WAILUKU » The newly organized Festivals of Aloha 2008 held in September was a success. But the group that organized Aloha Festivals 2007 is still climbing out of a financial hole and trying to pay off vendors, visitor industry officials said.

Organizers of the Aloha Festivals 2007 recently agreed to reimburse vendors on Lanai, Molokai and Maui up to a total of $40,000, said Deidre Tegarden, Maui County economic development coordinator.

Tegarden said she learned about a month ago that a number of vendors had not been paid, despite the county paying the $40,000 in grant money to Aloha Festivals 2007 for reimbursement.

Tegarden said she had a conversation with Aloha Festivals organizers, and they agreed to fully pay the vendors.

“;We're very happy that Aloha Festivals officials are going to follow through and fulfill their obligation, and the situation is being handled amicably,”; she said.

Charles Au, the volunteer treasurer for Aloha Festivals 2007, said his group has been offering to pay 60 cents on the dollar to vendors and owed a little more than $100,000 to vendors on Oahu, Kauai, Maui, Lanai, Molokai and the Big Island.

Au said the group was in the process of dividing the vendor accounts island by island to provide track payments as requested by Maui County.

“;Some of the vendors have been paid, and we're in the process of finding who has and who hasn't,”; he said.

Au said excess money from Aloha Festivals 2008 events on Oahu are being used to pay off vendors owed for the 2007 event.

“;It's been such a challenge. We appreciate the public support and patience. We're hopeful of getting things together, and with the public support we'll be able to do better,”; he said.

Au said the group no longer has an executive director and staff, and has concentrated its efforts on promoting events on Oahu.

Au said the Aloha Festivals group found that it was difficult to rely on volunteers to organize neighbor island events.

Terryl Vencl, whose Maui Visitors Bureau was in charge of receiving and disbursing funds for Festivals of Aloha 2008, said the event last year was a success and the vendors were paid.

Vencl said the events were reorganized into community events that attracted residents as well as visitors and that each designated community region decided what it wanted to organize as activities, including parades, games and a falsetto contest.

Phoenix Dupree, manager of the Blue Ginger Cafe on Lanai, said his business settled on the offer of 60 cents on the dollar and lost about $200 in reimbursement for providing food to musicians.

Dupree said he continued to support festival events last year because he realizes it helps to promote business on Lanai in September, a period when visitor activity is slow.

“;If it's for the visitor industry and we're getting people on the island, it's good for everybody,”; Dupree said.