june 11, 2011 a message from richard r. kelley to our...

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June 11, 2011 A MESSAGE FROM RICHARD R. KELLEY TO OUR OUTRIGGER ‘OHANA

Aloha and MahaloBy Kathy Oyadomari

OnJune3,OutriggeremployeesgatheredtobidalohatoBobFinan,whoretiredafter20yearsofdedicatedservice.BarryWallace,RuthannYamanaka,andDaveLeeexpressedtheirappreciationonbehalfofOutriggerHotels&Resortsforhishardworkandcontribution.Giftsofalohaandrecognitionwerealsopresented. BobfirststartedwithOutriggerServices,Outrigger’sconstructioncompany.Mostrecently,heworkedinPropertyServicesandwasinvolvedinnumerousrenovationprojects. Bobsharedthatheplansto“takeiteasy,taketimetosmelltheroses,andapproachonedayatatime.”HeisplanningatripinJulywithhiswifeandtwoyoungestgrandchildren,tovisitfamilyinGuam.Healsohasa“honey-do”listofprojectsaroundthehousethatarewaitingforhimandhopestogetinvolvedinvolunteerworkinthenearfuture. BobexpressedhisgratitudefortheOutriggerLifetimeAchievementawardandsharedhowhewasoverwhelmedbythefeedbackhereceivedabouthowmuchheimpactedothers.AneventhesayshewillalwaysrememberduringhiscareerwithOutriggeristhetyphoonwith200mphwindsthathitGuam.BobrecallsthecallforhelpfromGuamand

Barry Wallace and Dave Lee present Bob with gifts of appreciation

Continued on page 3

Fix Hawai‘i’s Travel & Tourism

Industry FirstBy Dr. Richard Kelley

RichardLim,thenewdirectorofHawai‘i’sDepartmentofBusiness,EconomicDevelopmentandTourism(DBEDT),claimsthattourisminHawai‘ihasremained“stagnant”forthepast20yearsandcannolongerbecountedupontomoveourlocaleconomyintoaprosperousfuture.HecallsforthedevelopmentofnewindustriesinHawai‘itosupplement,ifnotreplace,tourism. Inresponse,RichardBorreca,columnistfortheHonolulu Star-Advertiser,pointsouttheimportanceofourTravel&Tourismindustryandsays“It’sTooSoontoThrowIsleVisitorIndustryUndertheBus!” WeagreewithBorreca.TourismisstillHawai‘i’s“economicengine,”andtherearemanywaystostrengthenitsfuture.RatherthanlettingourNo.1industrydecline,it’stimetoreinvigorateit.Ifwecanimproveourmarketingefforts,keepthecostofaHawai‘ivacationcompetitive,andprovideasuperiorvisitorexperience,thisindustry–andthepeopleofthisstate–willenjoymanymoreyearsofprosperity.

Yes,tourisminHawai‘iisstagnant

Limmadesomegreatpointsaboutourcurrentsituation.Heiscorrectthatourtourismindustryhasbeenstagnantformanyyears.AfterWorldWarII,Hawai‘ienjoyedfourdecadesofexponentialgrowthinTravel&Tourism,butinthepasttwodecadesthenumberofvisitorshashoveredintherangeof6.5million(1991)to7.5million(2006)arrivalsayear.

Continued on page 8


Saturday Briefing is publishedby and for employees of

Outrigger Enterprises Group (OEG)

Editor-In-Chief: Richard Kelley Supervising Editor: Pila Hanson Senior Editor: Kathy Foley Proofing Assistant: Char Luning Contributing Writers: Employees of OEG

Visit us online at:

www.saturdaybriefing.outrigger.com

Submissions to Kathy Foley

at [email protected],

via interoffice mail to OEH/HR,

or by phone at (808) 921-6957.

