County of Hawaii: General Plan
Home | Contact Us | Legislative Auditors | GP Revision | General Plan Table of Contents

PDF Version

BILL NO. 163
(Draft 5)
ORDINANCE NO.

SECTION 1. Purpose. The purpose of this ordinance is to adopt a General Plan in compliance with Section 3-15, Hawaii County Charter and to repeal the 1989 General Plan adopted by Ordinance No. 89 142, as amended.

SECTION 2. The attached document identified as Appendix A, which also includes the Land Use Pattern Allocation Guide Maps and the Facilities Maps, is hereby adopted as the Hawaii County General Plan.

Effective Date:

GENERAL PLAN

INTRODUCTION

PURPOSE OF THE GENERAL PLAN

The County of Hawaii’s General Plan is the policy document for the long range comprehensive development of the island of Hawaii. The purposes of the General Plan are to:

• Guide the pattern of future development in this County based on long-term goals;

• Identify the visions, values, and priorities important to the people of this County;

• Provide the framework for regulatory decisions, capital improvement priorities, acquisition strategies, and other pertinent government programs within the County organization and coordinated with State and Federal programs.

• Improve the physical environment of the County as a setting for human activities; to make it more functional, beautiful, healthful, interesting, and efficient.

• Promote and safeguard the public interest and the interest of the County as a whole.

• Facilitate the democratic determination of community policies concerning the utilization of its natural, man-made, and human resources.

• Effect political and technical coordination in community improvement and development.

• Inject long-range considerations into the determination of short-range actions and implementation.

History of the Plan

General Plan studies in the County of Hawaii were initiated in the late 1950's and were limited to particular regions of the island such as the Hilo, Kona, Kohala, Hamakua, and Puna Districts. As such, these initial general plans lacked a comprehensive, coordinated, and integrated overview of the entire County. The first of these studies, "A Plan for Kona", was completed in 1960 and encompassed the districts of North and South Kona. "A Plan for the Metropolitan Area of Hilo" was completed in 1961 for the districts of South Hilo and Puna. "The Kohala-Hamakua Region General Plan" was completed in 1963 and covered part of the district of North Kona and the districts of North and South Kohala, Hamakua and North Hilo. These regional plans were adopted by Ordinance No. 317 in July 1965, as the General Plan for the County. The district of Ka'u was the only area in the County not covered by this plan.

With the adoption and ratification of the County Charter in 1968, the General Plan emerged as a major policy document. Section 3-15 of the County Charter states:

"The county council shall adopt by ordinance a general plan which shall set forth the Council's policy for long-range comprehensive physical development of the County. It shall contain a statement of development objectives, standards and principles with respect to the most desirable use of land within the County for residential, recreational, agricultural, commercial, industrial, and other purposes which shall be consistent with proper conservation of natural resources and the preservation of our natural beauty and historical sites; the most desirable density of population in the several parts of the County; a system of principal thoroughfares, highways, streets, public access to the shoreline, and other open spaces; the general locations, relocations and improvement of public buildings; the general location and extent of public utilities and terminals, whether publicly or privately owned, for water, sewers, light, power, transit and other purposes; the extent and location of public housing projects; adequate drainage facilities and control; air pollution; and such other matters as may, in the Council's judgment, be beneficial to the social, economic, and governmental conditions and trends and shall be designed to assure the coordinated development of the County and to promote the general welfare and prosperity of its people.

(a) The Council shall enact zoning, subdivision, and other such ordinances, which shall contain the necessary provisions to carry out the purpose of the General Plan.

(b) No public improvement, project, subdivision, or zoning ordinances, shall be initiated or adopted unless the same conforms to and implements the General Plan.

(c) Amendments to the General Plan may be initiated by the Council or the Planning Director."

The first General Plan document to be completed after the ratification of the County Charter in 1968 was adopted by ordinance on December 15, 1971 by the County Council. Upon adoption of the General Plan in 1971, the Council laid the foundation for establishing a comprehensive planning program for the County of Hawaii. This program consists of three interrelated parts arranged in a hierarchy as described below and illustrated in Figure I.

The General Plan represents the first level and encompasses long-range goals, policies, standards, and courses of action for the entire County. The General Plan also provides the legal basis for all of the other elements of the County's planning structure. As such, the General Plan is the highest order, or "umbrella" plan. It establishes the outer limits or boundaries within which the County must operate.

The second level consists of short and middle range plans that further define the long-range goals and policies of the General Plan. These plans are related to specific regions or districts (Hilo, Kona, Kohala, Ka'u, etc.), functions (recreation, agriculture, drainage, highways, etc.), and specific areas within a region (Kailua-Kona, Downtown Hilo, etc.).

The third level consists of specific mechanisms to implement the two higher levels of the planning hierarchy. These include the Zoning and Subdivision Codes and both the operating and capital improvement program budgets.

General Plan Program

The initial development of the General Plan program, undertaken between 1968 and 1970, was funded through an agreement between the County of Hawaii and the U.S. Department of Housing and Urban Development through the former State of Hawaii Department of Planning and Economic Development (currently the State Department of Business, Economic Development and Tourism). The initial General Plan study program was conducted over a 36-month period and completed by the Planning Department with the technical assistance of professional consultants in the fields of drainage and flood control, historic sites, sewerage, economics, and water.

