Audit clouds outlook for tourism contract
By Kelly Yamanouchi
Advertiser Staff Writer
The Hawai'i Visitors & Convention Bureau, the state's marketer for more than a century, will face what may be its harshest scrutiny ever next month as it bids for a new $25 million state contract.
State Auditor Marion Higa charges in a report due out next week that the bureau has misused state money, including paying parking and speeding tickets for its president, Tony Vericella.
HIGA
Still, many tourism executives, who came to the bureau's defense yesterday, say they believe that HVCB is bound to get the contract.
"We shouldn't take this as a slam against HVCB. We should rather take it as an indication that ... things can be corrected," said Mark Hukill, interim associate dean at the University of Hawai'i School of Travel Industry Management. "I don't think that this puts the entire agency at jeopardy but, rather, I like to see it as an opportunity that some things that need correcting can be corrected and that we can move on from here and do a better job."
Keith Vieira, senior vice president of Starwood Hotels & Resorts in Hawai'i, said the audit seemed to be "inflammatory."
"I don't like questioning of Tony Vericella's integrity because he's been in the industry and a friend for a long time," Vieira said.
The Hawai'i Tourism Authority will decide July 24 who gets a new contract to market the state. The authority, which was created in 1998 to oversee the state's tourism marketing efforts, has always awarded its main contract to the HVCB. But in a break with the past, the tourism authority this year split up the contract, drawing 13 bidders for the entire contract or parts of it.
Some, including competitors for the contract, think HVCB may not win the entire contract because of criticisms in the audit.
A draft of the state audit criticized HVCB for what it called questionable spending, inadequate fiscal controls, conflicts of interest and a lack of focus.
"It just shows that there's no control and they just do what they want," said Dieter Thate, who runs German tour operator Dieter's Tours and said a different agency should market Hawai'i. "It's time that things get moved, and I believe there's a lot of movement right now."
Vericella said the bureau will prevail. "We're hopeful and confident that the end result will be a very positive one for Hawai'i and for HVCB," he said.
Travel agents on the Mainland who work with the visitors bureau are watching events in Hawai'i closely, and think HVCB has done a good job, said Danny Casey, president of the Hawai'i chapter of the American Society of Travel Agents.
"It's definitely kind of sad to see some of this infighting going on at a time when we need to be strong and united," Casey said.
Dan Mollway, director of the state Ethics Commission, said the commission can investigate suspected violations on its own initiative and has initiated investigations resulting from state audits.
The tourism authority will hold a special meeting to discuss the audit July 16, where Higa will present her findings and HVCB will respond. HTA will decide what action to take after the presentations.
"There are a lot of things there and they need to be substantiated," said Mike McCartney, chairman of the toruism authority's board. He said the authority would seek advice from the attorney general's office in responding to the audit and may ask the office to investigate.
The authority's marketing committee, which had six advisers from the tourism industry, is deliberating a decision on the contract, McCartney said.
Reach Kelly Yamanouchi at 535-2470, or kyamanouchi@honoluluadvertiser.com.
