In the Eye of the Storm: Coping with Future Natural Disasters in Hawaii

Hurricane Iniki, that hit the island of Kauai on September 11, 1992, was the strongest hurricane that hit the Hawaiian Islands in recorded history, and the one that wrought the most damage, estimated at 7.4 billion (in 2008 US$). We provide an assessment of Hawaii’s vulnerability to disasters using a framework developed for small islands. In addition, we provide an analysis of the ex post impact of Iniki on the economy of Kauai. Using indicators such as visitor arrivals and agricultural production, we show that Kauai’s economy only returned to pre-Iniki levels 7-8 years after the storm. Today, it has yet to recover in terms of population growth. As an island state, Hawaii is particularly susceptible to the occurrence of disasters. Even more worrying, Hawaii’s dependence on tourism, narrow export base, high level of imports and relatively small agricultural sector make Hawaii much more likely to struggle to recover in the aftermath. By thoroughly learning from Kauai’s experience and the state’s vulnerabilities, we hope we can better prepare for likely future disaster events.