©2011OutriggerHotelsHawaiiAnEqualOpportunityEmployer

Aloha Toasties!By Heather Doeringer

OurOutriggerToastmasterClubisacollageofhumor,suspense,education,andemotion–we’rekindoflikeourownBlockbuster,whereyoucangetyourfixonanygenreofspeechyoucanimagine.Everypersonbringsaspecialanduniqueskill,whichisthebasisofourteam–welearnfromeachother,wehelpeachother,welaughwitheachother(andsometimeslaughateachother),wecrytogether,butmostofall,wesupportoneanother. Wearenotaformalmeetinggroup.Wehavefun!Wetelljokesandfunnystories!Wemeetnewpeople!Andmostofall,we’renotjust“members”oftheToastmastersgroup–we’refriends!It’sanamazingfeelingtoknowyoualwayshaveabunchoffriendsyoucanrelyon. So,becomeafriendoftheOutriggerToastmasterClub!We’realwaysopentohavingnewfriendsjoinusforsomefun.Takeachance–weinviteyoutositbackandenjoyagoodstorywithus!EveryotherWednesdayintheOHANAWaikikiEastLearningCenterfrom12noonto1p.m!Emailmeformoreinfo;I’dbedelightedtohostyou–[email protected].

Ifyouareinterestedinthepositionslistedbelowandmeetthequalifications,youmayapplyonline.PleasegotoWWW.OUTRIGGER.COM,clickonABOUTOUTRIGGER,thenEMPLOYMENT.Weonlyacceptonlineapplicationsfortheopen-listedpositionsfrominternalcandidates.Ifyouhaveanyquestions,pleasecallChadTeramaeat(808)921-6989.ApplicationdeadlineforthefollowingpositionsisJune17,2011.

General Maintenance (Full Time)Musthavetwoyearsexperiencewithinteriorandexteriormaintenance,includingdemonstratedabilitytoinstall,repair,service,inspect,andmaintainFF&Efacilities.Mustalsohaveexperiencewithheating,cooling,plumbing,ventilation,water,electrical,andmechanicalsystems,andbeflexibletoworkanydayandshift.

Host/Hostess (On Call)Responsibleforgreetingandescortinggueststotheirtablesandcoordinatingtheactivitiesofthediningroomandpoolareapersonneltoprovidefastandcourteousservicetoguests.Musthaveafriendly,positive,service-orientedattitude,andbeabletoworkanydayandshift.

Heather Doeringer

Employment Opportunities

Happy Birthday!June22:GaryL.Sirman,ReidK.Yoshida,andRossMaitinnara.

June23:PatsyL.NarimatsuandMatildaSantana.

June24:RobertH.Yeoman,DonnaM.Louis,InJunKim,DebraRaeSilvia,RenatoC.Yanit,YolandaM.Erorita,DenniseJ.Alviento,andAnnyS.Salvacion.

June25:JingYunWu,EmmanuelV.Tapat,andRuiMeiQiu.

June26:MaricorM.Kiamco,CharleneT.Goo,andRenatoC.Urubio.

June27:JocelynPastranaUrayanza,AaronK.Sell,KahealaniK.Paik,WaiYinHo,ElenaY.Souza,andCristineMaeK.WellerOngoy.

June28:OfeliaA.DeJesus,DaisyF.Y.Chun,AdelinaB.Roblero,PuiLamLee,RomeoCabilis,MarkJunelM.Pascua,andNoraidaPandayMarvil.


Aloha and MahaloContinued from page 1

takingthefirstflightthereoutofHonoluluthenextdaywithDaveLee.Throughteamwork,assistance,andsupportfromtheOutrigger‘ohana,thismajorrenovationprojectwasaccomplished.Bob’swordsofadviceareto“befairandequitableandtodountoothersasyouwantotherstodountoyou.”

