Ko Olina Report Shows Resort’s Economic Benefits

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Ko Olina

BY HAWAII REPORTER

The Ko Olina Resort is generating $520 million of economic impact annually and providing jobs for 2,800 residents, according to an analysis done for the 642-acre resort in Leeward Oahu.

The report says the resort also provides $265 million of indirect economic impact for the state, along with indirectly providing 1,471 jobs locally and statewide.

The economic impact report done by CB Richard Ellis also shows the resorts’ economic impact will roughly double in coming years as it is built out with more hotel, timeshare, commercial and residential projects.

The report presents a picture of the resort as an economic asset for the state, providing building industry jobs during construction and hotel and other jobs as its developments open. The master-planned community features an 18-hole golf course, , the JW Marriott Ihilani Resort & Spa at Ko Olina, the Ko Olina Beach Villas Resort, the oceanside Ko Olina Wedding Chapel.

There’s also a 43-acre marina and a new Disney Resort that’s scheduled to open later this year.

The report said at full build out the resort located 17 miles from Honolulu will generate $1.4 billion in annual economic activity and support 8,100 jobs. It is projected to generate $138 million in taxes at full operation.

Currently the resort generates about $20 million annually in tax revenues for City and County of Honolulu and another $40 million for the state. The revenue comes through a variety of taxes, including hotel room, timeshare, general excise, car rental, utility, property, income and other levies, the study says.

When fully built, Ko Olina will generate about $55.5 million annually for Honolulu and $78.1 million for the state.

The report also notes construction spending has been and will remain substantial at the resort. So far the building of resort has brought in $5.8 billion of one-time economic impacts in the state and provided jobs for 43,679.

Future construction will included about $5.8 billion in one-time development spending and indirect and induced spending. This is estimated to result in work for 43,680 people, the report said.

The report issued this month also may add weight to arguments by the resort and local residents about closing the Waimanalo Gulch Sanitary Landfill after its land use permit runs out in July 2013.

The landfill is located in the hilly terrain that stretches above the coast near Ko Olina. Recent heavy rains forced the closure of the landfill after trash-laden dirty water spilled down the mountainside and washed into the ocean.

That prompted closure of some Leeward Oahu beaches, including the seven lagoons at Ko Olina. The resort said it was hurt by the negative publicity and was forced to absorb any clean up costs for trash that currents carried to its shores.

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