Q. Hawai'i's tourism industry boomed in 2005, both in terms of visitor arrivals and spending. Did that translate into strong business for Maui Divers Jewelry?

A. We had a record year in 2005. We came in at $67.6 million in sales. Looking at the last four years, we've had an average growth rate of 25 percent a year. We've been on an expansion program really since 1998. If you look at the end of 1997, we had three locations. By the time you get out to the end of 2005, we have 50 locations. We've been busy.

Q. What are your plans for expansion?

A. We're going to keep expanding. We'll probably add another six or seven stores this year. Most of those are locally; I hope to pick up one store on the Mainland. We're committed, for example, to opening our first store in the Queen Ka'ahumanu Shopping Center. We'll open in May. We're opening two stores in the new Outrigger Beachwalk project.

Q. What other changes can we expect to see from Maui Divers?

A. Our plan really is to diversify. Until now, we've really focused mostly on our Hawai'i operations. Last year, we opened in Guam. We're doing very well there and looking to open a second in Guam and possibly expand further into Asia. And previously our entire focus had just been on travel retail — selling to the visitors. In the last couple of years we've been growing in the local market. That would help insulate us from any drop-off in tourism.

Q. Is it difficult to recruit new employees given the the strong competition in the labor market here?

A. The problem is compounded with us because of our growth. It's a problem for all companies ... to find workers. But, for us, because of all the expansion and the addition of new stores, it's a huge problem. We currently are looking for over 100 retail sales people, plus probably nine retail managers. And we're doing everything under the sun to try to figure out how we can recruit them. We spend a great deal of money on advertising in the newspapers. We attend every job fair. We offer our own employees up to $2,000 if they recruit a salesperson for us.

Q. How fast has Maui Divers' work force grown?

A. Ten years ago we had about 200 employees and now we're up to about 630.

Q. What do you do to retain employees and keep them motivated?

A. Our philosophy, going back probably to the very beginning of the company, has always been that we've wanted our employees to feel more like owners — to have them feel really like this is their company. We took a big step in that direction back in 1997. We set up an employee stock ownership plan and the employees today are really the biggest investment group in the company. It's something the employees feel really good about. They're excited about sharing directly in the success of the company. In the employee (ESOP) accounts in '04 versus '03, the balances went up 80 percent. I have to attribute part of our success to being an employee-owned company.

Q. Has the management or structure of the company changed over the years as it has grown?

A. Even though we're not a publicly held company, we've tried to function like a publicly held company, even when we were way smaller. We have formal board of directors meetings. The board of directors sets overall policy for the company. To me there really isn't a lot of difference from when we were smaller. We're just dealing with bigger numbers, more employees, higher sales numbers, spending more money on expenses. Not a huge difference in the way we operate.

Q. A recent report by the Economic Momentum Commission recommended the state upgrade Honolulu International Airport, saying the "The WikiWiki shuttle is dilapidated, customs facilities are overcrowded and the aloha spirit is lacking." How serious a problem is that?

A. It's a definite negative. It's their first impression when they arrive at Honolulu International and it's their last impression when they leave. I do quite a bit of traveling, so I go into a lot of different airports. For example, I just got back from Seattle, and Seattle's got this bright, cheerful looking airport. The waiting areas, the restaurants, the stores, everything is brand new. You feel good when you walk in there. Our tourists get off here and they get on this funny thing called a WikiWiki bus, if it's running.

Q. The price of gold earlier this month rose to $565 an ounce, the highest since 1981. How significant is that for a jewelry company like Maui Divers?

A. It can be a problem. We like to sell on fixed prices. We're used to gold fluctuating a little bit every day or every week. We don't adjust our prices every time there is a relatively small movement in the price of gold. But when there is a significant increase, or a significant decrease, then we adjust our prices. And because of what has happened in the gold market recently, we've had to put in an increase in our prices. We do have concerns that if this keeps going, it could have a negative impact on our business. We like to see gold to stay reasonably flat or go up gradually or down gradually. We don't want to see dramatic changes.

Q. With Hawai'i now receiving more than 7 million visitors a year, do you think the tourism market is in danger of becoming too crowded?

A. I suppose we could reach that point. I don't think we're really close to it. I think it's really a matter of trying to spread the visitors out more evenly over the months. Yes, if you want to go into Waikiki in August, they're sold out. It's very difficult to get a hotel room, but not a problem in September, October, November. I think there's plenty of room for growth on the Neighbor Islands. But at the same time, I agree with the new goals coming out of the Hawai'i Tourism Authority that they're looking more for quality rather than just quantity. They want the higher-spending visitors, and we're all for that.