Planned hotels at Ko Olina bode well for tourism

When locals get wind of plans for another luxury resort, it might conjure a deep sigh or even an eye roll — especially since many could never afford to stay in one. But when the project is slated for West Oahu and is expected to create critical employment opportunities for area residents, it’s hard not to recognize its value.

So the announcement that a Chinese corporation has purchased two Ko Olina Resort beachfront parcels for $200 million with plans to invest $1 billion to develop not one, but two, top-tier resorts, is encouraging on several fronts.

For starters, China Oceanwide Holdings Group Co. Ltd.’s purchase of the 1-million-square-foot, fee-simple property represents the largest Hawaii hotel investment from a Chinese investor. That purchase, along with plans to build the two resorts, could bolster further investment in Hawaii and increase the number of visitors from China, which is forecast at 185,000 next year. Ultimately, it’s a healthy infusion of more dollars into the state’s tourism-driven economy.

At completion, set for 2018, the resorts are expected to attract more of China’s wealthy, high- spending visitors, who tend to drive sales of luxury goods. It’s desirable that the state capitalize on that sector of high-end visitors who spend more than any other foreigners at an average of $7,200 per visit, according to CNN.

This sector of visitors expects only the best accommodations, which are in short supply locally. Joseph Toy, president and CEO of Hospitality Advisors LLC, said only about 1,450 of about 28,000 hotel and condo rentals can be counted among the top tier. Adding 400 traditional, luxury hotel rooms would fill a much-needed niche in the tourism industry.

The added hotel rooms as well as 400 residences to Ko Olina Resort would surely generate employment for area residents. From construction to concierge services, there would be an abundance of opportunities — ones that would allow westsiders to work closer to home and avoid tiresome eastbound commutes.

News of China Oceanwide’s development comes as the Four Seasons Resort Oahu at Ko Olina draws closer to its May 27, 2016, opening. That also follows the 2011 opening of Aulani, a Disney Resort &Spa in Ko Olina. At long last, the planned development takes Ko Olina a step closer to full build-out of the mixed-use area, which spans 642 acres along the Waianae mountain range.

With the addition of the two luxury hotels, Ko Olina’s master plan would be 75 percent complete, said Jeffrey R. Stone, founder and master developer of The Resort Group, Hawaii’s largest landowner of master-planned resort communities. What has so far been about a 20-year build-out has largely been positive for area residents. At full build-out, Stone said, total investment into Ko Olina is expected to exceed $15 billion, with a yearly generator of $1.4 billion a year to the state, which are significant contributions to the economy.

Still, the potential influx of dollars from Ko Olina cannot overtake or diminish the importance of allowing public access to the beachfront. The calm beauty of the Ko Olina lagoons draws many local families, and it is often difficult to find parking. Any plans associated with the new luxury hotels must allow for adequate pathways to the public shoreline and to parking stalls for both locals and tourists to utilize.

Ko Olina has forever changed the complexion of West Oahu. While its planned luxury hotels will likely be too expensive for most area residents, many will reap the rewards in other ways, and the benefits from fuller economic coffers stand to be shared statewide.