The past year has been a strong one for Hawaii’s economy with tourist arrivals expected to set another record, although the pace of growth slowed. Construction picked up speed helped by a boom in Kakaako condo projects. The most notable property transaction of the year was Alexander & Baldwin’s purchase of most of downtown Kailua. The troubled launch of the Hawaii Health Connector and a slowdown in the growth of residential solar energy systems round out our major business stories of 2013.

TOURISM

Hawaii tourism is on track to surpass 2012 arrivals and spending this year; however, growth has been slackening.

The Hawaii Tourism Authority anticipates the state will have 8.48 million visitors this year, 5.6 percent above the record set in 2012. The agency expects visitor spending in 2013 will likely come in at $15.3 billion, or roughly 7.5 percent more than 2012.

While the state has hosted a record number of tourists, the cost of an island vacation has climbed, causing some worry in the industry that high prices could put a dent in growth. Waikiki, the state’s top tourist destination, is getting its share of upscale investment with major projects planned, including a Ritz-Carlton on Kuhio Avenue, a Saks Fifth Avenue where the International Market Place now stands and a new luxury tower coming up at the Princess Kaiulani property.

KAKAAKO

Speaking of new towers, Kakaako is taking off again. The area on the edge of downtown has seen booms before in condominium tower development. But the one that emerged in 2013 was notable not just for the number of towers approved by the state, but also for the level and coordination of public opposition.

The Hawaii Community Development Authority, the agency governing development in Kakaako, approved five tower projects in 2013 — three at Ward Centers, Tower B at 801 South St. and The Collection at a former CompUSA store site.

HCDA did reject one proposed tower called 803 Waimanu, though the developer there converted the plan into a mid-rise condo up for vote in January.

Construction also began on two towers approved last year — Tower A at 801 South St. and Symphony Honolulu.

Sales have been robust for developers. But several of the new towers are adjacent to existing towers and have generated opposition from residents in buildings with threatened views. These residents have held sign-waving rallies, asked for moratoriums, appealed one HCDA approval and enlisted lawmakers for help that could take the form of legislation in 2014.

KAILUA

In contrast, downtown Kailua isn’t going to change overnight, but Alexander & Baldwin Inc.’s purchase of nearly all the Oahu real estate holdings of Kaneohe Ranch Co. and the Harold K.L. Castle Foundation was a big deal.

The $373 million acquisition was the biggest property sale in Hawaii in 2013 excluding hotel transactions.

About half of downtown Kailua covering 36 acres was part of the sale, giving A&B 70 percent of the commercial-zoned land and 90 percent of all retail property in the community.

A&B is expected to redevelop significant portions of Kailua over many years as tenant leases expire, but it’s hard to envision what that will look like and whether it would differ from what Kaneohe Ranch might have done.

HEALTH

In health care, Hawaii fumbled the start of the online health insurance marketplace created by President Barack Obama’s signature health reform law when it failed to launch on Oct. 1.

Hawaii Health Connector, the state-based health insurance exchange assigned to sign up residents for coverage under the Affordable Care Act did not go live until Oct. 15 due to software problems that have stifled enrollment, which stood at 2,015 individuals as of Dec. 24, the enrollment deadline for policies beginning Wednesday. In addition, 296 businesses have applied for plans.

SOLAR

Finally, the spectacular rise of Hawaii’s solar photovoltaic industry slowed in 2013, with a combination of stricter tax rules and new utility guidelines for customers hooking into the grid weighing on installations.

After peaking at 53 megawatts of installed capacity during the final three months of 2012, installations of PV systems fell in each of the three following quarters, according to a recent report from the Solar Energy Industry Association.

Despite the slowdown, 2013 was still another solid year for PV installations by historical standards. Although the final numbers aren’t yet in for the year, SEIA officials say the 2013 total for PV installations will likely surpass the 2012 record of 109 megawatts.

Given Hawaii’s high electricity prices — nearly three times the national average — solar PV still makes sense from an economic standpoint, even with the new tax rules and the potential for added equipment costs for homeowners in areas already saturated with PV panels, the SEIA said.