honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Posted on: Saturday, March 19, 2005

Bills would reinvest in tourism

By Lynda Arakawa
Advertiser Staff Writer

Hawai'i's visitor industry may be booming, but tourism officials say now is the time to reinvest rather than relax.

Visitors yesterday crowded the sidewalks along Kalakaua Avenue in Waikiki, a sign of the robust growth in visitor arrivals to Hawai'i. Tourism officials, however, say one "9/11" or one airline bankruptcy could empty Waikiki and send the industry into a tailspin.

Gregory Yamamoto • The Honolulu Advertiser

That's the idea behind a couple of bills moving in the Legislature that aim to direct more money to the Hawai'i Tourism Authority and the Hawai'i Convention Center.

"Invest while things are good because we know these things run in cycles, and we know it's a very fragile industry," said HTA executive director Rex Johnson.

"We need only look at ... the airline industry itself and the competition and the geopolitical side of the world to know how fragile this industry is. It takes one 9/11 or an airline to go broke or something like that to put our industry into some real problems."

Johnson also said the HTA has taken on more responsibilities, noting a new 10-year strategic plan that covers areas including work force development and Native Hawaiian cultural issues.

The state welcomed 6.91 million visitors last year and is expected to see about 7.2 million visitors this year, a record. International and Mainland visitor arrivals are up, and tourist spending is projected to increase.

The HTA and other industry officials have been asking the Legislature for more money since the state cut the agency's share of the transient accommodations tax in 2002 from 37.9 percent to 32.6 percent.

One bill lawmakers are considering would raise the percentage to 35.4 percent. With projections of $211 million in hotel room taxes in the next fiscal year, the difference represents about $6 million, Johnson said. Of that amount, $1.1 million would go toward paying for improvements at state parks, he said.

Gov. Linda Lingle's administration has said it prefers to raise the HTA's share to 34 percent.

Johnson said HTA has received more support from House and Senate committees this year, but added that the measures have yet to clear major hurdles when lawmakers finalize the budget. Raising the HTA's share of the transient accommodations tax means less money for the general fund.

"The problem is going to be all wrapped up in the budget," Johnson said.

Reach Lynda Arakawa at 535-2470 or larakawa@honoluluadvertiser.com.