Bill in 'Aina Haina: In truth, what are your thoughts on the state's marketing strategy during these difficult times? Anything you would suggest doing differently?

Keith Vieira: The focus of the state has been a message of value and we believe that to be a correct one. Hawai'i can provide a great experience at different budget points. As opposed to suggesting doing it differently, it is more a strategy of focusing the marketing dollars to where they are most effective.

John S.: What are your thoughts, as a businessman, on the recent legislative session? From a business view, what was the high point?

Vieira: It was a very difficult one primarily due to the tax increased passed in a down economy. Obviously the hotel room tax is our biggest concern, as it is obviously the worst possible time and sends the wrong message to potential Hawai'i customers.

I think one high point was the effort to reduce government cost. Not enough was done, but it was a start.

Dean: Do you think the TAT will have a significant impact on tourism in Hawai'i? Why or why not?

Vieira: Yes, I think it will have a significant impact for two reasons. First is, Hawai'i is primary marketed through distribution systems led by wholesalers.

They package the entire vacation including taxes. This raises the cost of the package to Hawai'i and reduces our ability to be competitive. The second reason is more impactful. Hawai'i is nearly 90 percent pure leisure or discretionary vacation. When people are struggling to pay bills and need a break in their life with a vacation, to say we are going to tax them more to come to Hawai'i sends a very cold message and we have heard that from customers already.

Westside: Do you think HTA is doing an effective job? Do you think during this poor economic time they are even relevant?

Vieira: I think the HTA staff continues to do an effective job. My concern continues to be the board makeup and the board direction. There are many good people on the board who care a lot about Hawai'i. However, they have very little knowledge of the visitor industry and in most cases, no skin in the game. I think HTA can remain relevant if the right people are put on the board.

Jo: It seems we're hearing about more and more swine flu cases popping up in Hawai'i. Do you think this will discourage visitors from wanting to travel here? What precautions are your hotels taking?

Vieira: Yes, it will discourage visitors, more from a concern of traveling through international airports than being an issue strictly in Hawai'i. We have had groups relocate to Hawai'i from Mexico; however, we have had significantly more cancellations from the Japan market — that will continue. Our corporate office has Starwood policies on cleanliness and sanitation in addition to working with the Hawai'i Department of Health.

Trish: What, if anything, can the hotel industry do to bring tourists to Hawai'i?

Vieira: Continuing to pursue a value message and opposing new laws that increase taxes to our major source of potential revenue.

Don: We hear a lot of distressing news about the downturn in tourism in Hawai'i and now, another shot with the swine flu. Is there any positive news or data that you see down the road regarding tourism or the hotel industry?

Vieira: Both the economic crisis and swine flu will create pent-up demand to travel. If you look back at previous crises such as 9/11, Hawai'i tended to rebound faster than most long-haul destinations. We hope for the same.

Karen: When will this recession end, in your view? Will our tourism industry need to adapt in some concrete ways?

Vieira: I don't know when the recession will end, but we are looking for the first quarter that doesn't show a decline versus same time last year. Yes, everyone is finding a lower cost structure, but also recognize that continued high labor benefit costs, taxes, and other costs of doing business have got to be controlled over the long run as Hawai'i cannot outprice itself.

Ron: What's your marketing strategy in this new economy?

Vieira: Hawai'i has many experienced people in the industry. Sometimes we are not as new and innovative as other areas in the world. Simply put, we have to got to find more ways to find younger travelers to come to Hawai'i who grew up in different a time and with different motivations to make Hawai'i their primary vacation spot and become the new repeat visitors.

We also have the opportunity from growth in Asia, particularly in China. When looking at the young new rich, there is an incredible potential. Like other Asia travelers, they feel very comfortable in Hawai'i's welcoming environment.

Robert: What is your hotel chain doing to go green — particularly here in Hawai'i?

Vieira: There are many green initiatives in our hotels. It starts with the more simple ones such as complete recycling ... to working with guests about not changing out sheets and towels daily, to the very complex where we are currently working with UH for a deep-sea cold-water chill program to service the air conditioning to all hotels in Waikiki, with return water possibly being used to help flush Ala Wai canal.

Nik: Anything being done for kama'ainas who would rather do "staycations" than traveling elsewhere?

Vieira: All hotels in Hawai'i, including Starwood, are continuing to put value-added vacations into the market. We see kama'ainas looking for value, but for the first time they are taking more traditional, longer-stay vacations, including spa time, golf and other resort activities.

Andrew: Are our Hawai'i room taxes really higher compared to other U.S. cities?

Vieira: I think there are two points to consider when looking at our TAT taxes. First of all visitors have to pay the GET and TAT. When combining the two with Hawai'i's higher room rates, we have the higher visitor tax in the country.

The second point is that, as opposed to Chicago, New York, San Francisco which are primarily business travelers whose taxes are paid by their company, Hawai'i's visitor dollars are coming directly out of (visitor's) pockets. That could make them choose cheaper destinations.

That is the reason the industry fought so hard against the recent tax increase. In order to remain competitive, we have to find areas to cut cost, which will affect employment and community spending.

Jeanne Mariani-Belding: Given the TAT increase, are you then anticipating layoffs or other staffing cuts within Starwood in terms of areas to cut?

Vieira: If revenue continues to decline, we must look for ways to reduce cost and unfortunately labor being our biggest expense, it is always looked at.

We've also reduced operating costs such as energy, water, and other related costs.

Every area is continually under review. We cannot compromise guest service or the experience.

John Smith: A 1 percent increase in the room tax seems minimal. As a visitor, I would certainly rather pay a one dollar increase on my room rather than pay increases on everything I purchased if the GET was raised.

Why not lower room rates in order to create the demand?

Vieira: Hawai'i is a very high-operating-cost destination. Whether it be energy, employee benefits — all cost more here. We cannot compete at lower price points and although for this year the increase is only 1 percent, when adding the TAT to the GET on to an average (room) rate in the $200 range, it represents nearly $30 in taxes, which is the highest in the country.

This is an issue of being competitive and any costs passed on to the consumer makes us less competitive. As far as hotels absorbing the cost, our room rates are already down 25 percent versus the prior year and we can sustain no more losses.