LIHU‘E — The president of the Hawai‘i Tourism Authority says that his agency is in jeopardy after its operating funds were left out of the state’s final budget and a measure aiming to create a state-run tourism office died during a conference committee meeting on Friday.
HTA President and CEO John DeFries released a statement on the lack of funding late Friday night, just hours after the committee’s decision.
“With the omission of the Hawai‘i Tourism Authority from the state budget bill and today’s deferral of HB1375, our work in holistic, integrated destination management, visitor education, and brand marketing is in jeopardy,” he said in the statement.
House Bill 1375, introduced by state Rep. Sean Quinlan (D-District 47), proposed to dissolve the HTA and replace it with an Office of Destination Management within the Department of Business, Economic Development and Tourism.
Lawmakers spent hours debating the measure in a Senate-House conference committee meeting on Friday, but were unable to reach an agreement. A similar bill, Senate Bill 1522, introduced by Sen. Donovan Dela Cruz (D-District 17), is also no longer in play, as it was not scheduled for a conference committee.
“Despite the impasse with the House on creating a proposed Office of Destination Management, I am confident that HTA can continue to operate with roughly $30 million of unspent American Rescue Plan Act (ARPA) funds,” said Sen. Lynn DeCoite (D-District 13), chair of the Senate Committee on Energy, Economic Development and Tourism, in a statement released shortly after the meeting.
The HTA had requested $75 million for the 2023-24 fiscal year and $60 million for the 2024-25 fiscal year from the state budget, called House Bill 300.
HB 300, which is awaiting final approval from the House and Senate before heading to Gov. Josh Green for consideration, appropriates $21.7 billion in general funds for the next two fiscal years, but leaves nothing for HTA.
The measure does appropriate $64 million to fix the leaky roof of the Hawaii Convention Center, where the HTA is headquartered. However, the convention center’s funding could also be affected, as its typical annual operating allotment of $4 million to $4.5 million comes from the HTA’s budget.
DeFries was grateful for the funding for the convention center’s roof, but added that the lack of money for HTA would be a challenge for his team.
“We appreciate the Legislature’s appropriation to repair the Hawaiʻi Convention Center roof, and with adjustments to current contracts, we will have funds to keep the lights on and retain our staff of 22,” he said in a statement.
DeFries added that his team and board would need to make “tough decisions in the coming days,” which could include canceling active procurements, contracts, and community work.
“We look forward to working with the Legislature to earn their confidence in our work ahead of next year’s session,” he said to conclude his statement.
DeCoite ended her statement similarly, stating she was “eager to have further discussions on this crucial issue with HTA and our legislative colleagues in the next legislative session.”
The proposed measures and lack of funding follow a rise in complaints of over-tourism across the state, as well as allegations by lawmakers that HTA is mishandling tourism.
HB 1375 and SB 1522 begin by noting that the HTA’s $34 million contract for marketing tourism in the U.S. has been “in a state of uncertainty since 2021.”
The bills continue by stating that the “situation has been widely publicized and has demonstrated the Hawaii tourism authority’s noncompliance with the Hawai‘i public procurement code.”
Ilihia Gionson, the HTA’s public affairs officer, declined to comment further on the current status of the HTA.
“We stand by John’s statement,” he said in a message to The Garden Island on Saturday.
In an interview with The Garden Island weeks ago, Gionson emphasized that the agency no longer promotes tourism and noted its goal of creating a regenerative tourism industry across the Hawaiian Islands.
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Emma Grunwald, reporter, can be reached 808-652-0638 or egrunwald@thegardenisland.com.
