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Economic Recovery Plan

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Economic Recovery Plan Credit: USGS 2018 KĪLAUEA DISASTER ECONOMIC RECOVERY PLAN Prepared for the County of Hawai‘i By the Institute for Sustainable Development Funded by the County of Hawai‘i and the U.S. Economic Development Administration December 2020 i Table of Contents Preface………………………………………………………………………………………………………………………………………………………………………………iii Acknowledgements…………………………………………………………………………………………………………………………………………………..…iv Executive Summary ............................................................................................................................................................v Overview of the Disasters................................................................................................................................................1 Economic Baseline..............................................................................................................................................................4 Analysis..................................................................................................................................................................................42 Goals and Objectives........................................................................................................................................................48 Strategic Recommendations ........................................................................................................................................57 A Look Ahead ......................................................................................................................................................................72 Appendix .......................................................................................................................................................................75-109 Appendix A: Primary Island of Hawai‘i Employers...............................................................................................................75 Appendix B: Industry-Focused Recovery Considerations ....................................................................................................78 Appendix C: Selected Economic Recovery Initiatives……………………………………………………………………………………….……………..84 Appendix D: Economic Development Organizations………………………………………………………………………………………….…………..94 Appendix E: Incentives to Promote Economic Growth……………………………………………………………………………………………………99 Appendix F: Glossary…………………………………………………………………………………………………………………………………..………………102 Appendix G: References……………………………………………………………………………………………………………………………..……………….107 ii Preface The County of Hawai‘i is pleased to present the 2018 Kīlauea Disaster Economic Recovery Plan. More than 100 business and community leaders provided extensive input into the development of this plan, which is intended to serve as a roadmap for businesses in the Puna district and across the Island of Hawai‘i to continue the process of recovering from the 2018 Kīlauea Eruption. As with all significant disasters, recovery will take years; yet recovery is anticipated to lead to improved business climate and emerging opportunities. Much of the information gathering, data analysis, and development of this plan occurred from 2019 into early 2020. The rollout of the Economic Recovery Plan was delayed several months by the onset of an event that caused even greater economic disruption – the Coronavirus Pandemic of 2020 (COVID-19). The severity of the economic impacts and long-term changes to the island’s business community is a story currently unfolding, with no projected timeline or certainty as to future outcomes. Given this heightened uncertainty, rather than proceed with a comprehensive rewrite of the Economic Recovery Plan, the reader is encouraged to seek to understand the business community’s strengths, weaknesses, threats and opportunities; the associated analysis of industries and markets; and the strategic recommendations. Moving forward, the business community, along with government partners at the federal, state and county levels, must all work together to build a successful economic recovery. iii Acknowledgements v The County of Hawai‘i extends its deep appreciation to the U.S. Department of Commerce, Economic Development Administration for contributing funding to this project. The County and its consultant, the Institute for Sustainable Development, thank the large number of individuals and organizations listed below who provided their input and mana‘o (“thoughts, ideas, opinions”) to this plan. The list is long, and the wisdom shared was truly inspirational. Susan Akiyama Kunz, Kimo Alameda, Andy Andrews, Reg Baker, Greg Barbour, Kaimana Barcarse, Ross Birch, Megan Blazak, Dennis Boyd, Smiley Burrows, Nancy Carr Smith, Lily