On Owning A Business in Kailua

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Gloria Garvey
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Gloria Garvey

BY GLORIA GARVEY – Yesterday I posted an ironic blog about the Kailua Neighborhood Board’s resolution  to ask the HTA not to promote Kailua as a visitor destination alternative to the more “lively Waikiki” (from HTA’s website.)

My friend Malia Zimmerman picked up the blog piece, “Forget about Kailua,” with my permission, and posted it on Hawai`i Reporter.

Predictably, one of the posted comments accuses me of owning a visitor business (I don’t; but visitors like the business that I am part owner of) and of not reading the resolution (I did).

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There is, I guess, a small problem in owning a business in Kailua and also enjoying the practice of writing the odd opinion piece.  One does not, in my opinion, preclude the other.

The real irony here is that the business which I am part owner of was in fact started to serve local people.  There were very few visitors in Kailua when we opened the store, and we opened it in order to be part of the redevelopment of Kailua, as opposed to standing on the outside and criticizing it.  Having skin in the game.

Our thought was to help make sure that Kailua had a preponderance of local businesses, versus nationals, and that it would evolve to serve the local populous without mimicking so many “gentrified” small towns on the mainland.

Our business is a local business.  We make our products here in Hawai`i.  We employ people from Hawai’i.  We help kids with their college educations.  We pay well, and we pay for health insurance for  people who do not have insurance already.  Banks would not lend us money; the debt, which we still have eight years later, is our own.

We live in Kailua, we volunteer in Kailua, we support Kailua schools and Kailua charities (like the Boys and Girls Club).  My business partner almost single-handedly (for three years running)made sure that thousands of Kailuans (and out of towners) could enjoy the 4th of July fireworks — a 65 year tradition that had been abandoned by the Kailua Chamber of Commerce.

If I sound defensive, I am.  No one likes to be misunderstood.  To the people who think we see only $$ signs, I would say that I would be glad to see more $$ signs so we could pay off our debt.

We love owning a store in Kailua.  We see our friends.  We don’t have to drive to town.  We shop locally, supporting our fellow merchants pretty much exclusively.

The health and well being of Kailua’s small businesses has benefited enormously from the visitors who come here.  They are important to keeping stores like ours open, and also stores like Bookends, Lanikai Juice, Kailua Nails, Mary Z’s and even Whole Foods.  There are a whole slew of restaurants that wouldn’t be here if it weren’t for the visitors PLUS locals mix that is Kailua today.

Before Kaneohe Ranch began to redevelop their (lion’s) share of Kailua, most of the small businesses here today could not survive.  One example:  My business partner and I helped Lanikai Juice (for instance), which was struggling— in return for juice coupons.  We brought them 20+ years of branding expertise and helped them build the Fresh.Pure.Hawaiian. image they have today.  We helped make it possible for them to stave off the newly arrived competition from the mainland, Jamba Juice.

The local Kailua businesses pay rent to a landlord which supports Kailua, its schools, its Boys and Girls club, its halaus and its sports teams through a foundation like no other small town in Hawai`i has.  The benefit of having a single commercial landlord is that the town was redeveloped with a big picture in mind ( like it or not).  This big picture view gave us new cross streets, more stores and more restaurants.  The money, unlike so many other places, stays in Kailua — at least the greater part of it does– and much of it goes back into the community.

The same people who think that any small business that benefits from the visitor industry was created for the visitor industry aver that the price of housing in Kailua is high because of the visitors.  This is simply not true.  The cost of housing in Kailua is high because it is a desirable place to live, and because all housing in Hawai`i is expensive.  And because it is (for the very most part) built out.  There is a fixed pie.

For those who say they are worried that our cultural institutions are hurt by visitors?  We now have many occasions on which local halau perform — occasions that weren’t there before.  We who live here are interested in the preservation of the marsh, the endangered species, the heiau.  The tourists who visit are respectful of them.

