Visitor Marketing Contracts Moving Forward Despite Budget Crisis At Tourism Authority

© Honolulu Provided by KHNL The Hawaii Department of Tourism is moving forward with a nearly $70 million visitor management and marketing contract, though lawmakers won't pay them anything for the next two years.

HONOLULU (HawaiiNewsNow) - The Hawaii Department of Tourism is moving forward with a nearly $70 million marketing and visitor management deal, although lawmakers won't be giving them any money for the next two years.

In a chaotic end to the legislative session, lawmakers approved $64 million in repairs to the Hawaii Convention Center's roof but canceled funding for the Hawaii Tourism Authority for the fiscal year that begins in July.

This is not HTA's first budget crisis.

Cuts made during the pandemic are ongoing, as was made clear Tuesday when Jessica Rich, president of the Hawaii Aloha Visitors Association, came forward to demand the restoration of $85,000 in cuts made two years ago.

"Because we help visitors in crisis... VASH is in crisis. Our budget has been cut,” he told the HTA board during a special meeting to discuss the HTA budget and ongoing purchases.

Rich noted that VASH not only helps visitors who are victims of crime, disease and accidents, but also supports the authorities.

For example, they helped when 90 people were evacuated from their hotel during a barricade situation in December.

"We are an international model program because we take care of our tourists if something happens," Rich said.

But with zero dollars in his upcoming budget, HTA President George Kamm can't promise anything.

"We want to help, and then we have to work with our limited resources," Kamm said.

With funding guarantees from the governor and legislature, the board decided to proceed after a year and a half delay with three outstanding contracts. The largest is $38 million for continental marketing through December 2025. One is called Destination Stewardship and is spending $28 million through May 2026.

A third deal is for $2.4 million for marketing in Canada.

The board is scheduled to make three offers on the winning proposals on May 22.

"I think we're really grateful to be moving forward," Kamm said. "I think everyone will be happy with the way we've gone."

To avoid further delays after the election process has already begun, lawmakers and the governor have reached an agreement to tap a new $200 million discretionary fund. It's unclear exactly how much money HTA will need, as the agency has money in the bank to cover the upfront payment for the contract, Kamm said.

"It's still in flux, but from our understanding, we have the funds available to move forward," he said.

However, one concern among tourism industry leaders is that lawmakers were close to abolishing the agency entirely. So she has about seven months until the next hearing to justify her retention.

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