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The Honolulu Advertiser

Posted on: Tuesday, May 3, 2005

Budget for tourism may increase in 2007

By Lynda Arakawa
Advertiser Staff Writer

The Hawai'i Tourism Authority will receive more money to promote the state's No. 1 industry under a bill expected to receive final legislative approval today.

The increase — which would mean about $3.6 million more annually for the agency — won't take effect until 2007, and is less than what the HTA was originally seeking.

But HTA executive director Rex Johnson was still pleased.

"I'm happy that we were able to get some percentage back towards our original funding levels, particularly due to the tough financial constraints that they faced in the upcoming biennium," Johnson said. "Over the long term, it will make a significant difference. We will be able to carry out the additional mandate that comes from the tourism strategic plan and continue with programs that ... need to go forward."

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

The measure, Senate Bill 1729, would raise the HTA's share to 34.2 percent. Based on state Council on Revenues projections, that means the HTA would receive about $76.6 million in 2007, nearly $3.6 million more than it would have under the current formula, Johnson said.

Of the money HTA receives, $1 million goes toward improving state parks and trails. The HTA also provides money to the state Department of Business, Economic Development and Tourism's research arm.

The increase is roughly in line with a proposal by Gov. Linda Lingle's administration to raise the HTA's share to 34 percent.

But the bill would also remove the voting authority from DBEDT's representative on the HTA board, a point that may draw some opposition.

House Tourism Committee Chairman Jerry Chang, D-2nd (Hilo), said the change was made mainly because other ex-officio board members, such as the Board of Land and Natural Resources chairperson, are nonvoting. But when asked if there were any specific issues that influenced the provision, he said testimony from DBEDT's representative on the board, state tourism liaison Marsha Wienert, hasn't been consistent with HTA's direction.

Wienert said she was "thrilled" in the funding increase to the HTA but that she was disappointed that the DBEDT position on the board would lose voting authority. She said the position was always a voting one since the creation of the HTA, which is administratively attached to DBEDT.

Wienert also said DBEDT has supported the intent of other HTA-backed bills, but had concerns as to how they would be funded because they were not considered in the administration's financial plan.

If approved, the measure would have to be signed by Lingle before it becomes law.

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