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The Honolulu Advertiser
Posted on: Thursday, November 6, 2003

Visitors bureau marks 100 years

By Kelly Yamanouchi
Advertiser Staff Writer

Researchers told visitor industry executives that the state should focus on attracting golfing tourists to Hawai'i courses, such as the Kapalua Plantation's.

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The Hawai'i Visitors & Convention Bureau's faces many challenges ahead as it restructures into a smaller organization with less influence, the organization's new president told its tourism industry members yesterday.

HVCB President John Monahan, former Liberty House Hawai'i chief executive and one-time trustee of bankrupt Hawaiian Airlines, takes the helm of the organization, once the state's only tourism marketer, as it celebrates its 100th anniversary with bittersweet feelings.

The milestone, marked yesterday at the HVCB annual luncheon attended by about 950 people, follows months of turmoil at HVCB that included the resignation in July of former president Tony Vericella, who departed after a critical state audit accused the bureau of mismanagement and inappropriate spending of state money, including personal expenditures by Vericella.

Monahan also steps in after HVCB lost all of the state's international leisure tourism marketing contracts to competitors, a change that takes effect next year.

"This anniversary will be remembered with mixed emotions," said HVCB Chairman Tony Guerrero. "For the first time, HVCB will not be marketing Hawai'i to the world. ... This year, 2003, will also be remembered for the intense public scrutiny of the legislative audit."

"Under John Monahan's leadership, you can expect a new reincarnation of HVCB," Guerrero said.

One of Monahan's biggest tasks will be downsizing the organization. HVCB kept only the state's North America tourism marketing contract and the pact to promote corporate meetings and incentives in Hawai'i.

The estimated $15.2 million North America contract is the largest tourism marketing agreement awarded by the state, but it does not make up for the loss of about $8.4 million in global marketing work.

The agency employs about 100 people and an estimated 15 could lose their jobs or be forced to seek work with the new contractors.

"We clearly face some challenges in realigning the organization," Monahan said.

Although Monahan said he is meeting with all HVCB staff division heads and reviewing operations, he did not specify what cuts will be made. He did say he wants to keep administrative costs low to free up money for tourism marketing.

Monahan also is interviewing candidates for the position of vice president of marketing.

In comments that could ease concerns voiced by some members who want the bureau's leadership to be more receptive to members' issues, Monahan said he sees "a need for openness and a flow of information."

"We will do a better job of communicating to our constituencies early and often," Monahan said. "Opposing viewpoints will be heard and encouraged. However, at the end of the day, decisions must be made."

Separately yesterday, researchers and Mark Rolfing, NBC television golf analyst from Kapalua, told visitor industry executives that tourists who golf are a lucrative market the state should work harder to attract.

Golfing visitors in Hawai'i spend an average of $553 for golf rounds, $157 for golf merchandise and $114 for food and beverages during golf.

Travelers who play golf during their trips are affluent, spend more on vacations and participate in other activities like snorkeling, sightseeing and shopping, according to three surveys of golfers.

The median age of Hawai'i golf visitors is about 50 years old and the median income is more than $100,000. Asked to rank the states with the top golf courses, respondents placed Hawai'i third behind California and Florida.

"Hawai'i still has never really branded itself as a golf destination," Rolfing said. "We can get a bigger piece of this pie."

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