In a statement released by the Hawaii Tourism Authority, it is stated they commend the Hawaii State Legislature for passing S.B. 1194, C.D.1. This pivotal bill, which strikes a delicate public policy balance, will make the current transient accommodations tax (TAT) rate of 9.25 percent permanent and provide an additional $14 million in funding to the Hawaii Tourism Authority (HTA). This will aid our efforts to sustain Hawaii’s tourism economy.
As a leisure destination, visitor spending is discretionary. Therefore, we must be cognizant of global economic conditions, which could have an adverse affect on spending. The permanent rate of the TAT will help us to maintain our competitive position in a global marketplace.
Eleven million dollars allocated to the HTA will help us to invest in opportunities to maintain our market share, through enhancing efforts in our core and developing international markets, as well as diversifying our tourism profile. We will also continue to develop and support initiatives that maintain and grow access, the lifeline of our visitor industry, for both the airline and cruise industries. Of the $11 million, $1 million will be utilized to establish a Hawaiian Music and Dance Museum at the Hawaii Convention Center, which will aim to share, perpetuate and honor our host culture.
Three million dollars will be allocated to fund natural resources projects, subject to the agreement of the HTA and the Department of Land and Natural Resources. These programs address the long-term sustainability of our destination, and will help in our efforts to protect Hawaii’s natural environment.
The HTA statement went on to sat mahalo (thank you) to the Hawaii State Legislature, our industry partners, and the community for their support and collaborative efforts in helping us to ensure the continued success of Hawaii’s visitor industry. This decision represents good comprehensive public policy that will ensure the Hawaiian Islands stay competitive. It is an investment in our people, place and culture, which will help us to remain a world-class visitor destination. We will continue our efforts in making Hawaii’s tourism economy sustainable well into the future, in order to support more than 166,000 jobs and help lead the state to economic recovery.
