Renowned worldwide as a vacation destination, Honolulu, Hawaii’s capital city located on the island of Oahu, also plays host to hundreds of thousands of business travelers each year, including many convention and incentive travelers. Honolulu offers far more than great beaches and tropical weather — it’s a business destination where it’s easy to get things accomplished professionally while taking advantage of an idyllic setting.

The events of 9/11 put a major damper on Hawaii’s visitor count, reducing both the number of tourists and the number of business travelers. Today that drought is a thing of the past, with visitor counts from both domestic and foreign sources inching toward records last seen in the mid-’90s. Future opportunities will come from serving the steadily rising number of Chinese visitors, a market with immense potential: An emerging middle class as large as the population of Japan is beginning to travel from China.

For both leisure and business travelers, Waikiki, Honolulu’s beachfront resort district four miles from downtown, provides a base of operations. Almost all of Honolulu’s room inventory is in Waikiki, with only one hotel downtown, one near the airport, and the exclusive Kahala Mandarin Oriental several miles to the east of Waikiki as the only alternatives. It’s a 20-minute commute by taxi from Waikiki to downtown.

Business travel, largely meetings, conventions and incentive groups from the mainland, has grown since the opening of the Hawaii Convention Center in 1998. A beautiful, state-of-the-art facility with 200,000 square feet of exhibit space, it is conveniently located on the western edge of Waikiki. For those attending events at the convention center, the closest hotels — also two of Waikiki’s largest — are the Hilton Hawaiian Village and the Ala Moana Hotel. That said, almost all Waikiki hotels are within a pleasant 20- to 25-minute walk of the convention center.

Tourism, centered on Waikiki, fuels the city’s economy, generating nearly $5 billion in revenues annually, which in turn has fueled a real estate boom. New residential high-rises are altering the skyline, and several Waikiki hotels have been converted to highly profitable time shares. Those conversions are just part of the ongoing remake of Waikiki. A movement that started in the late ’90s with an aesthetic renovation (promenades and beautiful landscaping) of Waikiki’s main thoroughfare, Kalakaua Avenue, has led to similar upgrades throughout Waikiki, with several major commercial projects soon to begin. By 2007, virtually all of Waikiki will have been dramatically upgraded at a cost of well over $1 billion, allowing the area to remain competitive with the neighbor island resorts that have turned places like Maui and Kauai into popular mainstream destinations.

The ongoing expansion of retail space, in Waikiki and throughout the city, has opened the door to an explosion of brand-name outlets, with continued expansion anticipated as new retail space comes on the market in the next two years. The question remains: Will the economy be able to support this much additional commercial infrastructure?

High hotel occupancies have pumped plenty of money into the city’s economy, funding a construction boom enhanced by government projects that will keep construction strong well into the future. The result is the lowest unemployment rate in the country, although many of the employed are in low-paying service jobs, and poverty remains a problem, particularly among native Hawaiians.

Hawaii’s mid-Pacific location and its large Asian population provide it with links to both North America and Asia, allowing it to play an intermediary role in international commerce and investment. It’s a position enhanced by a growing high-tech community and evolving communications technologies, although growth as a Pacific economic hub has been slower than anticipated.

In the ’80s and early ’90s, Asian investors, primarily Japanese, bought up ho tels and real estate in a pattern that created a “bubble” economy. That bubble burst in the early 1990s when Japan’s economy took a downturn, leading to a 10-year period of economic doldrums during which many Japanese-owned properties were bought by the likes of Marriott, Outrigger and other American investment partnerships at prices of 50 cents or less on the dollar.

Today Hawaii’s hot real estate market has prices inching upward and surpassing levels achieved in the heyday of the Japanese “bubble” market. This time, investors from the mainland are fueling an appreciation in real estate values.

Beyond tourism and retail, other service-related industries dominate the city’s economy. In addition to being Hawaii’s financial and commercial hub, Honolulu is also the state capital and the Pacific headquarters for a variety of federal departments and agencies. Government plays a significant role in the city’s economy, with the island of Oahu home to a growing military presence, including many bases and tens of thousands of military personnel and their dependents.

