Hawaii to Award U.S. Tourism Marketing Contract Despite Funding Cuts
Key Points
- Hawaii Tourism Authority is moving forward with a $51.3 million contract to market to the U.S. mainland, despite not receiving state funding.
- Challenges in awarding the contract include legal disputes, cancellations, and combining it with destination management for a more sustainable tourism approach.
- The failure to award the contract nearly led to the agency's dissolution during the legislative session.
Summary
The Hawaii Tourism Authority is proceeding with a $51.3 million contract to market Hawaii to the U.S. mainland, despite not securing funding from the state legislature for the next two years. The agency faces significant challenges, including legal disputes and controversies over awarding the contract to a native community non-profit rather than the traditional Hawaii Visitors and Convention Bureau. This decision is part of a broader effort to adopt a more sustainable approach to tourism, although it nearly resulted in the agency's dissolution during the legislative session.
The Hawaii Tourism Authority plans to move forward with its plans to award an expensive contract to market Hawaii to the U.S. mainland, despite not being allocated funding from the legislature for the next two years. The decision was made at a board meeting Tuesday, according to Honolulu Star Advertiser (paywall). The contract is worth up to $51.3 million.
The other contracts the agency plans to move forward with are one for destination management, which is worth $34 million, and another for marketing to Canada, which is worth $2.8 million. All contract winners will be selected on May 22nd. Each contract spans at least two years.
When it comes to funding, the agency has a rough road ahead. Last week, it was left out of the official state budget at the end of the legislative session. It will get funds from money set aside by lawmakers for deferred maintenance projects. Requests for funds will have to be approved by the governor and lawmakers.
The contracting process for the U.S. market has been far from smooth. It’s been delayed by legal disputes, canceled by an outgoing public official and forced to restart.
A major point of contention was the award of the contract to a native community non-profit over Hawaii Visitors and Convention Bureau, which has historically won the U.S. marketing contract. Another was that it was combined with destination management under one contract. These moves are part of the agency’s attempts to take a more sustainable approach to tourism that takes resident needs and interest more into account.
The failure to award the contract was one of the reasons lawmakers almost dissolved the agency in the recent legislative session.
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