Kauai business owners say the expanding resort bubble is a major blow to the economy

HONOLULU (KHON2) — Kauai has extended its Resort Bubble program through Spring 2021. The Garden Isle currently requires visitors to participate in the state’s Safe Travels program and take a pre-test 72 hours before their flight.

Visitors flying direct from the mainland must stay at a county-approved resort and can bypass quarantine with a negative COVID-19 test taken three days after arrival.

Kauai has been able to stay in Tier 4 with few restrictions, but many business owners say it’s difficult to stay open when there are few visitors flying in.

Business began to bounce back when the state launched its Safe Travels program and reopened to visitors in October.

“We’ve had one of our best, if not our best, best months since we opened,” said Antje Gillingham, co-owner of Hawaiian Artisans at Coconut Marketplace.

Hotels in Kapaa have reopened and many businesses in the Coconut Marketplace were hoping to recover.

“We bought all the items and products for the holiday season and we were all so happy and then and then it was like, oh no we’re closing you up again,” she said.

Kauai withdrew from the Safe Travels program after COVID-19 cases began to rise and all travelers were quarantined on Wednesday, December 2, 2021.

According to data from the Hawaii Tourism Authority, Kauai averaged about 700 to 1,000 daily arrivals as of November 2020, falling to about 80 to 100 after the county decided against it.

Kauai rejoined the Safe Travels program in January 2021, but required direct mainland travelers to stay at an approved resort and test negative for COVID-19 three days after arrival. However, the numbers remained small.

Kauai welcomed approximately 2,000 transpacific travelers Monday, February 1 through Thursday, February 18, and Maui welcomed approximately 60,000 travelers during the same period.

“We can sit here for hours and nobody comes by,” explains Terry Gillingham, co-owner of Hawaiian Artisans. “It’s pretty difficult to do business with people when there’s no one to invite and the mall is dead.”

The couple, meanwhile, have opened art classes and other activities at their shop to keep themselves afloat.

“While that does attract people, it’s not enough to sustain us for any length of time,” added Terry Gillingham. “It’s holding us back right now, but we need to know what the game plan is because we have dwindling resources.”

The couple said they think they can last through June, but many other stores in Coconut Marketplace have closed for good or may not make it through June.

A survey conducted by the Kauai Chamber of Commerce (KCC) and the Hawaii Lodging and Tourism Association (HLTA) in December 2020 found that nearly half of Kauai businesses said their business was likely to close within three months without a significant return of tourists would be closed.

Activity businesses were most at risk of permanent closures.

Blue Ocean Adventure Tours is the only boat tour company that has remained operational in its port during this time.

The tour company sold out boat tours in November 2020, taking four boats each day. Since January, the tour company said it was fortunate to be doing three tours a week.

The owner said they were able to defer the payments but will have to start paying again in April.

“We’re projecting at least $23,000 a month,” said owner Cody Kimura. “So we’re at the end of our strength.”

“I think what we need is that date to have that point where we know we have to make it,” he said of the uncertainty of knowing when the island will be fully open to visitors again.

Restaurants were the second risk for closures, according to the KCC and HTLA survey.

The Trees Lounge finally closed its doors in November after 15 years in business.

The owner has another business, Aloha from Kauai.

“If you look at the town where my store is located, right now on a Saturday afternoon, I see an empty town, there’s nobody, there’s not a person walking out there,” said store owner Ulla Freeman.

“I look at 75% of the companies that have disappeared right around me,” she continued.

“My frustration with this whole bubble and restrictions is that county officials aren’t coming around. Please come and see how this is really impacting us in real life and the people who have worked for us,” she said.

Mayor Derek Kawakami said he hopes to be able to fully participate in Safe Travels again in May or sooner.

He said he wants to continue reopening in line with vaccine distribution and ensure vulnerable and essential frontline workers are vaccinated first.

“I know the companies that continue to struggle have lost their patience,” he said. “I know a lot of them are frustrated and scared and I just want to say hang in there and stay tough and we’re going to get through this island.”

“We understand that not everyone wants tourism to return to pre-pandemic levels, and we probably agree,” Gillingham said. “But a certain number of people have to be allowed to come to the island and there has to be a balance between what happened before and what’s happening now, or we’re going to have an entire island that’s economically bankrupt. “

A bill is moving through the legislature that would require all counties to participate in safe travels under a unified rule; If a traveler tests negative before their flight, they can bypass quarantine. The law would come into effect in July 2021 if passed.

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