EDITORIAL
'Lilo and Stitch' deal needs to be justified

In light of the state auditor's damning report on the Hawai'i Tourism Authority's lack of accountability, it seems more than fair that any deal of $500,000 or more that is not part of the annual tourism plan should be approved by the board.

And that rule applies to the Hawai'i Visitors & Convention Bureau, which receives the bulk of the authority's money -- $56 million this year.

In spite of that, HVCB executive director Tony Vericella — without official approval — has been negotiating a promising $3.9 million multiyear marketing agreement with The Walt Disney Co. to promote Hawai'i through the Kaua'i-based animated movie "Lilo & Stitch," which opens this month. Vericella assures us that no bureau money has yet been spent and no contract signed even though Disney has included Hawai'i in its "Lilo & Stitch" promotions as a gesture of good faith.

Hawai'i is mentioned in a trailer for the film, and the official "Lilo and Stitch" Web site includes a link to the HVCB Web site. Presumably, more ways to promote Hawai'i are part of the deal.

Vericella says there could be problems if the HTA doesn't approve at least part of the deal. He should have thought of that before he started negotiating an agreement without the board's blessing.

Gov. Ben Cayetano has suggested that the deal didn't need HTA approval. That's a little scary.

After all, the whole point of the Hawai'i Tourism Authority is that it was set up to account for how state tourism dollars are spent. Eventually, it should be able to gauge how many dollars are spent for each visitor dollar that comes into the state.

We need state tourism officials to justify giving $3.9 million of taxpayer dollars to the Disney Co. to promote Hawai'i. We're not saying it's a bad deal, we're just asking, what do we get in return?

It's sort of like the Pro Bowl and "Baywatch Hawai'i." The value is intangible because we don't have a system in place to measure whether certain shows, movies or sporting events lured visitors, or how much is spent in promotion dollars per visitor.

Consider the case of "Baywatch Hawai'i." State officials doled out $7 million in free air fare, hotel rooms, production and infrastructure to lure the "Baywatch" series to the Islands in hopes of getting viewers to see Hawai'i as a vacation destination.

The show was canceled after two years, and we still don't have a grasp of the value of the promotional exposure Hawai'i got in return.

One has to assume marketing works. After all, an entire industry is built around this concept, and there's no reason to believe Hawai'i — as a brand — cannot benefit from smart marketing.

Frank Haas, the HTA's marketing consultant, says one can evaluate a program or marketing deal based on how much is invested and what gains are expected.

We'd like to see better standards adopted by state tourism officials to increase accountability. Until then, we'll have to keep a sharp eye on those in charge of spending tourism promotion dollars.