Embattled chief of visitors bureau quits
By Kelly Yamanouchi and Curtis Lum
Advertiser Staff Writers
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Vericella, 50, who was named head of HVCB in 1997 after serving as chairman, voluntarily offered to step down, a week after the HVCB board handed him a unanimous vote of confidence.
"After much careful consideration, I have decided that it is in the best interests of our Island communities that I resign," Vericella said in a written statement. "I believe that by stepping aside, HVCB will be better able to move forward with the essential task of marketing the state of Hawai'i unimpeded by the issues surrounding the legislative auditor's report."
He did not return calls for further comment.
Vericella's resignation takes effect immediately. O'ahu Visitors Bureau executive director Les Enderton will serve as interim president and CEO.
The resignation follows weeks of controversy surrounding the release of state auditor Marion Higa's report. The audit chastised HVCB for its accounting practices, alleged insider dealing and inappropriate use of state money, including Vericella's own expenditure of more than $600 for parking and speeding tickets, hotel room movies and family travel.
The audit prompted an attorney general's review and informational briefings earlier this month by the Legislature's tourism committees.
The two tourism committees last week recommended that a formal legislative investigation be launched into questions raised in the audit.
But the official reviews were not the end of the controversy.
The HVCB board said it planned to monitor and discipline Vericella, who came under further fire for offering to pay the expenses of a KITV news crew accompanying Gov. Linda Lingle on her recent trip to Japan.
Despite the mounting criticism and turmoil, Vericella's resignation took some in the tourism industry by surprise, coming three days before the Hawai'i Tourism Authority is set to decide whether HVCB will continue as the state's primary marketing agency.
Gov. Linda Lingle and others have said HVCB will likely not get the entire $25 million annual contract for marketing Hawai'i, a development that would be a major setback for the visitors bureau.
Ten organizations, including HVCB, are vying for the contract or contracts to market Hawai'i as a visitor destination.
Mike McCartney, tourism authority board chairman, said Vericella has "taken the organization to a place where it's done a lot of good in terms of marketing for the state."
"HVCB is a viable, healthy organization," McCartney said. "It will continue to move forward. ... It's a new chapter in their mission and I see them continuing to move ahead."
Yesterday, the tourism authority board met in private to discuss the audit findings, which criticized the authority for lax oversight.
The board will continue discussions at its meeting Thursday, when it is scheduled to decide on the marketing contract and what action to take in response to the audit.
Vericella, a regional vice president for Budget Rent-a-Car before joining HVCB, is respected in the visitor industry for his skill in tourism promotion. But the recent controversies put an unwanted spotlight on him as HVCB's chief executive.
"Tony's an excellent marketing person and I'm very sorry that it came to this," said Rex Johnson, tourism authority executive director.
HVCB Chairman Tony Guerrero said Vericella notified him early yesterday that he was resigning. The HVCB executive committee met in the afternoon for about 40 minutes to discuss the offer of resignation, then accepted it.
"He's doing this from the goodness of his heart. He does not want to be a distraction to market Hawai'i," Guerrero said.
As the head of HVCB, Vericella received a $252,000 annual salary, not including bonuses.
Guerrero said he has not yet worked out a departure package for Vericella.
Keith Vieira, who sits on the tourism authority board and has supported Vericella and HVCB, said Vericella "has led us through some of our most difficult years."
"The way certain people had it out for Tony is a shame that it had to come to this," Vieira said.
Guerrero said HVCB would continue to respond to concerns raised in the auditor's report.
Donna Mercado Kim, Senate Tourism Committee chairwoman, said she was surprised at the timing of Vericella's resignation given the HVCB board's vote of confidence.
"It's too bad that it seems to be that all the blame is on Tony," Kim said.
But Kim, D-14th (Halawa, Moanalua, Kamehameha Heights), said she doesn't believe Vericella's resignation will solve the agency's problems.
"There's a whole attitude that has to change," she said, "and I think that probably was there before Tony took over and it just continued on."
Lingle could not be reached for comment yesterday. But her spokesman, Russell Pang, issued a brief statement.
"It's an internal HVCB matter and we all need to now move forward with marketing the state of Hawai'i," Pang said.
Enderton joined the O'ahu Visitors Bureau in 1997 and continued with it when it became an arm of HVCB in 2000. He will serve as HVCB interim president and O'ahu Visitors Bureau executive director.
"My career is in the visitor industry and when asked to serve I will do so," Enderton said.
Guerrero said he is heading a search committee for Vericella's permanent replacement. The group hopes to name a new president and CEO within 90 days.
Guerrero indicated Enderton may be considered for the position, saying he "has pretty good qualifications himself."
Enderton, who has more than 30 years of experience in the travel industry, said he would consider whether to submit his name for the job in the next 30 days.
Chuck Gee, dean emeritus of the University of Hawai'i School of Travel Industry Management, said Vericella will not be easy to replace.
With a CEO resigning under perceived pressure and pending investigations, "I think any applicant would be reluctant to tender his or her name," Gee said.
Reach Kelly Yamanouchi at 535-2470 or kyamanouchi@honoluluadvertiser.com.