The General Plan program is structured to investigate, analyze, and evaluate concurrently all aspects of the County under a common or standard methodology. The preparation of the General Plan involves the process of planning and provides the opportunity to broaden the base of citizen participation, review, and understanding.

The 1971 General Plan required five and ten year comprehensive reviews and updates. The reviews and updates are intended to maintain the dynamism and flexibility of the General Plan and to accommodate major changes and trends that may occur within the County. The County initiated a review of the Land Use Pattern Allocation Guide Map in 1978 that led to several changes to the map. Other changes included the addition of an Energy element and amendments to procedures for the comprehensive reviews and proposals for specific amendments to the General Plan.

The first comprehensive ten-year review of the General Plan was initiated by the Planning Department in the mid-1980's and completed with the adoption of Ordinance No. 89 142 by the Hawaii County Council on November 14, 1989. This comprehensive revision program resulted in various revisions to supporting data as well as to the individual study elements and Land Use Pattern Allocation Guide and Facilities maps.

The Current General Plan Comprehensive Review Program

The planning process utilized for the current comprehensive review and revision of the General Plan included an assessment of the General Plan elements relative to new data, laws, and methods of analysis. Each study element was then analyzed and evaluated in relation to all other elements, County and district goals, and the land use pattern. Potentially, a change in one element could affect other elements as well as the land use pattern. Similarly, a change in County and district goals could potentially be reflected in all elements and in the land use pattern.

The comprehensive review of the General Plan gathered and assessed the data related to each element to identify present conditions and problems and future possibilities. The study elements utilized in the General Plan included the following:

Economic: Describes the human, capital, and natural resources used to produce goods and services for consumption in local and overseas markets.

Energy: Describes the energy situation for the County and explains the incentive for promoting energy conservation and the development of indigenous energy resources including solar, wind, hydrologic, and geothermal.

Environmental Quality: Identifies the factors affecting the island's environmental quality and describes the precautions and safeguards necessary to maintain and improve the quality of the environment for the physical, psychological, and social well-being of residents and visitors.

Flooding and Other Natural Hazards: Pertains to the conservation and protection of life, improvements, and natural resources from excess runoff due to either man-made improvements, natural causes, or inundation from tsunamis and heavy seas.

Historic Sites: Identifies sites and buildings of historical and cultural importance.

Natural Beauty: Identifies areas of unique natural beauty that are a principle asset of the island, and encourages programs for their conservation, preservation, and integration with other elements.

Natural Resources and Shoreline: Describes the valuable and often irreplaceable natural assets of the island and encourages programs for their proper management and protection.

Housing: Addresses the requirements for and the quantity, quality, and distribution of housing units in the County. This element also addresses critical housing problems of the County.

Public Facilities: Pertains to the location and distribution of facilities for education, public safety, social, health services and other government operations.

Public Utilities: Describes the distribution of power, light, and water; the collection and disposal of solid waste and sewage; and the provision of other communication utilities that are essential to the efficient functioning of a community.

Recreation: Examines the requirements of the County for active and passive outdoor activities, cultural events and pastimes, as well as attendant facilities and areas.

Transportation: Describes the requirements for air and water transport terminal facilities linking the County with the rest of the State and overseas areas, and the island's network of streets, highways, and roads.

Land Use: Studies the relationship of human activities to the uses of land and the location, spatial relationship, and topography. This element is subdivided into the following designations according to uses:

Agricultural: Encompasses all types of agricultural endeavors and specified industrial uses, residential and ancillary community and public and accessory uses.

Commercial: Comprised of industries in the retail trade and service categories and certain non-noxious enterprises from other industrial classifications.

Industrial: Includes uses that may not be compatible with commercial areas (such as manufacturing and processing, wholesaling, large storage and transportation facilities, power plants, and government baseyards) as well as other industrial, manufacturing, or wholesaling uses.

Multiple Residential: Includes duplexes, apartments, town houses and similar types of residential structures and ancillary community and public uses.

Open Space: Includes conservation lands, forest and water reserves, natural and scientific preserves, and potential natural hazard areas.

Public Lands: Includes Federal, State, County, and University owned lands.

Resort: Consists primarily of areas with basic amenities and attributes that attract developments of visitor accommodations and related facilities.

Single-Family Residential: Consists of single-family detached houses and ancillary community and public uses.

Each study element has been divided into sections described below.

Introduction and Analysis: Describes the element and summarizes findings, County-wide characteristics and features, trends, changes, and problems, as well as the outlook and opportunities for the immediate and distant future. The analysis also addresses the element's interrelationships with other elements.

Goals: Indicates the desired long-range directions and situations enunciated by community groups, officially expressed in the past or implied in governmental programs. Provides a cohesive and comprehensive framework for the coordination of social and economic programs and governmental effort.

Policies: States the methods or strategies that should be undertaken to attain the stated goals. These are action and program oriented and involve the formulation of standard procedures, program evaluation and review, rules and regulations, ordinances and laws, budgeting, specific projects, etc.

Standards: Concerned with qualitative and quantitative criteria by which situations can be evaluated or benchmarks established. Standards are basically "yardsticks" or indicators, minimum conditions or levels of quality necessary for the well-being of the public.

