The Hawaii Tourism Authority in recent years has been on a rocky road, incurring the mounting ire of state legislators — but never quite as precariously as today. Two resignations involving HTA’s top leaders have shaken the public’s waning confidence in the agency: last Thursday, Mufi Hannemann resigned as board chairman, amid possible freebie use of the Hawaii Convention Center for two events; the week prior, interim CEO Daniel Nahoopii resigned after 18 months, citing a toxic work environment.
The leadership turmoil has intensified lawmakers’ doubts about HTA — and it’s hard to argue against the need for drastic changes in HTA’s governance structure. As legislative confidence in HTA has eroded, so has the agency’s autonomy, to the point where confusing chains of command are hampering clarity of direction and operations.
As outlined in Senate Bill 1571, expect what’s left of HTA’s semi-autonomy to vanish — and for the agency to be subsumed under the state Department of Business, Economic Development and Tourism (DBEDT). Meanwhile, the niggling difficulty of retaining a CEO should ease, since SB 1571 also calls for the governor, not the HTA board, to appoint one. The board itself would get downgraded to an “advisory” panel, rather than a policy- making one.
It’s unfortunate that HTA, created in 1998 to adroitly lead Hawaii’s all-important tourism industry, has fallen so far from its lofty aspirations. The original vision for HTA actually aligns fairly well with findings from last year’s “HTA Governance Study,” which explored possible optimal operational models. The study suggested that evolving HTA into a community-based, nonprofit destination management organization might be an improvement, and recommended the agency remain detached from state government.
SB 1571’s proposal to place HTA under DBEDT, then, runs counter to that. However, the study does advise more direct gubernatorial oversight, so the bill’s provision for a governor-appointed HTA CEO seems to jibe there.
Indeed, creating a direct line of accountability for tourism successes, or woes, via HTA’s CEO to the governor would be positive; better oversight must be infused in the agency tasked with guiding Hawaii’s tourism industry.
In Hannemann’s situation, an audit revealed last week that $14,000 for convention center use for two events he led were initially unbilled. HTA has since tightened its policy, now requiring signatures of both HTA’s CEO and vice president of finance before any comps for space are approved.
Five years ago, HTA refocused its mission around four pillars — natural resources, Hawaiian culture, community and brand marketing — a promising strategy for better destination management and stewardship.
Unfortunately, internal strife and shaky handling of lucrative marketing contracts soon made HTA a growing target for legislators. Over the past few years, they stripped HTA of its procurement powers; shifted its funding source from a dedicated percentage of the hotel room tax, to a recurring lump sum budget of $63 million last year; and repealed HTA’s exemption from administrative supervision of boards, attaching it administratively to DBEDT.
That latter move increased confusion over who had final say over operations and budgetary matters.
In Nahoopii’s resignation letter, he cited “conflicting political agendas, inconsistent direction, and decisions that often appear driven by external pressures rather than the long-term interests of Hawaii.”
Such fundamental disarray cannot go on — especially given the unstable tourism outlook, with fewer Americans expected to travel due to economic uncertainties and anti-U.S. sentiment rising due to federal tariffs and policies. Hawaii must galvanize its tourism resources and strategies; visitor marketing and management must be focused and firm, not scattered and confused.
The best interests of Hawaii and use of public funds must be paramount. That means involving stakeholders across the tourism community who will advance Hawaii’s economic goals. HTA must pull itself together and regain its footing — quickly — to help guide Hawaii through the strong competitive headwinds now approaching.
