1971 GENERAL PLAN -Original - ORD 1971-439

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INTRODUCTION AND ANALYSIS The development of sound local public policy in a general plan demands an understanding of economic factors. Such factors are largely responsible for the County's growth or lack of growth, and any planning effort which does not take them into account cannot be very meaningful. In varying degrees the other elements of the planning process are affected by the local economy. The existence of population in any given area is based in part on economic reasons. Population usually settles, expands or declines in some correlation to income opportunities or the lack of them. Besides affecting the number and density of population, economic activity has a direct bearing on income level, which to a certain extent determines the standard of living of the individual. Different types of employment influence the social character of com- munities. The size and character of the population in turn define needs for housing, transportation, public utilities and facilities, special combinations of land use, recreation, and so forth. Economic studies are thus one of the necessary first steps in developing plans for public and private actions. Government has a responsibility to identify and plan towards the achieve- ment of an economy which will best satisfy the people's economic demands in balance with desirable social constraints. This involves an active role by govern- ment to understand, forecast, protect and promote local economic sectors. Gov- ernment has many policy instruments available to influence and guide develop- ments, investment, and operation of private and public interests. This approach requires a conscious direction of the economy of the County. The economy, however, should not be considered as the only goal of the Gen- eral Plan. The planning process is geared towards the achievement of a higher quality of life for the residents of the County. Working towards the goals, policies, and standards of this element are only one aspect of accomplishing this desired end. The County offers several amenities conducive for economic growth. Many of these are natural amenities such as a favorable and equitable climate, scenic vistas, high mountains, deep oceans, active volcanoes, large land areas, and an environment fairly free of pollution. In 1967, direct flights between the U.S. mainland and the County were inaugurated, offering immediate as well as long-term economic benefits. Despite these amenities, there have been a number of problems that tended to retard or limit growth on the island. Principal among these problems is the insular nature of the County. Hawaii is the farthest island from Honolulu, Oahu, the State center of commercial, cultural and social activity. Most imported goods have to be transhipped through Honolulu. The distances from the popu- lation center of Honolulu, the mainland, and other markets have limited the growth of export products from the Big Island. With the exception of sugar, only products which are unique and/or have high value are successfully exported, such as macadamia nuts, flowers, and papaya. As the island of Hawaii's population grows larger and the export volume increases, more favorable rates on overseas carriers may be instituted. Should the proposed ferry system between the islands materialize, surface transporta- tion may be improved. The relatively small population in the State, coupled with the distance to mainland markets, creates a disadvantage for local businessmen. This situation is commonly called a "pocket market." The size of the population does not allow for efficient operations, and when exportation is considered in order to expand the market, the entrepreneur is faced with high transportation costs. Physical catastrophies, such as tsunamis, volcanic activity, flooding, and droughts, have also retarded growth on the island. In addition to actual physical damage, the fear of the recurrence of natural hazards presented a psychological barrier for investment. Measures to protect life and property have been planned and instituted throughout the County. Further control measures are reported in this plan. Despite these and other problems, such as high costs of living, high power rates, and other limitations, the economy of Hawaii County has made remarkable advances over the past decade. The economy has traditionally been powered by agriculture. A rural atmosphere has been maintained throughout the island with most of the urbanization taking place in Hilo city, the island's principal harbor complex. During the past decade, the visitor industry has emerged as a major economic force. These two industries, agriculture and tourism, presently con- stitute the foundation of the island's economy. Agriculture With sugar as its leader, agriculture currently constitutes the major eco- nomic sector of the island of Hawaii. Including processing, the agricultural industry accounts for one-fourth of the island's employment. Besides sugar cul- tivation and processing, local agricultural pursuits consists of the raising of cattle and other livestock, the growing of coffee, macadamia nuts, papaya, flowers and nursery products, vegetables, and several processing plants which utilize locally grown products. Agribusiness is basically conducted on two levels. On one end of the spec- trum are the ten incorporated sugar plantations which account for a large per- centage of agricultural employment. At the other end are the small, family - operated farms and ranches. The latter accounts for about half of the people engaged in agriculture. Hawaii County accounts for 36.9% of the sugar produced in the State of Hawaii, over half of the beef consumed, all of the coffee grown, most of the macadamia nuts, and varying percentages of the other crops and livestock. With the exception of the declining coffee industry, incomes from agriculture have grown. The total value of agricultural marketings rose 51.3% from 1960 to 1969, in part a result of higher prices. The number of farms, however, decreased from 3,600 to 2,750 in the same period. Acreage in farms also declined 12.2% during the last decade. One of the most pressing problems faced by today's agricultural industries is their ability to attract labor. Agriculture is facing increasing competition for labor from other sectors of the economy, such as the rapidly expanding visitor industry and construction. There is also a demand for a greater number of per- sonnel with technical and professional agricultural training. A related problem is the housing shortage which is found throughout the island. Competition from urban forces for agricultural lands has intensified. The protection of prime agricultural lands, however, is the intent of the State Land Use Law. The pocket market situation and transportation difficulties mentioned earlier in this section are limiting factors for the production of agricultural products for local consumption and export. The State Department of Agricul- ture, the Department of Planning and Economic Development, the University of Hawaii, the College of Tropical Agriculture, and the County have programs to assist the industry. In 1970 the State Agricultural Development Plan was completed. This docu- ment reviewed the present and future potential of agriculture and formulated programs to maintain its future. The opportunities for the expansion of agriculture on the Big Island seem to be immense. Sugar, the largest of all industries, has reported production in- creases by becoming highly mechanized. More mergers and mechanization are expected. One of the immediate problems faced by this industry is pollution control. 1 t t r t It 1 1