Courses of Action: Many study elements require a more precise and definitive discussion of community concerns and problems. These sections attempt to identify specific alternatives on a community, district or regional basis.

As an aid to the understanding of the inter-relationship of the components of the General Plan, the separate elements of the General Plan may also be described as follows:

The Introduction and the Economic element describe the foundations and factors that generate population and economic opportunities and growth on the island of Hawaii. The Environmental Quality, Energy, Flooding and Other Natural Hazards, Historic Sites, Natural Beauty, and the Natural Resources and Shoreline elements describe those natural and social conditions that influence and set parameters for development opportunities on the island. The Housing, Public Facilities, Public Utilities, Recreation, and Transportation elements describe those services, facilities, and improvements necessary to accommodate the growth of population and support the economy. The Land Use element describes the distribution, pattern, and location of the various activities addressed in the other elements of the General Plan.

 

COUNTY PROFILE

The County of Hawaii encompasses the island of Hawaii, which is the southeasternmost and largest island of the Hawaiian archipelago. The land area of the County is approximately twice the combined land area of all the other islands of the State.

The island of Hawaii has a diverse climate, topography and scenic beauty. Environments include dense tropical forests; majestic snowcapped mountains; active volcanoes; black, white, and green sand beaches; deeply eroded valleys; and large expanses of grazing land. Each district provides a variety of settings for human activity, land and resource utilization, or wilderness areas of minimal human intrusion.

The County of Hawaii has expanded into new fields of industry such as astronomy, high technology, renewable energy, health and wellness, agricultural and eco-tourism, diversified agriculture and aquaculture. The County’s continuing support of research and development in these emerging fields will ensure a promising future for the island’s economy and its residents. Specific examples include the establishment of the Agricultural Research Center of the Pacific, conversion of the old sewer treatment plant near Puhi Bay in Hilo to an aquaculture facility, and the construction of an agricultural water system in Ka’u.

The County’s overall economic outlook remains mixed due to the County’s dependence on the condition of the State's economy. Since 1990, the State’s economy has been in a period of decline. While there are opportunities for expansion into new and existing industries, external factors such as the world economy may have an impact on the County’s future economy.

Throughout the County's history, agriculture has played an important role in the County's economy. In the late l700's, Hawaii's agricultural industry began by provisioning ships. During the 1800's, sugar production and cattle ranching emerged as leaders of the modern agricultural industry. These industries dominated the island's economy and social fabric well into the 1900s. The 1980's and 1990's saw the demise of sugar cultivation and the steady decline in cattle production. These once dominant industries have been replaced by fully diversified agriculture including flowers and nursery products, coffee, macadamia nuts, tropical fruits, vegetable crops, orchards, aquaculture, and forestry. Import replacement and expansion of export products and markets are increasing. The three leading agricultural industries within the County are flowers and nursery products, vegetables, and macadamia nuts. Combined, these three agricultural industries accounted for over 50 per cent of the total value of agricultural production in the County in 1997. When compared statewide, the County of Hawaii produces 35 per cent of fresh vegetables, 72 per cent of bananas, 30 per cent of coffee, 95 per cent of macadamia nuts, and 51 per cent of flowers and nursery products. Agriculture’s future remains favorable with the strong diversification and development of new export protocol and technology.

Within the past forty years, tourism has emerged as the primary economic activity on the island. Much of the economic growth experienced during this period can be linked with the expansion of the visitor industry. Both the statewide and local economies have been faced with an economic downturn since 1990. Visitor arrivals to the island peaked in 1991 at 1,189,000 and subsequently declined to a low of 1,079,000 in 1994 before rebounding to 1,286,000 in 1998. The mainland economic recession of the early 1990’s and the Asian economic crisis in 1997 significantly impacted Hawaii's visitor industry. These events emphasized the dependency of the local economy upon the visitor industry and its vulnerability to external influences. While the tourist industry is expected to continue growing, it has matured to a point where healthy growth will demand a reinvestment in the infrastructure supporting the visitor industry. The County must continue to preserve, protect and enhance the unique qualities of the Big Island and promote the island as a vacation and business destination to respond to growing competition from tourist destinations around the world.

In 1970, just prior to the initial adoption of the General Plan, the population in the County of Hawaii numbered 63,468. The 1970 census count was the first to show an increase, albeit small, since 1930 when the population peaked at 73,325, largely as a result of the importation of labor for the sugar industry. The population decline between 1930 and the 1960s was primarily due to the increasing mechanization of the sugar plantation, limited job opportunities in other economic sectors, and the out-migration of residents. This decline was reversed during the 1960s with a modest growth of 2,140 residents between the 1960 and 1970 census.

Since 1970, the County's population has continued to grow. The 1980 census registered an island-wide resident population of 92,053 people representing a growth of 28,585 residents or a 45 per cent increase over the 1970 census. The 1990 census revealed a resident population of 120,317 residents, or an increase of 31 per cent over the 1980 resident population. The census registered 148,677 residents in 2000, a 24 per cent increase over the 1990 resident population. The County anticipates that its resident population will grow at an annual rate of 1.95 per cent to 2005, 2.04 per cent between 2005 to 2010, and 2.1 per cent between 2010 and 2020. Projected estimates for 2020 indicate an island resident population of 217,718, or an increase of 46 per cent over the estimated 2000 population of 148,677.

