Among coffee aficionados the Kona coffee name has become ubiquitous, especially when talking about high quality beans. But how did the Kona region of the Big Island become associated with coffee cultivation, and how did Kauai come to have the largest coffee plantation in the United States? Read on to delve into the history of coffee in Hawai’i over the last few centuries.

Coffee’s Beginnings in Hawai’i: A Global Confluence of Interests

The arrival of coffee on the islands can be traced back to King Kamehameha I and his Spanish confidant Don Francisco de Paula y Marin. Don Francisco was an avid horticulturist, and is credited with introducing grapes, pineapples, mangos, cotton and oranges to the islands, along with the very first coffee seedlings on Oahu in 1813. These seedlings did not flourish, let alone survive, however they introduced coffee as an intriguing new prospect for Hawaiian agriculture.

Governor Boki (left)

The next instance of coffee cultivation in Hawai’i came from Royal Governor Boki, again on Oahu. Arriving back on Oahu from a diplomatic mission to England, Governor Boki’s ship also carried Arabica coffee saplings from Brazil, which were planted in land allotments around Honolulu in 1825. These early coffee farms eventually failed as well, but not before coffee had already begun to spread to the other islands.

A Seed is Planted: Kona Coffee is Created

As coffee saplings began to make their way around the Hawaiian islands, the missionary Samuel Ruggles planted the first saplings in the Kona district in 1828. Unlike the earlier Brazilian Arabica coffee trees, however, Ruggles planted Guatemalan Typica coffee saplings. These initial saplings would eventually lead to the establishment of Kona as a coffee powerhouse, and the creation of the unique Kona Typica coffee tree, though not without several more economic and natural disasters. The Great Māhele of 1848 allowed private land ownership for the first time in Hawaii’s history, which greatly expedited the creation of large scale coffee farming operations. Sugarcane plantations were also on the rise at this time, however, which hindered coffee’s rise to economic importance. In particular, Hawaii’s annexation by the United States in 1898 meant sugar tariffs were dropped, and the industry exploded in profitability. Coffee plantations across the islands were ripped up in favor of planting more sugarcane, except in Kona on the Big Island.

Why, then,  did Kona remain a coffee-focused zone? The answer, surprisingly, is the very same

A map showing the Kona coffee region

sugarcane industry that hindered coffee production across the other islands. For starters, sugarcane didn’t grow very well in the sloping hills of the Kona region, nor did it like the acidic, nutrient dense volcanic soil. This meant that while most farmers across the islands were turning to the more profitable sugarcane, farmers in the Kona region were forced to double down on their coffee farms. Additionally, the sugarcane industry brought in an incredible amount of immigrant laborers, primarily from Japan. As these Japanese workers finished out their backbreaking contracts on the sugarcane plantations, they would lease small plots of land in Kona where they would instead begin growing coffee. Not only was the labor easier, but this allowed for the beginnings of financial independence for the workers as well.

Over the next 80 years, through two world wars and the Great Depression, Kona remained the primary coffee production zone in Hawai’i, which allowed it to develop a reputation as a sought-after, quality coffee.

From Ruins to Riches: Kauai Coffee Rises from the Destruction of Hurricane Iwa

In 1982, Hurricane Iwa slammed into Kauai and devastated the sugarcane crops of the Mcbryde Sugar Company. Facing financial ruin and with no crop to speak of, the Mcbryde Co. shifted gears completely and decided to replant, not with sugarcane, but with coffee! This led to the creation of the

Aerial view of the Kauai Coffee Plantation

Kauai Coffee Company, which today spans over 3,000 acres and 4 million coffee trees. Disaster struck again in 1992, with Hurricane Iniki again devastating crops of coffee trees instead of sugarcane, but by 1996 the Kauai Coffee Co. was out producing the entire Kona region on Big Island.

The Kauai Coffee Company is currently the largest coffee grower in the United States, responsible for over half of all coffee grown in the US, and all aspects of production from growing, harvesting, processing, roasting, and packaging happen on site. Although Kauai coffee doesn’t boast the world-renowned Kona coffee name, many coffee lovers prefer the Kauai coffee for its smoother and more mellow taste. This is due to the lower elevation growth in Kauai; coffee grown at higher elevations has a bolder, more acidic flavor due to the harder coffee beans, whereas coffee grown at lower elevations, such as that of Kauai, produces a less acidic, lighter coffee with a broader range of flavors.

