Tourism decision today

By Kelly Yamanouchi
Advertiser Staff Writer

The Hawai'i Visitors & Convention Bureau, tasked with marketing the Islands to the rest of the world, is among agencies vying for a $25 million state tourism contract. Advertiser library photo

The Hawai'i Visitors & Convention Bureau has been selling the Islands to visitors for a century and always has received the entire leisure marketing contract from the tourism authority.

This year, it faces competition from nine other bidders for the whole contract or parts of it, and the tourism authority could decide to split up the marketing agreement for the first time.

Gov. Linda Lingle and others in the industry have said it is likely HVCB will not get the entire contract.

If HVCB loses its hold on the marketing contract, it would be the second blow to the marketing agency this week. On Tuesday, Tony Vericella, HVCB's chief executive officer and president, resigned under fire.

Vericella had become the center of controversy after a state auditor's report accused HVCB of misusing state money and violating sound accounting principles. Among the problems cited was Vericella's use of about $600 in public money for parking tickets, hotel room movies and other personal uses.

He later repaid the money.

Today, the authority board will vote on a recommendation from its marketing committee on who should get the state's lucrative marketing contract. The committee completed most of its deliberations before the audit's findings were released.

"We didn't consider the audit into the decision (recommendation)," said Kyoko Kimura, a member of the marketing committee. "It's for the board to decide whether we're going to consider the results of the audit.

"I don't think we should sacrifice by choosing the second best because of the audit."

However, Kimura said the audit findings should play a role after the contractor is selected. The authority could impose restrictions on its contractors allowing it to better monitor their use of state money, for example.

Donna Mercado Kim, chair of the state Senate's Tourism Committee, said contractors should know that they are spending taxpayer dollars.

"And whenever you have expenditures of state dollars, then the public has a right to know how that money's being spent," said Kim, D-14th (Halawa, Moanalua, Kamehameha Heights).

Stronger oversight urged

Some believe HVCB, a private nonprofit organization, is struggling because it had difficulty adjusting to the oversight of the tourism authority.

"Whether the contracts are split up or not, I believe that HTA will have to have stronger oversight," Kim said.

Also today, the authority board is scheduled to decide what action to take on the findings and recommendations of state auditor Marion Higa in her review of the authority's contract with HVCB.

The authority has considered additional audits, a special master to review HVCB operations, and requiring restitution of money from HVCB that may have been used inappropriately.

Budget on agenda

The authority also will discuss its 2004 fiscal budget, which must be adjusted because of the governor's veto of a bill for $8 million in additional tourism money. The authority had planned to use the $8 million to help cure a budget deficit, but it may need to find another way to cover its costs.

The authority board is further expected to elect a chair and vice-chair. The current chairman is Mike McCartney and the vice-chairman is Ron Wright.

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