Cash, Frecia Cevalos, Diane Chadwick, Clive Cheetam, Roberta Chu, Gail Clarke, Kehaulani Costa, David DeLuz, Thomas Donnelly, Stephanie Donoho, Dane DuPont, Elizabeth Dykstra, Amanda Ellis, Angela Fa‘anunu, Peggy Farias, Elizabeth Feine, Justin Finestone, Kristin Frost-Albrecht, Jason Fujimoto, Keene Fujinaka, Nate Gaddis, Nicole Galase, Jason Geneau, Jeff Gilbreath, Robert Golden, Mufi Hannemann, Marissa Harmon, Kilohana Hirano, Ken Hon, Jacqui Hoover, Janice Ikeda, Bonnie Irwin, Jackie Pualani Johnson, Jeana Jones, Amy Ka‘awaloa, Christine Kahikina, Nalani Fujimori Kaina, Brent Kakesako, Mike Kalekini, Jessica Kaneakua, Lei Kapuni, Jim Kauahikaua, Dennis Kauka, Leila Kealoha, Laua‘e Kekahuna, Joseph Kekedi, Matt Kaneali‘i Kleinfelder, Tariq Khan, Ashley Kierkiewicz, Susan Kim, Jay T. Kimura, Ka‘iu Kimura, Crystal Kua, Jasmine Kupihea, Randy Kurohara, Wendy Laros, Douglas Le, Kimo Lee, Sue Lee Loy, Rhea Lee-Moku, Diane Ley, Lono Lyman, Christopher Manegold, Amedeo Markoff, Ikaika Marzo, Jon Martell, Judi Mellon, Donn Mende, Elizabeth Minor, Mike Miyahira, Susan Miyasaka, Stephanie Nagata, Alapaki Nahale-a, Linda Nako, Mike Nelson, Betty Oberman, Eileen O’Hara, Keanne Okamoto, Darryl Oliveira, Jon Olson, Kent Olson, Kim Olson, Susie Osborne, Ecko Osorio, Justin Pequeno, Patti Pinto, Matt Purvis, Chasity Quihano, Sara Raycamp, Cindy Rolli, Marcia Sakai, Shannon Sand, Suzanne Shreiner, Nancy Seifers, Deb Smith, Rachel Solemsaas, Christopher Spezzano, Toby Taniguchi, Eric Tanouye, Jay Turkovsky, Stephen Ueda, Jason Ueki, Linda Ugalde, Kurt von der Heyden, Kevin Waltjen, Ingrid Webb, Eric Weinert, Emily Weiss, Kim Williamson, Lee Wilson, David Wiseman, Jim Wyban, Dawn Rego-Yee, Steve Yannarell, Sindy Yeh, Miles Yoshioka, and Jennifer Zelko Schlueter. Others who may have been inadvertently missed, but their contributions are appreciated. Additional acknowledgement is being provided to the following Kīlauea Disaster Economic Recovery Plan Project team members: Paul Brewbaker, Shelly Edenhart, Christine Guinessey, Roxana Jordan, Stephen Jordan, Lynn Knight, Heather Long, Renee Zaky, and the County of Hawai‘i. iv Executive Summary The Kīlauea eruption, along with damage from Hurricane Lane (which peaked as a Category 5 hurricane that affected the island simultaneously, mostly from heavy rainfall), caused more than $974.9 million in impacts. Prior to COVID-19, these events were the worst series of economic disasters to strike the island in recent history. In response, the County of Hawai‘i, with the assistance of the U.S. Economic Development Administration, commissioned this Economic Recovery Plan. The impacts of these two events affected tourism and visitor services, disturbed supply chains, damaged infrastructure, directly impacted real estate, and shocked consumers island-wide. Credit: Nathan Kam Before the Kīlauea eruption, the island’s economy was on an upward trajectory dating back to 2015. In the first four months of 2018, businesses had been ramping up for what was forecast to be a record-breaking year of tourism and population growth. As a result of the eruption and hurricane, more than 2,950 jobs were lost from the island’s workforce over 12 months, while the state lost 4,100 jobs over the same period. Numerous small businesses closed or downsized. This Economic Recovery Plan is designed to serve as a structured, implementable road map for the Island of Hawai‘i’s business recovery, business development, job creation, and both private and public investment. It identifies goals, objectives, strategies, and recommendations, and near- and long-term implementation actions. It also provides funding strategies to help restore and enhance what was lost in the economy due to the 2018 disasters. This document is intended to assist the island in building economic resiliency for the future. v Executive Summary The five major goals, identified by the island’s business community during recovery outreach and engagement, are: Goal #1 – Respect and embrace the island’s natural and cultural resources Goal #2 – Address the directly impacted area’s economic recovery Goal #3 – Address recovery from island-wide impacts Goal #4 – Promote future resilience and sustainability Goal #5 – Develop the island’s business and entrepreneurial support system Based on input, this plan was organized to further break down these goals into objectives. While there was broad consensus about the over-arching goals, there were significant differences among business stakeholders about which objectives to prioritize and how to allocate resources to achieve success. In response, the plan offers different alternatives to pursue followed by strategic recommendations. In the development of the plan, businesses and community stakeholders brought to light multiple philosophies, scenarios, and strategies
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