The next time you’re on Kauai, we highly recommend stopping by the Kauai Coffee Plantation for a tour and hot cup of Kauai coffee! Located a short drive away from any of our South Shore properties in Kalaheo, Kauai Coffee Co. is a great way to learn about sustainable agriculture on the islands, as well as the role coffee plays in the local economy.

For more history on the origins of coffee in Hawai’i, specifically Kona coffee, check out this article.

For an interesting read on coffee legislation, and smaller roasters taking advantage of the Kona name, check out this Beat of Hawai’i article.

The Hawaiian islands are home to some of the most beautiful, and unique, flora and fauna on the planet. Whether you’re a first time visitor or a seasoned traveler, seeing the wild nene crossing the street, or the monk seals lounging on the beach never loses its allure. Here we run through some of the wildlife you’ll likely see during your visit, and ways to safely enjoy their presence.

Birds of Kauai

Two nēnē, with distinct neck striations visible

Nēnē (Hawaiian Goose)

The nēnē, or Hawaiian goose, is the world’s rarest goose species, and can be found only on the Hawaiian islands; it’s also the state bird! Adult nēnē have black bills, legs, and feet, and black feathers on the tops of their heads. Their necks bear black and white striping while their bodies have chocolate brown feathers tipped with white. Although the nēnē was once on the verge of extinction, numbers have been slowly increasing thanks to conservation efforts. Breeding season runs from August to November, so expect to see increased goose activity during your late summer trips! You can see nēnē at the Kilauea Point National Wildlife Refuge, or in any other large grassy area on the island; it’s not uncommon to see a family of nēnē crossing the road either, so be sure to drive slowly and carefully! It’s technically illegal to feed the nēnē, and we don’t want the wild birds to become dependent on human food sources, so please enjoy them from afar.

Ae’o (Hawaiian Stilt)

An ae’o near the shore

The ae’o, or Hawaiian stilt, is another common sight on the beaches of Kauai. Characterized by its black body, white underbelly, and long pink legs, the ae’o like to nest in wetland environments farther inland and travel to the beaches to feed on small crabs and fish, insects, and worms. Breeding season occurs January through July, with fledglings leaving the nest in early August. Again, late summer is the birder’s paradise on Kauai! Although stilt populations globally are stable, the ae’o, which is endemic to the Hawaiian islands, is considered endangered. Problems such as wetland habitat loss and the introduction of non-native predators and diseases have caused significant population decline in recent years. The Hanalei National Wildlife Refuge is a great location to view the ae’o which, like the nēnē, are best enjoyed from a distance for their safety and continued survival.

‘A’o (Newell’s Shearwater)

The ‘a’o, not to be confused with the ae’o, is also known as either Newell’s shearwater, or the Hawaiian shearwater. These birds boast a glossy black head and body, with a striking white underbelly, and are considered critically endangered. In fact, Kauai is home to 90% of the remaining population of these birds, with the other 10% residing on Maui and Hawai’i Island. Hawaiian shearwaters are rarely spotted, as they spend most of their life at sea, and during their breeding season, which runs from May to September, they fly to and from their burrows in the mountainous interior of Kauai only after nightfall. From September to December, however, which is when fledgling shearwaters make their maiden voyage to sea, it’s not uncommon to see fledglings lying dazed on the ground. This is because they get distracted by bright lights coming off residential and

A grounded ‘a’o with black and white coloring visible

commercial buildings, and circle them for hours until they fall exhausted from the sky. In order to combat this, from October 15 to December 15 Kauai county runs a dark sky ordinance. Homes and businesses are asked to point exterior lights downward, turn off unnecessary lighting, keep blinds and curtains closed as much as possible, and prevent pets from going outside that may harm grounded ‘a’o. For more information on the dark sky ordinance, and what to do with grounded seabirds, click here for the Department of Land and Natural Resources’ guide.

Moa (Chicken)

Moa, or chickens, are so ubiquitous on Kauai that they’ve become the unofficial mascot of the island. In fact, the chickens outnumber people about six to one! If you’re a repeat visitor to the island you’ve undoubtedly been woken up by the roosters crowing away at dawn, or seen a hen and her chicks

A Kauai rooster showcasing its vibrant coloring

crossing the road. The roosters are usually a beautifully vibrant red color with secondary colors of blue, orange, black and brown, although you’ll occasionally spot a white rooster, while the hens are a more muted soft brown color.  Most locals agree that the wild chicken population rose drastically after hurricane Iniki devastated the island in 1992, and numbers have only continued to grow. The State of Hawai’i recently passed a bill aiming to cull feral chicken populations, though how that will be achieved is unclear. Despite their abundance on the island, the chickens are technically feral jungle fowl protected under the law. Therefore, tourists should avoid feeding the chickens, and enjoy their presence by snapping a picture from a safe distance.

