Pacific telecom director resigns; layoffs imminent
By John Duchemin
Advertiser Staff Writer
In the wake of a disappointingly sparse annual conference, the executive director of the Pacific Telecommunications Council has resigned, and the organization plans to undergo a restructuring to cut costs.
The Honolulu-based council, facing what its president calls a "financial crisis," has replaced Hoyt Zia, the former executive director, with an interim management committee. Sharon Nakama, the council's conference director, said she will be in charge of day-to-day operations.
The council's staff, headquartered at the Japanese Cultural Center in Mo'ili'ili, will be cut back to the equivalent of nine full-time employees, according to Hansuk Kim, president of the international commercial group, which has hundreds of member companies from dozens of nations. Kim did not say how many employees the PTC presently has.
"The (council's) board of governors sees its primary responsibility as ensuring a healthy and viable PTC," Kim said in a written statement. "We are very sorry that friends of PTC, especially loyal and dedicated staff, will bear the brunt of our cost reductions."
The council faced three years of declining attendance at its signature event, an annual conference held in Honolulu since 1978.
As with past conferences, "PTC2003" attracted high-profile panelists, Pacific Rim government officials, and speakers including some of the world's top telecommunications executives to discuss key global issues affecting the industry.
But severe difficulties of the telecommunications industry since 2000 have made the crowds progressively smaller.
This year, registered attendance dropped to 1,150, Kim said — a 37 percent drop from the 2000 peak. The conference's exhibit hall, which in past years surged with activity as telecom executives mingled around displays of the latest products from companies like Boeing, Sprint and Time Warner, was smaller and much more sparsely attended.
Revenue from the 2003 conference was about $900,000 short of target levels, Kim said. Sponsorship revenue dropped 26 percent and membership revenue was down 18 percent, he said.
"Our planning for 2002-03 had assumed we would show a modest turnaround in attendance this year after the sharp decline of PTC2002, which we attributed to the 9/11 attacks," Kim said. "Despite the best efforts of our staff and volunteers, however, our expectations were not realized."
Kim said Zia agreed to leave after the council decided "it was no longer economically feasible to keep him in place."
"Given the financial crisis facing PTC, it was in the best interests of the organization for him to withdraw," Kim said.
Zia joined the council as executive director in 1999 after serving as chief counsel for the Export Administration of the U.S. Department of Commerce under President Clinton. During his time at the council, he tried to increase its visibility in Hawai'i. He also oversaw an important diplomatic transition, bringing China officially into the council at the expense of Taiwan.