Table 2 summarizes the growth in Hawaii County's job count, by industry, from 1970 to 1997. Since 1980, employment trends within the County have appeared to shift from the non-service industry to the service industry in jobs such as wholesale and retail trade, finance, hotels, etc. In 1980, the service industries accounted for approximately 61 per cent of the private industry workforce and 49 per cent of the total wages earned. By 1997, the service industries have dominated the private industry, accounting for 79 per cent of the workforce and 74 per cent of the total wages earned. This growth in the service industry is mainly attributable to the growth in the County’s tourism sector.

Employment within the County in 1980 totaled 40,850 on a population base of 92,053 residents. In 1990, employment increased to 55,200 on a population base of 120,317, representing a 3.05 per cent and 2.71 per cent annual compounded increase, respectively. The 2000 census showed a population of 148,677 and an employment base of 69,937. For the year 2020, the Planning Department anticipates a population of 217,718 with an employment base of 106,492. Average annual employment growth rates are anticipated at 2.05 per cent between 1999 and 2005, 2.11 per cent between 2005 and 2010, and 2.16 per cent between 2010 and 2020. These employment projections are below the robust 3.05 per cent average annual employment growth rates during the 1980s, but above the 1.61 per cent average annual growth rate during the 1990s.

Unemployment rates for the County of Hawaii dropped drastically from 1980 (6.2 per cent) to 1990 (3.8 per cent) due to the strong economy during this period. As the County entered the economic downturn that extended throughout the 1990s, its unemployment rate increased to 10.2 per cent by 1997. Per capita income during these same periods also saw a corresponding strong increase during the 1980s and a decline in growth during the 1990s.

Change from Previous Census

1970-1997

County of Hawaii Data Book, 1998; State Department of Agriculture Statistics, 1997; N/A – not available

STATEMENT OF ASSUMPTIONS

The following assumptions were the basis by which the General Plan was developed:

• Agriculture

Since the mid-1980s, the County of Hawaii has seen a dramatic shift in its agricultural employment profile. The sugar industry was the island's most significant economic contributor from the mid-1800s to its peak production year of 1983. Since 1983, the sugar industry steadily declined until its ultimate demise in 1997 with the closure of the last sugar operation in Ka’u. The island of Hawaii has since established itself as the center of diversified agriculture production, research, and education in the State. Hawaii’s new agriculture industry is characterized by a few large operations such as agroforestry and ranching along with many smaller family-owned farms that produce a multitude of high quality fresh and processed products for local and export markets. Agricultural employment will increase significantly as former sugarcane lands are brought into production with import replacement, export and value added crops and products. Additional employment will be derived from expanding agrotourism enterprises. The expansion of the industry will be facilitated by the establishment of a new air cargo distribution center and post-harvest processing facilities that will allow for significant increases in the volume and types of products exported to the continental United States and foreign countries. Agricultural research and education will be greatly enhanced.

• Tourism

The County will continue to pursue the development of a strong multi-market base for the visitor industry that includes direct oversea flights to Kona, growth of the cruise ship industry, strong resort-based employment centers and integrated product development for local products that can generate a healthy small business economic base. The County's visitor industry will continue to successfully grow and expand. Likewise, employment in the visitor industry and its related industries will continue to grow.

• Other Basic Industries

There is tremendous potential for expansion in other industries such as aquaculture, astronomy, renewable energy, research and development, and special events such as cultural festivals and athletic events.

 

 

 

EMPLOYMENT AND POPULATION PROJECTIONS

The County's General Plan is a policy document that sets forth the direction for future activities on the island of Hawaii for the next few decades. In order to plan for the future, it is necessary to understand both historical and future trends related to the number of residents and visitors to be served and the kinds of facilities and resources needed to fulfill their needs.

In traditional public planning efforts, entire plans have been based on the achievement of the projected levels of population. In many of these cases, where population numbers are goals, plans become obsolete when the projected number of residents is not achieved or is surpassed. Thus, the population projections presented within the General Plan are not intended to be used as goals. Rather, this General Plan effort uses the projected levels of population as a guideline in land use planning. The projections represent what could reasonably be expected to occur in the future. The goals, policies, standards, and recommendations of this plan are intended to be flexible enough to accommodate population levels below or above the projections stated in this section.

Employment and population projections for the County of Hawaii were developed through the analysis of relationships between economic activity, employment, and population. The analytical approach used entails the forecasting of employment in basic industries and the relationship that changes in employment have upon population.

Primary Income Generators are those industries that generate income from outside the County. They are assumed to be the foundation of the local economy and the key to the development of the island. Primary Income Generators include agriculture, tourism, the manufacturing of export products, and research and development. These Primary Income Generators, in turn, "drive" the secondary industries, or those enterprises that service the Primary Income Generators or the local population and includes wholesaling, retailing and services. The Primary Income Generators determine the long-run pattern of population and income growth for the County.

