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The Honolulu Advertiser
Posted on: Wednesday, November 12, 2008

HTA marketing plan makes economic sense

As if Hawai'i isn't under enough strain, an unproductive battle has broken out over strategies for rescuing the struggling tourism sector.

Anticipated budget cuts to the Hawai'i Tourism Authority, the agency tasked with supporting the state's bedrock industry, have driven the HTA board to sharply reduce spending on cultural enhancements — such as hula and Waikiki torch-lighting — in favor of a nearly $1 million boost for marketing.

This drew fire from state lawmakers, including state Sens. Clarence Nishihara and Donna Mercado Kim, who say such programs buoy the industry by helping set the Hawai'i "brand" apart from competitors such as Mexico, California and the Gulf Coast.

While that's true, it's doubtful that the short-term absence of the cultural events will deter visitors from coming to the Islands.

But the economy will.

People worried about their jobs, retirements and budgets tend not to spend much money on vacations, and it takes persuasion to entice them to part with the cost of airfare and a hotel stay.

The consequences of the economic doldrums are clear. Visitor arrivals have been falling, including a 19.5 percent drop in September.

Tax dollars are best spent on reaching tourist markets with the key message: Hawai'i delivers a quality experience at a reasonable cost. Failure to do so would harm the industry and economy more than a hiatus for cultural events.

The agency, faced with declining funds, has taken the rational step of trimming its budget and sharpening its focus on marketing projects.

The state Council on Revenues indicated HTA funding would drop from $88 million to $75 million. Anticipating further reductions due to a worsening situation, the board cut $4 million more.

The reduction in spending on activities aimed at improving the visitor experience is unfortunate, but it could be offset in lean times by a campaign to enlist more private partners to finance such projects. Such a search is already under way to replace the HTA subsidy for the popular "Sunset at the Beach" events.

Lawmakers should join that effort, rather than micromanage the way the authority is directing its limited funds to rev up the state's primary economic engine.