Bankoh's Larry Johnson

Lawrence Johnson, chairman and chief executive officer of Bancorp Hawaii Inc., yesterday urged local lawmakers to lift the current restrictions on building new hotel rooms in Waikiki.

"People don't realize the importance of Waikiki to the economy of our entire state," said Johnson, noting that Waikiki generates some 45 percent of all visitor expenditures in Hawaii and employs about 39,000 people.

"If we don't take care of (Waikiki) and allow more capital investments, it and the entire state will go the way of Atlantic City and several other areas in the world that died for lack of attention," said Johnson in the keynote speech for the Chamber of Commerce of Hawaii's 146th annual membership luncheon yesterday.

Critics have argued that lifting the building restrictions would lead to massive overbuilding and infrastructure problems.

But Johnson said the restrictions, which were enacted 20 years ago, are making it difficult for isle hotels to compete with those in foreign and mainland destinations.

The restrictions not only stifle the building of new properties but also make it difficult to renovate existing hotels, he said.

Johnson's speech touched on other proposals for boosting the economy, including:

• Further reforms of Hawaii's inefficient workers compensation system, which he said was the fifth highest in the nation.
• Increasing spending for tourism promotion. The state currently budgets $25 million annually to the Hawaii Visitors Bureau but much of it is "encumbered by" legislation and only $7.7 million of that amount is spent for advertising, Johnson said.
• Eliminating protective barriers to attract new business. According to Johnson, the state's regulatory process often scares off many who want to start new business in Hawaii.

Johnson, the top executive at Bank of Hawaii parent Bancorp Hawaii Inc., took over from Thomas C. Leppert, president and chief executive officer of Castle & Cooke Properties.

"The Roundtable is very concerned about the future of Hawaii's economy and we will work closely with the public and private sectors of our community to make Hawaii a more attractive place to live and do business. We focus on just a handful of issues in four areas: tourism, education, land use and economic development," Johnson said.

The Hawaii Business Roundtable is a nonprofit group formed in 1982 that includes 44 top business leaders from the visitor industry, financial institutions, utilities, health care, housing and retail sectors of the economy. Each company must have at least $50 million in annual sales and 100 employees.

Robert F. Clarke, Hawaiian Electric Industries Inc.'s president and chief executive officer, will be Roundtable vice chairman. John L. Reed, Duty Free Shoppers Hawaii's president, will be Roundtable treasurer.

Johnson adds the Roundtable chairman's role to a long list of community involvement.

In April, he was appointed by President Clinton to serve on the Commission on United States-Pacific Trade and Investment Policy.

Johnson also is a member of the Japan-Hawaii Economic Council, the Young Presidents' Organization, and the Pacific American Foundation Advisory Council.