It ain’t perfect by a long shot but then nothing is.  Hawai`i –for better, I think — is a visitor destination.  That means people come to see and enjoy its beauty and many here profess a desire to share our Aloha.  That means we have to take care of the land (we should do better than we do) and the sea and air around us.  That means that our local cultures can be celebrated, seen and understood.

Some have said that tourism is a healing business.  Hawai`i is a place where people come to recover themselves, to relax and to heal. And that is a noble purpose.  We share our aloha with others and they take it home — small gestures of peace from human to human contact, carried back to places faraway.

We are lucky Hawai`i is a visitor destination.  We must share our roads and beaches, stores and restaurants with strangers.  But then we get to live and work here.  How lucky we are.

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32 COMMENTS

  1. Nice, thoughtful article. We are very lucky to live in such a place that many people save for years to be able to visit for a short vacation. It is in our (business owners and residents) best interest to share our home and our aloha with them!

  2. What is wrong with the people in Kailua. They think they own Hawaii. Who are they to say that visitors should not/can not come to Kailua. Auwe

  3. Again, Gloria does not address the core message for the Kailua Neighborhood Board’s resolution which is the proliferation of illegal vacation rentals. We all agree Kailua’s housing market is now one of the most expensive in the nation and fewer and fewer Kailua residents can afford to either buy or rent housing in the community. One of the reasons for this is the fact that every year, more and more Kailua homes are being purchased by mainland and international investors and turned into vacation homes or vacation rentals. These investors are able to outbid home-occupant buyers because their business model (which is illegal) generates resort-level revenue. Resort rental rates are typically 300-400% greater than long-term residential rates.

  4. In addition, having a high proportion of 2nd home/vacation rentals in our neighborhoods negatively changes the residential character and stability of our neighborhoods and the community as a whole by displacing neighbors from our neighborhoods. After all, Short-term tenants have little interest in public agencies or in the welfare of the citizenry. They do not participate in local government, coach little league, or join the hospital guild. They do not lead a scout troop, volunteer at the library, or keep an eye on an elderly neighbor. Literally they are here today and gone tomorrow–without engaging in the sort of activities that weld and strengthen a community. The Kailua neighborhood Board did not say visitors are “unwelcome” to visit Kailua as Gloria implies. The Board’s resolution is simply asking the HTA to stop promoting “illegal” businesses. At the very least, HTA should be telling vacationers on how to determine if their accommodations are illegal and tell them to only stay in legal accommodations. Is this really an unfair request?

  5. I am a life-long resident of Kailua for nearly 60 years. My parents moved to Kailua in 1947 after they got married. They started a business and like Ms Garvey, supported the local community, donating money for various Kailua organizations. As business owners, they had to follow the rules and the laws, just like Ms Garvey does. The problem is with the people who run illegal bed & breakfast operations. They have no regard for what the law says they can and cannot do with with their property. The amount of money they can make running an illegal operation is more than they can make if the legally rented out the property to people who want to live and in Kailua. The neighborhood board didn't say they were against tourist visiting Kailua, or have them spend money in Kailua. What they are against are the illegal bed & breakfast. I've been to neighborhood meetings where the B&B were being discussed and on one side sat the people against the operations, and on the other side were the B&B owners. They don't care that they are breaking the law. They don't care that their 'guests' disturb the neighbors. All they care about is making money illegally.

    Ms Garvey owes an apology for writing a misleading piece.

    • No, there aren't any hotels in Kailua. Most communities on Oahu don't have a hotel. You don't even have a hotel in downtown Honolulu.

  6. The B&B's and the vacation rentals would LOVE to follow the law. The City should permit them so there would be no problem. The problem is the city does not permit them and there lies the conflict. If the city would permit these rentals everyone would make money including the city. The state would benefit too because people who do not want to stay in hotels will take advantage of these rentals. The people of Kailua should not complain so much what if every area in the state felt the same way, what would happen then. Kailua is not owned by these people. Kailua like every other county of the state is owned by the taxpayers and all the other residents of the state.