OnJune3,OutriggerReefemployeesgatheredtobidalohatoJamesLin,whoretiredafter22yearsofdedicatedservice.RuthannYamanakaandBillComstockexpressedtheirappreciationonbehalfofOutriggerHotels&Resortsforhishardworkandcontribution.Giftsofalohaandrecognitionwerealsopresented.JamesworkedinHousekeepingattheOutriggerReeffromthebeginningofhisOutriggercareer.MyraKuboyama,ExecutiveHousekeeper,thankedJamesforalwaysbeingflexiblewithhisscheduleandconsiderateofothers.ShesharedthatJameswasaquiet,but“wise”personwhogaveconstructivefeedback.MyraalsoinvitedJamestoreturntotheannual“FlavorsoftheORF”event,todohisfamouscalligraphy.Duringhisretirement,Jameswillbeverybusytakingcareofhisyoungestgrandchildren.Jamescurrentlyhassixgranddaughters.Healsowillhelphisdaughterwithherflowershop.JameswishedeveryonesuccessatOutriggerandtoldeveryonetobehappy. SomeHousekeeperssangabeautifulChinesesongtitled,“FriendsForever,”toJames.

How many friends will we have forever in our life. Today we are shaking hands and saying good-bye. But, our friendship will remain in our heart. We won’t see each other often. But, we still will be friends. No matter how far apart we may be. Our friendship will never change.

OutriggerHotels&ResortsisproudofBobandJamesfortheirmanyyearsofdedicationandserviceandwishbothofthemtheverybestintheirretirement.Mahaloandahuihou!

Ruthann Yamanaka, Myra Kuboyama, and Bill Comstock present James Lin with gifts of Aloha for his many years of service to Outrigger

Aloha ahiahi – is the appropriate greeting for the hours of 4 p.m. to 8 p.m. The root of this greeting is the word ahi, which means fire. Ahiahi, or great fire, depicts the bright fire-like appearance of the sun and sky at sunset.

local triviaOn June 11th of each year, we honor one of Hawai‘i’s greatest ruling chiefs and prolific leaders, Kamehameha I. Kamehameha is most known for his achievement of uniting the Hawaiian Islands under a single rule. Prior to his conquests, each island, and sometimes parts of an island, were ruled by a different chief.

In a raging battle on the island of O‘ahu, Kamehameha defeated chief King Kalanikūpule. The battle at Nu‘uanu, also known as Kaleleka‘anae, or “the leaping mullet”, ended with more than 800 O‘ahu natives losing their lives over the Ko‘olauloa’s 1000-foot high cliffs.

On June 11, 1877, Kapi‘olani Park was dedicated as the first Hawaiian public space. At 300 acres in size, Kapi‘olani Park is the largest and oldest public park in Hawai‘i located on the east end of Waikīkī, and is named after Queen Kapi‘olani, the queen consort of King David Kalākaua.

In its early days, Kapi‘olani Park was the site of a one mile oval horse racing track. Complete with a grand stand and clubhouse, the race track was the focal point of social activity in Waikīkī. Today, the park is a pleasant venue for a wide variety of sports, multi-cultural entertainment, and family events.

Hawaiian Word of the Day


New Executive Chef Joins the Outrigger Laguna Phuket By Darren Edmonstone

IampleasedtojoinHumanResourcesinannouncingthatRobertCzeschkahasbeenappointedExecutiveChefattheOutriggerLagunaPhuketResortandVillasinThailand,effective16May.Robert,anAustriannational,willberesponsibleforalltheresort’sFoodandBeverageoutlets.Robertbrings26years’experiencetoOutriggerfromShangri-La,Hilton,Marriott,Starwood,andtheMichelinstarPalaisSchwarzenberginAustria,whichincludes16yearsasanExecutiveChefinGermany,Egypt,Malaysia,Thailand,China,andmostrecentlyattheluxuryNamHaiResortinHoiAn,Vietnam.RobertisamemberoftheprestigiousChainedesRotisseursandtheWorldAssociationofChefs.FitnessisabighobbyofRobert’s;heisatriathlonIronmanandpractisesaikidoinhissparetime.WewishRobertalongandsuccessfulstayatOutriggerLagunaPhuketResortandVillas.

