Honolulu Mayor Kirk Caldwell signed into law Friday a bill that will reduce the number of parades and activities that close streets in Waikiki, a dense neighborhood that makes up the state’s economic engine.

The city used to allow up to 15 events to close the busy thoroughfare annually, said Jon Nouchi, the city’s deputy director of the Department of Transportation Services. That’s in addition to “legacy events,” such as the Honolulu Festival, that have been in Waikiki for at least 15 consecutive years, and events whose participants are exercising their First Amendment rights to free speech, religious practice and peaceful assembly.

Under the new law, legacy events will stay the same, but nonlegacy parades and activities will be reduced to 12 from 15. The Honolulu mayor may grant waivers for up to six more parades and activities — that’s down from 10.

This latest measure also requires permit holders to provide documentation to city transportation services within 30 days of their event showing that it fulfilled a public purpose. If the DTS director determines that the parade or activity did not meet public-purpose requirements, the person or organization would not be eligible to receive a permit during the following calendar year.

First Amendment parades or activities, which are considered a public purpose, aren’t limited by the new law; however, the number will continue to be determined by the city’s DTS director, who has three days to respond to requests.

Caldwell, who signed the measure at Kuhio Beach Park, said he was reminded of the fact that Waikiki is a “heavily trafficked place” when he passed a sign advising that there would be a street closure today in Waikiki for the Memorial Day Parade.

“People love Waikiki — they love it to death,” Caldwell said.

The measure recognizes that disruptions “are even more severe around certain holiday periods — such as New Year’s Eve, Valentine’s Day, and Mothers Day — which see significantly increased traffic volumes into Waikiki. In addition, traffic closures in Waikiki on general election days affect public access to polling places.”

Honolulu City Council Member Brandon Elefante, who chairs the Council’s transportation committee, said the measure will bring “better balance for everyone.”

Former Council member Mike Formby introduced Bill 8 on March 1, and the Council unanimously passed it May 8. Retailers that pay top dollar to rent space in one of the nation’s premium shopping districts and Waikiki residents alike pushed for the city ordinance to limit the number of street closure permits issued for Kalakaua Avenue.

Waikiki Neighborhood Board Chairman Bob Finley said residents and visitors complained that too many street closures, especially during holidays, backed up traffic, causing them to have difficulties getting home or going to the airport.

Rick Egged, president of the Waikiki Improvement Association, said the closures often caused Waikiki businesses to loss revenue. They were even less tolerable in instances where permit holders didn’t have clear public purpose and monopolized free Waikiki space for their own profit, Egged said.

Egged said the new rules will help to ensure that permits are reserved for nonprofit use or functions such as parades and sporting events with a broader community benefit.

“The Waikiki Neighborhood Board and the Waikiki Improvement Association have been working on this issue for years,” Egged said. “The last law change goes back to Mayor Mufi Hannemann’s administration. At one time we had up to 60 events a year.”

While the most recent reduction is slight, Egged said the community expects it will make a difference.