Appropriates $8,000,000 for an integrated market plan by HTA. (SB38 HD2)

A BILL FOR AN ACT

SECTION 1. The political, economic, and security uncertainties caused by the armed conflict with Iraq rise with each passing day. The painstaking efforts of United Nations weapons inspectors have revealed a serious lack of compliance by the government of Iraq with Security Council resolutions that call for disarmament and for the destruction of materials used to build weapons of mass destruction. As a result, the U.S. administration has prepared for an armed conflict or a war.

Furthermore, on February 7, 2003, the federal government raised the domestic terror alert from "high" to "elevated" because of a concern about a high risk of attacks by the al-Qaeda terrorist network against U.S. targets at home and abroad. U.S. intelligence and health officials have stated in public announcements and private briefings that they are particularly concerned about chemical, biological, or radiological weapons, including "dirty bombs" that would spread radioactive debris over a wide area.

The impact of the preparations for and now the war in Iraq are having and will continue to have an adverse effect on the economy and people of Hawaii. Although the State has enjoyed some success in economic diversification, tourism remains a crucial pillar of Hawaii's economy.

Our nation having now entered an armed conflict, a look back at history can provide valuable insight on the potential effects such a conflict or war may have on the State's economy. For example, the Persian Gulf War of 1991 drastically reduced the demand for air travel, with leisure destinations, such as Hawaii, hardest hit. Combined with a reduction in visitors, a significant spike in fuel prices also occurred, thus inflicting further damage on the already weakened economy.

Moreover, neither our nation nor our State has fully recovered from the impact of the terrorist attacks of September 11, 2001. While Hawaii's economy is slowly improving, our recovery has been gradual and fragile and can easily be derailed by another terrorist attack or by a war.

The purpose of this Act is to counter and mitigate the possible adverse effects that an armed conflict or war may have on the economy of Hawaii and the welfare of its people.

SECTION 2. There is appropriated out of the tourism special fund the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2003-2004 for the implementation of an integrated marketing plan by the Hawaii tourism authority to market and promote the State of Hawaii as a visitor destination; provided that the sum appropriated shall be in addition to the sums appropriated out of the tourism special fund in the general appropriations Act or any other Act. The marketing plan shall respond to the unstable market conditions resulting from the current conflict in the Middle East, Afghanistan, and Iraq. Existing tourism marketing contracts may be amended to implement the purposes of this Act.

The sum appropriated shall be expended by the Hawaii tourism authority for the purposes of this Act.

SECTION 3. The Hawaii tourism authority, with assistance from the Hawaii Visitors and Convention Bureau, shall report to the legislature by December 15, 2003, on its implementation of an integrated plan to market and promote the State of Hawaii as a visitor destination in response to the unstable market conditions resulting from the current conflicts in the Middle East, Afghanistan, and Iraq. The report shall include the details on how the $8,000,000 was expended, and how these expenditures relate to other expenditures by the Hawaii tourism authority for marketing.

SECTION 4. This Act shall take effect on July 1, 2003, and be repealed on June 30, 2004.