Proponents say the incentives are needed to spur redevelopment and renovation in a Waikiki struggling to maintain its place in an increasingly competitive market for tourism dollars.

Opponents, however, believe the amendments allow landowners too many concessions that will lead to unsightliness and turn visitors away. They also argue that development will overtax city sewers, roads and other services.

The City Council yesterday approved amendments to the Waikiki Special District plan by a 6-3 vote. Waikiki Councilman Duke Bainum was joined by colleagues Steve Holmes and Andy Mirikitani in opposing the measures.

A Who's Who of Hawaii business and tourism leaders testified on behalf of the plan.

Bank of Hawaii President Larry Johnson, also head of the Hawaii Business Roundtable, testified, flanked by three labor leaders.

Also providing support were Wayne Vieira, executive director of the Hawaii Activities and Tours Association; Hilton Hawaiian Village's Peter Schall; and Hawaii Visitors Bureau chief Paul Casey.

"Waikiki is in serious decline already," Casey said. "Something has to be done immediately."

But there were also a fair number of opponents testifying.

Waikiki resident Helen Carroll decried "a lack of interest in supporting residents instead of big business and big money."

Dave Chun of the McCully-Moiliili Neighborhood Board said longtime families in his area fear the impacts development will bring.

The Waikiki Special Design District plan adopted in 1976 placed restrictions that prevented most hoteliers from redeveloping.

Overnight, an estimated 90 percent of the buildings became nonconforming under the plan.

The measures approved yesterday not only allow landowners to rebuild at their current density, but at increased floor area of up to 20 percent in certain instances if they agree to concessions such as more ground-level open space.

The amendments do not allow hoteliers to build more hotel rooms because of the existing room cap. Council members and Mayor Jeremy Harris, who introduced the amendments, say that issue will be taken up next year.