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The Honolulu Advertiser
Posted on: Tuesday, November 11, 2008

State senators protest tourism agency's cuts

By Robbie Dingeman
Advertiser Staff Writer

State senators who oversee Hawai'i's visitor industry are calling on the Hawai'i Tourism Authority to reverse its decision to slash funding for some high-visibility visitor programs.

Sen. Clarence Nishihara, chairman of the Senate Tourism Committee, and Sen. Donna Mercado Kim, who was vice-chair of the Tourism Committee before being named to head the Senate's Ways and Means Committee last week, say the cuts will threaten the state's efforts to attract repeat visitors.

The senators were responding to a decision by the tourism agency on Thursday to cut special fund spending by about $17 million, which will threaten programs that provide Hawaiian entertainment and greeters at airports and harbors, as well as Sunset on the Beach, evening hula and torch-lighting in Waikiki.

State tourism liaison Marsha Wienert defended the cuts, saying they were needed when the forecast for the HTA share of the hotel-room tax dropped from $88 million to $79 million, then to $75 million.

The HTA set a $71 million spending cap in case revenue projections are revised downward again. That cap could be increased, however, if revenues come in higher than forecast.

Wienert said the HTA is diverting more money into marketing in hopes of boosting visitor arrivals, which in turn would generate higher hotel-room tax revenues.

"Hopefully, we'll be able to increase funding for the programs," she said.

Nishihara said cutting funding to cultural programs could be shortsighted.

"These are high-visibility events that build warm and lasting memories for our visitors," he said. "They make Hawai'i someplace special, and encourage visitors to come back."

He said the state is competing more than ever with Mexico, California and the Gulf Coast. "We need to set ourselves apart, and these programs are one way we do that."

Added Kim: "When we start cutting back on programs that give visitors a sense of Hawai'i as a special place, we're threatening our brand. It's great that HTA wants to spend more on marketing to bring people here, but we need to make sure that the experience matches the sales pitch."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.