Leadership Lessons

The state government has produced a new study of the travel industry that recasts the concept of "carrying capacity" into the more contemporary terms of sustainability. The new study has not been publicized, let alone seriously digested and debated publicly. Nonetheless, it is available on the Web at www.hawaii.gov/dbedt for all to see.

At the heart of it is a model that describes the impact of growth on such resources as water, energy, transportation and the environment.

It compares a low rate of growth (in real visitor expenditures) of 33 percent over 25 years to a high rate of 81 percent. To my eye, it is testimony for a slow, low rate of growth. For example:

• A slow growth rate will tend to support Hawaii's resident work force and not require extensive in-migration.
• A slow rate will cause much less environmental strain.
• It will take considerably less water and energy development, particularly water.
• It will cause less traffic congestion.

Contrary to what you might expect, the study says that a lower growth rate will actually result in higher per capita wages and salaries (a 53 percent increase, compared to a 37 percent increase in a rapid-growth situation). In addition to the in-migration issue, it reasons that a slower rate will be less inflationary, which is good for real income.

One of the basic devices of the study is a set of triggers. If a triggering point is reached, some serious adjustment of an underlying system must be made. Almost across the board, the triggers go off with a high growth rate.

How big is our industry already? Our small state has 70,000 hotel rooms. The country of Sweden has 100,000.

As a tool of economic analysis, the study avoids a crucial, if subjective, question: What kind of visitors do we want? I submit that a slower growth rate will help us attract visitors who spend more, while a higher rate will tend to drive away the affluent visitor.

Second, what kind of Hawaii do we want? For most people, our hopes fit more comfortably with the slower rate. I imagine the average person would give the study a vigorous nod, while much of the travel industry – in its preoccupation with short-term marketing – would not.

If you go to an industry event today, as I did in my tenure as chairman of Prince Hotels, the subject often turns to creating more attractions for visitors. The strategic marketing concept of attractions is to extend the visitors' stay and/or bring people back. To my mind such thinking will lead to a busy, honky-tonk environment that is the opposite of what people really seek in Hawaii: a well-cared-for, peaceful place with great natural charms.

Not long ago, our state was an international pacesetter in tourism planning. Shaped by such institutions as the state Land Use Commission and the state Water Commission, our destinations and infrastructure have stood the test of time.

Today we are relatively silent, yet a quick scan of the Internet will tell you that incorporating sustainability into the tourism equation is a global phenomenon. Tourism is the planet's largest industry. As a key aspect of planetary sustainability, sustainable tourism was a significant focus of the Second Earth Summit two years ago. It is on the agenda of the Asia Pacific Economic Cooperation and many specific destinations, such as New Zealand, Australia, Argentina, Chile, Nova Scotia, the United Kingdom, etc.

Sustainability is the contemporary way to think about, "When do we say: enough is enough?" A lot of people who are now onlookers should become a part of that dialogue, because we have the best tools yet for conducting it.

George R. Ariyoshi is the former president of Prince Resorts Hawaii Inc., a subsidiary of Seibu Railway Co. Ltd. An attorney by profession, Ariyoshi served in elective office in Hawaii from 1954 until 1986. A protégé of the late Gov. John A. Burns, Ariyoshi served as governor of Hawaii from 1973 until 1986. He was the first Japanese American to be elected governor in the United States. In the years since he left the state Capitol, Ariyoshi has been active in Hawaii and international business circles, particularly in Asia.

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