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Yahoo
23-05-2025
- Business
- Yahoo
State audit criticizes Hawai‘i Tourism Authority's destination management
The Hawai 'i Tourism Authority's destination management focus is 'not new—or effective—and the agency remains unable to gauge its own performance, ' according to the latest state audit, which was especially critical of its community-driven Destination Management Action Plan effort. The state audit done by the office of Auditor Leslie H. Kondo also said, 'HTA's expedited DMAP effort was poorly planned and executed with key decisions deferred to third-party contractors and island steering committees. The result : many of the actions did not address hot spots, were underway or already achieved, or were impractical.' The DMAPs are HTA's latest destination management strategy, and the plans approved by the HTA board in 2021 were intended to detail the steps that the community, the visitor industry and other sectors deemed necessary to improve tourism management over a three-year period. The DMAPs were an outgrowth of the past HTA Strategic Plan, which ran from 2020 to 2025, and was touted as the first strategic plan that HTA developed as part of its shift from a mainly marketing focus to a greater emphasis on destination management. The audit findings were presented to the HTA board May 1 prior to a board discussion on setting the timeline and objectives for it next strategic plan and DMAP efforts, which are expected to conclude around November. State law requires that the Office of the Auditor at least every five years conduct a management and financial audit of all contracts or agreements awarded by HTA valued in excess of $15 million as well as additional audit issues that the auditor deems appropriate. HTA was last audited by the Office of the Auditor in 2018, and the latest audit, which spanned 2019 to 2023, is the fifth state audit conducted under state law. The most recent audit's stated objectives were to 'assess the Hawai 'i Tourism Authority's achievement of its 2016 and 2020-2025 strategic plans' destination management goals ' and to 'evaluate the effectiveness of the Hawai 'i Tourism Authority's Destination Management Action Plans (DMAPs ).' More than 500 people participated in the Oahu DMAP meetings, and HTA received more than 300 online responses. The concerns on Oahu played out across the islands, where many respondents expressed concerns about overtourism hot spots across the isles. Hawaii broke the 10 million visitor arrivals benchmark in 2019—prompting anti-tourism pushback from some residents. Concerns about the potential for visitors to spread COVID-19 during the pandemic kept anti-tourism sentiments high even when arrivals plummeted. Some residents came to enjoy the pandemic-created renewal so much that DMAP participants even placed Waikiki on a list of Oahu tourism hot spots, which also included North Shore / Haleiwa, Kailua, Hanauma Bay, Laniakea /Turtle Beach, Diamond Head, Lanikai, Makapuu, Kaena Point, Haiku Stairs, Maelieli Trail, Maunawili Falls and Lulu mahu Falls. A main takeaway that emerged during the DMAP process was that participants wanted managed tourism that protects natural and cultural resources. The DMAPs also promoted the use of reservations or other tools to manage hot spots where tourism has resulted in overcrowding, traffic congestion, degradation of resources and safety hazards, and is creating negative experiences for both residents and visitors. People like K.C. Connors, moderator of the Facebook site Enough Tourists Already, which has more than 3, 000 members, said the DMAP idea was 'great in theory, but poorly executed. Where were the benchmarks ? Why didn't they identify the carrying capacity of each island for tourism arrivals ? They also needed to look at the hidden costs of tourism and the diminishing returns ; the degradation of the aina ; and the impact of 'touristification' on communities when places that serve the community like dry cleaners get replaced by gift shops. The DMAPs seemed just as haphazard as HTA's marketing efforts.' Kondo also noted that an 'absence of reliable performance tracking undermines HTA's ability to make effective data-driven decisions and allocate resources to achieve destination management objectives. It also results in reduced transparency and public accountability over HTA's performance in relation to its destination management efforts.' For example, his audit noted that HTA dollars went to a myriad of DMAP efforts, including :—$8, 000 to clean up the Malae Heiau on Kauai, which is not open to the public.—$2, 500 to fund a coloring book about deforestation specifically for hotels.—$44, 505 to pay for reusable water bottles to be given to guests at five Maui hotels.—$105, 000 to install reef-safe sunscreen dispensers at 24 high-traffic Maui beaches ; and for a mineral-only sunscreen awareness campaign. Connors said Kondo's examples hit a nerve as 'hotels should not be getting DMAP money to fund projects. It's the local people that need the money.' Upon conclusion of the audit, Kondo recommended that 'HTA should focus on efforts that address hot spots, balance visitor and resident needs, and are more likely to improve resident sentiment towards tourism. HTA also needs to meaningfully hold itself accountable for its performance. This includes identifying goals with benchmarks and targets, and tracking and publicly reporting performance against these goals.' Connors said she hopes Kondo's audit recommendations revamp the upcoming DMAP process, which is currently handled in-house by HTA staff. Kuhio Lewis, Council for Native Hawaiian Advancement CEO, said in an email that CNHA's Kilohana Division currently leads the Destination Stewardship contract, which is separate from HTA's DMAPs, and that the capacity extends far beyond stewardship. However, Lewis said CNHA is ready to take on a larger role, including the DMAPS. 