Point at Poipu MFs
The key here is the budget and where expenses have increased and where revenues may have decreased. We probably won't see the new budget until December, or when the 2008 MF is announced, and then we can do some analysis.
I suspect that a lot of the increase is in wages and taxes. Unemployment on Kauai is very low and to retain people P@P needs to offer competative salaries. It is difficult to compete with Hiltons, Marriotts, Hyatts, etc.
The Kauai County government has totally mismanaged the island's development and the taxpayers are essentially going to underwrite the developers who are destroying the island esthetically and financially. The developers have not paid their "fair share" (read "all") of the infrastructure required to support the development. Plus land prices are skyrocketing so property values are going up and therefore property taxes.
Kauai is headed into an upward cost spiral similar to when the Japanese business interests were buying the islands. The more money there is to spend the higher prices will rise for goods and services. This is of little concern to those with the bucks, but for the people trying to live on the economy it is a little grim. Eventually the costs will reach the point of pain and once again people will look for other places to vacation and then the recession spiral will begin and cost will begin to normalize.
At any rate, MFs are subject to the economy factors on the island. It is collateral damage associated with the multi-million dollar developments.
Kauai is open for new tourism, only the wealthy need apply.:annoyed:
Cheers,
Paul
