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Home My WebLink AboutCOM 0103.044 2020-2022 i 61I ill COK100 Kokalfl ofl5t3 RESORT ASSOCIAT ION May 18, 2021 Maile Medeiros David,Chair 3 Aaron Chung,Vice Chair µ Hawaii County Council Via Email—counciltestirnonlE awaiicounty.goy Comments on Communication 103.18 Proposing Changes to Research and Development's Tourism Promotions Allocation x Dear Chair David,Vice Chair Chung,and Members of the Hawaii County Council, ea Thank you for the opportunity to provide comments on Communication 103.18 and the proposed changes to the i tourism promotions program proposed by Councilmen Holeka Inaba. I had the privilege of serving Hawaii County,as the Tourism Specialist in the Department of Research and Development,from 2006—2014. In that role, I was responsible for creating and managing the contracts for the tourism promotions program, as well as the contracts utilizing Hawaii County Council contingency funds that were attached to tourism programs,such as those for community festivals and events. I have also served as an advisory committee member,and on the board of directors,for the Island of Hawaii Visitors Bureau for the last 15 years. i 3 While I appreciate that the Hawaii County Council is looking at opportunities to provide County Council contingency funds at the district level, I do not believe that taking them from Research and Development's tourism promotions fund is the right way to proceed. j l i Historically,these tourism promotions funds have been provided to non-profit organizations,through a thoroughly vetted and competitive request for proposals process managed by R&D,that is in alignment and support of the goals I and objectives established by the community through the Tourism Strategic Plan(TSP)and Destination Management Action Plan (DMAP) processes. : These funds have been used not only for marketing and promotions, but also to address tourism impacts on Hawaii Island. Examples of past projects that have been funded include: • Direct airlift support for flights to Kona and Hilo.Airlines can choose to move their aircraft,and establish or eliminate service,at any time. Hawaii Island residents benefit greatly from increased direct access to KOA and ITO from the mainland and international destinations. Building demand for our island in those ! destinations through advertising,arrival,and education programs, in partnership with the airlines and tourism industry stakeholders, is a critical part of keeping that direct service. • Pier greetings and education programs in Hilo and Kona.The ambassadors who greet cruise ship visitors help share our culture,and our expectations.They also share Hawaii Island's Pono Pledge,another important initiative funded directly through this program. If we want visitors to understand and appreciate our values, j and safely and respectfully experience our island,then these types of education programs are critical. • Support for the conventions, meetings,and incentives(CMI) market.The CMI market is the base layer that other leisure tourism business is built upon.And in order to successfully re-establish full employment at our j hotels and resorts post COVID-19,we need to build relationships today with meeting planners wh ar Comm. o. I Ref. To: hCA Ref. ette MAY 2 0 2021 { I I 4 7 planning conventions 5-to-10 years into the future. Business and meeting travelers have different needs and expectations than leisure travelers,they have a higher spend-per-day, and less negative community impacts as their visits are usually centered around the resorts.And when Hawaii Island is competing with our sister islands in the state to host those CMI meetings, it's important that we have a competitive advantage. By hosting trade shows for the meetings industry,supporting site visits with meeting planners,and advertising in meetings-specific publications and online,we build relationships that help us secure that advantage. Though visitation to the state and Hawaii Island through the Safe Travels Program has been better than expected during spring break,and we are looking forward to a promising summer,that visitation has been driven primarily by pent-up demand from leisure travelers who have taken advantage of less expensive flights and vacation packages as we rebuild our economy post COVID. It's short term, and it's not sustainable. As other destinations re-open across the mainland (Disney parks last week) and worldwide(Italy announced a new partnership to avoid quarantining with Delta Airlines just today),we will likely see that pent-up demand dissipate, as visitors will have more options to explore.That's why we believe it's critical to keep these funds intact,and for Hawaii County to continue investing in programs like those outlined above,so that we can attract the types of visitors we want to invite to our island,and help educate them on how to explore our home safely, and respectfully. We encourage the Hawaii County Council to revisit Communication 103.18,and seek another source to fund the Hawaii County Council contingency funds. The Kohala Coast Resort Association is a collection of master-planned resorts,situated north of the Ellison Onizuka Kona International Airport at Keahole,which represents approximately 3,500 hotel and timeshare accommodations, an equal number of resort residential units,as well as shopping, entertainment,golf,spa and dining opportunities. KCRA members employ more than 5,000 Hawaii Island residents,and we annually pay more than$25 million in TAT and $25 million in GET to the State of Hawaii,and$11 million in property taxes to the County of Hawaii. Thank you for your consideration of this request. Sincerely, Stephanie Donoho Administrative Director Kohala Coast Resort Association Pat Fitzgerald,CEO, Hualalai Investors-President, KCRA Scott Head,VP Resort Operations,Waikoloa Land Company—Vice President, KCRA Craig Anderson,VP Operations, Mauna Kea Resort—Secretary/Treasurer, KCRA Charlie Parker,General Manager, Four Seasons Hualalai—Board of Directors Charles Head,General Manager, Fairmont Orchid—Board of Directors Simon Amos, Hotel Manager, Hilton Waikoloa Village—Board of Directors Rob Gunthner,Area VP Resort Operations, Hilton Grand Vacations—Board of Directors Sanjiv Hulugalle,VP and General Manager, Mauna Lani,Auberge Resorts Collection—Board of Directors Steve Yannarell,General Manager,Waikoloa Beach Marriott—Board of Directors P0 Box 6981, FCarnuefa, HI 96743*(803)747-5762 kohataccaastre cartaa ra@grriafl.corn*www.kohalacoastresorts.com