'At CNHA, we believe respectful collaboration and cultural understanding are essential to successful destination management. Our breadth of programming spans workforce development, cultural preservation, small business incubation, community resilience, and comprehensive economic advancement, all essential components of responsible tourism and long-term destination management, ' he said. 'These existing initiatives directly align with the goals outlined in the DMAPs and position CNHA as a natural and capable implementer.' Lewis said CNHA's statewide membership network exceeds 1, 400 people and organizations and uniquely positions CNHA to engage community voices, amplify cultural values and ensure solutions are place-based and community-driven. Caroline Anderson, interim HTA president and CEO, said at the HTA board meeting, 'I thank the auditors for conducting the audit and providing us with recommendations. We heard their findings and we took it all in. There are many things that they put in the report that we actually already are doing because we did our own audit last year. We are putting more metrics, milestones, targets into not only DMAPs, but also our strategic plan as well.' Anderson acknowledged that HTA could improve and would take the auditor's findings seriously. Still, more than half a dozen people from across the state testified in favor of the DMAPs and questioned the findings, which some testifiers pointed out were inexplicably drawn without interviewing any of the DMAP workers. Toni Marie Davis, executive director of the Activities & Attractions Association of Hawaii, who was on the DMAP for Maui, told the HTA board, 'I found this audit very different fro my experience on DMAPs. The group in DMAP was very diverse. We had very strong opinions on that committee, and we were able to get a lot done.' 'I found this very new to have it just be Maui-specific. Meagan DeGaia, who was our organizer /manager, did an excellent job, ' Davis said. 'I don't know how this audit came to the conclusions that they did. They never talked to me.' Anderson said, 'It really means a lot to me to hear from you and to know that your efforts with us in DMAPs made a difference. The community wants to have a say in tourism, and that's what this effort did.' DESTINATION MANAGEMENT EFFORTS FALL SHORT Key takeaways from the state Office of the Auditor's look into HTA's self-proclaimed 'destination management refocus ' included the following :—HTA's change in emphasis did not translate into substantively more money directed toward destination management over time.—Although HTA has been practicing destination management for years, it has yet to establish policies and procedures or complete organizational restructuring to support those efforts.—By omitting meaningful measures of effectiveness, HTA evades accountability for destination management efforts that have failed to achieve goals.—HTA did not report its underperformance of its current strategic plan goals, escaping scrutiny and avoiding accountability. The main audit criticisms of HTA's community-driven Destination Management Action Plans (DMAPs ) included the following points :—HTA's DMAPs were developed too fast and were implemented and monitored in an indiscriminate and nonsystematic way.—DMAPs are intended to 'rebuild, redefine, and reset ' tourism ; however, many of the actions had already been achieved, were well underway or were impracticable.—An HTA contractor hired to facilitate the DMAPs was not required to establish metrics to measure actions, classify the time period for actions or identify the agency responsible to carry out those actions.—HTA's DMAP tracker shows that few hot-spot activities were completed, and results took the form of meetings rather than mitigation. Source :
USA Today
07-05-2025
- Sport
- USA Today
Los Angeles Rams to hold minicamp in Hawai'i
Los Angeles Rams to hold minicamp in Hawai'i Show Caption Hide Caption Former NFL QB Alex Smith weighs in on the Aaron Rodgers situation Alex Smith explains why Aaron Rodgers should return for at least one more year. Sports Seriously The Los Angeles Rams win the award for best minicamp location. The Rams, in partnership with Hawai'i Tourism Authority, announced Wednesday that they will hold their minicamp in Maui in efforts to promote tourism to Maui and Hawai'i. "We are thrilled to return to Hawai'i and for the first time in the NFL bring Minicamp to Maui," Rams president Kevin Demoff said in a statement. "Los Angeles and Hawai'i share a special relationship and we are grateful to (Hawai'i Tourism Authority) for teaming with us for this historic partnership. Not only will this trip be a great opportunity for our players, coaches and their families to spend time together in a special setting, but also for our organization to celebrate and pour into youth football programs and players who call Maui home." The Rams will have their minicamp in Hawai'i from June 16 to June 19. The team also announced they will conduct on-field team activities featuring players in workout gear at War Memorial Stadium in Wailuku. "This new partnership we are kicking off honors long-standing fandom for the LA Rams by many Hawai'i residents and is sure to build even more fan loyalty in the islands," Hawai'i Governor Josh Green, M.D said in a statement. "We are super-excited to welcome, along with the Hawai'i Tourism Authority, the Rams Minicamp to Maui.' Follow USA TODAY Sports' Tyler Dragon on X @TheTylerDragon.
