STAND. COM. REP. NO. 1259

Honolulu, Hawaii

RE: H.B. No. 422

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred H.B. No. 422 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize contracts entered into by the Hawaii Tourism Authority for the marketing of all uses of the Hawaii Convention Center to be issued separately from the management, use, operation, or maintenance of the facility.

Your Committee received testimony in support of this measure from the Hawai‘i Tourism Authority and Hawai‘i Lodging & Tourism Association.

Your Committee finds that under existing law, the management contract for the Hawaii Convention Center is required to include the marketing of the facility. By allowing the management contract to be separate from the marketing contract, this measure will provide the Hawaii Tourism Authority with the ability to centralize the sales effort for all business relating to meetings, conventions, and incentives, which primarily results from customer requests that are directed to a single point of contact. In addition, centralizing the sales effort will enable efficiencies in staffing, marketing, travel, and sales technology as well as leverage existing destination branding and messaging for the meetings, conventions, and incentives business market.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 422, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair