Tourism Authority pledges to improve
By Kelly Yamanouchi
Advertiser Staff Writer
The Hawai'i Tourism Authority has outlined in a letter to state legislators what it is doing to respond to a critical report from the state auditor earlier this year, saying it plans to meet with the public, evaluate its own performance, follow policies and negotiate contracts more responsibly.
In February, state auditor Marion Higa said the authority had mismanaged its then-$61 million annual budget, was "fraught with serious management problems" and that "measuring the direct impact of the authority's efforts is difficult."
In the letter distributed yesterday, the authority's new executive director, Rex Johnson, said: "We recognize that changes need to be made. My charge ... is to get our house in order."
Johnson wrote in the letter addressed to Sen. Donna Mercado Kim, D-15th (Kalihi Valley, 'Aiea) and Rep. Jerry Chang, D-2nd (S. Hilo), chairs of the state House and Senate tourism committees, that the authority would evaluate its performance on tourism initiatives, hold public meetings on each island and meet with tourism industry leaders to gather input on its initiatives.
Some key issues in the state auditor's report were that the authority paid millions of dollars to the Hawai'i Visitors and Convention Bureau "with little justification," and awarded contracts after events took place, gave contracts to tourism authority board members' companies without proper documentation and didn't keep minutes at meetings.
In response, Johnson wrote that the authority's recent hire of a marketing manager will allow it to evaluate performance of new contracts before payment. Authority officials and legislators scrutinized problems with contracting at the Hawai'i Visitors and Convention Bureau because it began negotiating with Disney on marketing for the animated film "Lilo & Stitch" before receiving the authority's consent. According to the letter, the authority will "seek to negotiate terms and conditions in contracts that will provide greater accountability for the use of public funds."
Johnson's letter also said the authority will evaluate its employees regularly and instruct them on following formal policies and procedures, and will seek to comply with state laws governing public meetings.
In response to the state auditor's report, Johnson noted that he is planning to resolve a problem with cracks in the convention center roof created when it was built in 1997. He also wrote that a final contract with the convention center operator will include evaluation criteria for the marketing and operation of the center.
Kim has said the authority's new board and executive director are an opportunity for the agency to improve.
"In the old board, they kind of made excuses and argued. They clearly felt like they didn't do anything wrong," Kim said. "I believe that since this new board has taken over it has improved."
Still, she added, "Having a report is one thing and their actions are another thing — their attitude on how they're going to work with the Legislature in correcting some of these problems," Kim said. "You never know until you see the final result."
Kim said it is unclear whether financing for the authority will return to the full $61 million for the next budget year. It was cut by $5 million this past year.
"It really is going to depend on our budget, and second on how well they're going to comply and work with us because if they fly in the face of what we're trying to do then it's not going to work," Kim said.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