Yahoo
04-05-2025
- Politics
- Yahoo
Hawai‘i Tourism Authority under scrutiny amid allegations of hostile work environment
A state senator and some Hawai 'i Tourism Authority board members and former staff say the two main state agencies overseeing tourism failed to respond promptly to complaints about a hostile work environment—including alleged racist and sexist comments—that they said contributed to the recent resignations of five Native Hawaiian members of HTA's leadership team. Sen. Kurt Fevella (R, Ewa Beach ) told the Honolulu Star-Advertiser Friday that he has asked state Attorney General Anne E. Lopez to investigate complaints about a hostile work environment at HTA that allegedly included 'a chauvinistic attitude toward women and racist slurs toward Native Hawaiian workers ' and 'threats made to previous (HTA ) leadership.' In a written request sent to Lopez Thursday, Fevella said he was recently informed that female HTA board members had submitted complaints to her office regarding Isaac Choy, HTA's vice president of finance and acting chief administrative officer. Fevella told Lopez in his letter, 'If Mr. Choy's behavior, including his tone, demeaning manner, and communication style, has made female board members feel belittled and has created a hostile work environment, a thorough investigation must be conducted and cannot be swept under the rug. 'I am even more disturbed and outraged by reports that Mr. Choy made derogatory and dismissive comments, such as 'dumb Hawaiians' in the workplace. If true, these remarks are unacceptable and unlawful, ' wrote Fevella, who is Native Hawaiian. Choy said in an email to the Star-Advertiser on Friday, 'I vehemently deny all these allegations. All board and committee meetings are recorded and available on the HTA website.' Choy, a former state tax director and lawmaker, who was elected to five terms in the House of Representatives serving the Manoa district from 2008 through 2018, also told the Star-Advertiser on Thursday, 'I am not a racist, ' when asked in person for an interview. Toni Schwartz, spokesperson for the Department of the Attorney General, said in an email Friday that the department 'will not make statements on the existence or status of specific investigations or about possible pending cases.' However, the Star-Advertiser has obtained a series of documents that illuminate what Fevella is asking Lopez to investigate in relation to HTA, which is administratively attached to the state Department of Business, Economic Development and Tourism.—Former interim HTA president and CEO Daniel Naho 'opi 'i, who is Native Hawaiian, sent a resignation letter on March 19 to the HTA board alleging that the work environment was 'at times, outright hostile.'—A Nov. 25 incident report to Naho 'opi 'i from Tyler Gomes, administrator for the Council for Native Hawaiian Advancement's Kilohana, alleged that Choy called Gomes and the rest of the CNHA team 'dumb Hawaiians, ' during an August 2023 meeting, and afterward embarked on a pattern of behavior that was 'race-based in its inequity.'—HTA board member Stephanie Iona told the Star-Advertiser Friday that members of the HTA CEO Search Committee adjusted their vetting procedure so that the resumes of all applicants applying for the position went to the entire committee after the contractor running the executive search alleged that an HTA staff facilitator had expressed a concern about Polynesians. Choy and DBEDT director James Kuane Tokioka both declined a Star-Advertiser request for an in-person interview and asked for questions in writing. The newspaper emailed them questions Thursday and Friday asking about the allegations. Other than his 'vehement ' denial, Choy declined to respond to specific allegations. Tokioka told the Star-Advertiser in an email Friday that CNHA officials were not present at the August 2023 meeting, but that he was there and heard Choy use derogatory language during the conversation about CNHA with other HTA staff members. 'Immediately following the incident, I told Mr. Choy that his comments were unacceptable and that he should not use language like that in the future, ' Tokioka said. Tokioka said he informed Choy during an Oct. 11, 2024, meeting that he was placing a written warning in his personnel file and would inform Naho 'opi 'i of the written warning. 'After this was received by Mr. Choy, he sent an apology on October 14, 2024, to the staff reinforcing that this type of incident would not happen again, ' Tokioka said. 'At that point, this incident was considered resolved.' Tokioka said in an email to the Star-Advertiser's query about other alleged incidents outside of the CNHA complaint, 'You know these meeting are all recorded and if any of these comments were made at a board meeting it shouldn't be too hard to find. I was never in a meeting that comments as you listed were made.' But according to those who reported the other incidents, the alleged remarks were not made during public meetings. In his emailed response to the newspaper, Tokioka said, 'Some of the questions you asked, I am not able to answer or, I have no knowledge of the question or not enough information to answer the allegation. 