HomeMy WebLinkAboutCOM 0177.163 1998-2000 NVV~M
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Stephen K. Yamashiro 16i~ Diane S. Quitiquit
Mayor Director
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DEPARTMENT OF RESEARCH AND DEVELOPMENT
25 Aupuni Street, Room 219 • Hilo, Hawaii 96720-4252 CD
HILO: (808) 961-8366 • Fax (808) 935-1205 - KONA: (808) 329-5226 • Fax (808) 326-5663 ~p
E-mail: chresdev@interpac.net C7 L
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June 4, 1999 ~ t7 ys (•Tl
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MEMORANDUM " ''-r~ 3
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TO: MS. BOBBY JEAN LEITHEAD-TQDD, COUNCIL MEMBER
HAWAII COUNTY COUNCIL cn
FR:.. DIANE S. QUITIQUIT~,~}c~~
DIRECTOR d
RE: HAWAII COUNTY COUNCIL BILL 45, DRAFT 2 REGARDING
OPERATING BUDGET ADJUSTMENTS
This is to express our serious concern about the proposed adjustments to the Department
of Research and Development's budget. Of special concern is the cut of $179,000 from
the tourism portion of the department's budget. Already, $186,000 has been cut from this
portion of the proposed 1999-2000 budget.
At a time when competition from other states in the U.S. and other countries in the world
is increasing (Maui County appropriates $2.7 million for promotion); and when visitor
count of eastbound visitors is dropping, it is inadvisable to reduce our marketing effort.
Doing so would be analogous to a business reducing its advertising when its sales are
dropping and its competitors are increasing their marketing efforts.
County funding for the Big Island Group ($115,000) accounts for only one-third of the
promotional funding. Other parties match the County's share so that $115,000 translates
into a total of $345,000 in funding for promotion of the Big Island.
Perhaps the worst impact of decreasing our presence in the tourism mazket would be the
long-term loss of visitors to this island, and the eventual deteriorating effect on
employment in all areas of the economy. A negative impact on tourism means that other
areas of the economy get slammed also. For example, low tourist counts mean less
consumption of agricultural products and a difficult time for farmers. The ag sector is r7
Comm. Flo. ' / I
F;~~ nro. RUD
Ref. Tc; Pressnfetl ~o uN c r
Ref. Date 7 1~
Ms. Bobby Jean Leithead-Todd
Page 2
June 4, 1999
inextricably tied to the visitor industry. There is no way weak tourist counts will not
affect the papaya, floral, and mac nut sectors.
The latest issue of Pacific Business News highlights the effect a weak visitor industry
would have on the retailing industry.
It was with much reluctance that the budget for tourism was cut for the proposed budget.
We are very averse to further cuts in this area.