Executive Chef Robert Czeschka

New Sous Chef at the Outrigger on the Lagoon - FijiBy Darren Edmonstone

IjoinHumanResourcesinwelcomingRonalRoyleshGopalasSousChefofthenewSundownerBar&GrillattheOutriggerontheLagoon–Fiji.ChefRonalwillworkdirectlyundertheguidanceofExecutiveChef,ShaileshNaiduandExecutiveSousChefEzazKhan. AlocalFijian,ChefRonalworkedwithanumberofleadinghotelchains,andwith12yearsexperienceintheworldofculinaryarts,heiswellplacedtoheaduptheteamatSundownerBar&Grill. PreviouslyfromSheratonResortDenarau,ChefRonalbeganhishospitalitycareerin1998movingquicklythroughtherankstobecomeanExecutiveSousChefatthetenderageof28. AttheSundowner,ChefRonalwillfocusontheoverallculinarydirectionoftheBar&Grillandconcentrateonsecuringthebestqualityproducefromwhichthemenuhasbeencarefullydeveloped. OutriggerontheLagoon–FijiGeneralManagerPeterHopgoodsaidhewaseagertowelcomeChefRonaltohisteamandtothenewlyrefurbishedSundownerBar&Grill.“Thespotlightwillbeonthenewkitchen’s1.8metregrillandasensationalwood-firedpizzaovenwhich,withChefRonal’sskillandexpertise,shouldrendertheSundownerBar&Grillaverypopulardiningoption,”saidPeter. ChefRonalhasworkedinnumerouskitchensetupsfromlargebanquetandworld-classgolfoperationstoabusysteakhouseandoneoftheSouthPacific’sgreatestfinediningrestaurants,initsday,PortsO’Call. WearelookingforwardtotheSundownerBar&Grill’ssuccess,thankstothemanyyearsofculinaryexpertisefoundinthekitchen!

Sous Chef Ronal Roylesh Gopal

Holiday Inn® Waikiki Beachcomber Resort“MyhusbandandIstayedattheBeachcomberfromMay1-12th,2011.Justwantedtoletyouknowhowpleasedwewerewithourstay.Theserviceintheentirehotelwasexcellent!Fromthefrontdesktothehousekeepers,wefoundthestaffto

besofriendlyandpleasantatalltimes.Itwasapleasuretostayinahotelwithsuchawarm,positiveatmosphere!Thehotelitselfandthehallwaysandroomswereverytidyandclean,aswasthepool.Wewoulddefinitelystayatthishotelagainandhavehighlyrecommendedittoourtravelagentandfriends.ThanksforawonderfulvisittoWaikiki.”DianeandDeanEldredCranbrook,B.C.Canada


Sunshine and Smiles at Outrigger Little Hastings Street By Sophie Secombe

TheteamatOutriggerLittleHastingsStreetResort&SpaNoosahadreasontosmilerecentlyafterbeingselectedbytheregion’speaktourismbodytohostamajorfamiliarisationfor30professionalconferenceorganisers(PCOs)fromaroundAustralia.BusinessEventsSunshineCoastisthededicatedtourismbodyresponsibleformarketingQueensland’sSunshineCoastasanattractiveandsustainablebusinesseventsdestination,worthanestimatedA$60milliontothelocaleconomy.Thisyear’seventfocusedonhighlightingnewproductsand,beingjustunder12-monthsold,OutriggerLittleHastingsStreetwasaperfectchoice.Hostingasumptuousbreakfastinthesun-filledloungeterracearea,thePCOs,whoseclientscomprisesomeofthecountry’slargestgovernmentandprivatebusinesses,tookinthemagnificentnationalparkandcoastlineviewsbeforetouringtheresortanddayspa.Asweapproachourfirstbirthday,wehavebeenoverwhelmedbythelevelofdemandforourmeetingfacilitiesandexpectthistocontinuegiventhelimitedrangeoflargeconferencingvenuesinNoosa. Inthecomingmonths,OutriggerLittleHastingsStreetwillhostanumberoflargeeventsincludingtheAustralianPsychologicalSociety’sannualconferenceandpharmaceuticalgiantAstraZeneca,whichwilldrawdelegatesfromaroundtheworld. Wecongratulatetheonsiteconferenceteamfortheiroutstandingeffortsinhostingthisveryimportantindustrygroup.

