HTA sets up $10 million marketing fund
By Taylor Hall
Advertiser Staff Writer
The state's leading tourism agency set its budget at $71 million for the next fiscal year — the same as last year — but created a new $10 million fund to help boost the visitor industry during the current slump.
The new allocation is an attempt to address the state's economic woes and allow the Hawai'i Tourism Authority to act faster when it sees opportunities to bolster tourism during the next fiscal year.
"Our main goal is to increase visitor arrivals in 2010," said Mike McCartney, president and CEO of HTA. He described the $10 million "marketing opportunity fund" as a way to boost visitor arrivals right away.
"This is intended to help stabilize Hawai'i's economy through direct support to our No. 1 industry."
Lloyd Unebasami, HTA's chief administrative officer, said that the money will allow the board to act on things that might stimulate tourism faster than in previous years.
The HTA has already allocated $2 million from the marketing opportunity fund to the Hawai'i Visitors and Convention Bureau for airlift programs from now until the end of the year. The agency is also considering the bureau's proposal for a media showcase "blitz" in the Pacific Northwest that blankets the area with Hawai'i messages during that market's busiest travel time.
The board ended up approving more money for marketing than the budget committee recommended last month; 71.9 percent ($56.7 million) of 2010's budget is allocated for marketing. That's up from last year.
The agency hopes to attract tourists back to Hawai'i while dealing with public concerns about H1N1 flu, rising fuel prices and high unemployment.
The state has been unable to reach an earlier target goal of 7 million visitors this year. Daniel Nahoopii, of the state Department of Business and Economic Development, said the state is currently projected to reach 7.1 million tourists by 2012, while 2010 is projected to have 6.7 million tourists.
The budget was approved by HTA members yesterday in a vote of 9-1. Board member Douglas Chang was the only member to oppose the budget. However, he said he was "happy with the considerable emphasis on marketing."