Economy sinks as cruise
line bails outThe issue: A company declares bankruptcy
and ceases voyages in Hawaii's waters.When it rains it pours and for Hawaii's tourism industry the last month has been a deluge of bad news as would-be travelers made wary of flying by the terrorist attacks stayed close to home. Now the flow of tourists that has been surging onto Hawaii's shores by ship is being shut off as a cruise company shuts down its operations here. This underscores once again, in case anyone had any doubts, that this state is at the mercy of its primary industry, tourism.
The bankruptcy announcement by American Classic Voyages was quickly followed by what of late has become an all-too familiar pattern: layoffs, decreases in retail sales and wholesale businesses left without a big customer.
The company's two ships had carried a total of more than 2,000 visitors to Oahu, Kauai, Maui and the Big Island every week. Hotels, tour operators, car rental companies, restaurants, even crafts people who set up sale booths harborside, will feel the pinch.
Meanwhile, the state will lose a construction project. Although planned harbor improvements will continue on the neighbor islands, Governor Cayetano said renovations at Honolulu Harbor will be halted.
The cruise line had already been taking on water before the Sept. 11 attacks, but the crisis cut bookings by 50 percent and cancellations were up 30 percent. It hopes to renew service in three years, but three years is a long time to wait for cash-hungry Hawaii and for the 800 people put out of work.
A bright spot is that in mid-December, the 2,220-passenger Norwegian Cruise Line's Star will make its maiden voyage from Honolulu. The company says it views Hawaii as a great opportunity for the cruise industry, but it has no plans at present to increase its sailings here. It is unclear if the state or federal government, already spread thin, could provide enough aid so that the two new passenger vessels under construction for American Classic Voyages could set sail sooner than the company's 2004 target date.
This latest punch shows how vital it has become to loosen the tight grip that tourism has on Hawaii's economy. Although state officials have said that diversifying the economy is their priority, they must now be even more relentless in searching for ways to do that. In fat economic times, tourism buoys Hawaii. In lean, it becomes dead weight.
Shaping a long-term
battle against terrorThe issue: What happens after the
assault on Afghanistan is over?It is not too early to begin asking the critical question in the long-term campaign against terror: What's next? President Bush, in his call to arms before the Congress on Sept. 20, laid down the ultimate objective of the anti-terrorist campaign: "The disruption and defeat of the global terror network."
Much will depend, of course, on how well the battle in Afghanistan goes, when Osama bin Laden is captured or killed, the al Qaida terrorist network destroyed, and the Taliban regime driven from power. Beyond that will be the government that accedes to power in Kabul and how much help it needs to get that stricken country up and running.
The next target might well be the Abu Sayyaf and other terrorists in the southern Philippines, Abu Sayyaf being a band of thugs believed to have received training and other help from al Qaida. They have kidnapped Americans, Filipinos, and Europeans in the last few years, holding them for ransom and using the proceeds to buy more guns, high speed boats, and communications gear to seize even more innocent people.
President Bush, having asserted that "any nation that continues to harbor or support terrorism will be regarded by the United States as a hostile regime," could extend that to include a government that would like to be rid of terrorists but lacks the means to defeat them. Americans and Filipinos fought each other at the end of the 19th century but have long since been allies and presumably Manila would welcome U.S. help in thrashing the Abu Sayyaf.
Digging out terrorists in Muslim nations such as Saudi Arabia, Iraq, Syria, Egypt and Libya would be more complicated because the terrorists often have close ties with those governments and a good bit of popular support. The Bush administration would be put to the test as the United States sought to call the marker laid down by the president: "Either you are with us or you are with the terrorists."
The message from Washington to Middle Eastern capitals, which should be delivered mostly out of the public eye to be effective, would be: "The United States would like you to drive the terrorists out of your country and is prepared to help you in any way that you deem necessary -- money, intelligence, training, air and ground forces. You lead and we will reinforce."
The unspoken but unequivocal alternative: "And if you don't destroy them, we will."
Published by Oahu Publications Inc., a subsidiary of Black Press.Don Kendall, President
John Flanagan, publisher and editor in chief 529-4748; jflanagan@starbulletin.com
Frank Bridgewater, managing editor 529-4791; fbridgewater@starbulletin.com
Michael Rovner, assistant managing editor 529-4768; mrovner@starbulletin.com
Lucy Young-Oda, assistant managing editor 529-4762; lyoungoda@starbulletin.com The Honolulu Star-Bulletin (USPS 249460) is published daily by
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