Hawaii Comes Up With Compromise Solution to Fund its Tourism Organization

After losing funding from the state government and avoiding being disbanded, the Hawaii Tourism Authority (HTA) has awarded nearly $70 million in visitor marketing and management contracts.

According to Hawaii News Now, the bill to dissolve the HTA and change tourism’s structure in the state has been deferred until lawmakers come back in about seven months for the next session, but reassurance from Governor Josh Green and other top legislators of support has given the agency confidence to advance the funding.

Government officials in Hawaii approved $64 million in funding to repair the Hawaii Convention Center, but provided no additional cashflow for the HTA in this year’s budget.

HTA Chairman George Kam said the lack of funding would force the agency to dip into its own coffers before possibly tapping into a new $200 million discretionary fund. The first contract awarded was for marketing to the mainland United States until December 2025, which is slated to cost $ 38 million.

HTA officials also awarded $28 million for destination stewardship through May 2026 and $2.4 million for marketing to Canada. The agency said it had enough money to “cover initial payments for the contracts.”

“I think we’re really grateful that we have moving forward,” Kam told Hawaii News Now. “I think everybody’s going to be pleased with a pathway we have set. That’s still fluid but from our understanding, the funding is available for us to proceed.”

The news comes as the state reports increasing recovery of its tourism industry. In March, the tourism authority said the number of travelers arriving in Hawaii has nearly reached pre-pandemic levels as of 2023. And in equally promising news for the destination, visitor spending has exceeded 2019 levels.