Delay in budget jeopardizes Hawaii Tourism Authority's grant allocations.

Delay in budget jeopardizes Hawaii Tourism Authority's grant allocations.

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Tourism Authority's Budget Woes Threaten Community Programs in Hawaii

It's crunch time for applicants of the Hawai'i Tourism Authority's (HTA) community program, as the agency's delayed budget approval could upend their fiscal year start. The 'Umeke program, which backs community organizations promoting regenerative tourism, awarded $3 million last year, is at the heart of the issue.

Last year, 'Umeke funded events like the Aloha Festivals, Merrie Monarch Festival, and the Honolulu Marathon, as well as numerous smaller one-time projects and initiatives. The program supports grassroots programs, offers workforce development opportunities, and uplifts community organizations guarding Hawaii's natural and cultural resources. 'Umeke also aims to demonstrate the benefits of tourism to Hawaii's residents, who are growing increasingly concerned about ensuring that tourism's positive impacts outweigh its negatives.

The anticipated award notifications for this year's 'Umeke applicants were rescheduled for June 5, but the HTA board failed to secure budget approval during its monthly meeting on May 28. A day later, Gov. Josh Green signed Senate Bill 1571, which restructured HTA's governance model, downgrading its board to an advisory body and giving the state Department of Business, Economic Development, and Tourism control over HTA's budget.

HTA interim president and CEO, Caroline Anderson, expressed concerns, stating, "Some programs are starting in July, and so we tried our best (to get the budget approved). But the HTA board is advisory now, so they don't approve our budget anymore."

Chair of the HTA board, Todd Apo, acknowledged the complications created by the budget delay and suggested potentially delaying the program's start dates next year to prevent similar issues.

In the interim, Anderson reported that HTA has directed its destination stewardship contractor, Council for Native Hawaiian Advancement's Kilohana, to inform all applicants who submitted proposals for the 'Umeke programs of the budget delay. HTA staff now wait for a budget update from the Department of Business, Economic Development, and Tourism and approval of the overall state budget, which includes HTA's budget.

With the passage of SB 1571, the former voting member of the HTA board, James Kunane Tokioka, no longer holds a voting position, although he now controls HTA's budget. Magnifying the uncertainty, Tokioka and the HTA board had previously clashed over budgetary matters, and the change brought with it a different focus for HTA's finances this year.

The Legislature opted to maintain HTA's budget at last year's level, but Tokioka confirmed that priorities might shift. "There are definitely going to be some changes as to how programs will be getting funding now because some of the priorities will be a little bit different," he said.

Tokioka revealed his intentions to review the past $3 million allocation for the 'Umeke program to determine whether funding levels will stay the same, potentially leaving some applicants without funding. Tokioka noted the need to support 'Umeke applicants requiring funds to align with a July 1 start to ensure that DBEDT can prioritize releasing funds for those projects.

In the grand scheme, the changes to HTA's governance structure could impact not only community programs like 'Umeke but also the broader tourism industry. The new system seeks to allocate resources with greater emphasis on sustainability and community-driven goals, departing from the previous marketing-focused approach. This strategic shift signals a significant change in Hawaii's tourism management landscape.

1. The delayed budget approval for the Hawai'i Tourism Authority (HTA) could potentially disrupt the commencement of various community programs, including the 'Umeke program that supports regenerative tourism projects and events.
2. Last year, the 'Umeke program funded several community events such as the Aloha Festivals, Merrie Monarch Festival, and Honolulu Marathon, in addition to numerous smaller initiatives and grassroots programs.
3. With the passage of Senate Bill 1571, the former voting member of the HTA board, James Kunane Tokioka, now controls HTA's budget and has expressed his intention to review the past $3 million allocation for the 'Umeke program, potentially leading to changes in funding levels for this year's applicants.

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