The September 11th attack
Hawai'i plots strategies to reinvigorate tourism
By Michele Kayal
Advertiser Staff Writer
Business executives around the state yesterday welcomed the governor's call for rapid and effective ways to stabilize what he called the worst economic crisis in Hawai'i's history as leaders sped to revive the tourism industry that has led the downward spiral.
Faced with a crisis that worsens daily, tourism leaders began work yesterday on a plan that is expected to reallocate resources to markets where they can have the greatest short-term impact, and to fine-tune the state's message to communicate solace, refuge and healing as the nation recovers from tragedy.
Hawai'i has joined a long list of tourism destinations around the country whose economies have been reeling since terrorist attacks on New York and Washington last week frightened travelers, spurring 100,000 layoffs in the airline industry and related sectors, and threatening to bankrupt more businesses daily.
In the new atmosphere created by the attacks of Sept. 11, economists said state governments have a much broader role in boosting the economies of their states, and will have to lead the restoration of consumer confidence and the dilution of fear left in the wake of the hijackings.
"(The state governments) have to take the lead in restoring consumer confidence and safety and security, and they have to work with the feds to do that," said Richard Miller, vice president of research and economics for the World Travel & Tourism Council. "And they have to make it clear to the consumer that just like you're putting the stars and stripes on your front porch you should also return to normal spending habits — get on a plane, visit your friends, and go to the beach. Buy the great swimsuit before you go."
Gov. Ben Cayetano took the first steps toward that goal Wednesday when he called on business leaders to design a plan to address the immediate problems confronting the $11 billion tourism industry, which accounts for more than 25 percent of the state's economy.
The governor also advocated releasing up to $20 million worth of state and private money for a comprehensive tourism marketing plan and said he will lead delegations to Japan and the West Coast to encourage people to visit Hawaii. He immediately waived landing fees for airlines, instituted tuition waivers for those who lose their jobs, and called for a special session of the Legislature to consider an economic stimulus package.
Hawai'i visitor industry leaders began sprinting yesterday to craft a plan that is expected to shift resources away from the East Coast in the near term, and concentrate efforts on the West Coast and Japan.
The plan discussed yesterday, which is still evolving, also would take a less invasive approach when marketing efforts are relaunched on the East Coast, said Tony Vericella, chief executive officer of the Hawaii Visitors & Convention Bureau. The plan could rely heavily on public relations efforts that generate stories in newspapers and magazines and good will among travel agents. It would also likely focus on direct marketing to targeted audiences more inclined to travel, avoiding large-scale broadcast efforts at first, Vericella said.
The state is expected to try to draw visitors back to the Islands by highlighting Hawai'i's restorative qualities, and promoting its image as a place of peace and respite.
"We will be viewed as a safe refuge from this terror that has gripped the United States," said Les Enderton, who heads the bureau's O'ahu chapter. "As of September 11, the world changed."
The plan could be ready as early as Oct. 1, Vericella said, but it is unclear when launching these efforts would be appropriate. Many local executives said while Hawai'i must wait for the right moment to move, time is of the essence.
"We just have to move quickly," said DFS Hawaii President Bob Coe, who added the state should act within the next 30 days. "This is a very troubling situation. The sooner we move, the better off we'll be."
The governor's ideas received strong support from business leaders and some legislators yesterday, all of whom struck a note of urgency and the need for comprehensive and sweeping initiatives.
"The handwriting's on the wall that we've got to do something radical," said Kaua'i business consultant Bill Peay. "The governor should definitely be looking at bringing people together and using their expertise to advise him. But I hope there's some long-term planning as well as trying to find a short-term fix."
Many said the governor's plan is on the right track. Business and government officials said they support anything that will boost the faltering airlines, which were among the first companies to begin laying off workers, and called for drastic measures to be taken to help the economy. But, they fretted, the devil will be in the details.
"Obviously, you can't get around the fact that we need to get more money," said Senate Tourism and Intergovernmental Affairs Chairwoman Donna Mercado Kim, D-15th (Kalihi Valley, 'Aiea), who has been an outspoken critic of tourism officials. "But what are we going to do with that money? Are we going to spend it in the same old way?"
"Many businesses will go under if they're not given some relief, and if they can't sustain this period of time," she added. "We're hoping its just in the short period to help businesses to get over that hurdle. To have these businesses go bankrupt, that's really devastating to the economy. That's tax dollars we won't have. And businesses that are linked to tourism are going to fall as well, and there's going to be a huge economic downturn that we haven't seen the likes of."
Some economists echoed the leaders' sentiments, but were skeptical of the real impact new measures could have.
Hawai'i, while necessary and symbolically important, is limited in what it can actually accomplish, University of Hawai'i economics professor James Mak said.
"The bottom line is that this is what we can do, it's within the power of the state to do," Mak said. "That doesn't mean these things won't be helpful to those who are hurting, but it may not be enough. At least the governor called the summit, and he's receptive to the plight. But everybody has to be realistic about what state and local governments can do."
