Vacation Rental in Princeville Kauai

and Kauai Travel Guide

©B.Pruitt 2009-2012

Economy and Government of Kauai and Hawaii

Economy

Kauai's economy did not keep pace with the growth generated on the mainland in the 1990s.  The sugar industry has been in a steady decline with plantations closing and workers being laid off.  The visitor industry took several years to rebound from the devastation of Hurricane Iniki in 1992.

Visitor arrivals are again topping the one million per year mark.  The numbers have yet to duplicate the pre-Iniki record of 1,267,620, but not many people on this small island yearn for a repeat of that lofty mark.  Trends indicating growth in the visitor industry reflect marketing efforts made by the Department of Business, Economic Development and Tourism as well as the healthy mainland economy.  Traditionally, Kauai receives fewer Japanese visitors than the other islands and the fall back of visitor counts from Japan has been more than made up in increased visits from the U.S.  Hotels on Kauai enjoy an occupancy rate of 73.5 percent with an average daily rate of $154.  Just 34 percent of visitors to Kauai made it their only destination—a rate lower than all the other major Hawaiian Islands.

For close to two centuries, agriculture on Kauai has meant sugar cane production.  With sugar plantations closing permanently due to depressed world prices and high production costs, serious attempts to diversify agricultural production are being attempted.  McBryde, continues to expand its coffee acreage after closing sugar operations in 1996.  Agricultural parks have been set up allowing former sugar workers to grow vegetables and fruit for local markets.  Among the most promising agricultural products are: seed corn, fruit for export and tropical flowers.  There are four seed corn companies in operation on the west side where weather conditions allow for four crops a year.

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The potential for tree farming on Kauai has been bolstered by a bill that exempts landowners with ten or more acres planted in tree crops from paying real property taxes until the trees are harvested.  With the island's favorable growing conditions, forestry analysts predict exotic hardwoods could be harvested in 10-13 years.  Critics claim that without marketing commitments or contracts in place for the forestry products, the primary motive for tree farming is as a tax-sheltered parking lot for agricultural lands.

Military presence on Kauai amounts to the Pacific Missile Range Facility, which occupies about 2,000 acres at Barking Sands on the island's west side.  The facility employs 435 civilian contract workers, 126 military personnel and 136 civil service workers.  A family housing area containing 69 units provides accommodations for workers not living on the west and south sides.  The range collects scientific and operational data regarding fleet operations and training.  Six helicopters and two radar surveillance and electronic warfare planes operate from the airfield and its 6,000-foot runway.

Kauai has put on a pretty face for more than 50 films over the past 60 years—usually playing the role of somewhere else.  The Kauai Institute for Communications Media is seeking to turn the island into a mecca for professionals involved in the new technologies being used in film, television, computer software, publishing and other communications arts.  The County's Film Office continues to attract media productions of all types including film, television, commercials, documentaries, travel segments and still photo shoots.

The Kauai Economic Development Board has successfully attracted digital technology businesses to its new facility at Waimea.  This project, as well as other high tech possibilities, are supported by island-wide fiber optic capabilities and a highly advanced digital cellular telephone network.

Government

Hawaii has three levels of government: federal, state and county.  Hawaiians are represented in Washington D.C. by two senators and two representatives.  Honolulu is the state capital.  The state's executive power is vested in a popularly elected governor who serves a four-year term, as do the lieutenant governor, state legislators and county mayors.  The State Legislature is comprised of a 25-member Senate and a House of Representatives with 51 members.  Kauai and Ni‘ihau send one Senator and two Representatives to the State Legislature, which meets in regular session each year.  Kauai's North Shore also shares a state senator and state representative with sections of Maui.  For several decades the dominant political party at all levels has been the Democratic Party, although the governor is Republican.

Hawaii is divided into four county governments, but unlike mainland states, it has no municipal government.  Kauai County is governed by a mayor and a seven-person county council and provides the services such as police and fire protection that are usually assigned to cities.  The mayor reports to the council and submits her operating and capital budget to them for approval, but she has no vote on the council.  The council passes ordinances and resolutions for the government of the county, and these go to the mayor for approval.  County revenues include a portion of the state excise tax, all the real property tax, the county liquid fuel tax, motor vehicle weight taxes, local license fees and court fines.