'I also want you to know that as an employee of the State I've attended numerous harassment classes and when complaints are referred to my office from the 6 divisions and 12 attached agencies of DBEDT I take them very seriously.' On Thursday, the Star-Advertiser contacted CNHA's Gomes, who said that he waited to file a complaint against Choy because he initially thought the 'dumb Hawaiians ' comment was a one-off. He said that he reconsidered and reported the incident to Naho 'opi 'i after CNHA experienced a series of difficulties relating to its destination stewardship contract. The contract, which began in the summer of 2023, is worth $27.1 million for the initial 2-1 /2 year term with an option for two one-year extensions. Gomes said in the incident report, 'As a former state executive, I'm well aware of the state's required trainings through (Equal Employment Opportunity Commission ). This comment made by Isaac is in clear violation of the state's policies on hate speech.' In the report, Gomes alleged that Choy imposed compliance requirements for CNHA's contract that differed from what was expected of other vendors. Gomes also told the Star-Advertiser that Choy purportedly delayed the release of checks over a 400-day period to CNHA, despite the contract manager approving invoices. In the report, Gomes said, 'Based on what I believe is his underlying anti-Hawaiian sentiment, it is clear that this patterned behavior is race-based in its inequity.' Tokioka said Friday in an email, 'In August 2023, due to concerns with how CNHA /Kilohana Collective's deliverables were being provided to the HTA at the beginning of the contract, I asked Mr. Choy or someone from his team to review HTA's reporting guidelines with CNHA /Kilohana Collective to ensure that the deliverables provided were in alignment with contract requirements.' Tokioka said it was brought to his attention in February that payments to CNHA /Kilohana Collective were past due for more than $3.5 million. Tokioka added, 'Upon review, the HTA program manager assigned to manage CNHA's contract had not processed the payments, resulting in the outstanding balance. I replaced the HTA program manager and assigned Mr. Choy to step in.' Gomes said Thursday that HTA's payments to CNHA are now current and that since Tokioka intervened, CNHA's 'functioning relationship with Mr. Choy has been positive.' Changing currents Documents obtained by the Star-Advertiser indicate a shift away from the growing Native Hawaiian focus that emerged at HTA under John De Fries, the agency'sfirst Native Hawaiian president and CEO. Naho 'opi 'i, who DeFries hired as his HTA chief administrative officer, became the second Native Hawaiian to serve in HTA's top role. After DeFries resigned, Naho 'opi 'i was promoted to HTA interim president and CEO but resigned from the role on March 21 after 18 months. Other recent resignations by Native Hawaiian staff have included Maka Casson-Fisher, HTA brand manager ; 'Iwalani Kaho 'ohanohano, HTA senior brand manger ; Ilihia Gionson, HTA public affairs officer ; and most recently Kalani Ka 'ana 'ana, HTA chief stewardship officer and interim public affairs officer, whose resignation was effective Friday. Iona said, 'The question we should be asking as a board is, 'How could five top managers leave in less than seven months ? Do those five managers have a common denominator ?' Yes, they are all Native Hawaiians.' Iona, who is Native Hawaiian, said she is among the HTA board members who made complaints and called for an investigation. She said she first went to Naho 'opi 'i, then to DBEDT's human resources, and then to the AG's office. 'Until today, no response. What happens in the meantime ? Maka leaves, Iwa leaves, Ilihia leaves, Daniel leaves and writes a letter and now Kalani.' Naho 'opi 'i detailed a toxic work environment and a lack of support for the Native Hawaiian community in his resignation letter to the HTA board, which was obtained by the Star-Advertiser. In the letter, Naho 'opi 'i expressed disappointment that 'some legislators and leaders are not supportive of the strategic shift to a regenerative tourism model including efforts to ensure the commitment to the Native Hawaiian community (as stated in the Aloha 'Aina Economic Futures signed on by the board ).' Tokioka said Naho 'opi 'i did not bring concerns about HTA shifting away from the regenerative tourism model to his attention before his departure. DBEDT vs. HTA In his letter, Naho 'opi 'i' said some board members were advocating for board bylaws or legislation that 'decreased the control and responsibility of the HTA CEO in supervision of its staff while increasing the powers of the board or DBEDT.' Naho 'opi 'i told the Star-Advertiser on Saturday that a key reason he left HTA was that he was prevented from effectively addressing numerous complaints involving Choy, including : two formal complaints from HTA board members, two complaints from HTA contractors, one formal complaint from an HTA employee and multiple other informal employee complaints. 