This year's $34.4 million state contract to market the isles to tourists commenced a month ago, but the contracting agency is still negotiating with the Hawaii Visitors & Convention Bureau over measures of accountability -- a key issue that has drawn scrutiny at the state Capitol. Tourism marketing
contract still hung up
on accountability issuesNegotiations are likely to finish this week
At the CapitolBy Tim Ruel
truel@starbulletin.com
Tony Vericella, president and chief executive of the nonprofit bureau, said Friday that he expects contract negotiations will wrap up this week. The bureau received a draft of the contract two weeks ago from the state Hawaii Tourism Authority, Vericella said.
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Vericella said the visitors bureau and the state are working to clarify details of a six-month review of the bureau's performance.
Accountability has been an increasing theme for the authority, a relatively new state agency that began contracting with the bureau in 1999. The authority's relationship with the bureau was criticized by a damning audit of the authority one year ago.
"Multimillion dollar payments are made to the bureau with little justification," the audit said. "The authority is unable to demonstrate whether the money it expends on these considerable contracts is used efficiently or effectively."
State Sen. Donna Kim, chairwoman of the Committee on Tourism, has introduced a bill that would automatically require performance standards in all of the authority's contracts.
"I don't want to put it in the bill, but from past experience, they don't do it on their own," Kim said Friday.
The proposal would prohibit the visitors bureau, and other contractors, from entering subcontracts without the authority's permission. Moreover, it would outlaw the use of state funds for lobbying against state interests.
The tourism authority's $61 million annual budget derives from a share of the 7.25 percent transient accommodations tax, paid by hotel and time-share guests.
The proposed bill is to be heard Thursday afternoon by the Committee on Tourism.
Last year, Kim backed a state law that forced the bureau to relinquish a $4 million annual contract to market the Hawaii Convention Center.
That contract, which is also being finalized, is in the hands of SMG, the convention center's manager.
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The following is an offering of some tourism measures that have moved in this year's legislative session. At the Capitol
Eye-openers
>> House Bill 897, Senate Bill 1172: Creates a tax credit for state airport landing fees paid by locally based carriers Hawaiian Airlines and Aloha Airlines.>> SB25, Senate Bill 485: Prohibits cruise ships from dumping types of waste.
>> HB1400, Senate Bill 1174: Extends to 2008 the 10 percent hotel construction and remodeling tax credit passed after Sept. 11, 2001. If the tax credit exceeds the income tax liability, the taxpayer will get a refund of the remaining credit.
>> Senate Bill 1081: Cruise ship visitors would have to pay same 7.25 percent transient accommodations tax as hotel room guests, starting in July.
Hawaii Tourism Authority
>> House Bill 220, Senate Bill 38: Allows the HTA to hire a private attorney, independent of the Attorney General's Office. The authority recently had to wait a month before getting a list of available attorneys from the Attorney General's Office.>> House Bill 690, Senate Bill 811: Requires the HTA to spend an as-yet unspecified amount of its $61 million budget to contract with the Hawaii Technology Trade Association to promote high technology in Hawaii.
>> Senate Bill 41: Mandates public access to subcontracts issued by state contractors.
