Column: To diversify Hawaii’s economy, expand on the iconic brand

Since World War II, Hawaii has become an iconic global brand — an exotic Pacific destination for honeymooners and adventurers. As COVID-19 batters the global tourism industry and the state’s economy, it’s time to broaden that powerful brand to encompass a range of sustainable industries, technologies and exports.

Hawaii hosts several promising sectors that can benefit from its brand strength — from hospitality consulting and the military’s Asia-Pacific focus to renewable energy, astronomy and boutique agriculture. With long-term commitment, strategic investment and a strong public-private alliance, the state can diversify its economic future and modify its dependence on tourism.

Over the years, Hawaii’s tourism brand has spawned globally recognized hospitality consultants. Wimberly, Allison, Tong & Goo leveraged its local architectural skills to become a leading firm with offices on three continents. Sheila Donnelly & Associates took her Roosevelt High School roots and expertise in Hawaii public relations global, advising clients ranging from India’s Taj Hotels to Monaco’s Silversea Cruises.

Hawaii also has outstanding astronomy and ocean sciences resources. While the community debates the best use of Mauna Kea and South Point for telescopes and space launches, can this expertise be broadened? Can our astronomy assets produce related hardware, software and industry events? Can we reallocate some tourism-promotion dollars to support deep-ocean research by the University of Hawaii and the National Oceanic and Atmospheric Association for branded product development?

Similarly, Hawaii’s commitment to renewable energy creates opportunities. As the world’s fossil fuel supply dwindles, researchers in Hawaii are testing everything from biofuels, electric planes and “green” hotels to solar, wind and ocean thermal energy. But where are the local consultants and companies that can help foreign countries create renewable-energy programs?

Today, the military is Hawaii’s second-largest economic sector. The Hawaii Military Affairs Council has done an exceptional job of promoting local defense spending. The Indo-Pacific command links the state with Pacific Rim allies; Pearl Harbor remains one of Hawaii’s largest employers.

Harry B. Harris Jr. former head of the Pacific Command, proposed the idea of a research park like North Carolina’s Research Triangle. The Hawaii Triangle could be anchored by three influential policy centers: the Pacific Command, the East-West Center and the Daniel K. Inouye Asia-Pacific Center for Security Studies.

Despite its expensive real estate, Hawaii could become a famed geographic provenance for boutique agricultural products like Europe’s Champagne or Parmigiano-Reggiano. (Kona coffee is world famous, but until a few years ago a California wholesaler could put a few beans in a bag and label it Kona coffee.) The floriculture industry is bypassing the mass market to sell directly online to discriminating consumers worldwide. Through technology and scalability, Hawaii — and not Holland — could become a major producer of patented premium anthuriums.

Gov. David Ige’s economic recovery task force must wrestle with today’s political realities. As a small island community, we face two large hurdles: Too often, the state invests small amounts across many sectors, rather than concentrating investments where data show the highest potential returns.

The second is that governments rarely lead innovation. Entrepreneurs embrace the uncertainty of new ideas (think Elon Musk). In Japan, devotion to political consensus has exacerbated two decades of painful recession. This is clearly our economic choice — with significant consequences for Hawaii’s keiki o ka aina.

Despite today’s record unemployment, we can rethink and recalibrate our economic future. We ask our leaders to leverage the Hawaii brand, rely on empirical analysis, invest for the highest long-term benefit, and welcome more outside-the-box entrepreneurs.

Patricia M. Loui is chairwman/CEO of Omnitrak, a global provider of travel information technology. An Obama appointee to the board of The Export-Import Bank of the U.S., she has chaired economic initiatives including the 2011 APEC Leaders Conference.