In the wake of continued visitor industry decline, the Hawaii Tourism Authority yesterday tentatively slashed $17 million, nearly 20 percent, from its proposed 2009 tourism special fund.

The HTA's decision to move its 2009 spending limit to $71 million from $88 million, a budgetary figure more in line with financial projections from the state Council of Revenues, has cut deeply into some of the state's highest-visibility tourism programs.

“;It was agonizing,”; said HTA Vice Chairwoman Sharon Weiner. “;No one is happy that this budget had to be cut in the way that it's being cut.”;

The proposed spending limits will go into effect immediately; however, most of their impacts will not be felt until 2009, said Lloyd Unebasami, interim chief executive and president for the HTA.

The amount available to the HTA in its tourism special fund is determined by Transient Accommodations Tax collections, such as hotel taxes. As per the Hawaii Legislature, the HTA receives 34.2 percent of these collections and the rest are distributed to other state programs.

  Based on the latest Council of Revenues projections, it does not look like the HTA's portion of TAT collections will exceed $75 million, he said. Another estimate from the Council of Revenues is expected by Jan. 10.

Once this information is released and the HTA has collected more of its own TAT data, the board may choose to revisit its spending limits, Unebasami said. In addition, there might be another $513,000 available for programs since the board has chosen not to commit those marketing funds at this time, he said.

  “;We will keep the budget under constant review,”; Unebasami said.

However, in the meantime, some popular tourism-funded programs have taken massive blows. Many of the hardest hit casualties fell under the HTA's tourism product development sector, which lost the right to spend $3.4 million, or 57.6 percent, of its previously allocated 2009 budget. Under this category, the HTA removed all of the $2 million in funding for its airport, harbor and cruise-ship greeting program, said Robbie Kane, the HTA's product development manager.

“;There's a little bit of rollover funds from 2008 for the music, hula and information support at the airports and harbors,”; Kane said. “;However, the HTA funding made up the bulk of their support.”;

The HTA also cut the entire $350,000 budget for the Waikiki Improvement Association's programs such as Sunset on the Beach, Waikiki by Moonlight and the evening hula and torch-lighting ceremony at Kuhio Beach.

“;Given their current position, the impacts on our programming could be devastating; however, I'm still hopeful that something can be worked out with the HTA,”; said Rick Egged, president of the Waikiki Improvement Association. “;As more financial information becomes available, I hope that they will be able to restore at least part of our funding.”;

While all of the Waikiki Improvement programs have multiple funding sources, the HTA funds 63 percent of the budget for the hula and torch show, 30 percent for Sunset on the Beach and 13 percent for Waikiki by Moonlight, Egged said. Also in jeopardy would be the New Year's Eve fireworks, he said.

  While a lot of the festivals and other programs that fall under product development have multiple funding sources, many of the smaller programs might find it difficult to make up the shortfall, Kane said.

  “;I'm just so sad that we can't continue funding these programs that we worked so hard to build,”; she said.

In other business, the HTA also discussed whether to revise their 2009 spending limits to include participating in President-elect Barack Obama's inauguration, as urged by U.S. Rep. Neil Abercrombie.

“;Let's see what the value is first,”; said state Tourism Liaison Marsha Wienert. “;We've never spent money on an inauguration in the past.”;