Kauai's economy held up well despite a global recession and economic fallout from Sept. 11 and will likely grow in most sectors, according to a new report by the University of Hawaii Economic Research Organization. Kauai growing despite Sept. 11
By Lyn Danninger
ldanninger@starbulletin.comWhile economic activity slowed statewide last year, the report concludes Kauai suffered less after Sept. 11 than most of the rest of the state.
The island's real estate market remained strong, as did construction and other non- tourism services. The report predicts those sectors will continue to see strong growth over the next two years as tourism recovers.
While job growth slowed in 2001, it remained positive through the end of the year on Kauai. The report estimates aggregate real income for Kauai residents rose at a 2.3 percent rate following two years of 2.7 percent growth.
While visitor arrivals to Kauai dropped 6.5 percent last year, the overall statewide visitor drop was 9.1 percent. Tourism-related jobs on Kauai fell 5 percent last year from 2000 levels.
The drop in the Japanese visitor market had less of an impact on Kauai. Tourism growth originating from other markets is expected to grow moderately on Kauai this year, the report said. U.S. mainland arrivals, which account for 75 percent to 80 percent of total arrivals, will still dominate Kauai tourism and are projected to rise by about 2 percent this year. Overall visitor arrivals will increase by 2.4 percent this year and 4.2 percent next year.
Mamo Cummings, president of the Kauai Chamber of Commerce said she credits additional direct flights to Kauai from the mainland with helping to improve tourism numbers.
"Direct flights are definitely a big factor for us, especially since Sept. 11 and we will be a adding a couple," she said.