Three sets of projections were developed for the comprehensive review program, Series A, B, and C. The major variables in each of these projections were the rate of growth of the visitor industry, the construction of the proposed State prison, the expansion of the University of Hawaii at Hilo, and the utilization of a post-harvest treatment facility for export agricultural products. It should be emphasized that the projections are not statements of goals. The population projections, and the strength of the correlation between primary economic generators and population growth, must be viewed with caution. The 1989 General Plan contained a similar set of economic and population projections. Visitor arrivals from 1990-2000, a primary economic generator, grew far less than projected. The 1989 "Series A" projected a 35 per cent growth in westbound visitor arrivals in the 1990-2000 period; the actual number barely increased. Agriculture, the other major primary economic sector, lost jobs because of the loss of the sugar industry. During the same time period, the county’s population grew about 24 per cent, just slightly less than the 1989 Series A projection of 27 per cent. It appears that there has been substantial population growth not driven by economic opportunities in the primary industries. This may be due to in-migration of people seeking other amenities such as a clean environment and rural lifestyle.

Series A

Series A is the most conservative projection. It assumes a 1 per cent annual growth rate in the visitor industry. It also assumes that the proposed State prison will not be constructed, job growth at the University of Hawaii at Hilo will be limited to 16 positions per year, and the papaya industry will grow at an annual rate of 1 per cent. Without the construction of the proposed State prison on the island, 2,000 construction jobs over three years and approximately 1,000 permanent jobs to run the facility will not be realized.

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

 

HAWAII COUNTY, 1985-2020

Economic Assessment, PKF Hawaii, January 2000

Series B

Series B projections were developed as a medium series. These projections represent a moderate growth rate between Series A and C. The overall per annum employment growth rate anticipated in Series B ranges between 2 per cent and 2.2 per cent. It also assumes a modest 2 per cent annual growth rate for visitor arrivals, compared to a historical growth rate of 1.45 per cent between the years 1977 and 1998. This projection also assumes that an additional 70 new positions will be created at the University of Hawaii at Hilo to accommodate the additional 1,000 students expected to be enrolled within the next ten years. Finally, the establishment of the Hilo Call Center will ultimately create an additional 300 new jobs.

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

 

HAWAII COUNTY, 1985-2020

Economic Assessment, PKF Hawaii, January 2000

Series C

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2020

Economic Assessment, PKF Hawaii, January 2000

U.S. Census, 2000

 

 

EMPLOYMENT PROJECTIONS

HAWAII COUNTY, 1985-2020

Economic activity within the County is anticipated to grow at a moderate rate with a continuing, although declining, dependency upon the tourism industry. In 2000, approximately 9.3 per cent of the County's employees were employed by hotels. By 2020, hotel workers may account for employment in the total workforce ranging from 7.7 per cent in Series A to 7.3 per cent in Series C.

Population Distribution

From the estimates of the islandwide resident population, other estimates have been made to project the distribution of population over the districts of the island. These are not intended to be included as population achievement levels for the districts, nor as firm statements or descriptions of future conditions. They are based on assumptions of potential employment growth rates described in the previous islandwide employment and population estimates, past district growth trends, and trends in the distribution of population on the island.

Year 2020

Economic Assessment, PKF Hawaii, January 2000

ECONOMIC

INTRODUCTION AND ANALYSIS

The development of sound public policy requires an understanding of the economic factors affecting the planning area or region. Such factors are largely responsible for growth or lack of growth, and any planning effort which does not take them into account cannot be very effective. In varying degrees the other elements of the planning process are affected by the local economy.

Population usually settles, expands or declines within a given area in some correlation to economic opportunities or the lack of them. Besides affecting the number and density of population, economic activity has a direct bearing on income level, which to a certain extent determines the standard of living of the individual.

Different types of employment influence the social character of communities. The size and character of a community will define its need for housing, transportation, public utilities and facilities, special combinations of land use, recreation, and other forms of public and social services and facilities. Economic studies are thus one of the necessary first steps in developing plans for public and private actions.

Government has a responsibility to identify, understand, forecast, protect and promote local economic sectors and to balance economic growth with desired environmental, social and other objectives of the community. Government has many policy instruments available to influence and guide developments, investment, and operation of private and public interests.

The economy, however, should not be considered as the primary focus of the General Plan. The planning process is geared towards the achievement of a higher quality of life for the residents of the County. Working towards the goals, policies, and standards of the economic element are only one aspect of accomplishing this desired end.

The island offers several amenities conducive for economic growth. Many of these are natural amenities such as a favorable and equitable climate, scenic vistas, high mountains, deep ocean, active volcanoes, large land areas, and an environment generally free of pollution.

Despite these amenities, there have been a number of problems that have limited the growth of the island. Most imported goods must be transshipped through Honolulu. The distances from the population centers of Honolulu, the mainland, and other major markets have limited the growth of export products from the Big Island. Products that are unique and/or have high value (such as macadamia nuts, flowers and nursery products, coffee, and papaya) have been successfully exported.

As the County's population and its tourism industry grow larger and the export volume increases, more favorable rates on overseas carriers may be instituted.

The relatively small population in the State, coupled with the distance to mainland markets, creates a disadvantage for local businessmen. The size of the State's population does not allow for efficient operations, and when exportation is considered in order to expand a particular market, the entrepreneur is faced with high transportation costs.

