Updated at 11:56 a.m., Thursday, October 31, 2002
Hawai'i visitor's bureau budget cut
By Kelly Yamanouchi
Advertiser Staff Writer
The authority would use the extra money for more of its own programs, including accountability reviews, as it faces increased pressure from the state Legislature and others to maintain tighter controls and practices for its annual $56 million state budget.
The authority also would use some of the money for more visitor research and festivals and events.
Frank Haas, the tourism authority's marketing director, said he would like to start a three-part program for assessment and accountability.
One part would measure visitors' intent to travel, which Haas said is a better measure for the purpose of marketing because visitors' actual travel varies depending on airfare, hotel availability and other factors. The program would also measure consumers' perception of Hawai'i as a destination and the effectiveness of marketing communications.
To do that, the tourism authority had asked the visitors bureau to present two options for budget cuts from its $34.4 million budget a $750,000 cut and a $1.25 million cut. The $34.4 million already includes a $2.6 million cut that came after the governor cut $5 million from the tourism authority's budget.
Yesterday, the tourism authority's marketing committee recommended the full authority approve a visitors bureau leisure-marketing plan of $33.15 million, subject to approval of North American programs and subject to the review of a Japanese industry committee by Nov. 15, 2003.
It also approved $2 million for corporate meetings and incentives.
The bulk of the cuts in HVCB's budget would come in the developing international markets category, which includes countries such as South Korea and China, as well as areas in Europe, Oceania and Latin America.
Of the original $34.4 million, $9.6 million would be allocated toward the U.S. West, $11.3 million to the U.S. East and $9.1 million to Japan. In the measure approved by the marketing committee, the three areas would see a total cut of more than $400,000, representing less than a 2 percent cut for each market.
Developing international markets would see a cut of $835,000, representing an approximately 25 percent cut.
The only market to see an increase in money would be Canada, which would get $1.1 million, up from $700,000.
"You try to minimize the effect of the reduction as much as possible," said Tony Vericella, the bureau's president and chief executive. "You always do the best you can with the resources you have."
