1971 GENERAL PLAN -Original - ORD 1971-439

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1 C L� t Export products grown mostly on the Big Island, such as papaya, maca- damia nuts, and flowers, have expanded rapidly over recent years. These commodities and others, such as ginger, guava and other tropical fruits, have potential for growth. There are also new high value crops which have potential to be successfully cultivated here. Manufacturing Manufacturing or processing activities in the County of Hawaii have main- ly been related to the agricultural industry. About 57% of the employees in the manufacturing sector are involved in the processing of sugar, and about 200 workers are connected with the processing of macadamia nuts. Other forms of manufacturing associated with agriculture are the production of jams and jellies, preserved vegetables, and lumber processing. > The garment industry ,is another form of "basic" manufacturing conducted on the island. Approximately 200 people are involved in the manufacture of Hawaiian apparel. Other manufacturing activities are service-oriented, such as bakeries, print- ing and iron works. These operations are usually located close to population centers or transportation facilities. An expanding agricultural industry will provide greater opportunities for related processing. Several proposals for the use of sugar cane waste, or bag- asse, are being studied. Major factors inhibiting the growth of manufacturing on Hawaii Island are transportation and power costs. Visitor Industry The visitor industry has emerged as a major economic force in the past decade. The number of visitors to the island of Hawaii in 1960 was 91,000. By 1969, the count showed 358,000 visitors. The hotel inventory during this same period grew from 860 to 3,200 rooms. Employment in hotels, services, and trade also experienced similar increases. The growth of Hawaii County in terms of employment, population, in- come and economic activity during recent years has been more closely tied to the visitor industry than any other sector of the economy. Employment op- portunities spurred by the growth of this industry may be the principal cause of the reversal of the three decade population decline on the island. The principal visitor destination area of the Big Island is Kona and the single most popular attraction is Hawaii Volcanoes National Park. The city of Hilo, while a visitor attraction in its own right, serves primarily as the business and transportation center of the island, having a deepwater port and direct flights to and from the mainland. There is substantial investor interest in the visitor industry on the island of Hawaii. To date, over one billion dollars of planned construction of resort - residential complexes have been announced. Most of these plans are for the Kohala-Kona coastal areas. Resort developments have also been announced for the city of Hilo and Ka'u. This investor interest in resorts has created a great deal of excitement about future economic prospects. There is, however, concern over problems that may arise from the forthcoming rapid development of the island. On one hand, Big Islanders can look towards an economic future that promises many jobs, new highways, improved transportation, and more commercial, recreational, and cul- tural activities. Along with these promises of a "better" life is the realization that growth will not take place without its costs. There already is evidence of some of the problems that will accompany rapid development, such as rising costs of land, housing shortages, and social disturbances. There is also a question of the stability, of the visitor industry. This industry, which caters to the recreational desires of people, is highly sensitive to exo- genous factors, such as the national economy. High quality development, however, seems less subject to these factors. Recent cost -benefit studies have shown that the visitor industry is providing more revenues to the public than costs. The studies warned, however, that the cost -benefit relationships become less favorable as in -migration increases. The potential to benefit economically from the visitor industry while still minimizing social costs exists. The key to orderly growth lies in proper planning and controlled development. Scientific Research and Development To a limited degree, Hawaii County has begun to participate in the research and development industry. There are slightly over 200 people directly em- ployed in this industry in such facilities as the Center for Cross Cultural Re- search and Training, the Mauna Kea and Mauna Loa Observatories, the Uni- versity of Hawaii Cloud Physics Laboratory, Hawaii Volcano Observatory, and various agricultural research centers. The University of Hawaii at Hilo College has recently received approval and funding to become a four-year institution and will play an increasingly important role in this industry. The university complex itself is an important economic force. A related aspect of this industry is resident schools and colleges. There is currently only one such facility, Hawaii Preparatory Academy, in Waimea, South Kohala. The future of research and development, including educational facilities, is bright. There is already a close working relationship between County govern- ment and the university and several joint programs are being explored. This industry, however, is in its infant stage. Its growth is hampered primarily by major funding sources which are the State and Federal governments and large research organizations. Secondary Industries Secondary industries, such as government, construction, trades (retail and wholesale), utilities, financial institutions, and professional services are most often located close to population centers. Population usually locates close to employment centers which, in turn, are based on primary income generators, such as tourism or agriculture. Major transportation facilities also attract secon- dary industries. The major governmental, service, commercial, transportation, and educa- tional center on the island of Hawaii is the city of Hilo. Within the city limits reside over 40% of the island's population. Key to the growth of the city have been the transportation facilities. Until Kawaihae Harbor was constructed on the west coast of the island, Hilo Harbor was the only deepwater port in the County. Hilo's General Lyman Airport has recently been improved to accom- modate inter -continental jets and since October, 1967, has been the second gateway to the State. There are many other communities throughout the island, which, for the most part, are small and rural in nature. These communities, ranging in popula- tion from 300 to 1,500, constitute the remainder of the "urban" areas of the County. With the exception of Kailua-Kona, the only resort village on the island, these communities are basically agriculturally oriented. Employment Employment opportunities have expanded over the last ten years. There were over 5,000 more jobs in 1969 than in 1960. The industry category ex- periencing the largest increase was hotel employment, followed by retail trade. This is evidence of the impact of the visitor industry. Employment in secondary industries also expanded. The largest employment decrease was in the sugar industry which reduced labor needs in harvesting and processing.