Legislative Wrap-Up

The regular session of the State Legislature ended this week and sent to the Governor for signature a number of important bills relating to Hawaii’s Visitor Industry. These include bills pertaining to the funding and operation of the Hawaii Tourism Authority (HTA). I am proud to say that members of the Outrigger ‘ohana took an active role in the debate that shaped the legislation.

In the bills, HTA’s future funding for marketing Hawaii is set at approximately $61 million per year, about the same as the current level. The HTA board will be expanded by two public members to a total of 12 voting public members. At least six of the voting members must have knowledge, experience and expertise in a segment of the Visitor Industry. It is crucial to maintain a knowledgeable and experienced board at the HTA. There is no substitute for experience in the international marketing arena. No more than three members will come from any one sector of the Visitor Industry, i.e. hotels, transportation, retail, etc. A number of potentially damaging proposals were not moved out by the conference committee, which demonstrates great leadership on the part of some of our key legislators.

Recently, Outrigger’s participation in the legislative process has been the subject of comment in one of Honolulu’s daily newspapers. Our involvement has been questioned, suggesting that it is self-centered. That is puzzling because we have focused on the things that are good for our employees, our industry and all of the businesses, large and small, from travel desks to laundries, that Hawaii’s Visitor Industry sustains.

Yes, we did lobby to maintain the funding of the HTA at present levels. In the late 1990s, the HTA did a magnificent job of pulling Hawaii out of a decade-long slump. The growth in tax revenues generated by the Visitor Industry since the HTA began functioning has covered — several times over — the amount of money spent by the HTA. And the money comes from the Transient Accommodations Tax (TAT — “the hotel room tax”) — mostly paid for by visitors! We believe that it is in the best interests of all Hawaii that the Visitor Industry remain strong and competitive in a very tough global marketplace. There is no question that in Hawaii, Tourism Is Everybody’s Business.

Yes, we strongly supported the construction of a convention center. I can remember some 15 years ago when busloads of members of our ohana went down to the Legislature, waving signs and honking horns to make the point that Hawaii needed a convention center to help our state attract business and convention travel. A coalition of businesses and labor representatives also supported this position and we now have one of the most beautiful convention centers in the world. Besides the construction jobs the project provided, the facility will continue to increase employment opportunities as the convention business grows.

It is extremely gratifying that this year’s Legislature has officially amended the mission of the HTA to include the responsibility to market, operate, manage and maintain the Hawaii Convention Center. The Legislature also directed the HTA to embark on a coordinated statewide effort to promote Hawaii as a business destination. We are concerned about the legislative mandate that the marketing be first assigned to the operator of the center, however. HTA should be free to select the best in the world, regardless of who operates the center.

Yes, we have supported tax credits to stimulate the investment of new dollars in our community. For many reasons, Hawaii is a tough and expensive place to do business, which makes it difficult to compete – with the rest of the world – for a limited supply of investment dollars. That’s why tax credits are needed — to attract investments that would not otherwise come to Hawaii. Moreover, contrary to what some people believe, tax credits do not decrease tax revenues, since there can be no credit if there is no investment.

Yes, we have worked with the city government to consolidate the land and get the approvals necessary to start work on the Waikiki Beach Walk project on Lewers Street. This will be a much-needed catalyst for the ongoing revitalization of Waikiki, creating jobs and opportunity as well as adding value to the city’s real property tax base. It will also create a beautiful place for local residents to enjoy the best of what Waikiki has to offer.

Yes, we have been consistent advocates of improving public education in Hawaii. I spent countless hours putting together a set of standards for our public schools, and David Carey has continued this work because we know that the current broken system is not serving the children of our employees, our concessionaires, our vendors — our neighbors. Hawaii will truly prosper only when it catches up to the rest of the world — and, preferably, surpasses it — and becomes a recognized leader in education.

I agree with David, when he says, “Aren’t these the things that we, as a responsible corporate citizen, should be advocating? Aren’t they the things our government leaders should alsosupport?”

When we take these messages to the Legislature and City Council, we are not just focusing on Outrigger’s interests. We are also speaking on behalf of our employees, many of who are also participants in Outrigger Hotels Hawaii Political Action Committee. We also speak for our vendors and our small business concessionaires, which do not have the time and resources to carry the message of the importance of Travel & Tourism to Hawaii’s government leaders.

Yes, this is advocacy, but isn’t that what America is all about? — Free speech and a healthy exchange of ideas as legislative decisions are made.

We appreciate the support of the Legislature on tourism issues. While in tough budget times it’s difficult to spend more on marketing, it is the one place we can grow our tax and employment base for the future. In tourism, money spent on marketing serves the same function as seed for the farmer. Even when the crop is poor and grain is scarce, some grain must be set aside for seed if there is to be another crop, perhaps a better crop, next year. That’s why, in tourism, money for marketing is a wise expenditure. In Hawaii, Tourism Is Everybody’s Business.