'I was facing a lot of resistance from (DBEDT ) HR saying that I should just resolve it from meeting with him, ' Naho 'opi 'i said. 'I talked to Isaac directly, but nothing got resolved. 'When I tried to do the board complaints, (the deputy attorney general ) said, 'No, the board has to take care of their own board complaints, ' he said. Naho 'opi 'i said he felt threatened because Tokioka had tried to discipline him, unsuccessfully, after Naho 'opi 'i represented the HTA board's position on a bill in 2024 that was not aligned with DBEDT's position. 'Every time I tried to do something to discipline staff or even just talk about issues related to HTA, Jimmy would step in if things that I was doing did not align with Isaac or his desires, ' he said. 'There's a long state process for disciplinary action.' Fevella questioned why the HTA board, which included Tokioka, promoted Choy to acting chief administrative officer on April 16 while unresolved complaints remained. Fevella said he plans to hold a news conference and sign-waving on Monday from 9 to 11 a.m. at the state Capitol calling to end racism and chauvinism at the HTA. Caroline Anderson, who became interim HTA president and CEO upon Naho 'opi 'i's departure, said in an email to the Star-Advertiser, 'We aspire to be an organization informed by Native Hawaiian values and always strive to provide a workplace where our staff and partners feel safe, valued, and respected. A practiced culture of aloha, malama, 'olu 'olu are necessary for our success. As this is a personnel matter, we cannot provide further details.' Newly elected HTA board Chair Todd Apo told the Star-Advertiser, 'The matter is in the Attorney General's hands and we have to wait for direction from them. We need to make decisions based on that.'
Yahoo
27-04-2025
- Business
- Yahoo
State bill would change oversight of Hawai'i Tourism Authority
CINDY ELLEN RUSSELL / REP. ADRIAN TAM'S OFFICE Hawaii Rep. Adrian Tam and Sen. Lynn DeCoite during intense negotiations Friday at the state Capitol before reaching agreement on Senate Bill 1571, which establishes major changes to the Hawai 'i Tourism Authority's governance model. CINDY ELLEN RUSSELL / REP. ADRIAN TAM'S OFFICE Hawaii Rep. Adrian Tam and Sen. Lynn DeCoite during intense negotiations Friday at the state Capitol before reaching agreement on Senate Bill 1571, which establishes major changes to the Hawai 'i Tourism Authority's governance model. State lawmakers advanced a bill by the Legislature session deadline that will significantly change the governance model for the Hawai 'i Tourism Authority for the first time since it created the agency in 1998. A Senate and House conference committee delayed votes on Senate Bill 1571 on Tuesday, Wednesday and Thursday, and met three times on Friday before finally approving a conference draft just before the 6 p.m. deadline. The bill heads to the full House and Senate for a final vote this week. At least four conference drafts emerged throughout last week, indicating that Senate and House conferees were engaged in robust discussion. HTA's overall governance structure had been discussed during previous legislative sessions. Various bills also have been introduced but not advanced in recent years to explore whether HTA's structure as outlined in Hawaii Revised Statutes is the best approach for managing tourism, a top economic driver. However, legislators showed that some lingering doubts about HTA's capabilities remained when they repealed HTA's exemption from the administrative supervision of boards and commissions, which went into effect July 1. The exemption was its last after the Legislature took away its procurement exemption in 2021, and in 2022 the agency lost its special fund status. Late last month, state lawmakers renewed efforts to tighten oversight of HTA after the agency underwent more leadership shake-ups while dealing with ethics allegations that procedural deficiencies allowed for inappropriate freebies at the Hawai 'i Convention Center and that Hawaii Tourism Conference partnerships were inconsistent. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. There also were allegations about potential procurement violations, and late payments to contractors. Sen. Lynn DeCoite (D, Hana-East and Upcountry Maui-Molokai-Lanai-Kahoolawe ), chair of the Senate Committee on Energy, Economic Development and Tourism, and chair of the Senate conferees for SB 1571 said Friday that the HTA bill 'represents our efforts to improve and strengthen the organization.' DeCoite acknowledged the hard work of Rep. Adrian Tam (D, Waikiki ), chair of the House Committee on Tourism, who chaired the House conferees noting that 'it's been back and forth between the both of us.' The conference draft eventually approved by conferees includes the following key changes, which go into effect if the bill becomes law :—Downgrades the HTA board to an advisory board.—Amends eligibility requirements to serve on the HTA advisory board.