$8M extra sought for tourism during war
By Kelly Yamanouchi
Advertiser Staff Writer
Legislators are considering giving the state's tourism marketing agency as much as $8 million in emergency money if war should break out with Iraq.
If there is a military conflict, Hawai'i will need to compete against thousands of other vacation destinations scrambling to attract those brave enough to travel long distances from home. Promotion will be key to that effort.
The Hawai'i Tourism Authority has a budget cap of $61 million to market Hawai'i. Once that amount is allocated, there will be an extra $8 million in the tourism special fund, according to Sylvia Luke, chairwoman of the House Committee on War Preparedness. The tourism special fund is fueled by hotel room tax revenues.
Hotel executives and representatives from Japanese travel agencies told the committee at a hearing yesterday they might need more marketing dollars to encourage travel to Hawai'i in the event of another Persian Gulf war.
Luke said the committee would make a recommendation, but asked the tourism authority to first submit a proposal outlining how the agency would use the extra money.
"We want to help to smooth out this bump," said Rep. Brian Schatz, D-25th (Makiki, Tantalus). "On the other hand, we don't want to throw money down a rat hole."
The Hawai'i Tourism Authority would like to have the extra revenue, but might not need the entire $8 million, said executive director Rex Johnson.
"Having those funds on call would be something very helpful to us," Johnson said.
Tourism leaders agreed that preparing for the possibility of war and marketing money would be prudent.
"I think that would be a step in the right direction," said Peter Schall, senior vice president of Hilton Hotels in Hawai'i. "Not to say the money needs to be spent, but to have something in place, with the right accountability."
Luke said there was no consensus yet on how much of reserve funds should be earmarked as a war contingency. Last year, former Gov. Ben Cayetano cut $5 million from the tourism authority's $61 million budget, and the authority would like to see that restored.
After the Sept. 11 terrorist attacks, the tourism authority asked for $10 million in emergency money, and was later criticized for how that was used. Lawmakers particularly criticized the creation of the ValuePass program, a retail discount card, which merchants said did not promote their businesses effectively, they reported.
Tourism industry executives also backed the idea of sending a delegation to Japan and perhaps one to the Mainland to ease travelers' fears and encourage visits to Hawai'i in the event of war. A state delegation led by former Gov. Ben Cayetano traveled to Japan in October 2001 after the terrorist attacks to reassure the Japanese and urged travel to the state.
Tourism executives fear problems similar to those experienced during the Gulf War, when Japanese tourism fell by nearly 40 percent for almost six months, said Steven Kawagishi, chief executive of the Japan Hawai'i Travel Association, a group representing Japanese travel agents.
"I think we have to take immediate action right after the war happens. We need to announce plans right after, and send delegates sooner than we did last time — probably within a few days if possible," Kawagishi said.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