30 PCOs enjoy the magnificent breakfast setting at Outrigger Little Hastings Street Resort & Spa Noosa

New Recruits at the Outrigger on the Lagoon - FijiBy Una Murray

TheOutriggerontheLagoon–Fijirecruited39newstaffmembers,themajorityofwhomweretraineesfromtheresort’scommunitytrainingprogramforschoolleaverslivinginnearbyvillages.ResortTrainingManagerJoytiRamsaiditisthefirststeptopermanentemploymentfortherecruits.Thefutureofarelationshipwiththeresortdependsonhowtheysettleintothejob.NineteenofthenewrecruitswilltakepartintheopeningoftherecentlyrefurbishedSundownerBarandGrill.GeneralManagerPeterHopgoodsaidthatthestaff’swelfareisimportant,“Happystaffequalshappyguests,whichinturn,makeshappyowners.Everyoneisawinnerwhenyougetthebasicsright.”

Front: Mohammed, Suresh, Adi, Vini, Patricia, Litia, and AbdulMiddle: Ratu Luke, Apakuki, Kinijoji, Ratu Buli, Sacenaca, Ruoeni, Wame Inoke, Anare, Matelita

Standing: Ateca, Litiana, Sheron, Diva, Mere, Lavenia, Elia, Vasemaca, Joyti, Bulou, Vini, Laitr, Anaseini, and Lusi


Three New Appointments at the Outrigger on the Lagoon – Fiji

By Darren Edmonstone

IampleasedtojoinHumanResourcesinannouncingthreenewappointmentsattheOutriggerontheLagoon–Fiji. JenniferYipjoinstheOutriggervuvaleasSalesManager,WilliamWorkasDutyManager,andMichaelBaliasFrontOfficeManager. JennifercomestousfromtheWarwickLeLagoonResort&Spa,Vanuatu,wheresheworkedasaDistributionManager,managingthedailyday-to-daythird-partywebsitesontheInternet.Priortothat,sheworkedforKoreanAirlinesasaPassengerTrafficAgent. JenniferisastudentofYat-SenSecondarySchoolandagraduateoftheUniversityoftheSouthPacificwithadoublemajorinTourismandManagement.ShewasaDigicelCoralCoastCarnivalContestantin2008andYoungAchieveroftheYearrecipientattheAONFijiExcellenceinTourismAwardsin2009. WilliamWorkiswellknowninsportingcircles.TheNadroganativehasrepresentedtheprovinceanddonnedthenationalcoloursonthesoccerfield.HisfirstforayintotourismwasasamemberoftheReservationsTeamatShangri-La’sFijianResortandSpain1994. HejoinedtheOutriggerReefResort,astheOutriggerontheLagoon–Fijiwasknownbackthen,in2000.HestayedwiththeresortthroughtherebrandingprocessandwaspromotedtoReservationsDutyManager.Heleftforatimein2006joiningtheTrainingandProductivityAuthority

ofFiji’sHospitalityandTourismSchoolasaTrainingOfficerbeforejoiningVodafone,aglobaltelecommunicationscompany,fortwoyears.JustpriortorejoiningOutrigger,WilliamlivedinEnglandandsaidhe’sgladtobebackandworkingasaDutyManagerforoneofFiji’sbestresorts.MichaelBalicompletedsecondaryeducationatAndhraHighSchool,(nowAndhraCollege)andbeganhishotelcareerasaPageBoyin1989attheShangri-La’sFijian

