Hawaii is one of the world’s premier visitor destinations and is rebounding from the recent recession, as the latest visitor counts confirm. But tourism is a dynamic and changing industry, and Hawaii is facing increased competition from locations around the world. Hawaii must remain vibrant as a destination for the state’s economy to grow and provide sustainable employment in the islands.

Tourism is the primary industry in Hawaii; visitor expenditures directly account for 19.8 percent of our state’s tax revenue and 1 in 6 jobs, according to the Department of Business, Economic Development and Tourism. Waikiki alone accounts for more than a third of this activity.

No new hotels have been built in Waikiki in close to 30 years and hotel room inventory has declined nearly 2 percent annually over the past decade, limiting the number of visitors Waikiki can accommodate in the long term. With our limited natural resources and desire to preserve open space, we should focus on making Waikiki more appealing to visitors with higher spending patterns and longer lengths of stay, as well as to residents, by developing the facilities, amenities and services they desire.

Fortunately, over the past several years, hotel owners have partnered with the city and state to begin the renewal of Waikiki by investing nearly $2 billion upgrading hotels, providing alternative accommodation types, improving public spaces and emphasizing a Hawaiian sense of place.

A key component of Waikiki’s revitalization is Kyo-ya Hotels & Resorts’ $1 billion "Waikiki Renewal" plan to renovate or redevelop each of its Waikiki properties. As the largest hotel owner and employer in Waikiki, Kyo-ya understands the need to improve the Waikiki experience for our visitors, residents and community.

In 2005, Kyo-ya commenced the first phase of its Waikiki Renewal with the $250 million renovation of the iconic Royal Hawaiian Resort, the historic Moana Surfrider Resort and the Sheraton Waikiki Resort & Spa. These three hotels employ 2,000 Kyo-ya associates and in 2012 will contribute $50 million in property, general excise and transient accommodation taxes.

Earlier this year, Kyo-ya contributed $500,000 to the successful replenishment of Waikiki Beach, providing residents and visitors an expanded public beach. This partnership with the Department of Land and Natural Resources was the first public-private joint venture addressing Waikiki’s most important natural resource.

The next step in renewing Waikiki is the planned $500 million redevelopment of the Princess Kaiulani Hotel. The redevelop- ment will provide a dramatic improvement to the pedestrian experience along Kalakaua Avenue and, as suggested by our cultural focus group, pay tribute to Princess Kaiulani with a Legacy Library and representations of her life reflected in the open spaces and landscaping. Plans call for a fully renovated 660-room hotel in the Ainahau Tower and a new 300-room luxury hotel with residences in the new Pikake Tower.

The recent unanimous decision by the Honolulu Zoning Board of Appeals allows us to move forward with the planned $200 million redevelopment of the Diamond Head Tower, adjacent to the historic wing of the Moana, which will also offer a mix of hotel and residential uses. More importantly, the project will provide a 15-foot-wide public easement to access the beach and open up pedestrian views from Kalakaua Avenue to Waikiki Beach — the only location on Kalakaua Avenue with ocean views over private property. The mauka facade of the tower will feature a graphic interpretation of the story of the Waikiki Ahupuaa, honoring the major elements of Waikiki’s history.

Waikiki needs to remain vibrant to compete in the dynamic tourism market. We need to grow the tourism base and our state’s economy by enhancing our amenities and services and catering to visitors with higher disposable income.

Kyo-ya’s Waikiki Renewal represents a sustainable growth plan that will provide significant job opportunities for Oahu’s construction workers, long-term job stability for our hotel and retail associates, and dramatically improve the Waikiki experience.