Egged said he is in discussions with several potential sponsors.

The need for a sponsor follows cutbacks in city funding, which at one point had reached as high as $1.5 million. This year, the city contribution was reduced to $235,000, which would fund the festival through the end of 2005. The decreased funding resulted in the number of Sunset events being cut from 35 to 24, and Brunch events were reduced from 11 to four.

Beginning Jan. 1, there is no city money for the events.

Egged said in 2006, it will cost about $1 million to put on the programs, which include a daily torch lighting and hula ceremony on Kuhio Beach. Each Sunset event costs $22,350, including setting up the event and taking everything down. Each brunch costs $41,560. Daily torch lightings and hula cost extra.

The Hawai'i Tourism Authority is expected to contribute $300,000. Proceeds from food sales and private donations are expected to raise another $300,000, leaving a $400,000 deficit.

Tom Kiely, chief executive officer of sports marketing company Team Unlimited, said the popularity of an event has nothing to do with finding a new sponsor.

"Major corporations aren't really interested in that," Kiely said. "Major corporations honestly are interested in creating revenue and generating profit. It's the responsibility of the producer to demonstrate to the sponsor why it is a good investment of their money. Whether it's a Sunset on the Beach or any other event, you got to demonstrate that it is a good value."

Kiely said private sponsors want to either sell something, promote a new product or increase their name exposure.

"The sponsorship will be a percentage of what they are going to sell," he said. "For the Brunch and Sunset, they have to become a working, marketing arm of the sponsor. Unless they are willing to do that, they shouldn't try to get into the game."

Honolulu resident Laura Tomino, 18, attended a Sunset event last summer and hopes a sponsor can be found.

"It's free and it's right on Waikiki beach," Tomino said. "You can hear the waves breaking at night. I would take my family if I was on a trip."

Former Honolulu Mayor Jeremy Harris started the movie and food festivals in 2001 as part of his effort to revitalize Waikiki, but with a tight city budget, the City Council feuded with the administration over the cost.

The events cost the city $1.5 million in the fiscal year that ended in June 2002, including $8,000 per weekend for security from Honolulu police working overtime for the events.

In January, Mayor Mufi Hannemann said the city would reduce the number of beach festivals this year and then withdraw city financing next year.

The first step in the transition from public to private management took place in January, when the Waikiki Improvement Association took over running the operations, Egged said. The next step will be next January when it must be run without city money.

Harris budgeted $160,000 for Sunset events during the fiscal year that ends next month, and $75,000 for Brunch events.

Hannemann decided to stretch that funding by dropping the number of Sunset events from 35 to 24 this year, and Brunches from 11 to four.

There are two more Brunch events scheduled for this year — in August and October — and 13 more Sunset events, with the next set for June 18 and 19.

Egged said even if a new major sponsor is found, without city support the program would end.

"Both of these events don't happen without the city," he said. "They control the venues and we are still using city equipment."

City spokesman Bill Brennan said the city will likely continue nonfinancial support, including equipment and police.

"The mayor still wants the city to be associated with the event," Brennan said. "We will provide the venue and want to make sure that we get our due as a founding sponsor of the event so the city's role isn't completely eliminated."

Egged said between 3,000 and 4,000 people attend each Sunset event at Kuhio Beach, and 10,000 to 15,000 people go to the Brunch events on Kalakaua Avenue.

"The bottom line is we've created things with the city that make Waikiki a happening place again," Egged said. "At the end of Brunch on the Beach we sing 'Hawai'i Aloha' and the visitors are raising their hands with the local folks and they are mesmerized. This is what it's like to be at a local party. I see that magic and excitement all the time and it makes it worthwhile."