Honolulu Star-Bulletin Local News
Isle officials
react sharply to critical
news story

The Wall Street Journal reports Hawaii's allure has faded
and prices are high

By Russ Lynch
Star-Bulletin



Government and tourism industry officials today labeled a Wall Street Journal article as biased and factually flawed in its criticism of Hawaii as a tourist destination.

The article, in today's Journal, said Hawaii's allure has faded, prices are high and the state has cut its tourism marketing spending in the face of declining visitor numbers and heavy competition from other destinations.

"This was done by a writer who set out to put a negative spin on it and he was going to twist the facts until he got what he wanted," said Rick Egged, deputy director, state Department of Business, Economic Development & Tourism.

It is true that state spending on tourism has been cut but not as much as the 20 percent the article states and proportionately, tourism suffered less than other aspects of government spending, he said.

The article's criticism of Hawaii's hotel room taxes is out of context because it doesn't mention the fact that other leisure destinations consistently have higher room taxes than Hawaii, Egged said. He cited Orlando, Fla., where the total tax on accommodations is 11 percent and Miami where it is 15 percent.

Hawaii's combination of a 6 percent room tax and a 4 percent general excise tax comes to only 10 percent.

Gov. Ben Cayetano, asked about the article at a news conference today, said the decline in tourism in recent years was not a result of a cut in the tourism budget. "I don't think there's any question that the decline has been primarily due to the economic downturn on the mainland and in Japan," he said.

Cayetano said he doesn't think it had much to do with a cut in the Hawaii Visitors Bureau budget or the level of room taxes in the islands. "When you compare Hawaii's hotel room tax with other places, we're minuscule."

HVB President Paul Casey said the writer, Jim Carlton, interviewed him for the piece about six months ago. "It was fairly evident that he was intent on writing something negative," Casey said.

But Andre Tatibouet, head of Aston Hotels and Resorts, said the article made some good points, especially that Hawaii has not understood tourism's importance. "I think the article is worthwhile if it causes us here to focus more upon what is happening in our industry."



See the Wall Street Journal story in the Night Final edition of Friday's Star-Bulletin.



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