Marine Animals of Kauai

Hawaiian Monk Seal

A Hawaiian monk seal lounging on the beach

The Hawaiian monk seal is one of only two surviving species of monk seals in the world, and is considered critically endangered. Although the Hawaiian monk seals spend roughly 60% of their life at sea, Kauai is very close to their primary feeding grounds, and thus the best place to catch a glimpse of one. The South Shore beaches at Poipu are a favorite haunt of the Hawaiian monk seal, as well as the secluded beaches of the Nā Pali coast, visible only by boat or helicopter. Monk seal birthing season is in May, so the summer months are the best opportunity to glimpse a mother monk seal and her pup. As with any wildlife on Kauai, it is critical to treat the monk seals respectfully. Do not touch a monk seal or its pup, and keep a safe distance away if you encounter one on the beach. If you’re swimming in shallow waters and see a monk seal approaching the beach, slowly and carefully return to the shore and get out of the water.

Nai’a (Dolphins)

A bottlenose dolphin leaping from the water. Note the shorter snout

There are two types of nai’a, or dolphins, commonly found in the waters off Kauai: the Pacific bottlenose dolphin, and spinner dolphins. Bottlenose dolphins are the species most commonly found in captivity, and are generally larger, heavier, and have shorter snouts than the spinner dolphins. Bottlenose dolphins are also much more active during the day than spinners, and will frequently approach boats as they are extremely curious by nature. Spinner dolphins, on the other hand, are known for their dazzling, twisting leaps out of the water as they swim along in pods. Spinner dolphins are much smaller, and typically less active during the day, but

A spinner dolphin twisting out of the water. Note the longer snout

they prefer to swim in larger groups than bottlenose dolphins. Although you can’t swim with dolphins on Kauai, as they’re a protected species, if you take a boat tour along the gorgeous Nā Pali coast, you’re almost guaranteed to spot a few! Dolphins can be seen year round, but are especially active during the summer months from May to September.

Koholā (Humpback Whale)

A humpback whale breaching off the Nā Pali coast

The koholā, or humpback whale, is a breathtaking sight; whether you see one breaching, slapping the water with its fins or tails, or simply swimming smoothly through the water, these gentle giants will amaze you. Adult koholā can weigh up to 40 tons, and their calves are already a whopping 2,000 pounds at birth. Although many people prefer to visit Kauai during the drier, sunnier summer months, whale watching season occurs during the winter, when the whales migrate from cold, Alaskan waters into the warm, protected waters of Hawaii. From December to May you’re likely to spot whale activity off the coast, with peak activity in February and March. During these months, whale watching is best in the mornings when the ocean waters are calmer, although the koholā tend to be more active in the evening. The South Shore Poipu beaches offer a great vantage point for on-shore whale watching, as well as the Kīlauea Lighthouse on the North Shore. And, of course, the most popular option, which is to take a whale watching tour by boat!

Honu (Hawaiian Green Sea Turtle)

Honu resting on the beach

The honu, or sea turtles, are an important symbol of Hawaiian culture, and, like the koholā, are thought to be ‘aumakua (spiritual guardians). The Hawaiian green sea turtle is one of the only reptiles native to the islands, and is considered an endangered species. These gentle creatures are the largest hard-shelled sea turtle species, and can grow to be 300 pounds and almost 5 feet in length! Although they aren’t actually green in color, honu sport distinctive leopard like markings on their heads and front flippers. Nesting season for female sea turtles runs from May to September, during which it’s not uncommon to see a honu resting on the beach, although they prefer the shallow waters just off shore. Adult honu, their eggs, and their hatchlings are all protected under the law, therefore give them a wide berth if you do see one in the water or on the beach, and never touch or approach a sea turtle in any situation. For your best chance at spotting one of these iconic turtles, try snorkeling at Poipu or Brennecke’s beach on the South Shore, or Anini beach on the North.

The abundance of unique wildlife on Kauai makes it an exciting destination for both nature enthusiasts and casual enjoyers alike. Thanks to dedicated conservation efforts and legal protections, many of these endangered species have grown in numbers and reclaimed their natural habitat. However, it’s important as visitors to the island that we do our part in respecting the wildlife, giving them their space, and always cleaning up after ourselves. These beautiful creatures are experiencing continued habitat loss from human development, and even the little things can make a big difference in their continued presence on Kauai.

