Hawaii could break tourism record by topping 10 million visitor mark, DBEDT chief says

Hawaii, the state in the U.S. that’s most-dependent on its tourism industry, could break the 10 million visitor mark, which would be a record mark for the Aloha State, according to the head of the state’s economic development agency.

The state nearly hit the 9 million mark last year, and is on track to surpass 9 million visitors in 2017.

Luis Salaveria, director of the state Department of Economic Development and Tourism, speaking recently to a small group comprising some of the most influential real estate industry leaders in Hawaii, talked about the strong momentum that the state’s tourism industry is enjoying in a wide-ranging, causal question-and-answer session in Honolulu.

He said that the state could get to the 10 million visitor arrival mark, although there are challenges that stand in the way, including infrastructure issues that need to be addressed.

Salaveria noted that a growing trend called “glamping,” a cross between camping and glamour, could be an opportunity for the state to draw even more tourists to the state. The state also is looking into filling seasonal gaps with Meetings, Conventions and Incentives groups.

Salaveria also highlighted Hawaii’s growing film and television industry with a new ABC series called “Marvel’s Inhumans,” which is being produced in Hawaii. This industry has potential to make a positive impact on the state’s real estate industry. The series is currently doing production work in former military warehouse space in Kalaeloa in West Oahu. The producers of the sequel to the smash hit “Jumanji,” which filmed scenes in Hawaii, also looked into leasing the long-vacant Hilo Hattie store space on Nimitz Highway in Honolulu, according to Salaveria.

He also sounded off on the controversial more than $1 billion Thirty-Meter Telescope project on the Big Island, which recently received state approval to start up construction. TMT officials and protestors have clashed over the project. Construction of the major telescope has since been halted.

“It’s imperative upon government to enforce rules of law enforcement,” Salaveria said.

Another industry that Hawaii could take advantage of is the lucrative small satellite industry, and Salaveria said that he has already met with two companies within this nearly $3 billion industry. He said all the big names in technology have skin the game when it comes to small satellites, including Facebook, Apple and Google.

When asked what the biggest economic issues are in the state, Salaveria mentioned transit-oriented development, energy and density, in terms of land utilization.

In terms of energy, he said that high sulfur oil demand will be much higher following a new shipping rule, which in turn, may have an impact on Hawaii’s prices by driving it higher.

Kalaeloa, which has been plagued by infrastructure issues for years, is something Salaveria wants to finally see move ahead with its development plans.

“So much could be done [in Kalaeloa],” he said.

When it comes to TOD, Salaveria said that the state needs to put its share of equity in TOD, including land.

He thinks a great opportunity for TOD is in the Kalihi neighborhood, which he says, could mirror the trendy Mission District in San Francisco.