—Removes the director of the state Department of Business, Economic Development &Tourism from the board.—Requires a member of the board to represent a tourism-impacted entity.—Allows the House speaker and the Senate president to each appoint an HTA advisory board member.—Exempts all positions filled by HTA within DBEDT from the state civil service law.—Allows the HTA advisory board to appoint the HTA president and CEO, subject to the advice and consent of the Senate.—Requires the HTA president and CEO to report to the governor.—Allows the HTA advisory board to set the term of the HTA president and CEO in the hiring contract. DeCoite said that tourism is the biggest economic engine for Hawaii, and that the HTA must increase leadership and accountability 'to rebuild public trust within our community.' She said the bill may not solve all of the problems that lawmakers heard that HTA was experiencing this session, but would provide 'a time out ' to 'get us on the right track.' Tam told the Honolulu Star-Advertiser that the bill represents the biggest governance changes to HTA since it was created, but said, 'It's been a long time coming. HTA was plagued with issues prior to me becoming chair of the House Committee on Tourism. I've leaned on people with past experience to help me reform it.' Tam said even so, he was hesitant at the beginning of the session to move SB 1571 forward but the idea gained traction during the session as he lost confidence in HTA. The HTA Budget, Finance, and Convention Center Standing Committee held a meeting this month and disclosed that the state Attorney Gen eral's Office is reviewing whether the HTA must pay $780, 000 in interest for millions of dollars in late payments to a major contractor. At the same time, DBEDT Director James Kunane Tokioka told the committee that another pending issue is a possible procurement violation in relation to a $1.5 million Los Angeles marketing contract executed with the Hawai 'i Visitors and Convention Bureau last fall as part of a Maui recovery plan. David Arakawa, a HTA board member and chair of the standing committee, also brought up the issue of sponsorships and questioned why premier conference partners for the HTA's fall Hawaii Tourism Conference did not pay sponsorship fees. Caroline Anderson, interim HTA president and CEO, told the Star-Advertiser that premier conference partners were different than sponsors without that designation. It's unclear where the discussion about semantics will land. But Tam said with the passage of SB 1571, lawmakers are 'hoping to gain a level of ethics on the advisory board and trying to prevent the actions of what has happened that transpired and lead us to this point in the past and is happening again.' 'There are actors out there who can find loopholes in anything and anything can be abused, but we're hoping that this makes it harder, ' he said. 'As Sen. DeCoite said, this won't solve all the problems, but it's a fresh start.' The board already has undergone leadership changes and had been vetting a new governance model on its own. Todd Apo was elected by the HTA board to serve as its chair in late March. Apo replaced former chair Mufi Hannemann, who stepped down from the role but remains on the board. 'I appreciate all the work on (SB 1571 ). The upside is that we now know … the foundational landscape that we need to work in, ' Apo said. 'Uncertainty is the biggest risk, so we, from an authority standpoint, a board standpoint, and an industry standpoint understand what we need to work within.' Apo said HTA will need to factor the changes that SB 1571 will bring into its ongoing review of a third-party governance study. 'I hope we can do that in relatively short order so that we can spend the bulk of 2025 getting HTA and the industry in the best position to serve Hawaii, ' he said. In 2023 with the looming threat of bills calling for HTA's repeal, the HTA decided to fund a third-party governance study. Through a competitive bidding process, Better Destination LLC, founded by Cathy Ritter, was selected for a $294, 400 contract, and the top recommendation released in the summer was for HTA to restructure into a destination stewardship organization with a new name. The recommendations were presented to the HTA board June 27 and have been under consideration by the HTA Governance Study Permitted Interaction Group. For the governance study recommendations to move forward, it also requires the support of state legislators, who may be resistant to giving up even partial control of the state's tourism industry—a cash cow that delivers some $1 billion annually in transient accommodations taxes. Apo said board members will need to take some time to understand what the new changes mean for HTA now and in the future. 'Working with both the department and DBEDT as well as the governor's office, we'll figure it out, ' he said. 'We'll look at the details of the language of the final bill, but our job is now to implement it and put our leading state industry in the best position that we can.'
