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The Honolulu Advertiser
Posted on: Thursday, January 15, 2009

Hawaii Tourism Authority lacks clear strategy, state audit finds

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To read the 68-page report on the Hawai'i Tourism Authority audit, go to www.state.hi.us/auditor/Reports/2009/09-02.pdf

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The state's lead tourism agency — the Hawai'i Tourism Authority — lacks a strategic plan that sets measurable goals, according to a state auditor's report released yesterday.

The report highlights problems with the agency at a crucial time for tourism — with the state's No. 1 industry experiencing a double-digit slump in visitor arrivals.

"By failing to define its own strategies and account for its efforts, the authority has not fulfilled its leadership role to manage Hawai'i tourism in a sustainable manner during times of economic decline or prosperity," said state auditor Marion Higa.

The report also criticized Hawai'i Convention Center operator SMG for some of its spending, calling it "potentially extravagant or difficult to reconcile with the use of public funds."

The report noted that SMG:

  • Hired five limousines at more than $1,600 to transport potential clients to and from a promotional dinner event in a Mainland city;

  • Paid $1,560 for a helicopter ride between the airport and the Turtle Bay resort for a meeting planner of an event at the Hawai'i Convention Center.

    HTA acting president and CEO Lloyd Unebasami said such business expenses are fairly ordinary in the competition for big conventions.

    "They are competing with other convention centers," he said. "They need to be able to expend funds in the customary fashion of what's out there."

    In the case of the helicopter ride, HTA marketing chief David Uchiyama said the clients ended up booking a convention last year that attracted 3,200 people who spent an estimated $10.7 million.

    "That's an investment or cost of doing business," Uchiyama said.

    Last year was one of the most turbulent for the HTA, with CEO Rex Johnson resigning in October after admitting to forwarding pornographic, sexist and racist e-mails from his state computer.

    Johnson's e-mails were discovered by the state auditor and reported in late June to Gov. Linda Lingle and House and Senate leaders.

    Johnson initially hoped to stay on despite the revelations, but was forced to leave after The Advertiser reported on the content of several racist messages he sent.

    Higa's audit said the tourism authority needs a functional strategic plan, not just an annual budget.

    "We found that the authority's year-to-year approach to planning and program implementation hinders its ability to strategically manage the long-term growth of Hawai'i's visitor industry," Higa said.

    She said the Hawai'i Tourism Strategic Plan: 2005-2015, the state's overall tourism road map, lacks specific goals and measures.

    Unebasami said the strategic plan does provide a guide and the agency does have criteria to measure effectiveness, but added that the audit offers an opportunity to improve the agency.