Natural disasters, such as tsunamis, volcanic activity, flooding, and droughts, are events that have and continue to shape the economic development on this island. For example, while volcanic activity has destroyed homes and historic features, it is also the County’s largest single tourist attraction. In addition to actual physical damage, the fear of the recurrence of natural hazards presents a psychological barrier for investment. Measures to protect life and property have been planned and instituted throughout the County. Further hazard mitigation measures are reported in this plan.

The economy of the County has experienced significant changes over the past three decades since the adoption of the County's first comprehensive General Plan in 1971. Sugar cultivation was the leading agricultural activity during the 1970s and early 1980s. The latter half of the 1980s and throughout the 1990s saw the decline and eventual demise of the sugar industry on this island. Tourism replaced sugar as the County's primary economic generator during the mid-1980s and saw its peak visitor arrival numbers in 1989. Since 1990, external factors such as the Asian economic crisis, the Persian Gulf War, and a brief economic downturn in the U.S. Mainland have contributed toward the State continuing in a protracted economic doldrum. Nevertheless, the County was still successful in attracting several world-class events and saw the completion of several major projects including the opening of the 351-room Hapuna Beach Prince Hotel and the 243-room Hualalai Resort, the start of direct national and international flights to Kona, the filming of the movie Waterworld, and the arrival of the PGA Seniors MasterCard Tournament of Champions at the Hualalai Resort and Golf Course.

Agriculture

Agriculture currently constitutes a major economic sector of the island of Hawaii. Including processing, the agricultural industry accounts for about 9.5 per cent of the island's employment. Local agricultural pursuits include the raising of cattle and other livestock, the growing of coffee, macadamia nuts, papaya, flowers and nursery products, vegetables, aquaculture, forestry and several processing plants that utilize locally grown products.

Some large corporate agricultural ventures such as macadamia nut plantations, operate on the island. However, diversification of the industry has led to smaller operations producing an ever increasing array of fresh vegetables, fruits, forestry, and aquaculture products.

Hawaii County accounts for approximately one-third of the fresh vegetables produced in the State of Hawaii, over half of the beef consumed, one-third of the coffee grown, most of the macadamia nuts, and varying percentages of the other crops and livestock. The total value of agricultural marketing declined approximately 20 per cent between 1985 and 1997. The number of farms and livestock operations during this same period increased from 2,650 to 3,319 operations. Acreage in farms, however, declined 57 per cent between 1985 and 1997. Agriculture has shown substantial growth on the island. The island accounted for 55 per cent of the crops in the State in 1997 while livestock on the island accounted for 18 per cent of the State total. While the County's share of statewide agriculture production has remained relatively constant, its livestock production has been steadily declining since peaking in the late 1980s. Much of this decline can be attributed to the closing of all feedlots within the State by 1993 due to the high cost of importing feed. Approximately 90 per cent of all beef cattle are now exported to mainland feedlots to be "grain-finished" before slaughter. New ventures in forestry and aquaculture have expanded opportunities and show promise for the future.

One of the most pressing problems faced by today's agricultural industries is their ability to attract labor. Agriculture is facing increasing competition for labor from other sectors of the economy, such as the visitor, retail and construction industries. There is also a demand for a greater number of personnel with technical and professional agricultural training. A related problem is the housing shortage for both minimum wage and seasonal labor.

Competition from urban uses for agricultural lands has intensified. The protection of important agricultural lands, however, has long been a policy of the County.

The relatively small population of the State and its isolation from overseas markets are limiting factors for the production of agricultural products for local consumption and export. The State Department of Agriculture, the Department of Business, Economic Development and Tourism, the University of Hawaii - College of Tropical Agriculture, and the County have programs to assist the industry.

The opportunities for the expansion of agriculture on the Big Island seem to be immense. The demand for fresh, locally grown products continues to grow as restaurants, grocery stores and hotels seek the highest quality products for their guests. Export products grown mostly on the Big Island, such as coffee, papaya, macadamia nuts, and flowers, also continue to expand. 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 the potential to be successfully cultivated. One such high value crop is Kava (Awa), a medicinal plant which has the potential to be a viable cash crop. Locally, small growers as well as a few large growers are producing Kava. Vanilla bean, cacao, nutraceuticals, hard wood forestry products, and medicinal plants are other types of high value crops that hold much promise for growth.

The expansion of the agriculture industry can also be measured by the success of overcoming some of the restrictive governmental regulations that prevent many locally grown products from being exported to domestic or foreign markets. Concerns regarding the transmission of plant pests and diseases during export have or could be adequately addressed by current treatment or processing technologies. The development of new protocol and processing facilities for quarantine treatment will assure the further expansion of the agricultural industry.

In order for Hawaii's cattle industry to strengthen, new techniques need to be developed for raising forage-finished cattle to compete in the marketplace with grain-finished cattle. Hawaii cattle will then be able to finish grazing on island pastures and remain for consumption within local markets. Local producers also need to find new venues such as processed meats and pre-fabricated meals to market locally raised cattle. By creating a market niche for forage-finished beef, ranchers will be able to keep cattle in Hawaii, increasing production weights and revenues for the State economy.