Honolulu’s economy is also bolstered by centers of higher education and health care. The city is home to the University of Hawaii, bursting at the seams with a record 30,000-plus enrollment; Hawaii Pacific University, which has its main campus downtown; several high-enrollment community colleges; a number of smaller colleges; and branches of universities based on the mainland and in Japan. Honolulu also has a large number of private primary and secondary schools.

Medical facilities in Honolulu are considered some of the best in the Pacific. Now, construction of a new medical school affiliated with the University of Hawaii is under way in the once-neglected district called Kakaako. Set on 200 oceanside acres between downtown Honolulu and Waikiki, the medical school joins a lovely oceanfront park and the nearby Children’s Discovery Center.

With close to half of Oahu’s total population of 900,000, plus an average of 50,000 visitors in town on a typical day, urban Honolulu is a compact city, limited geographically to a narrow coastal flatland that backs up to the lushly green Koolau Mountains. Yet, it’s that ready proximity to mountains and sea that enhances the quality of life in Honolulu. Downtown Honolulu, 20 square blocks of offices and residential high-rises blended with low-rise structures and the 100-year-old buildings of Chinatown, is home to Hawaii’s corporate infrastructure. Business travelers take note: At the end of the day, it’s as easy to go for a swim in the ocean as a hike in the rainforest.

Culturally, Honolulu is a hybrid city, very American in layout yet made distinctive by the influence of its Polynesian heritage and its strong links to the Orient. More than half of the city’s population boasts Asian ancestry. Politically, since attaining statehood in 1959, Hawaii and Honolulu have elected Democratic administrations, although the present governor, Linda Lingle, is a Republican.

Like most cities, Honolulu suffers from traffic overload. With no land in the urban core to expand infrastructure, the city has spent the better part of two decades considering and reconsidering possible solutions. At this juncture, light rail and an enhanced bus system seem likeliest. Aside from allowing an extra 10 to 15 minutes in your travel schedule, Honolulu’s traffic woes aren’t likely to cause a problem. In fact, with state-of-the-art communications links, a strong economy, an impressive infrastructure and a magnificent setting, Honolulu is a city prepared to host the most demanding business traveler.

At Home With Keith Vieira

Starwood Hotels’ senior vice president for operations, Hawaii and French Polynesia.

Keith Vieira has had a 30-year career in Hawaii’s hospitality industry, rising through the Sheraton ranks to become a Starwood Hotels and Resorts’ senior vice president.With many properties in Hawaii, Starwood, mainly via its Sheraton and Westin brands, has long played a leading roll in Hawaii tourism, both in Waikiki and on the neighbor islands.

With occupancies inching toward record levels, Vieira is upbeat on the continuing remake of Waikiki.

“All positive things are going on as far as Waikiki is concerned,” said Vieira. “We’re getting ready for a major beach replenishment and expansion, with plans for the International Marketplace (a major commercial upgrade in the heart of Waikiki) and the Royal Hawaiian Shopping Center (remodeled to open the Royal Hawaiian Hotel and its lawns to Kalakaua Avenue) that follow the already extensive infrastructure upgrades that have taken place in the past five years. I’m very satisfied that we’ve acted to restore Waikiki’s appeal, and I think we’re seeing the response in a return to high occupancies.”

Time sharing, given big-brand respectability, has become a significant source of revenue for Hawaii hoteliers like Starwood, Hilton, Marriott and Outrigger. The elegant Westin time-share property at the popular Kaanapali Resort has posted $255 million in sales, Vieira said. Construction is about to begin on a time-share property at the upscale Princeville Resort. Vieira is a realist when it comes to the red tape of doing business in Hawaii: For the right type of business, and lodging is in that category, there are ample financial rewards. Plus, he’s seen some signs of improvement.

