Disney to promote Hawai'i
By Katherine Nichols
Advertiser Staff Writer
The Hawaii Visitors and Convention Bureau said yesterday that it has reached a marketing agreement with Walt Disney Studios to promote travel to Hawai'i through the Kaua'i-based animated film "Lilo & Stitch."
But the Hawaii Tourism Authority — which approves large spending by the HCVB — said the deal isn't done just yet.
Tourism officials would not disclose the value of the contract, citing a confidentiality agreement with Disney, but original discussions had revolved around a multiyear package worth $3.9 million.
Tony Vericella, the bureau's chief executive officer, said the marketing agreement was signed Friday night and is for one year. The value of such a deal has been estimated by some at less than $2 million.
The deal is significant not only for the amount being spent but because it highlights flaws in the relationship between the HVCB and the HTA, which provides state money to the bureau for tourism marketing. Tourism authority officials said yesterday that there is no guarantee the authority will approve the contract.
In the wake of criticism earlier this year from the state auditor and legislators about after-the-fact contract approvals, the authority said it plans a special board meeting Monday to assess the deal. The authority had recently scrutinized the bureau for negotiating with Disney before receiving consent from the authority, which said it must review and sanction bureau expenditures of more than $500,000.
"If (the bureau) can agree to a program that is not a multiyear commitment, then we can include 'Lilo & Stitch' in the 2002 marketing plan," said Frank Haas, the authority's marketing consultant. "But if HVCB is not able to modify its agreement, then we recommend that we not fund it."
The authority does not want to allow the bureau to engage in multiyear contracts that extend beyond the bureau's own contract, which expires at the end of the year.
If the board does not authorize money for an already-signed contract, "(HVCB) might have to find other sources of funds," said Haas. "In the spirit of the direction HTA has gotten from the Legislature and the state auditor, we are definitely making sure that we have accountability and oversight built into programs," he said.
Vericella said yesterday that any confusion over the Disney deal is simply a misunderstanding.
"We thought we had the authority to go forward and make marketing opportunities happen," he said.
Vericella said the bureau has abided by the rules it has been given: using money within its current budget, not exceeding $500,000 in an individual major market area, not contracting beyond one year, and modifying the deal to fit the authority's strategic plan.
Vericella said he tried to schedule a presentation for the authority on the Disney situation but the issue was delayed, and he faced a deadline from Disney to close the deal.
Vericella said yesterday that the situation could have been handled more effectively. "We certainly are to blame in the sense that we should have been talking to everyone (at HTA) a lot earlier," he said.
Bureau and Disney officials said in a statement yesterday that their agreement includes provisions for supporting future video and DVD releases, Web-based activities and a possible television series. Some of those would fall within the one-year contract, but Vericella said marketing opportunities beyond the first year are contingent upon funding and approval from the authority.
In the statement, Disney and the bureau said the deal is the first of its kind in the motion picture industry, which "promises support for 'Lilo & Stitch' franchise initiatives worldwide."
Specific benefits for the Islands include cross-promotion on the Web, Hawai'i-themed film premieres around the world, as well as movie tickets given as rewards to travel agents, said David Preece, vice president-North America for the bureau.
The June 16 premiere in Los Angeles will feature The Kamehameha Schools children's choir and scenic shots of Hawai'i and will be given national exposure on ABC, a subsidiary of Disney. Messages about the Islands may be included in the film's DVD packaging.
Additional Hawai'i partners involved in private agreements with Disney as part of the movie promotions include Hawaiian Airlines, Hilton Hotels and Resorts, and Hilo Hattie.
Reach Katherine Nichols at 525-8093 or knichols@honoluluadvertiser.com.
