Posted on: Wednesday, June 4, 2003
$8 million in budget for tourism marked to offset '03 deficit
By Kelly Yamanouchi
Advertiser Staff Writer
The Hawai'i Tourism Authority's proposed $69 million budget calls for financing many of the same marketing programs that it supported last year, including the Pro Bowl and golf events. But it also sets aside $8 million to cure a budget deficit using money intended to help tourism recover from the effects of the Iraq war.
The authority's money comes from $61 million in the state budget bill and an additional $8 million from the tourism special fund. Gov. Linda Lingle has not signed the budget bill or legislation for the $8 million allocation.
Beyond the tourism appropriation, the state budget includes $48 million for Hawai'i Convention Center operations, convention marketing and other costs covered by the convention center special fund.
The authority helps sets the direction for marketing Hawai'i to visitors by spending taxpayer money for specific programs designed to generate tourism dollars for the state.
The authority's proposed budget is larger than the $56 million it received for the current fiscal year after former Gov. Ben Cayetano cut $5 million last year.
Next year's proposed budget includes $47 million for major marketing programs, $2.1 million for PGA Tour events, $5.3 million for the Pro Bowl, $5.8 million for convention center marketing, $2.85 million for administration costs and $2.6 million for "product enrichment," including county grants for niche tourism. The authority's board is set to decide on the budget at its meeting this month.
The rest of the budget would go toward environmental initiatives, major festivals and other programs, including $100,000 to start a new Aloha Art Season in the spring and $370,000 for Sunset on the Beach, Brunch on the Beach and Kuhio Beach torch-lighting and hula programs.
Waikiki Improvement Association President Rick Egged said he plans to seek matching contributions for the beach events from the city or the private sector. The City Council is reviewing the programs.
Egged and other tourism leaders and event organizers also asked the authority's budget committee yesterday to maintain or increase money for their programs.
Manny Menendez, director of the city Economic Development Office, asked for more money than other islands because of O'ahu's larger population. Each county has received $400,000 annually to pay for niche tourism programs.
"It's basically not fair that the city and county gets the same as say, Kaua'i," Menendez said. "I'm not saying they should get less. I'm just saying we should get more. ...We can't fund the programs that we need to."
But it is not likely that the city will receive more. The authority has in the past defended equal financing for the counties.
Last session, the Legislature allocated $8 million to help eliminate the authority's budget deficit by the end of fiscal year 2008. The $8 million was intended to help the tourism industry recover from the war with Iraq. But the legislation was altered to allow the tourism authority to use the money to respond to adverse effects of world events or improve its efficiency.
The authority has run a budget deficit annually for years because it has lacked money in its fiscal-year budget to pay for its calendar-year contract with the Hawai'i Visitors and Convention Bureau.
Part of the $47 million designated for major marketing programs would go toward paying off some $24.6 million owed on the authority's marketing contract with HVCB.
In addition, about $21.4 million of marketing program money would be used to partially pay for a new marketing contract. HVCB and 12 other bidders are competing for contracts for next year. Additional money would finance the four island visitors bureaus, which are chapters of HVCB.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