Yahoo
08-04-2025
- Business
- Yahoo
Hawai‘i Tourism Authority chair recommends putting audit probe ‘to bed'
STAR-ADVERTISER FILE PHOTO Hawaii Convention Center STAR-ADVERTISER FILE PHOTO Hawaii Convention Center Hawai 'i Tourism Authority board Chair Todd Apo told the HTA Administrative and Audit Standing Committee on Monday that he did not 'see an abuse of discretion ' regarding Hawai 'i Convention Center discounts received by two nonprofits affiliated with the previous HTA board chair, Mufi Hannemann, and recommended putting the matter 'to bed.' The committee was expected to take action on issues raised in the fiscal year 2024 HTA Independent Financial Audit, which was presented at HTA board meetings on March 25 and 27 and led Hannemann to resign his position as board chair, though he remains on the board. State Auditor Leslie H. Kondo, who was expected to speak at the committee meeting, did not show up. The financial audit of HTA's fiscal year 2024 by Accuity LLP, a firm contracted by the state auditor's office, determined that there were procedural deficiencies that allowed for free food and rent for events at the convention center, but did not issue a finding of fraud. The main audit document did not name the events in question, but they were the Hawai 'i Lodging &Tourism Association's public-safety conference, which was held at the convention center on Dec. 6, 2023, and a meeting of the Pacific Century Fellows, which was held May 15 in an HTA boardroom at the convention center. The two organizations were not originally billed by the convention center as the events were reserved under HTA's space form, and food and beverage costs for events on those forms are later reconciled with HTA. However, HLTA and PCF were presented with a bill for nearly $14, 000 prior to the March 27 HTA board meeting. Apo told HTA's Administrative Audit and Standing Committee, 'I believe the CEO had the authority and discretion to identify HTA events and use the HTA request form in order to do those which happened here. I understand that there can be a difference of opinion as to whether these two events should have been HTA events, but I don't see an abuse of discretion in what was done in deciding to use these forms. Therefore, two entities were not charged.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Hannemann said he resigned as board chair to avoid distractions and to focus on repairing damage to the reputations of HLTA and PCF. He said that he did not ask for special use and that the meetings were approved by HTA staff leadership and charged in accordance with the normal HTA and center practices. He said Monday in a statement to the Honolulu Star-Advertiser, 'I would like to thank the Hawai 'i Tourism Authority Chair Todd Apo for correcting the record and clarifying the unfortunate chain of events regarding the use of the Convention Center. I am especially pleased that his recent statement clears me and the two nonprofits, the HLTA and Pacific Century Fellows, of wrongdoing. The integrity of these non-profit organizations—one of which has raised millions of dollars for Hawaii's charities and the other a premier leadership mentoring program—should have never had their reputations damaged or impugned.' Daniel Naho 'opi 'i, who resigned as interim HTA president and CEO effective March 21, told the Star-Advertiser that he invited PCF to the convention center and had administrative staff fill out an HTA space request. Naho 'opi 'i said he did not make a request for the HLTA event, which fell under destination stewardship. However, he said that both events qualified as HTA activities based on past practices. 'They were typical of many other events that we had done, ' Naho 'opi 'i said. 'We've had many requests. This is not unusual.' Apo noted that since the audit report, HTA has made changes to how it reserves convention center space and is working to determine whether adopting additional policy or procedures is warranted. 'To me this should put to bed the questions of these two events that we were dealing with at Tuesday's and Thursday's special and regular board meetings, ' he said. 'I'd really like us to be able to focus on correcting going forward, learning from what happened, and to move on.' The HTA board has not taken a vote related to the issues, nor have members of the HTA Administrative and Audit Standing Committee. Not all details about the procedural deficiencies that allowed for free food and rent for events at the convention center have been addressed, nor have all of the billing issues been resolved. Hannemann said the organizations were surprised to receive a bill over 10 months after the last event given that there were numerous indications that the two events were being co-sponsored by HTA or even comped by the center. HTA board Member Stephanie Iona, who previously managed Koloa Ballrooms, Hemmeter Corp. events and many hotel operations for large conventions, said she is among the board members who requested that a full list of discounted and comped events be shared and compared with what was submitted to the auditor. Iona said based on her past experiences, final paperwork should include key information such as the date, time of the event, number of guests, menu and services along with the payment requirement and a customer signature agreeing to the services. 