“The Legislature is offering tax credits that will allow for other upgrades in Waikiki,”Vieira said. “We’re seeing progress in making things happen, and that’s a step in the right direction.

“Overall, there are a lot of pluses that become very evident when you live here. When you take into consideration the quality of life, Hawaii offers something that’s unique. That spirit and the beauty of the setting and the climate are all part of working here. With telecommunications what they are today, Hawaii is well positioned to take advantage of business from a growing number of places. That makes me optimistic about the future of Hawaii as a prime destination and a place to do business.”

Lodging

KAHALA MANDARIN ORIENTAL

Two miles east of Waikiki on a small beach in the toney residential neighborhood of Kahala, the Kahala Mandarin Oriental is a chic resortstyle hotel that has maintained a reputation for quality for more than 40 years. Beachside tents provide a great setting for the Cabanas Seaside Grill, surely one of the loveliest places to dine in Hawaii. The hotel is 10 minutes by cab from Waikiki, 20 to 25 minutes to downtown Honolulu. Full range of business and communications services available.
Kahala Mandarin Oriental
2199 Kalia Road
Honolulu, HI
tel 808 923 2311 or 800 367 2525
fax 808 926 8004
www.mandarinoriental.com

THE HALEKULANI

Waikiki’s five-star hotel gets high praise for service, accommodations and facilities, plus a central location. Rooms are spacious and stylishly modern. The Oceanside House Without a Key is the perfect place for sunset cocktails, pupus (hors d’oeuvres), music and hula. Full range of business and communications services available.
The Halekulani
2199 Kalia Road
Honolulu, HI
tel 808 923 2311 or 800 367 2343
fax 808 926 8004
www.halekulani.com

THE ROYAL HAWAIIAN HOTEL

Since making its debut in 1927, the Royal, dubbed the Pink Palace, has been a beachfront landmark. Built where Hawaiian chiefs once lived, the Moorish architecture of the original building is supplemented by a midrise tower. Rooms in the original building preserve the scale and feel of another time. Full range of business and communications services available.
The Royal Hawaiian Hotel
2259 Kalakaua Ave.
Honolulu, HI
tel 808 923 2311 or 800 792 9488
fax 808 926 8004
www.royal-hawaiian.com

HILTON HAWAIIAN VILLAGE

Hawaii’s largest hotel, with five towers and more than 2,500 rooms, this self-contained resort is within a short walk of the convention center and the heart of Waikiki. The Ali`i Tower offers upscale services and amenities. The best views are from the landmark Rainbow Tower, which faces Diamond Head. Full range of business and communications services available.
Hilton Hawaiian Village
2199 Kalia Road
Honolulu, HI
tel 808 923 2311 or 800 HILTONS
fax 808 926 8004
www.hawaiianvillage.hilton.com

NEW OTANI KAIMANA BEACH HOTEL

Buffered from Waikiki by the green lawns of Kapiolani Park, this small beachfront hotel offers a nice setting. Small rooms are the only drawback, but that may not be a problem if you’re in the room on your own. The beachfront Hau Tree Lanai is a popular eatery and a good place for a business lunch or dinner. It’s a 15-minute walk to Waikiki, another 15 to the convention center. Either is a 10-minute ride by taxi. Full range of business and communications services available.
New Otani Kaimana Beach Hotel
2863 Kalakaua Ave.
Honolulu, HI
tel 808 923 2311 or 800 356 6264
fax 808 926 8004

RENAISSANCE ILIKAI WAIKIKI HOTEL

Overlooking the Ala Wai Yacht Harbor, the Renaissance Ilikai Waikiki is located minutes from downtown Honolulu and just one block from the Hawaii Convention Center. The recently renovated 267-room hotel features a contemporary design that reflects its tropical location. Guestrooms, most with balconies overlooking Waikiki and the ocean, are wired for high-speed Internet connections. The hotel’s public areas offer wireless access.
Renaissance Ilikai Waikiki Hotel
1777 Ala Moana Blvd.
Honolulu, HI
tel 800 245 4524 or 808 949 3811
fax 808 947 4523
www.marriott.com

