Hawaiʻi Tourism Authority leaders are asking the state Legislature to change two proposals that could have lasting effects on how the government handles tourism.
"At HTA, we're not questioning the fact that we need to change," said John De Fries, president and CEO of the Hawaiʻi Tourism Authority, during a Wednesday press conference.
Senate Bill 1522 and House Bill 1375 propose disbanding the semi-autonomous HTA and its governing board, whose members are appointed by the governor. The measures would create a new state agency that focuses more on managing tourism, rather than marketing the islands.
The new office would fall under the state Department of Business, Economic Development and Tourism. Its board would still be appointed by the governor.
Both measures are set for conference committees — the last stretch of the legislative process.
Despite supporting both measures earlier in the session, HTA leaders are now expressing their concern with certain sections of both measures.
"To say we're at serious odds with the Legislature is an understatement," said De Fries. "But what we have in common, all of us, is that we all care about our island home."
De Fries noted HTA's success in marketing tourism in recent years, and its recognition to implement new plans to manage tourism.
However, both measures would have repercussions on the state's tourism branding, which not only impacts marketing, but ultimately impacts other HTA-led efforts such as financially supporting community groups and organizations.
HTA Chief Administrative Officer Daniel Nāhoʻopiʻi noted the bills would jeopardize $14 million in federal funds for community programs — because HTA was the awardee.
"Just that little move of dissolving our agency and changing the name means we would actually have to reapply for those federal funds," Nāhoʻopiʻi said.
"These federal funds that we intend to use for important work with the Department of Land and Natural Resources, in terms of building new recreational opportunities, fixing a lot of the hotspots," he said.
HTA officials also highlighted that dissolving HTA and changing leadership would stop the authority's Destination Management Action Plans — which aim to address community concerns by creating systems to protect natural and cultural resources.
"Reducing the number of board members from 12 to nine does not solve a DMAP problem," De Fries said.
Another concern that has been discussed is timing. The House's proposal would go into effect July 1, while the Senate's would be phased in stages starting on the same day.
Nāhoʻopiʻi noted the timing would have long-term impacts on the state's economy. "There is talk of a global recession," he said.
"Federal recovery money in the United States has started to dwindle. So people don't have that extra disposable income to travel. We've seen changes on the U.S. side. We've seen cutbacks in flights, redeployment support. But at the same time, the international markets are starting to open up."
Disbanding HTA would result in the cancellation of marketing contracts in key visitor markets. Although Japanese visitor arrivals haven't recovered to pre-pandemic levels, tourism leaders are optimistic Japanese traveler numbers will improve this year. But if the authority is dissolved, that could impact the number of international visitors to the islands.
HTA leaders are asking lawmakers to make some amendments that would change the authority's focus in stages, and ensure management and community efforts continue without disruption.
When asked what the best outcome would be for the authority, De Fries said a restored budget of $75 million in the state budget, with House Bill 300, and for both measures to fall through.
"If for some reason, one of the bills makes it through ... our focus will be on the effective date," De Fries said.
"We respect their kuleana to make law, and we're law-abiding. If they choose to go down that road, we're obligated as the experts to tell them you cannot pull this together by July 1, 2023. In fact, it's dangerous to even be thinking about that," he said.
State lawmakers are expected to decide HTA's future soon. Senators have been assigned for SB 1522, and now awaits the conferees from the House. Meanwhile, HB1375 has not been assigned lawmakers as of Thursday afternoon.
