Kauai Real Estate Update- For a complete list of everything that Sold, was Just Listed and what went Under Contract last week on Kauai click here; Kauai Real Estate Update July 1 to 7, 2024
Poipu Beach Real Estate Update- In Escrow | Kuhio Shores #215 Listed at $1,445,000
Offer accepted by my Kuhio Shores Sellers and we are now under contract. You don’t see these units come up for sale too often and with the unobstructed ocean views, and loyal repeat visitors it’s easy to see why. This complex is well known and has a loyal built in visitor clientele.
To find out the fee simple activity in Poipu since the beginning of this year click here; Poipu Beach Current Market Analysis
For the leasehold Kiahuna Plantation click here; Kiahuna Plantation Current Market Analysis
Vacant Big Save Gets A New Lease On Life
The Big Save in Lihue (by the Civic Center) has been vacant for 10 years but that will be changing starting on July 9th.
The 25,000 sq ft building will undergo a $7.1 million dollar renovation to turn this former grocery store into a Community Center. Work will be done by Shoi Construction. The vision for this building is to be able to provide early childhood education, youth programs and Kauai Police Activities League events.
The project will be completed by the summer of 2025.
Regenerative Tourism Bill Signed Into Law
The structure of Hawaii Tourism is changing steaming largely from the concerns of Hawaii residents who want more focus on preserving and protecting the land. In the past, the Tourism Boards have been more about advertising our State to get more visitors but it seems getting the word out to people that this is a great place to visit is pretty much a known fact.
Last week, Governor Josh Green signed SB 2659 into law which incorporates regenerative tourism into the Hawaii State Planning Act. Gov. Green stated; “Sustainable tourism is essential for the future of our state. This bill ensures that our visitor industry grows in a way that respects and preserves our cultural heritage while promoting economic diversification.”
The Bill seeks to shift to a regenerative visitor industry that has framework to decrease the impact on beaches, reefs, ocean life and the quality of life for the people who live here. To see the bill in it’s entirety click here: SB 2659
Kauai Visitors Numbers Down But Spending Is Up
The month of May saw fewer visitors here on Kauai but those that did come spent more. How much of their spending is due to price increases, which all of us are seeing no matter where we live, or the actual increase in the amount of things they are purchasing is not known. What is known is the entire state generated lower General Excise by 1% and a decrease in Transient Accommodations tax by 12.9% from May of last year due to a lower amount of visitors.
Here are the numbers for the month of May 2024 vs 2023
🏝️Kauai
Number of visitors 115,135 in 2024 compared to 115,466 in 2023 a 0.3 Decrease
Spending $262.1 million compared to $207.1 in May of 2023 a 26.6% Increase
🏝️Oahu
Number of visitors 473,837 in 2024 compared to 451,991 in 2023 a 4.8% Increase
Spending $725.4 million for 2024 and $724.2 million in 2023 0.2% Increase
🏝️Maui (Numbers impacted by the August fires)
Number of visitors 179,233 in 2024 and 240,407 in 2023 a 25.4% Decrease
Spending $382.0 million in 2024 and $523.9 million in 2023 a 27.1% Decrease
🏝️Big Island of Hawaii
Number of visitors 133,352 in 2024 and 136,306 in 2023 a 2.2% Decrease
Spending $239.7 million in 2024 and $212.7 in 2023 a 12.7% Increase
Kauai The Most Limited To Diversify From Tourism
In a July 2, 2024 report done by the University of Hawaii Economic Research Organization (UHERO) it was found that Kauai was the most dependent of all the islands on Tourism and had a very limited chance of being able to diversify from this industry.
The impressive in-depth deep dive that was done for all of the islands was to answer the question on the feasibility of business diversification and Kauai came in last place, with very few options that were deemed to be feasible. This is due to our low population and, I would personally would add, housing availability. Furthermore, any diversifying opportunities that we have could be done on other islands and probably better given the higher populations.
Here is what they said Kauai could do; Boat Building, Hog & Pig farming, Finfish Fishing and meat production.
The report indicated that the best bet Kauai has to diversify is to “take advantage of its proximity to Honolulu” by way of providing housing here for those that work in Oahu but want to live here. The commute is easy and there could be opportunities for remote work.
To read the full report click here (Kauai part on pages 21 & 22); UHERO Hawaii Potential Diversification Study