Resort&Spa.Overaspanoftenyears,heworkedasaPABXOperator,ReservationsAgent,ReceptionClerk,andfinally,GuestServicesOfficer(Concierge).In2000,hejoinedtheOutriggerontheLagoon–Fiji,formerlyknownasOutriggerReefFijiResort,andheldpositionsofGuestServicesAgent,Night

Auditor/Manager,andDutyManager.In2003,hejoinedtheSheratonFijiResortsasaSalesCoordinator,andin2005,hetookuptheroleofSystemsAdministrator,handlingthird-partyWebsitesandreportingdirectlytotheDirectorofRevenueManagement.In2010,heheadedbacktotheCoralCoastandassumedtheroleofFrontOfficeManagerattheWarwickFijiResort&Spa,apositionhehelduntilhejoinedtheOutriggerontheLagoon–Fijiin2011asFrontOfficeManager.Michaelsaidhefindshisnewroleverychallenging,yettheexperiencesofdealingwithguestsandstaffhavebeenphenomenal. CongratulationsandwelcometotheOutrigger‘ohanaandtheOutriggerontheLagoon–Fijivuvale,Jennifer,Willliam,andMichael!

Michael Bali, Jennifer Yip, and William Work

APEC Economies at a Glance AsDr.RichardKelleysharedlastweekinhiscolumn,theSaturday Briefingwillhighlighteachofthe21APECEconomieseveryissueuptotheNovembermeetings.Onthefollowingpage,wefeatureAustralia.GettoknowtheseexcitingareasthathaveshiftedtheeconomiccenteroftheworldtothePacificBasin.


AustraliaThe FlagSymbolizes Australia’s historical links with Britain (representing the British flag, known as the “Union Jack”) and Australia’s location in the southern hemisphere (represented by stars of the Southern cross). The larger seven-pointed star represents the six original states and the territories of the Commonwealth.

National ColorsGreen and gold were proclaimed Australia’s national colors by the Governor-General on 19 April 1984. They are the colors of the crest of the present Commonwealth coat of arms.

Coat of ArmsGranted by King George V in 1912. It consists of a shield containing the badges of the six Australian states, enclosed by an ermine border. The shield is a symbol for the federation of the states, which took place in 1901. The crest is a seven-pointed gold star on a blue and gold wreath. Six of the points represent each of the states of the Commonwealth; the seventh point represents Australia’s territories. The supporters of the shield are native Australian animals, the red kangaroo and the emu.

ClimateAustralia is so large that it experiences most climatic conditions, from tropical monsoons to hot, dry weather, and snow. Generally, however, the climate is warm and temperate, particularly in the major coastal areas.

UnemploymentRelatively low (in December 2007, it was 4.3%). The gross per capita income is around $39,000. All people are equal under the law in Australia, and all Australians have the right to be respected and treated in a fair manner.

TourismOne of Australia’s largest and fastest-growing industries. The number of short-term visitors to Australia grew from 4.3 million in 1997 to a record 5.6 million in 2007. The inbound tourism sector contributed about $22.5 billion to the Australian economy in 2006-07.

Some Etiquette TipsWhen meeting friends or new people, it is becoming less common to require the handshake to be firm, though many are still offended by a “limp’” handshake, referred to as giving someone a “dead fish”. A quick clasping of hands may be ok for younger people; however, it is always respectful to make eye contact when you shake hands.Enquiring about which sporting team “you root for” will be met with amusement. “Root” is a vulgar term in Australia. Use “go for” or “support” instead. “Barrack for” is also used by some Australians.The term “bring a plate” is synonymous with “potluck”Unlike the U.S, tipping is not an expectation, but is welcomed at the customer’s discretion.

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Key Facts

Capital: Canberra

Largest City: Sydney

Population: approximately 22 million

Currency: Australian Dollar

Thirteenth largest economy

One of the world’s oldest land masses

Populated by human beings for an estimated

60,000 years

Welcomed more than 6.5 million migrants from

over 200 countries, including more than 660,000

refugees

More than 5 million Australians speak a second

language

Since 1990, Australia’s economy has grown by an

average of 3.3 percent a year with 17 consecutive

years of growth

In 2007, Australia’s gross domestic product (GDP)

was around $1 trillion in value terms, making it

the 10th largest industralised economy

Australia is the only nation to govern an entire

continent

Australia has 10 percent of the world’s

biodiversity and a great number of its native

plants, animals, and birds exist nowhere else in

the world.

