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The Honolulu Advertiser

Posted on: Sunday, August 31, 2003

Some leery of top HVCB job

By Kelly Yamanouchi
Advertiser Staff Writer

Recent HVCB presidents

• Tony Vericella, 1997 to 2003

• Paul Casey, 1995 to 1997

• Roy Tokujo (interim), 1995

• Tom Sakata, 1993 to 1995
As the Hawai'i Visitors and Convention Bureau searches for a new president, industry executives nationwide say many potential candidates may be scared off because of the perception that Hawai'i is a political hornet's nest.

The bureau began the search for a new leader shortly after president Tony Vericella resigned last month after accusations he inappropriately spent state money for his personal use.

HVCB is taking applications for the post, saying it is seeking a visionary who is also knowledgeable about the Hawai'i market. The bureau's board chairman, Tony Guerrero, hopes to name a new president by the end of October.

But after a string of problems at HVCB, including a critical state audit and tough questioning by lawmakers about charges of mismanagement outlined in the report, executives at competing visitors bureaus on the Mainland say they can understand why potential applicants may be wary.

"I understand that Hawai'i's under a lot of stress," said Greg Ortale, president and chief executive of the Greater Minneapolis Convention & Visitors Association.

There is a lot of talent in the industry, Ortale said. But "given your track record in the organization and all the players that are involved, it might be hard to attract a really senior person. It doesn't seem like they have much control ... It just seems a little bit like musical chairs."

Representatives from other visitors bureaus in town for a convention of association executives last week said news of HVCB's troubles has spread through the network of tourism promoters on the Mainland.

Recent debacles include the high-profile failure of a contract with Disney Pictures covering the marketing of Hawai'i and the animated film Lilo & Stitch. The agreement was cut short when state officials said the deal was struck without their consent, and they refused to pay for it.

The bureau this year also lost the Hawai'i Convention Center marketing contract, a decision made by the Hawai'i Tourism Authority to comply with a legislative mandate.

Then two months ago, a highly critical state audit accused Vericella of spending state money on such things as hotel room movies.

That was quickly followed by criticism from legislators when Vericella and Gov. Linda Lingle's office agreed to pay the expenses of a local television station to cover the governor's tourism promotion mission to Japan.

Soon after, Vericella resigned, saying he did not want to be a distraction while the visitors bureau was fighting to keep its remaining marketing contracts.

The visitors bureau then lost all of its international leisure tourism marketing agreements with the state. Starting next year, it will no longer promote Hawai'i except in North America, although that market remains the largest part of the state's promotional effort.

Given that recent history, top executives at other visitors bureaus said those who might consider the HVCB post are justifiably leery.

"Quality candidates on a national basis, in my opinion, are scared away by the continual revolving door and the political interference," said Gary Sherwin, vice president of market development for the Palm Springs Desert Resorts Convention and Visitors Authority. "The perception about Hawai'i is:

If you take that job, you will have a short lifespan and you will be killed politically."

Lisa Edens, senior sales manager at the Boise Convention & Visitors Bureau said she has also heard about HVCB's troubles.

She said her understanding is that "like a lot of bureaus in a lot of cities, it's very political."

HVCB has had a lot of changeover, Edens said, and so the candidates for president will need to be skillful.

"I know that there's a lot of talent out there, but they'd have to be pretty politically savvy," Edens said.

Despite the seeming downside to the job, some called the HVCB position one of the top jobs in the industry given Hawai'i's status as a premier visitor destination.

"We're just anxious to see who will step into that position," said Donald Welsh, senior vice president for sales and marketing for Seattle's Convention and Visitors Bureau.

To be sure, HVCB is not alone in its problems in attracting and keeping solid leaders.

Tourism in many areas is in a state of slow recovery, and travel and hospitality businesses are struggling to boost revenue.

Contractors for state agencies nationwide are coming under greater scrutiny as government budgets tighten and officials look for ways to curb spending.

After controversies at visitors bureaus involving Vericella and others, the Washington, D.C-based International Association of Convention & Visitor Bureaus last month approved new standards of conduct for members to "reinforce the need and demand for greater transparency and accountability within the profession."

"I personally think it's real important that we have very high standards," said Spurgeon Richardson, chairman of the International Association of Convention and Visitor Bureaus.

Visitors bureaus in Dallas and Cleveland have also had executive casualties over spending issues.

"The whole visitor industry is kind of going through a transition ... All of our budgets are down," said Michael Smith, vice president of sales for the Portland, Ore., Visitors Association.

"The hope is it gets cleared up very quickly, and we get back to what we're doing, which is getting visitors in, and not airing our dirty laundry in public," he said.

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