UPDATE ON 6/29:
HONOLULU (KITV4) -- The Hawaii Visitors and Convention Bureau (HVCB) will stay on as the Hawaii Tourism Authority's (HTA) US market brand management contractor through at least the end of September.
HVCB's contract was supposed to end on Wednesday, but HTA just extended it for ninety more days -- through September 28.
Earlier this month, HTA awarded its new US market brand management and visitor education contract to the Council for Native Hawaiian Advancement (CNHA), and HVCB filed a protest.
The state Department of Business, Economic Development, and Tourism (DBEDT) is in charge of handling that protest.
DBEDT director Mike McCartney said in a statement on Wednesday night: "The Hawaiian Islands are in the middle of the busy summer travel season and planning needs to be done for the upcoming fall period.
"Therefore, I have determined, with the concurrence with the State's Chief Procurement Officer, that it is advantageous for the state to extend the current U.S. MMA contract with Hawaii Visitors and Convention Bureau for 90 days, until September 28, which should provide adequate time to resolve the current protest."
HTA will pay HVCB $4.25 million for the three-month extension for the US market brand management contract, and $375,000 for global support services.
"After conferring with HTA President & CEO John De Fries, we agreed that granting this extension is in the best interest of our State and creates the necessary timeframe within which the protest can be resolved," McCartney said.
According to the RFP issued in April, the new US market brand management contract is supposed to be worth about $16 million for July through December of this year, and nearly 19 million dollars for next year.
CNHA CEO Kuhio Lewis issued a statement following DBEDT's announcement: "We understand and respect the integrity of the contract procurement process that HTA is still working through.
"During this time, we will continue to move forward with our planning which includes engaging the expertise and knowledge of the Kilohana Collective partners as well as our transition team members that we recently announced."
ORIGINAL STORY ON 6/28:
HONOLULU (KITV4) -- The Hawaii Tourism Authority (HTA) held its monthly Budget, Finance, and Convention Center standing committee meeting on Tuesday, a day after Gov. David Ige announced he intends to veto the bill that would have funded HTA's $60 million budget for fiscal year 2023.
The new fiscal year starts this Friday. The committee on Tuesday planned as if HTA will get the $60 million and is noting that the draft budget is contingent upon HTA receiving the funding.
"We don't know exactly where the funds are coming from. We don't know exactly how much the funds are but at least that would allow the budget to move forward," said HTA chief administrative officer Keith Regan.
HTA plans to use unspent fiscal year 2022 American Rescue Plan Act (ARPA) funds to pay its staff during the start of the new fiscal year while it awaits new funding. Regan said HTA currently has more than $10 million in unutilized ARPA money.
Ige said he put House Bill 1147 on his Intent to Veto list based on guidance from the state Attorney General because it could be challenged in court as a gut and replace bill.
The annual funding for HTA is usually in the state budget, but legislators during this year's session removed it from the budget bill, House Bill 1600, and instead put HTA's funding in HB1147.
However, lawmakers put that language into HB1147 at the last minute -- a bill that initially had nothing to do with HTA -- so the public did not have a chance to weigh in.
HB1147 would have provided HTA with $60 million from the state's general fund, plus it also included a $28.5 million expenditure ceiling for the Hawaii Convention Center.
"And just to be very frank with the committee, every indication is that the governor is supportive of getting us at least the $60 million to support our operational, what's in that budget. So could it be potentially more? Potentially. But we know the governor has stated publicly that he is going to support us in our needs," Regan said.
Meanwhile, HTA is also dealing with a significant change this week. Wednesday is the last day of its US market brand management contract with the Hawaii Visitors and Convention Bureau (HVCB). HVCB was not awarded a new contract.
- By Marisa Yamane and Kathryn Doorey
Last Tuesday, HVCB president John Monahan told HVCB members in an email: "I wanted to inform you that today HVCB filed a formal protest of HTA's decision to award the US Leisure contract for resolicited RFP No. 22-01 to the Council for Native Hawaiian Advancement (CNHA)."
HTA is administratively attached to the Hawaii Department of Business, Economic Development, and Tourism (DBEDT). DBEDT director Mike McCartney is handling HVCB's protest.
DBEDT spokesperson Charlene Chan told KITV4 on Tuesday that McCartney has not made a decision yet about the protest, but she is hopeful that he will on Wednesday since it is the deadline for the end of the current contract with HVCB.
The contract for branding and visitors education in the US market was initially awarded to HVCB in December, but was rescinded following a protest by CNHA. HTA reissued the Request for Proposal (RFP) in April, and then awarded the contract to CNHA.
The contract is worth approximately $16 million for July through December 2022, and nearly $19 million for 2023. No dollar amount was listed in the RFP for 2024. The contract also included the option of extending for two more years beyond 2024.
CNHA on Tuesday announced that it has appointed Doug Chang as chair of its Kilohana Collective's transition team. Chang is general manager of the Ritz-Carlton Residences, Waikiki Beach.
"We understand and respect the integrity of the contract procurement process that HTA is still working through. We also felt it was important that we continue to move forward with our planning so that the Kilohana is ready, pending the outcome of that process," said CNHA chief executive officer Kuhio Lewis.
CNHA also announced its other transition team members:
- Ann Botticelli, former Hawaiian Airlines senior VP of corporate communications and public relations
- Frank Haas, former HTA vice president and director of marketing and current visitor industry consultant
- Corbett Kalama, executive vice president, The Harry and Jeannette Weinberg Foundation
- Amy Kalili, interim executive director, Kilohana Collective, and partner, Pilina First LLP
- Micah Kane, CEO and president, Hawaii Community Foundation
- Kuuipo Kumukahi, manager of Hawaiian culture, Hyatt Regency Waikiki
- Kuhio Lewis, CEO, CNHA
- Aaron Sala, director of cultural affairs, Royal Hawaiian Center and former HTA chair
- Rebecca Soon, president, Ward Research
- Roy Tokujo, Ulalena founder and former HTA Chair
- Sun Wong, principal, CM Marketing Group and former chair of Oahu Visitors Bureau
- Kuhao Zane, COO & creative director, Sig Zane Designs and president, Edith Kanakaole Foundation