    • Jane, Let's get this right…”(illegal) vacation rentals would LOVE to follow the law”….is someone holding a gun to their heads and forcing them to break the law?

      Vacation rentals are legal for all resort zone parcels AND there are no permit fees! If you really want to own a legitimate vacation rental you have two choice. 1.) Buy a resort zone property. Many investors have purchased vacation homes in resort areas such as Ko Olina, Waikiki and Turtle Bay. Or 2.) Change a property’s zoning to resort by following the correct land-use due process.

      Jane, that’s how you follow the law!

    • Bank robbers would LOVE to follow the law. The government should allow them to walk into a bank and get money, so they don't have to break the law. Apparently, "the people" don't want B&B all over the place, otherwise we would have them. I've been to neighborhood board meeting and the majority of the people don't want B&Bs in Kailua. The B&B owners make a lot of money, so maybe they should get together and back a candidate who will support them. As it stands, the majority have spoken.

  7. I've lived in Kailua for many years. As a resident, I have no problem with visitors coming to Kailua. The amount of visitors has grown steadily over the years but I have not seen Kailua grow with it. Anyone that is moving to Oahu, wants to live in Kailua. Accommodations need to be made for the influx of visitors and residents.

    I would like to see larger roads and I would like to see the beach access expanded. I would like vacation rentals to become a big business for Kailua rather than having a resort built. I don't mind the small stores but the small stores cannot stifle competition by obstructing progress. Our side of the island needs to have access to every day items at a reasonable price. I cannot afford Kailua's tourism prices. If a larger store wants to build, we need to let them. Even if the smaller businesses fail. If the smaller businesses provide more value, they will succeed anyway.

    If people keep coming to Kailua, sooner or later the town has to grow with it's popularity.

    • Good idea Joe, let's make Kailua into another Waikiki. Or, maybe another Carmel-by-the-Sea. Kailua, if you haven't noticed, doesn't have a lot of empty spaces to put up new businesses or houses. What do you recommend? Fill in Kawainui Marsh or building on the slope of Olomana? The people of Kailua voted both ideas down years ago. The maximum building height is 40', because the people of Kailua didn't want high rises.

      You say you can't afford "Kailua's tourism prices." Tell me, did you shop at Don Quijote, or did you not shop there so they decided not to stay in Kailua? Are you shopping at Times or Long', so they don't decide to leave?

  8. Tourism is an industry, just like any other. An area needs the infrastructure and desire to support the entrance of any industry. Interestingly, tourism is a bit of a special industry, once an area is fully developed (like Waikiki) it falls off of the list for many who are always looking for the next great undiscovered, unspoiled area – unspoiled by large hotels and traffic and crime, and a place that has local folks who actually live there. It should feel homey. Like Kailua does currently.

    We need to talk openly about what is happening here – what people want Kailua to be. Do we want the next Waikiki here? How about a 1/2 Waikiki. Maybe just a 1/4 Waikiki or maybe no Waikiki whatsoever. We already have one on the island – I love going there. Lets take care of that area, keep Kailua as one of the day stops for those that really do want to get out of the congestion of Waikiki.

    In my mind this means no tour buses on narrow small town roads roads (all of Kailua), no absentee owner vacation rentals – if you are going to rent a room, you should have to live in the premises for the majority of the year. Then we could have a shot at staying the Kailua that everyone seems to want to come and visit and live in. I say lets be that.

    My thanks at any rate to the Neighborhood Board. sounds like they are doing what they are supposed to do.

    • MHKailua,

      I enjoyed your post but I have to disagree regarding Waikiki falling off of the tourist list. Waikiki is doing better than ever. We have more visitors than ever. It's not going away.

      "Nearly 8 million travellers — 7,998,815, to be exact — visited the islands in 2012. That's an increase of nearly 10 per cent over the previous year. It also breaks the previous record of 7.6 million visitors marked in 2006, before the financial crisis and recession encouraged travellers to stay home."

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