Summer season is in full swing on the islands, and while summer typically sees occupancy rates that rival the winter high season, recent visitor statistics reflect a definite and unusual decline in arrivals to Hawai’i, a trend that is mirrored on Kauai. We’ve been monitoring this so-called “summer slump” and what it means, and while the numbers can be concerning, read on to see why we’re still optimistic about the state of vacationing on Kauai

The Slump in Vacation Rentals

Although numbers continue to recover from the pandemic-era downturn, Kauai’s vacation rental market is experiencing a noticeable slowdown, with fewer bookings and declining occupancy rates. April 2024 visitor arrival rates dropped an enormous 11.5% compared to April of 2023, and 2024 year to date visitor arrivals to Kauai have dropped by 3%, statewide by 5%.. This trend has left property owners and managers across the islands grappling with reduced revenue and increased competition for bookings.

Graph of passenger arrivals to the islands, year over year comparison

State-wide we are seeing a decrease in visitor arrivals, coupled with a shift away from short-term vacation rentals. While anti-short term rental sentiment is not new, this has been a particularly incendiary topic this year with the passing of Hawai’i Senate Bill 2919, which you can read about in our previous blog post, as well as the election of a new pro-hotel president to the Hawai’i Tourism Authority.

As average vacation rental occupancy statewide has slumped to barely more than 50%, hotel occupancy remains strong at close to 75%.  A search performed today (June 11, 2024) on Airbnb showed nearly 600 properties on Kauai with the entire month of July vacant; in other words not a single night booked. In fact, nearly 500 properties have no nights booked between June 11 and August 1.

Screenshot of an Airbnb search for units vacant in the month of July, with 680 results

This is not to say that those properties are all going to remain empty, as booking patterns have shifted so that lead times are shorter and last-minute reservations are more common. It’s another market shift we’re learning to navigate. One way we’re doing that here is by taking advantage of a new integration offered by an OTA (online travel agent) specifically marketing to last minute travelers. Units are offered at a discounted rate, naturally, but this integration provides a dedicated outlet for filling those unbooked nights.

Top industry presences such as Vacasa, Hawaii’s largest vacation rental company, have begun to feel the impacts of this prolonged slump as they recently announced layoffs of 13% of their staff, and a vacation rental inventory decrease of 25% in the last year. While these numbers certainly seem foreboding, we continue to feel optimistic about the state of the economy on Kauai.

Economic Resilience and Consistency on Kauai

Although Kauai is typically thought of as a microcosmic reflection of broader state trends, the Kauai economy functions slightly differently. As a more lush and remote location, Kauai maintains destination desirability that more populous islands don’t necessarily have. For instance, despite the decrease in both April and year to date visitor arrivals, visitor spending per person per day was up 18%, and per person per trip spending was up 18% as well. If this trend continues, Kauai should maintain the consistent economic growth we’ve seen in the years preceding the pandemic. As an economy, however, Kauai is highly dependent on the mainland United States visitor pool… This means that as the U.S. heads towards a possible recession later this year, the Kauai economy could take a hit as mainland tourists struggle to afford vacations.

Navigating the Challenges Ahead

Despite the current challenges facing the vacation rental market in Kauai, there are opportunities for property owners and managers to adapt and thrive. With an increasing number of vacancies in short term rentals across the island, fueled not only by the drop in visitor arrivals, but also by a dramatic increase in the number of available rentals, and a preference shift towards hotel/resort experiences, visitors are going to be more particular about where they stay, and will be on the hunt for a good bargain. Aging units that are not kept up to date have been, and will continue to be, hit the hardest by this slump, regardless of “bargain pricing”. By adapting to new customer expectations and keeping our units up to date, we feel confident that we will continue to rent more robustly than our competitors, retain repeat visitors, and continue to have customers leave feeling satisfied with their vacation.

More Information

For a comprehensive overview of the numbers, we recommend the following websites and reports:

  1. Hawai’i Department of Business, Economic Development, and Tourism’s report on visitor arrivals and spending in April 2024: https://dbedt.hawaii.gov/blog/24-29/
  2. The Economic Research Organization at the University of Hawai’i’s Kauai Economic Outlook Summary: https://kauaiforward.com/wp-content/uploads/2024/06/23q2_kauaiforecast_1.pdf

Life in the travel industry is constantly fluctuating. Running a vacation rental business requires keeping up to date on evolving guest travel and spending patterns, but in Hawai’i there are some extra challenges – like remaining mindful of how this $17 billion industry can sometimes overshadow the needs of native Hawaiians, and make affordable housing difficult, or even impossible, to find. The highly controversial Senate Bill 2919 was introduced in January to allegedly help mitigate this growing housing crisis in Hawai’i by giving counties the authority to regulate short-term rental properties through zoning ordinances.  Today, May 2 2024, the Hawaii legislature has approved the bill.

