LIHUE — A revival in construction on Kauai could boost the island’s economy and compensate for a projected decline in tourism, an economist said.
Kauai construction jobs remain below the pre-recession peak, but building permits paint a better picture for next year, University of Hawaii professor Jack Suyderhoud said.
Construction will be crucial if tourism growth slows, he told an audience at First Hawaiian Bank’s 40th Economic Outlook Forum on Kauai, The Garden Island newspaper reported.
Single-family home construction has held steady throughout the downturn, but now there is an upswing of multifamily and commercial building.
Suyderhoud noted Grove Farm’s Pikake subdivision has 150 houses already built, while another 200 lots are planned as part of the Puakea master plan and 46 more units at old Koloa Camp.
There’s also commercial construction at Longs in Kapaa, the Hokulei Village, and a planned Safeway lifestyle store. ABC Stores is renovating the Coconut Market Place, and Ohana Real Estate Investors plan a hotel and individual lots at the former Hanalei Plantation Hotel site.
Visitor spending started strong, but it became erratic in the latter part of last year and this year.
Part of the reason is most tourists visiting Kauai stay at timeshare and other non-hotel accommodations, Suyderhoud said. Travelers who stay at such places tend to spend less, he said.
The increasing number of nonstop flights to Kauai are a plus, but rising airfare and lodging costs put Kauai at a competitive disadvantage, he said.