Forestry

As one of the most heavily traded commodities on the global market and the tenth largest industry sector in the world, forest products grown in Hawaii may be able to capitalize on its central Pacific location, excellent growing climate, and the availability of vast expanses of former sugar lands. Hawaii's growth rates for forest products are among the fastest in the world. As a result, at least 24,000 acres are now being cultivated for eucalyptus production, with thousands of additional acres being planned. Dozens of landowners within the County are currently involved with the commercial production of forest products, both eucalyptus and higher value hardwoods such as toon, maple, and koa. A 1981 State Division of Forestry and Wildlife study identified approximately 80,000 acres of former sugarcane land as ideal for the establishment of a forest plantation. An additional 100,000 acres of pasture and brush lands were identified for longer-rotation forest plantations. The study concluded that there are ample lands available on the island to establish a forest plantation industry.

Fishing and Aquaculture

Fishing and aquacultural activities are also basic economic sectors. The commercial fishing industry on the island accounted for $6,100,000 in 1997 and remains the second largest commercial fishing producer in the State. The County's commercial fishing industry has shown a stable catch and poundage sold during the past five years ending in 1998. This stability in the local fishing industry is expected to continue for the foreseeable future.

The deep cold coastal waters off Keahole Point are nutrient rich and pathogen free. The Natural Energy Laboratory of Hawaii Authority (NELHA) is a State-funded facility located on 870 acres of land at Keahole, North Kona. The facility provides support for various research, commercial and educational programs that seek to locate at the Natural Energy Laboratory of Hawaii Authority project site to take advantage of its unique resources, including its cold, nutrient-rich ocean waters and high solar insolation. Microalgae, lobsters, abalone, ornamental fish and other sea vegetables and animals are grown at Natural Energy Laboratory of Hawaii Authority.

The Pacific Aquaculture and Coastal Resource Center is a joint effort by the University of Hawaii at Hilo, the County, State and the Keaukaha Hawaiian Homelands Community Association to establish a research and training facility in Hilo for local aquaculture farmers and university students. The center has the capacity to create water of any salinity or temperature necessary to raise fish. Operation of this center is expected to generate approximately $650,000 annually to the local economy. Value added benefits are expected to add another $3,000,000.

Aquaculture operations County-wide have grown from eight operations in 1982 to forty-three in 1996. During this same period, annual revenues have grown from $90,600 to $13,200,000. The County accounts for 37 per cent of the total aquaculture operations within the State but accounts for over 80 per cent of the total production and over 84 per cent of the production value. While most of the production from aquaculture farms is now sold locally, there are large markets overseas that these producers would like to tap. To assist the export of products overseas, the State has an Aquaculture Development Program (ADP). This organization provides a variety of support services to the aquaculture industry, such as information dissemination, business counseling, marketing, animal health management, and research and development funding. The key to the future growth and success of the aquaculture industry in the County is the ability of Natural Energy Laboratory of Hawaii Authority to obtain funding to increase the flow of deep sea water to its facilities and tenants and the expansion of its support facilities. These improvements will encourage longer residency at the facility by its current tenants as well as attract additional projects.

The Federal government has shown its support of Hawaii’s aquaculture industry by approving $9,000,000 for Hawaii aquaculture initiative in July 1997, of which $1,600,000 has been appropriated for Tropical Aquaculture Research. In addition, the venture capital partnership HMS Hawaii Management Partners announced in December 1998 their commitment to contribute up to $10,000,000 to help island entrepreneurs finance their aquaculture operations.

Manufacturing

Congress recently funded construction and committed to staffing the USDA’s ARS (Agricultural Resource Services) Pacific Basin Agricultural Resource Center in Hilo. The purpose of the facility is to improve the well-being of Hawaii and the Pacific Basin by strengthening the agricultural sectors, fortifying small farm profitability and sustainability by increasing efficiency of farming practices, identification of preservation and improvement of germplasm adapted to island environments, the development of pest controls and post-harvest technology, and increasing the value of products through the development of value added processing.

Other manufacturing activities are service-oriented, such as bakeries, printing and iron works. These operations are usually located close to population centers or transportation facilities.

Visitor Industry

Tourism became the primary economic generator in the County during the 1980s. From 1982 to 1990, visitor arrivals grew at an average annual rate of 5.66 per cent. Visitor arrivals started to decline in 1991 due to recessions in the United States and Japan and the advent of the Persian Gulf War. These external events impacted visitor arrivals until 1996, when direct flights from Japan to Kona International Airport at Keahole were initiated. In the eight years ending in 1998, the annual visitor arrival growth rate was 1.18 per cent, much less than the previous eight years.

The growth of Hawaii County in terms of employment, population, income and economic activity during recent years has been more closely tied to the visitor industry than any other sector of the economy. Employment opportunities spurred by the growth of this industry has been the catalyst for economic growth in the County. As tourism became the primary economic generator during the 1980s, a shift in employment from the non-service to the service industry sector was evident. In 1980, the service industry accounted for approximately 60.6 per cent of average employment, rising to 71.3 per cent in 1990 and 78.5 per cent in 1997. The County experienced the largest growth in hotel job count statewide with an average annual growth rate of 5.2 per cent between 1981 and 1997.

The principal visitor destination area of the Big Island is the South Kohala-North Kona region in West Hawaii. The single most popular attraction is Hawaii Volcanoes National Park.