Zoning Ordinances, County Enforcement, and Housing Impacts

Under the provisions of the bill, individual counties have the authority to prohibit vacation rentals from operating in locations that are zoned “residential.”  To put that in perspective for Kauai, virtually all of Princeville with the exception of the One Hotel and Hanalei Bay Resort at one end and the Westin at the other end, is zoned as residential.  This includes such obvious “resort” properties as the Cliffs Resort.  In theory, the County of Kauai could decide that Cliffs Resort vacation rentals and time shares could no longer operate as such.  In reality, this seems an improbable scenario.

Short-term rentals, a la Airbnb or VRBO, started popping up in Hawaii decades ago, and have in recent years exploded in popularity. The last year has seen an unprecedented 30% increase in the number of properties being used as vacation rentals.  Many visitors to the islands prefer the more local feeling of staying in a home as opposed to a hotel, and short-term rentals are more lucrative than long-term leased rentals for the property owners. Local residents have been trying for years to mitigate the effects of short-term rentals on the housing market.  In 2022 Oahu attempted to ban short-term rentals between 30 and 89 days in length outside of resort areas, however a federal judge ruled in favor of the short-term rental owners, and the ban did not go into effect.

Headshot of Hawai’i governor Josh Green smiling.

Hawai’i Governor Josh Green signed SB 2919 into law on May 2, 2024.

SB 2919 is trying to achieve something similar to the previously proposed Oahu ban, while leaving enforcement up to the individual counties, rather than the state. Now counties have the power to phase out short-term or transient accommodations operating in residentially-zoned areas, thereby opening these properties to become housing for on-island residents via long-term renting. The question for our guests and owners, then, is how might this impact the vacation rental industry on Kauai?

How Does This Affect Kaua’i?

The answer to that, it is our opinion that there will be little impact on Kauai. Kauai has had strict regulations on where short-term transient rentals are allowed to operate for the past 15 years. In 2009 the Kauai County Council passed a bill limiting the operation of short-term and transient rentals to designated Visitor Destination Areas such as Princeville, Poipu, and the eastern Kapaa coastal tourism corridor. This bill protected the already shrinking housing available to local residents, while also protecting the main industry on the island, which is tourism. Additionally, legally operating short-term rentals located outside of the VDA’s were able to obtain non-conforming use permits and therefore be grandfathered into the Kauai County bill.  We would expect to see similar grandfathering provisions with SB 2919 as the counties make decisions about how to implement it.

Light blue map depicting Kaua’i County Visitor Destination Areas in red.

The areas highlighted in red are designated Visitor Destination Areas where short-term rentals can legally operate.

The bill says that “transient accommodations uses may be amortized or phased out in residential or agricultural zoned areas.”  What does that mean?  The answer depends who you ask.  Proponents of the bill say it will expand affordable housing opportunities for permanent residents.  Opponents say it will destroy the vacation rental industry and deprive property owners of their rights.  Both probably over-estimate the actual impact the bill will have.  For the other islands, assuming they take an approach similar to what Kauai did, current vacation rental owners who are operating legally and paying their vacation rental occupancy taxes will more than likely be provided an opportunity to be grandfathered in. That’s not assured, of course, and the governor’s anti-vacation-rental rhetoric has done little to calm the fears of vacation rental owners and helps fuel the controversy surrounding the bill.  Conversely an immediate influx of available long-term rentals seems equally unlikely.

So is this the end of vacations to Hawaii as we know them, as those against the bill are predicting? It seems unlikely. Perhaps the rest of the state should look to Kauai as an example of how this kind of regulation can help protect vulnerable local populations while still allowing for a flourishing visitor industry. The “Aloha spirit” many visitors are so eager to experience is what makes Hawaii different from any other beach vacation, and this cannot happen without those who know the islands best and who have their multi-cultural and multi-ethnic roots right here in the islands. Protecting residents’ ability to obtain affordable housing is something we don’t feel threatens the vacation rental industry as a whole.

More Information

For those interested in a deeper dive into these important questions that will help shape the future of Hawai’i, we recommend the following resources.

  1.  The bill, SB 2919
  2. County of Kaua’i zoning maps
  3. Testimony – pro and con – given to the legislature
  4. Original Kaua’i County bill from 2009