More growth expected
for Garden Isle economy
LIHUE >> Buoyed by job growth in tourism and construction, Kauai County's economy continues to be among the healthiest in the state and is likely to remain that way for the foreseeable future, according to a report presented to the County Council yesterday.
The study is conducted annually by the University of Hawaii Economic Research Organization under a contract with Kauai County.
During the first quarter of 2004, construction employment on Kauai increased by 14 percent, professional and business service jobs grew more than 5 percent and education and health services were up 3 percent. Overall, job growth on Kauai was up 4 percent from the same time in 2003.
Unemployment on Kauai stood at 3.9 percent as of April, down from 5.6 percent in the same month last year, but above the statewide rate of 3.6 percent.
The study predicts job growth on Kauai at 2 percent this year, 1.5 percent in 2005 and 1.2 percent in 2006.
Real income adjusted for inflation on Kauai will grow by between 2.8 percent and 3.2 percent over the next three years, the study predicted.
The study said the trend toward diversification and away from tourism as the primary industry on the island will continue, but slowly.
Beth Tokioka, the county's economic development director, said the tourism industry already is operating at near-peak capacity with few new facilities scheduled to be available in the near future.
Tokioka said she was pleased with the report's findings.
"Economically, we're as strong as any county and stronger than most," she said.
But the report echoed cautions it has raised in the past.
The need for better educational facilities to train high-tech workers, better infrastructure to serve both tourists and residents and affordable housing for both low- and middle-income families all were cited as needs.
The issue of "in-migration," more people moving to Kauai, is one that requires discussion, the report said.
"In-migration itself has raised concern among kamaaina that Kauai's uniquely casual and congenial local environment may be threatened," the report said. "At the same time, the inflow of well-educated professional workers may help to facilitate the growth of a diversified technically sophisticated economy on Kauai."
County of Kauai