Tourism in Hawaii: Hotel Industry Development in Waikiki and Ko Olina

Tourism in Hawaii: Hotel Industry Development in Waikiki and Ko Olina

Introduction

Hawaii has set itself as among the world’s best holiday destination places, with benign weather conditions. It boasts of several islands and the beautiful beaches which attract tourists from all over the world. Tourism is an essential factor in the economy of Hawaii. As a result, districts such as Waikiki and Ko Olina have experienced growth in recent years, as more tourists seek accommodation in their exotic beach resorts. For instance, Ko Olina in Oahu island has two upscale resorts, The Four Seasons and Disney’s Aulani. Plans are underway to open a branch of the Atlantis hotel in the area to offer tourists a much more luxurious and sophisticated experience. So far, Ko Olina has 1992 hotels and residences, which is expected to grow in after the launch of Atlantis hotel in 2021 (Schaefers). Waikiki Beach remains the most visited destination site, with about 30,000 hotels, and has contributed significantly to the growth of the state’s GDP. The surrounding communities have greatly benefited, as their businesses continue to expand, owing to the high number of tourists visiting each year. The government has also been in support of the various projects by granting both local and foreign investors an opportunity to carry out investment projects.

Tourism is the backbone of Hawaii’s economy.  Statistics show that the number of visitors was expected to go up by 5.7 percent in 2019, 2.2 percent higher than the previous forecasts (Hawaii.gov). Visitor expenditure also increased by 0.9 percent, compared to the last loss of 0.2 percent that had been experienced. More positive growth is expected to take place between 2020 and 2022, as tourist visits increases (Hawaii.gov). Local communities play a vital role in the growth and sustainability of the tourism industry. Their lives are either positively or negatively affected by the tourist activities around their area (Vieira et al., 111).  They have more knowledge about the area, which could be beneficial to foreign investors. Their businesses tend to thrive, and job opportunities created, as they supply tourists with supplies and services they would need during their time of stay. For instance, the tours and travel business, entertainment joints, hotel services, and retail shops are among the biggest beneficiaries of tourism in Waikiki and Ko Olina. The hotels are continuously making their services better, to increase their profits and also to better their visitors’ experiences. Therefore, the residents are a good source of labor due to their proximity and knowledge about the area.

Sustainable tourism requires a strategic approach, as it involves the development of projects and the integration of economic, cultural, and environmental dimensions. Therefore, the government must play a significant role in offering support to the events geared towards expanding tourism and its related activities (Vieira et al., 111). In this regard, the Hawaiian government has been detrimental in supporting the growth of hotels, especially in Ko Olina and Waikiki, which are the most visited tourist destinations. For instance, the government has been in support of the launching of the Atlantis hotel, which is set to open in 2021 by giving permissions and regulatory processes (Malone). Upon its completion, the $2 billion Atlantis will be the most expensive resort in Ko Olina and a significant advantage to the Hawaiian economy. Foreign investors have an opportunity to carry out development projects with government support. For instance, the Atlantis hotel project is under a Dubai-based developer Kerzner International Holdings and the China Oceanwide (Sahoo). Therefore, the success of the projects requires support from the local authorities to be able to stand in the long run.

With the expected growth of the tourism industry in Hawaii in the coming years, there is a need to explore sustainable tourism strategies that are favorable for growth and the local people. The tourism development plans should be geared towards maximizing the benefits for the local people, and the state’s economy in general (Vieira et al., 114).  For instance, while the Atlantis is expected to surpass every hotel in Waikiki and Ko Olina with its 800 rooms and 524 residences, it should create more job opportunities for the people. Tourism development strategies must also respect the rights of the local communities to avoid conflicts in the development processes (Vieira et al., 113). Residents are more likely to support development plans that are beneficial to them. In this regard, the government must engage the local communities in all the future developments to retain their cooperation while enhancing the growth of the tourism industry.

Conclusion

Tourism in Hawaii has positioned itself as the driver of its economy. Tourism and the hotel industry are intertwined, such that they are dependent on each other. The fact that Hawaii is mostly an island country makes tourism is a significant factor in its economy.  The government has offered support to the industry by allowing foreign investors to put up large hotel projects, geared towards making the Hawaiian tourism experience better. The launching of Atlantis hotel is expected to cause a boom in business and the economy, and also benefit the local communities. Investors should strive to create good relationships with the surrounding communities, as they have the power to positively or negatively influence their businesses. The growth of the tourism industry must consider the input of local and foreign stakeholders for its sustainability in the long run.

Works Cited

Hawaii.gov. “Outlook for The Economy: 4Th Quarter 2019 Report”. Dbedt.Hawaii. Gov, 2019, https://dbedt.hawaii.gov/economic/qser/outlook-economy/.

Laney, Leroy O. “Assessing tourism’s contribution to the Hawaii economy.” Economic Forecast, Special Report. Honolulu: First Hawaiian Bank (2009).

Malone, David. “Atlantis Planning to Build the World’S Most Expensive Resort in Hawaii.” Building Design and Construction, 2016, https://www.bdcnetwork.com/atlantis-planning-build-world%E2%80%99s-most-expensive-resort-hawaii. Accessed 24 Nov 2019.

Sahoo, Sananda. “Kerzner To Build Atlantis Hotel In Hawaii.” The National, 2016, https://www.thenational.ae/business/property/kerzner-to-build-atlantis-hotel-in-hawaii-1.660130. Accessed 24 Nov 2019.

Schaefers, Allison. “Expansion At Ko Olina Fuels Tourism Boom And Boosts Businesses.” Star-Advertiser, 2017, https://www.staradvertiser.com/2017/05/09/hawaii-news/expansion-at-ko-olina-fuels-tourism-boom-and-boosts-businesses/. Accessed 24 Nov 2019.

Vieira, Isabel, et al. “The role of local government management of tourism in fostering residents’ support to sustainable tourism development: evidence from a historic Portuguese town.” International Journal of Tourism Policy (IJTP) 6.2 (2016): 109-135.