Tourism authority outlines priorities

By Kelly Yamanouchi
Advertiser Staff Writer

At the top of the Hawai'i Tourism Authority's legislative agenda for next year is its ongoing effort to seek a larger share of hotel room tax revenues, including $8 million withheld this year.

But the authority will also be trying to exempt conventions from the state general excise tax and seek the right to keep private the names of groups meeting at the Hawai'i Convention Center, according to a report for the tourism authority on its legislative agenda. The authority will discuss the issue next week.

Tourism authority executive director Rex Johnson also is seeking approval to address issues that include the conversion of hotels to time-share units, regulating unlicensed bed-and-breakfast units and the state's growing cruise industry.

The tourism authority wants to increase its share of the room tax revenues from 32.6 percent to 37.9 percent, gain access to an additional $8 million from the tourism special fund to cover a deficit in its budget and lift a $31 million cap on deposits into the convention center special fund for the center's operations.

The panel also wants to devote more of its budget to administrative expenses by increasing an existing cap from 3.5 percent to 5 percent of its total budget. Part of that would go toward measuring the effectiveness of its marketing.

The tourism authority further plans to pursue a general excise tax exemption for conventions, conferences and trade shows for registration, fees, advertising and private contributions.

In what may prove a controversial move, the authority intends to propose that groups meeting at the convention center remain anonymous. The authority said the secrecy is needed to better compete with other convention cities.

It's unclear whether the idea requires legislation, said Gov. Linda Lingle's tourism liaison Marsha Wienert. She said anonymity is being requested more often, especially by technology and pharmaceutical groups and automobile companies that are launching new products and are wary of competition.

Separate from the authority's proposals, Wienert helped develop an administration legislative package related to tourism.

The administration also wants an additional $8 million to go to the tourism authority. The increase does not require its own legislation and can be added to the budget, Wienert said.

Lingle earlier this year vetoed a similar allocation to the tourism authority contained in a measure. Lingle opposed other provisions in the bill but was not opposed to the $8 million allocation.

The administration also wants to lift the cap on deposits into the convention center special fund and make the state transportation and land and natural resources directors voting members on the tourism authority's board.

The administration, however, is not supporting an increase in the percentage going to the tourism authority from hotel room tax revenues. Wienert said the administration wants to spend more on tourism-related facilities such as parks and roads.

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