HAWAI‘I TOURISM AUTHORITY BUDGET UNDER CONSIDERATION TODAY
The State House of Representatives’ Committee on Finance will be hearing HB300 relating to the state’s biennium operating and capital improvement budget this morning at 10:00 a.m.
To continue our progress and implementation of our 2020-2025 Strategic Plan and Destination Management Action Plans for each island, the Hawai‘i Tourism Authority has requested an operating budget of $75 million for fiscal year 2023-2024, and $60 million for fiscal year 2024-2025 and beyond. Our budget is part of the Department of Business, Economic Development, and Tourism’s request.
Prior to 2021, HTA’s work in tourism was funded directly by visitors through the Transient Accommodations Tax (TAT). In the midst of the uncertainty of the global pandemic, HTA’s allocation of the TAT was paused in 2020. The 2021 Legislature then passed HB862 – a measure that removed that dedicated source of funding from visitors and temporarily replaced it with federal relief funding, among other major changes. HTA funding for fiscal year 2021-2022 was in the amount of $60 million.
Two bills in the 2022 Legislative session that contained budget allocations for HTA did not make it through the process, a situation that led to no operating budget being allocated to the management of Hawaiʻi’s largest industry. A later Legislative allocation of $60 million was passed, but vetoed by Governor Ige over legal concerns. We entered fiscal year 2022-2023 with no assigned budget, operating on reallocated funds from previous years. It was only last month that we received an allocation of $35 million in federal relief dollars from the administration – more than halfway through the fiscal year.
Hawai‘i Convention Center
HTA is also responsible for the management of the Hawaiʻi Convention Center on behalf of the state. We are requesting the restoration of an annual expenditure ceiling of $28.5 million for the Convention Center Enterprise Special Fund (CCESF). An expenditure ceiling provides permission to utilize money that is already sitting in a fund – it is not a request for more funds. Historically, the CCESF was sourced from TAT revenues and reinvested into the operation and maintenance of the Hawaiʻi Convention Center, a state asset that serves kamaʻāina and visitors alike.
Critical repairs are also needed on the Convention Center’s roof to prevent water intrusion and structural damage. Last session, we requested $64 million in capital improvement funds for permanent repairs. The Legislature provided $15 million for temporary repairs. Conversations are ongoing this session with the tourism committees in both chambers of the Legislature to seek a path forward for permanent repairs to the Convention Center roof.
Looking Ahead
HTA entered this Legislative session with a requested base budget of $60 million for each of the next two fiscal years, and a $15 million one-time allocation for fiscal year 2023-2024. After three years of budget uncertainty, this year’s request will return us to an operational cadence that allows us to focus on the important work of balancing tourism’s economic benefits with its impacts through destination management, visitor education, and maintaining the integrity of The Hawaiian Islands brand globally.
We encourage those who are impacted by the work HTA does to pay close attention to the remainder of this Legislative session. You can see our latest testimony on our Tourism Policy page, and find bills, agendas, and live streams of hearings on the State Capitol website.
