STAR-BULLETIN FILE
Waikiki, with its heavier dependence on tourists from Japan, has had a tougher time recovering from a tourism slump than the neighbor islands, which attract more mainland visitors.
Waikiki tourism focus
The tourism liaison's first
assignment is to help pull
the area from its slump
When Marsha Wienert begins her job July 1 as the state's tourism liaison, her top priority will be to help Waikiki join the neighbor islands in recovering from the slump in tourism, Gov. Linda Lingle said yesterday.
"I do think it needs more help at this time than do the neighbor islands," she said.
Wienert, the executive director of the Maui Visitors Bureau, was named by Lingle earlier this month to the newly created cabinet-level position to coordinate the state's long-term tourism strategy.
Lingle leaves July 5 for a trip to Japan to help stimulate tourism to the islands from that key market, which continues to lag about 30 percent behind a year ago, especially affecting Waikiki.
"Clearly, Waikiki is most dependent on Japanese visitors," Lingle said. "It's its biggest market, unlike the neighbor islands."
Recent figures from the Department of Business, Economic Development and Tourism show visitors to Maui County were up 10.3 percent in April over April 2002, while Kauai saw a 5.2 percent increase and the Big Island a 2.2 percent increase. Oahu saw a 10.3 percent decline.
On Friday, Lingle vetoed a measure extending a state income tax credit on hotel construction and renovations as well as commercial construction in a resort area.
The most visible lobbyist for that tax credit was Outrigger Enterprises, the Hawaii-based hotel chain which plans a $300 million redevelopment of its Lewers Street properties in Waikiki and insisted the tax credit was key in getting financing.
Without the tax credit, Outrigger says that its project will be delayed by six months to a year, at best, because Outrigger will need to restructure its financing and secure sources of funds again. Groundbreaking had been scheduled for April 2004. At worst, Outrigger may face a reduced initial investment in the project.
"It definitely impacts the project. Obviously, we're extremely disappointed. Frankly, at this point, we're stepping back and reassessing our entire financial strategy on the project," said Eric Masutomi, vice president of planning for Outrigger.
Asked about her veto possibly impacting plans by Outrigger and others for making Waikiki more attractive to visitors, Lingle said "there are a lot of other ways we can help."
The governor said changing how Waikiki is marketed is one alternative, adding that Wienert is an expert in that area. She said another is sand replenishment on Waikiki Beach "that I am supportive of."
Lawmakers included $700,000 in the state budget to bring in sand to widen the beach between the North Kuhio Beach groin and the Kapahulu storm drain.
Lingle said her administration will work closely with the travel industry, including the Hawaii Hotel Association, on the issue of improving Waikiki's situation.
Lingle reiterated her position that the hotel construction and renovation tax credit "is just something the state can't afford at this time.
"It's like a lot of other things. It's not that they are not a good idea when they are looked at in isolation, but when you try to factor them into the financial condition of the state they just don't work," she said.
Last month, Lingle signed a law giving a $75 million, 10-year tax credit for construction of an aquarium to aid development at the Ko Olina resort in West Oahu.
Masutomi said Outrigger plans to talk with Lingle more about the benefits of the hotel construction tax credit to the state.
Meanwhile, Lingle said details of her trip to Japan are still being planned and will involve more than just promoting Hawaii's tourism.
"I'll be going over a day or two ahead of the rest of the group," she said. "I have some economic development, some military and general government issues I'm going to be dealing with."
Star-Bulletin reporter Tim Ruel contributed to this report.
