Panel endorses convention center plan

By Kelly Yamanouchi
Advertiser Staff Writer

The Hawai'i Tourism Authority's marketing committee yesterday recommended the full authority accept a plan from Philadelphia-based SMG to market the convention center.

The committee also recommended the authority authorize a contract to operate and market the center for three and a half years.

The tourism authority's full board is scheduled to take action on the SMG proposal today.

The recommendation also includes transferring $271,000 for destination services from the SMG budget to the Hawai'i Visitors & Convention Bureau, the marketer of the convention center that has a $4 million annual budget until the end of this year.

The move comes under recently passed legislation that requires one agency operate and market the convention center by Jan. 1.

The tourism authority asked only SMG, the current operator of the convention center, to submit a proposal for marketing the convention center.

SMG's total contract, according to the recommendation, would run from Jan. 1 to June 30, 2006, subject to a review after 18 months, and would not exceed $14 million for convention center marketing over the term of the contract.

Originally, the tourism authority solicited a proposal for a six-month contract beginning Jan. 1.

But yesterday, authority executive director Rex Johnson said, "We felt that to do any contract for marketing of the convention center it had to be a larger contract.

"Six months makes no sense," because it makes it difficult to hire and start new programs, he said.

The marketing committee also recommended holding $200,000 for advertising from the SMG budget — or half of its advertising budget — to use as seed money to develop a business branding advertising program designed to increase business-visitor spending in the Islands.

According to the committee's recommendation, the total contract would not exceed $7 million for marketing flexibility funds, or $2 million each year. Marketing flexibility funds are typically used to attract events with a large economic impact — those that can change perceptions about Hawai'i — or for multi-year contracts.

The committee also recommended its staff form a committee to manage the transition of marketing the convention center from the visitors bureau to SMG. The committee would include representatives from the tourism authority, the visitors bureau, SMG and the local travel industry.

Reach Kelly Yamanouchi at 535-2470 or kyamanouchi@honoluluadvertiser.com.