ASTON AT THE EXECUTIVE CENTRE HOTEL

The only choice if you want to stay downtown, this high-rise has impressive views within walking distance of all downtown businesses. Studio and one-bedroom suites come with kitchenette or full kitchen. Full range of business and communication services available.
Aston at the Executive Centre Hotel
1088 Bishop St.
Honolulu, HI
tel 808 539 3000 or 800 949 3932
fax 808 523 1088
www.astonexecutivecentre.com

DINING

CHEF MAVRO

James Beard Award-winning Chef George Mavrothalassitis has earned a well-deserved reputation for innovative cuisine. The restaurant offers a calm setting conducive to conversation, a plus for business dining. The menu changes four times a year, with specialties like onaga (long tail snapper) filet or roasted mountain meadow lamb chateau, each with a house-recommended wine. Chef Mavro’s version of Hawaiian regional cuisine makes use of Asian, Hawaiian and southern French recipes and ingredients. Dinner with wine costs $75.
Chef Mavro
1969 S. King, at McCully
Honolulu, HI
tel 808 944 4714, fax 808 944 3903
www.chefmavro.com

LITTLE VILLAGE NOODLE HOUSE
It’s unpretentious and well priced, but the great food explains why it’s always crowded. From delicious sesame pancakes to shrimp with glazed walnuts, it’s hard to make a bad choice. In the heart of Chinatown, within a couple of blocks of downtown offices, Little Village is open for lunch and dinner daily. Lunch or dinner costs $20.
Little Village Noodle House
1113 Smith St.
Honolulu, HI
tel 808 545 3008

INDIGO EURASIAN CUISINE

Downtown’s most popular fine dining restaurant offers a garden setting in the heart of Chinatown, adjacent to the beautifully restored Hawaii Theatre. Indonesia sets a visual theme within, while the menu offers fusion specialties like miso salmon and beef Rendang served with a flavorful curry sauce. Open for lunch weekdays, dinner nightly. Lunch costs $15 to $20. Dinner costs $35 to $40.
Indigo Eurasian Cuisine
1129 Nuuanu Ave.
Honolulu, HI
tel 808 521 2900
www.indigo-hawaii.com

HULA GRILL WAIKIKI

Just opened and already a hit, Hula Grill Waikiki boasts a setting that includes seats with oceanfront views. Warm polished woods, photos and memorabilia re-create the feel of Hawaii’s plantation era. The menu features Hawaiian regional seafood specialties like Kung Pao Shrimp and Screaming Sesame Opah (a local fish). Or, order Kalua Pig Potstickers off an extensive appetizer menu. Entree and wine costs $35. Closed for lunch. Breakfast costs $10 to $12.
Hula Grill Waikiki
Outrigger Waikiki
2335 Kalakaua Ave.
Honolulu, HI
tel 808 923 4852

L’URAKU (THE HEAVENLY PLACE)

The mood here is upbeat and trendy, with the menu a fusion of European and Japanese preparations and ingredients. The pan-seared moi (threadfish) is a delicately flavorful choice, the garlic steak a full-flavor option. Contemporary sushi (seared foie-gras sushi, for example) adds to the menu choices. Open for lunch and dinner. Lunch with wine costs $20 to $25. Dinner with wine costs $40 to $45. The four-course Weekender Lunch is a great buy at $16.
L’Uraku
1341 Kapiolani Blvd., near Piikoi
Honolulu, HI
tel 808 955 0552

Info to Go

Getting a taxi at Honolulu International Airport (HNL) can be something of a hassle. Dispatchers try to be helpful, but usually cabs appear too slowly to meet demand. For more efficient service, call Charlie’s (808 531 1333) or SIDA (808 836 0011). Taxi rates are affordable, with a cab from Waikiki to downtown Honolulu costing about $12 with tip. The city’s bus system is easy to navigate, with high-frequency schedules operating between downtown Honolulu and Waikiki.