State cuts leisure
marketing budgetThe money saved from the
3.5% reduction will go toward
sports marketing pacts
and park improvement
McNeil Wilson Communications Inc. and Milici Valenti Ng Pack Advertising will keep their contracts to provide North American marketing services to the Hawaii Visitors & Convention Bureau, though the annual amount allocated to tourism advertising will be cut by roughly $500,000.
The bureau announced yesterday that its executive committee picked McNeil Wilson to continue providing North American public relations and Milici Valenti to handle advertising and media buying, following a competitive bidding process. The four-year contracts start in January and run through 2007.
Next year's North American advertising budget will be approximately $5 million, including fees and media buying services, down from $5.5 million in 2003, said Les Enderton, executive director of the Oahu Visitors Bureau.
The state is reducing its overall leisure marketing contract spending 3.5 percent to $32 million next year from $33.15 million this year, and the money is going into other programs overseen by the Hawaii Tourism Authority, including sports marketing contracts and $1 million for park and trail improvement.
In 2002, the leisure marketing budget was $35 million, although it was initially supposed to be $39 million. The HTA is locked into long-term marketing contracts with the PGA and the Pro Bowl that require more spending over time, but the authority's budget is capped by the state at $61 million, which means it can't feed off growth in state hotel room taxes.
"I have concerns about a declining leisure marketing budget. We, the state, have been very successful in the leisure market," said David Carey, head of hotel company Outrigger Enterprises Inc. "It's penny wise, pound foolish."
The North America portion of the state leisure marketing budget is being cut 3.7 percent to $20.8 million from $21.6 million, said Frank Haas, tourism marketing director of the state Hawaii Tourism Authority.
McNeil Wilson, the HVCB's North America public relations consultant since 1992, will have an annual contract worth $875,000, including fees and program costs, Enderton said. The company was one of four finalists for the job, as was Milici Valenti.
Enderton emphasized that the spending details have not been finalized, and the state Annual Tourism Marketing Plan for 2004 has not yet been approved by the Hawaii Tourism Authority's board. The plan is to be released at public meetings throughout the state later this month.
Of the $5 million North American advertising budget for next year, the bulk will be used for media buying, a shift from the past, Enderton said. The HVCB is planning a new ad campaign for next year that will use much of the creative work that has already been done, he said.
