Ex-HVCB leader says he quit for tourism

By Kelly Yamanouchi
Advertiser Staff Writer

A day after resigning as president of the Hawai'i Visitors and Convention Bureau after criticism of his agency's use of state money, Tony Vericella said he didn't want to be a distraction from the state's tourism promotion efforts.

"I thought the best way for Hawai'i to move forward was for me to step aside," Vericella said.

"I try not to dwell on why things happen in a certain way or focus on why I was at the center of things."

Vericella said he did not resign to improve the bureau's chances of securing the state's $25 million marketing contract, and he insisted he was not pressured into quitting.

"There was no new development. Nobody was encouraging me to leave," Vericella said. "It just seemed — things seemed like they were going to keep going down this particular path."

His resignation came about three weeks after state auditor Marion Higa released a report of HVCB lambasting the agency for its accounting practices and inappropriate use of state money.

The audit led to apologies from Vericella for using more than $600 in state money for personal expenses. The report also spawned a proposal for a formal legislative investigation and a review by the state attorney general's office to determine if any legal action should be taken against HVCB.

Vericella said he considered resigning during the past two weeks and decided to step down after discussions with his family last weekend.

He said he will help Les Enderton, HVCB interim president and chief executive, with the transition during the next couple of weeks, then plans to spend the rest of the summer with his family. He said he will then pursue other opportunities in Hawai'i.

HVCB Chairman Tony Guerrero said he has not yet finalized a departure package for Vericella, but said: "It's going to be a fair package (for) someone who's worked here for six years."

Guerrero has indicated Enderton is a good candidate for the permanent president post, and Enderton said he is interested in the job.

Enderton is taking over at a time when HVCB faces uncertainty.

HVCB's nearly 100 employees know their jobs may be in doubt as the organization risks losing at least part of its state marketing contract, which the Hawai'i Tourism Authority is scheduled to award tomorrow for the year beginning Jan. 1.

Enderton said an important part of his role is to keep up morale.

"It's always difficult when a longtime charismatic leader like Tony leaves an organization," he said.

Enderton acknowledged HVCB may need to lay off some employees if the bureau does not get the entire marketing deal.

HVCB released about a dozen people after it lost this year's state convention center marketing contract.

HVCB proponents argue that awarding the contract to another organization puts the continuity of the state's tourism marketing program at risk. Others say taxpayer dollars and the reputation of the state's tourism marketing operations are at risk if HVCB keeps the contract.

People who oppose and support HVCB sit on the board of the tourism authority, which will determine HVCB's fate.

With HVCB the focus of criticism and controversy, "Do you just say no?" asked Ron Wright, vice chairman of the tourism authority board. "If it is HVCB, what type of contractual arrangements do you make? Because it can't be business as usual ... the public won't stand for it."

Some of the other nine bidders in the running for the marketing contract think turmoil at HVCB could open up doors for them.

Recent events "certainly loosen the HVCB's lock on the contract," and Vericella's resignation "is just a continuation of that," said Arkie Koehl, president and chief executive of Loomis Inc..

The tourism authority does not plan to announce its decision on the contract until Friday.

Separately, Guerrero said HVCB plans to reimburse the tourism authority about $17,000 for attorney fees.

The fees are related to research on possible veto of a bill supported by the authority that led to HVCB's losing its convention center marketing contract.

He said HVCB is waiting for more information from the state auditor's office before making the payment.

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