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Business has been falling
Makapuu also fears falling rocks
like rocks on the highwayBy Peter Wagner
Star-BulletinTourists are again venturing into Haleiwa, six weeks after a rockfall cut the little town's lifeline in two.
But recovery has been slow in the quaint North Shore community, where business is as bumpy as the temporary road that reconnects Kamehameha Highway at Waimea Bay.
"Our business is down 50 percent," said Andre Oliver, manager at Matahari, a clothing store on the main drag.
Like other retailers along this colorful stretch of Kamehameha Highway, Matahari enjoyed a boost last month when a "Hoolaulea Kokua Haleiwa" celebration drew thousands of people to Haleiwa. But the $25,000 party -- thrown by the city, landowner Kamehameha Schools, and the nonprofit group Haleiwa Main Street -- is over."It was dead yesterday," said Jamie Gasior, an employee at Matahari, watching cars cruise by outside the store this week.
"People hear the road is closed and they think Haleiwa is closed, too."
The March 6 rockfall divided the North Shore into two communities, stopping cars and buses from crossing at Waimea Bay until a temporary road was opened across the beach two weeks later. The road was then washed away by a flood on March 31, two weeks after the Hoolaulea celebration, but has since reopened.
Hurting along with the merchants have been tour bus companies, whose circle-island business dropped when they couldn't get across the temporary road. Many have since routed tours in a "figure eight" that eliminates the North Shore, reaching Haleiwa via Central Oahu then backtracking and cutting across the H-3 to the Windward side.E Noa tours, which has cut its service from seven to six tours a day, has seen a 25 percent drop in revenues and a 30 percent increase in operating costs, with higher gasoline prices compounding the problem.
Katsumi Tanaka, president and owner at E Noa, said the long detour could account for lower spending along the way.
"The more awake a tourist is and the more activity they are exposed to, the more money they are likely to spend at other businesses," Tanaka said. "Any elongation of a tour does hurt that possibility."
Ron Takeuchi, president of Aloha VIP Tours, said his company is finding the longer tour a harder sell.
"Our bookings have dropped," he said. "People say they'll think about it when we tell them we can't get past Waimea Bay."Efforts to reacquaint visitors and locals alike with merchants in Haleiwa are ongoing, with Kamehameha Schools, a major landowner in the area, playing a key role. A second street celebration is planned tomorrow, something that could become a monthly event until the state's $7.5 million road project is completed in late June.
The $20,000 cost of tomorrow's event is being shared by Kamehameha Schools, the city and Haleiwa Main Street.
Meanwhile, some pretty bored sales clerks are whiling away the hours in the quaint shops and boutiques that line the historic roadway through Haleiwa.
Portofino, an Italian restaurant, has cut workers' hours 50 percent and stopped its breakfast service.
"It's really gotten slow," said day manager Megan Mayer, leaning on a silent cash register.
At Black Pearl Source, salesperson Patti Garcia seemed happy to find someone to talk to. "You're the third person I've seen all day," she told a Star-Bulletin reporter, noting the time at 1:30 p.m.
Other businesses have reported revenue drops as high as 70 percent.
Not all the town's merchants are singing the blues, however.
Kimberly Moore, president and part-owner of Jungle Gems, had a good month despite the loss of several days of business after the March 6 rock slide.
"Thanks to the Hoolaulea we were able to have a good month," she said.
Moore, whose livelihood is jewelry, feels she wasn't hurt because hers is not a high-volume, low-margin business.
"The restaurants have to make their money at three and four dollars a pop and most of my things are priced higher," she said. "And I don't have the overhead cost of lots of employees."
Lucie Holu, owner of Silver Moon Emporium, noticed a slight dip in her business last month but likewise has few complaints.
"I might have done better if the road hadn't closed but I did alright," she said. "You get more creative and resourceful."
Holu advertised 20 percent discounts and called regular customers to let them know new shipments were in and that the store -- like the town -- was indeed up and running.
But many merchants in Haleiwa continue to have complaints.
"Any time something goes wrong with the road it goes dead around here," said Mandi Hair, an employee at Oceania Tropical Clothing & Gifts.
Darcey Moniz, a sales representative for Island Heritage, said orders for the company's books, calendars and postcards have plunged in recent weeks.
"A lot of people I sell to every week aren't buying at all," Moniz said.
The U.S. Small Business Administration is offering low-interest loans to North Shore businesses hurt by Kamehameha Highway's closure. N.Shore businesses
offered 4% loansThe organization has opened offices in Haleiwa and Laie where business operators can meet officials and discuss the loans, which have interest rates of 4 percent.
SBA loan offices will be open from 8:30 a.m. to 2 p.m. at the Bank of Hawaii in Haleiwa today, also on April 27 and 28 and May 4 and 5; and at the Bank of Hawaii in Laie Monday and Tuesday and on May 1, 2, 8 and 9. The SBA said those unable to go to the offices may call 1-800-488-5323.