'No services are provided without payments. But should a concession be provided after the services, any balance is sent with a bill for payment, ' she said. 'If not paid, delinquent notices, etc., are followed up, leading to harsher measures of collection if needed.' Since receiving invoices, HLTA and PCF have sent money to the center. However, both organizations are asking for a clarification of the costs, which they say are inconsistent with the number of attendees and their recollection of the food and beverages that were served. State Business, Economic Development and Tourism Director James Kunane Tokioka, who is a voting member of the HTA board, told the Star-Advertiser that to his knowledge no additional organizations have been billed. Apo told the Star-Advertiser after the committee meeting that he was satisfied the issues raised by the financial audit were examined and that corrective action has been taken. 'Whether anything else comes up in regard to these transactions, we will address them if that happens, ' he said.'I thank Mufi for having stepped out of the chair position so that we could get this look and understanding of the situation objectively, and appreciate the patience of the two organizations, who do really good things for our state.' While Monday's meeting was about moving on, it stopped short of full resolution, leaving some questioning the thoroughness of the HTA board's inquiry. It also left others questioning whether the call-out was targeted since only the HLTA and the PCF were released as examples, and Naho 'opi 'i said other organizations received similar discounts. To be sure, there have been many public instances of board infighting, especially between Hannemann and Tokioka, who is also a voting member of the board. HTA board member Mahi na Paishon said at the committee meeting, 'I remain concerned on how this will unfold in terms of possible perception in the way that HTA is handling communications. The possible perception (is ) that perhaps there could be concerns of possible defamation or things of that nature and possible targeting of certain individuals, whether it be at the staff level or the board level.' Tokioka told the committee that he was ready to move on, though he had previously been among the most critical HTA board members who were reviewing the allegations against Hannemann that were brought forward during the audit by HTA Vice President of Finance Isaac Choy. 'I agree with Chair Apo's assessment of all of this, and obviously, I was one of the vocal people in the last two meetings. I think the best thing for us to do now is to move forward, ' Tokioka said during the committee meeting. 'I think that we can all agree that it should not have happened and we should have had better safeguards in place, and that's on HTA. We've fixed that and we've moved forward.' Tokioka added, 'I'm sure that the auditor is going to be watching this or hearing about this, and I'm sure he will respond to what Chair Apo said, and that's his prerogative.' HTA board member David Arakawa questioned Apo's recommendation during the committee meeting and expressed concerns about lingering issues. 'I take issue with the chair making a finding that there was no abuse of discretion. I think the audit speaks for itself, ' Arakawa said. 'If that's our position, that there was no abuse of discretion, then we should formally challenge the audit.' Following the audit discussion, the committee also went into executive session for an agenda item listed as 'Discussion, Evaluation, and Action Relating to the Resignation of Interim President &CEO Daniel Naho 'opi 'i and the Proposed Interim President &CEO, Chief Administrative Officer, Caroline Anderson.' After the lengthy closed-door meeting, John Cole, state deputy attorney general, said there were a motion and a second on a recommendation for an interim HTA president and CEO but that the motion did not pass, so no action was taken. Even if the committee had voted to support a new interim president and CEO, the full HTA board would have had to approve its recommendation. Anderson has been serving as HTA interim president and CEO since Naho 'opi 'i's departure.
