as farmer's cooperatives, protecting important agricultural lands, and requesting and providing necessary capital improvements.

[· The overseas capacity at Hilo's General Lyman Field is extremely important to the development of Puna's export crops. The County shall continue to encourage the further development of this facility.]

• [There is potential for limited visitor facilities in the form of small accommodations and support facilities, such as natural areas, botanical gardens, and limited commercial facilities.] Resort growth should enhance and be in keeping with [this] the area's rural character.

• [The] Assist the fishing industry [in Puna should be assisted by the County] through a cooperative effort with State and Federal agencies.

• [The County shall support] Support the development and utilization of geothermal resources and by-products consistent with the environmental, social, economic and other goals expressed elsewhere in the General Plan.

[· Assist the Research Corporation of the University of Hawaii in acquiring land adjacent to geothermal exploration sites to expand research programs or alternative uses of geothermal by-products.]

 

 

 

Profile

Hawaii County Department of Research and Development

Population growth [has occurred primarily] in [the city of] Hilo [while] and in the older plantation based communities on the [Hamakua] coast north of the city declined[.] or saw little growth. Between 1990 and 2000, the population for Hilo increased by 6.2 per cent.

[The city of] Hilo [(hereafter referred to as Hilo)] is the County seat and the only metropolitan area on the island. Hilo also functions as the island's industrial, commercial, distribution and population core. Approximately [30 percent] 33 per cent of all Big Islanders live in this city. The rest of the population is scattered [in other settlements] throughout the island.

[Sugar is one of the largest single industries in the South Hilo area. Although plantings of sugar cane are found within the city limits, most of the cane is grown in the rural areas. Hilo Harbor serves as the primary shipping point for the sugar industry. A number of related industries are also located in the city, such as fertilizer distributors, petroleum product distributors, machine and equipment dealers, repair facilities, and some light manufacturing. Several crop and livestock businesses are located in South Hilo.] Sugar was one of the largest single industries in South Hilo. The commercial growing of ornamental plants is now the largest agricultural product grown in the district. Bananas and papayas are some of the other major products grown in the district. More than half of the total acreage cultivated statewide for flowers and nursery products are located within the County, which also accounts for over half of the total statewide revenue of flowers and nursery products.

[Hilo is also known as the Orchid Capital of the world, as flowers are grown extensively throughout the vicinity. In addition to orchids, anthuriums have been making remarkable progress in marketability.]

Several kinds of manufacturing operations are located in Hilo, including the processing of food, fruit, [sugar,] livestock, and garment manufacturing. [The forest reserves represent a large, virtually untapped economic resource.]

[With the establishment of a four-year college there is potential for further research and development industries in the city. Already established in Hilo are the University of Hawaii Cloud Physics Laboratory, agricultural experiment stations and astronomy related base facilities.

Tourism in Hilo grew then declined between 1970 - 1984, beginning with 1,308 hotel and condominium units available for visitors in 1970, then peaking at 2,152 units in 1976 and returning to 1,313 in 1984.] There were 1,165 visitor accommodation units available in 1998, a decline of 11.3 per cent since 1984 and a 46 per cent decline since its peak in 1976. Hilo continues to attract its share of visitors to the County with approximately 380,000 visitors (30 per cent) in 1997. As the center of business and government within the County, Hilo accommodates numerous business and local travelers for special events such as hula competitions and sporting finals. The South Hilo district will also benefit from the continued growth of the cruise ship industry, which saw a substantial increase in island-wide arrivals from 124,000 in 1997 to 184,000 in 1998 with annual expenditures estimated to range from $16,000,000 to $23,000,000. Overall, the future growth in tourism in the South Hilo district is anticipated to remain at current levels.

[Commercial endeavors are being expanded. The largest project is the recently completed Prince Kuhio Plaza, anchored by Liberty House, Woolworth and Sears. Numerous other office buildings, shops, and services are serving the growing needs of the island community.]

Hilo with its population size, harbor and airport facilities, higher education complex, and new investment has potential for economic growth. [There are, however, some problem areas. Major] However, many public facilities, such as the airport facilities and the university facilities in Hilo, rely heavily on State funds and [this] the County must compete with other areas of the State. [A new shopping center has intensified the competitive situation between new and older commercial areas. Finally, the recent declines in the visitor and sugar industries in east Hawaii are resulting] The closing of Hilo Coast Processing Company and Hamakua Sugar Company in 1994 resulted in some [declines] decline in allied sectors. New economic [base] based activities in [east] East Hawaii are needed if the city is to continue its role as the island's commercial and service center in the future.

There are several significant projects that could propel South Hilo’s economy in the near future. Subject to the availability of funding, construction of the Saddle Road improvements could commence in late 2001 and will substantially reduce the commute time between Hilo and Kailua-Kona. Already in operation is a post-harvest fruit treatment plant that will allow a substantial increase in the amount of agricultural products to be exported worldwide. In addition, a call center established in Hilo could ultimately provide as many as 300 new jobs.

Courses of Action

• [The County shall encourage] Encourage the State to provide the necessary funds for the development of the university complex and airport facilities. [The County shall also provide] Provide necessary support services and facilities to aid the development of these complexes.

• [The County shall continue] Continue to implement a program to revitalize historic downtown Hilo.

[· The County shall support efforts to stabilize and maintain the viability of the sugar industry.]