Convention center clients allowed secrecy under bill

By Kelly Yamanouchi
Advertiser Staff Writer

The Hawai'i Convention Center could keep secret the names of some organizations renting the public facility under measures advancing in the Legislature.

The proposals have drawn criticism from open-records proponents while tourism officials say the secrecy is needed to bring more conventions to Hawai'i.

"We look at this as a competitive business issue for the convention center," said Rex Johnson, executive director of the Hawai'i Tourism Authority. The bill "is all about improving Hawai'i's image as a business-friendly destination."

Opponents of the change say taxpayers should know who is renting the center and whether their tax money has been wisely spent.

"Taxpaying people are entitled to know who is renting their expensive buildings," said Stirling Morita, freedom of information committee chairman of the Hawaii Chapter of the Society of Professional Journalists, in written testimony to Senate and House tourism committees. The two committees passed versions of the bills this month.

Currently, SMG, the Philadelphia-based firm that has the state contract to market and operate the convention center, posts a list of upcoming events at the center.

But tourism officials said recently some organizations, particularly technology and pharmaceutical groups and automobile companies launching new products, have requested that information be kept confidential.

Booking records that could be kept under wraps are the company name, address and contact, event program contact, event schedules, exhibitor lists and the description of the center's offer, rent, discounts and subsidies.

The information would have to be disclosed 10 days after the event ends.

When the convention center wants to keep information private, it would have to certify that the potential client requests it and that disclosure could mean losing a booking or revealing the client's "confidential business information or proprietary information."

Johnson said in testimony the measure "levels the playing field" because other convention center facilities competing with Hawai'i have "readily accepted a potential licensee's request for anonymity without reservations."

Marsha Wienert, tourism liaison for Gov. Linda Lingle, has testified in favor of the bill.

The state is spending about $48 million this fiscal year on the convention center, including $5.6 million to promote it; about $26.5 million to cover debt service on bonds sold to pay for construction; roughly $12 million for center operating expenses; and $4 million for nonoperating expenses. Hotel room tax revenues are used to pay for much of the center's expenses.

In testimony opposing the secrecy, Honolulu resident Sara Collins said, "More secrecy is absolutely the last thing the convention center needs at this time." She added that the measure would "set an extremely bad precedent."

The Senate Judiciary and Hawaiian Affairs Committee has scheduled a hearing on the legislation for Tuesday.

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