Lingle lashes out
at HVCBShe says the tourism marketing
agency may lose state business
and face an investigation
Gov. Linda Lingle said the Hawaii Visitors and Convention Bureau likely will not get all of the state's tourism marketing business after a scathing audit accused the private agency of misusing state funds.
"Any time you have public funds involved, the public needs to have confidence they are being used for their intended purpose," said Gov. Linda Lingle. She also said yesterday that the attorney general will look into issues raised by the state auditor's report.
The HVCB, formerly known as the Hawaii Visitors Bureau, has been the marketing arm of Hawaii's tourist industry in one form or another since 1902, according to the agency.
Lingle, in a news conference in her state Capitol office, said Hawaii Tourism Authority officials are looking seriously at spreading the business to smaller, specialized firms.
In 1999, a $114 million, three-year contract to market Hawaii was awarded to HVCB. The contract expires in December.
Breaking up the contract would be a responsible act, Lingle said as she praised the HTA, the state-run agency that oversees the visitors bureau.
"I would anticipate there is a high probability that HTA may award portions of its contract to organizations other than HVCB," Lingle said.
"They said, 'Let's look at whether or not we should continue to award the contract to one organization or perhaps there is an organization with expertise in Japan or Europe or meetings and conventions and perhaps it would be in Hawaii's interest to award that portion to a different segment,'" Lingle added.
The HTA board is reviewing contract proposals from 10 organizations, according to Rex Johnson, HTA president and CEO.
The tourism authority's marketing committee and industry review committee looked over the written presentations and spent three days listening to oral presentations, Johnson said. But, he cautioned, there is no indication of what will be the final recommendations to the HTA board.
"It was true there were good presentations all across the board, but until the marketing committee makes a recommendation, we just won't know," Johnson said.
The HTA is considering a four-year contract worth about $34 million a year, Johnson said.
Meanwhile, HTA has launched its own probe of the allegations raised in the highly critical audit, which was released yesterday. The Star-Bulletin first reported on a draft copy of the 69-page report last week.
Auditor Marion Higa charged that "inadequate oversight by the authority provided HVCB with a blank check to spend state funds for self-serving purposes."
Johnson said the HTA may also ask the attorney general and the state Ethics Commission to look at the HVCB.
The Associated Press contributed to this report.