KEN SAKAMOTO / KSAKAMOTO@STARBULLETIN.COM
Panelists invited by the Chamber of Commerce of Hawaii
to give an economic update this morning are optimistic
about the state's ability to pull out of the current crisis.
They include, from left, Jim Tollefson of the chamber,
First Hawaiian Bank Chairman Walter Dods, House
Speaker Calvin Say, Susan Au Doyle of Aloha United
Way, Col. John Gardner and UH Manoa Dean
of Business David McClain.

Isle experts optimistic
economy can rebound

The changes are more like
the '70s oil shocks than the
Gulf War, one exec says

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By Tim Ruel
truel@starbulletin.com

To Walter Dods, the effect of the Sept. 11 attacks on Hawaii's economy is more akin to the oil-price shocks of the 1970s than the 1991 Persian Gulf War.

During the latter, people calmly watched the events unfold on television, Dods said, while the oil shock immediately changed a generation, particularly in Japan, which had previously depended nearly 100 percent on foreign sources of oil.

Similarly, the face of security has changed forever in America, said Dods, chairman and chief executive of First Hawaiian Bank. The positive outlook is that it's safer to fly to Hawaii than ever, he said.

Dods spoke this morning at the Pacific Club before a small group of local business people. The Chamber of Commerce of Hawaii sponsored the event, titled "Good Morning Hawaii."

The panel of speakers also included state House Speaker Calvin Say; David McClain, dean of the University of Hawaii's College of Business Administration; Col. John D. Gardner, assistant division commander of the 25th Infantry Division; and Susan Au Doyle, vice president of community building at Aloha United Way.

Most of the speeches were optimistic in tone, pointing to new spending by local and national governments as a way of getting Hawaii's economy back on track.

"We did raise the Ehime Maru and we can raise this economy," said McClain, who failed to note that the sunken Japanese fishing vessel is still 115 feet underwater.

Gardner said the Army plans to spend approximately $690 million over the next several years on improving ranges, airfields and other infrastructure in Hawaii as part of its long-term conversion to "interim brigade combat teams." The move will convert the 25th Infantry Division unit to a lightly armored, wheeled fighting force, adding 400 vehicles to Hawaii, he said.

The project still requires an environmental impact statement, Gardner noted.

Meanwhile, Dods championed the "Hawaii Value Pass," a card distributed by the state at Hawaii's hotels that visitors can use for freebies at more than 1,100 local businesses, starting Thursday.

However, when asked whether Hawaii could directly subsidize the tourism industry, such as providing $200 vouchers for flights and $50 for hotel rooms, Dods replied: "It's not realistic. It's not gonna happen."

Other speakers noted more controversial measures are likely. Say (D, Palolo) said he expects the state Legislature to tap the $195 million Hawaii Hurricane Relief Fund, transferring the money to the state's general fund.

And expect legalized gambling to be back on the table in next year's legislative session, said Say, a proponent of the idea.