StarBulletin.com

HTA approves $2M in marketing funds


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POSTED: Friday, October 10, 2008

The Hawaii Tourism Authority yesterday approved the transfer of another $2 million into marketing funds to help stem the losses to the state's lead industry, said State Tourism Liaison Marsha Wienert.

“;That will bring the total up to $6.5 million,”; Wienert said.

Hawaii's struggling visitor industry, which saw the number of August visitors plummet by 17.4 percent, has been clamoring for additional marketing funds since July. Hoteliers across the state and Gov. Linda Lingle requested that the HTA release an additional $10 million in marketing funds in August, but the beleaguered board had not acted on their request until yesterday.

The struggles of Hawaii's visitor industry and projected reduction in bookings have prompted hotel executives to seek emergency aid.

Given the developments in the financial markets, it is absolutely critical that Hawaii continues to drive demand, said Jack E. Richards, president and CEO of Pleasant Holidays LLC, Hawaii's largest wholesaler.

“;The lagging U.S. economy, along with rising fuel surcharges, has continued to deter customers,”; Richards said.

As a result of price considerations, Richards said Mexico has become an even greater competitive threat to Hawaii.

Wienert said the HTA will continue to work on freeing more marketing dollars, but for now the $6.5 million will have to do.

HTA staff will meet with marketing contractors and visitor industry stakeholders to determine where the money will come from and which markets to shore up, Wienert said. They are expected to make a recommendation to the board in November, she said.

  “;I think at this point getting the authority to do another $2 million is very apropos with everything that's going on,”; Wienert said. “;I'm very confident that it shows that the HTA is taking action and that they are cognizant of the situation.”;

Murray Towill, president of the Hawaii Hotel & Lodging Association, said hoteliers will continue to seek marketing funds primarily for the mainland market where they have seen the most recent drastic declines.

The state has already allocated more than $12.5 million in emergency funds this year to drive business after the closures of Aloha and ATA airlines.

“;This is a good start, but really we have got to step up and find additional funding sources,”; said Keith Vieira, senior vice president of operations for Starwood Hotels & Resorts in Hawaii and French Polynesia.

Vieira said hoteliers asked the HTA for an additional $10 million based on their expectation that arrivals could drop by more than 1 million.

“;The average person drives $200 in tax revenues,”; Vieira said. “;Given that, we thought spending $10 a person, or $10 million, was a fair investment.”;