The island continues to attract substantial investor interest in the visitor industry. Various resort and resort-residential complexes are currently under construction or are planned for construction in the near future. Most of these developments are concentrated in West Hawaii in the Kohala and Kona Districts, which will continue to accommodate the majority of the visitor market within the County. Visitor accommodation units within the County totaled 9,655 units in 1998, up from 8,952 units in 1990. Bed and breakfast units, although not a significant part of the total visitor unit count, have been the fastest growing segment of the industry, growing from 55 units in 1990 to 171 units in 1998. Historically, the County records the lowest visitor unit occupancy rates of all the major Hawaiian islands. Only in 1998 did the County’s occupancy rate finally surpass that of Kauai.

Continued investor interest in resort and resort-residential development in the County suggests an economic future that promises new jobs and more commercial, recreational, and cultural activities. Along with these promises of a "better" life is the realization that the visitor industry is sensitive to exogenous factors, such as the national economy. High quality development, however, seems less subject to these factors. The key to orderly growth lies in proper planning and controlled development.

The cruise ship industry is a potential growth area for the County. In recent years, the total number of visitors to the County from cruise ships has increased substantially from 124,000 in 1997 to 184,000 in 1998. Based on 1998 visitor counts, cruise ship visitor annual expenditures are estimated to range from $16,000,000 to $23,000,000. Cruise ship visitors are expected to continue to increase in the future due to the recent resurgence and popularity of this industry along with the projected construction of additional cruise ships.

The County’s natural beauty, historical and cultural attributes and its numerous educational institutions and programs lend themselves to provide the catalyst to allow new niche markets to flourish. Niche markets for the County’s visitor industry, such as ecotourism, health and wellness tourism and educational tourism, have growth potential. The health and fitness resources of the various luxury hotels look towards health and wellness tourism as one of its target markets. The expansion of tourism should include careful planning to identify, promote and preserve the island’s unique resources.

Research and Development

Hawaii County has participated in the research and development industry through the Mauna Kea and Mauna Loa Observatories, the University of Hawaii Cloud Physics Laboratory, Hawaii Volcano Observatory, and various agricultural research centers. The University of Hawaii at Hilo has and will play an increasingly important role in this community. The university complex itself is an important economic force. The University of Hawaii at Hilo’s Long Range Development Plan (1996) envisions a target enrollment of 5,000 full-time equivalent (FTE) students by 2025, or roughly twice the 1995 enrollment. The plan outlines the program and facilities requirements necessary to accommodate the projected growth in enrollment.

The Natural Energy Laboratory of Hawaii Authority (NELHA) at Keahole, North Kona is currently involved in research and development in energy, materials and aquacultural projects. Hawaii Ocean Science and Technology (HOST) park, an integral part of the Natural Energy Laboratory of Hawaii Authority, is located adjacent to NELHA and is being developed for similar projects on a commercial scale.

The County is also participating in the development of the Pacific Aquaculture and Coastal Resources Center at Keaukaha, South Hilo for research in the spawning activities of several fish species and providing a research and training facility for university students and local farmers. The USDA’s PBARC facility will bring substantial research resources to Hawaii.

The summit area of Mauna Kea has the worldwide distinction as the best international center for observational astronomy. Mauna Kea currently accommodates twelve of the world’s most state-of-the art telescope facilities. The newest telescope is the $300,000,000 Subaru telescope developed by the National Astronomical Observatory of Japan. The recent completion of the University of Hawaii-Hilo Institute of Astronomy complex at University Park will support the relocation of the Institute of Astronomy staff from UH-Manoa to UH-Hilo. The UH-Hilo is also working to offer a Bachelor of Science degree in astronomy to allow observatories to hire local astronomers. Approximately $619,000,000 of capital investments into the County have been made by the astronomy industry, including the creation of approximately 270 permanent jobs. Astronomical activities contribute approximately $50,000,000 annually to the County’s economy.

Military presence within the County is represented by the United States Army. The U.S. Army operates a field training facility at the Pohakuloa Training Area on Mauna Kea and a recreational camp at the Kilauea Military Camp-Joint Services Recreation Center located within the Hawaii Volcanoes National Park. Permanently stationed military units are not located on this island. The Department of Defense appropriated direct expeditures or obligations of $37,800,000 within the County in 1997, an increase of 84.4 per cent over 1987 appropriations. However, the Federal government's downsizing and restructuring of the U.S. military may eventually lead to base closings. As a result, military activities may not be a major economic sector in the foreseeable future.

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 that, in turn, are based on primary income generators, such as tourism or agriculture. Major transportation facilities also attract secondary industries.

Annual employment in the secondary industry between 1980 and 1990 increased a healthy 4.54 per cent. Latest census information from the State Department of Labor and Industrial Relations reveal that employment within the secondary industry between 1990 and 1997 increased by only 1.2 per cent annually, a dramatic slowdown in the growth of employment within the secondary industry due to the protracted growth of the local economy. The secondary economic sector employment accounted for 67.8 per cent of the County’s workforce in 1997, compared to 69.7 per cent in 1990 and 60.5 per cent in 1980.

The largest secondary employment sector is the wholesale and retail trade, which reported the greatest percentage gain in average employment of 78.6 per cent between 1980 and 1990, but a mere 2.8 per cent be