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http://en.wikipedia.org/wiki/Australiahttp://www.dfat.gov.au/geo/australia/index.html

http://en.wikipedia.org/wiki/Etiquette_in_Australia_and_New_Zealand


In2007,2008and2009therewasadropinarrivalswhichwasclearlyrelatedtotheproblemsfacingtheU.S.andglobaleconomies.Fortunately,visitorarrivalsbouncedbackto7.1millionin2010andhavecontinuedtoclimbsignificantlyoverthefirstfourmonthsof2011,witharrivalsupnearly9percentandvisitorspendingupalmost18percentsofarthisyear.

Buttourismisstillour“economicengine”

Weallrecognizethattourismisbyfarourbiggestindustry,anditgeneratesmorethan$1billionamonthinrevenueforourstate.ItisalsothesourceofoneoutofeverythreejobsinHawai‘i.Thesejobsareforalllevelsofskill,training,andexperience,fromentryleveltotopexecutivelevel,fromnopriorexperiencetoadvanced,cutting-edgetechnologyskills.AND,thesearejobsthatstayinHawai‘i.Theycannotbeeasilyexportedoroutsourcedtoanotherareaoftheworldwherewageratesarelower.Actually,mostofthemcannotbeoutsourcedatallaslongasthetouristskeepcoming.ThesejobscanonlybeoutsourcedifHawai‘iallowsitselftobecomealessattractivedestinationthanitsmanycompetitors,resultingin“our”visitorschoosingotherplacestovacation. Sountilsomethingfarbettercomesalong,Hawai‘i’sTravel&Tourismindustrywillremainour“GoldenGoose,”laying14-karateggsthatsupportsomuchofwhatmakesHawai‘iagreatplacetolive,workandraiseafamily.

Wecanstrengthenourmarketing

Likeanybusinessorindustry,wemustconstantlymarketourgoodsandservicestotheworldinordertogetcustomers.Unfortunately,inrecentyearstherehasbeenasignificantreductionofstatefundsavailableforadvertising

andmarketingHawai‘iasatraveldestination.In1997,IwasamemberoftheEconomicRevitalizationTaskForceconvenedbyGovernorBenCayetano.TheTaskForcerecognizedthatthethen-currentlevelof

statetourismmarketingdollars(about$25millionayear)

Fix Hawai‘i’s Travel & Tourism Industry FirstContinued from page 1

wastotallyinadequatetoeffectivelycompeteintheglobalmarketplace.Accordingly,theTaskForcerecommendedthattheTransientAccommodationsTax(TATor“hotelroomtax”)beincreasedfrom6percentto7percentandthat3percentagepointsofthetax,thenabout$60millionannually,bededicatedtotourismmarketing.Thetotaldollarsformarketingwouldincreaseasinflationdroveuproomratesinfutureyears.Anewstateagency,theHawai‘iTourismAuthority(HTA),wouldmanagethefunds.1

ThisconceptwasapprovedbytheLegislatureand,withmoremarketingfundsavailable,visitorarrivalsbegantorise

onceagain.Unfortunately,theLegislaturelatercappedtheTATdollarsdedicatedtomarketingatnotmuchmorethanthe1998level.Forthe2011-2012fiscalyear,theportionoftheprojected$290milliontotalTATcollectionsthatwillbededicatedtotourismmarketingisonly$69million.Intermsof

1998dollars,thatbuysonly$52millionworthofmarketing.In2011,itwouldtakeabout$80milliondollarstobuytheequivalentof$60millionof1998marketingservices. Inotherwords,viewedininflation-adjustedtermsthatgivethetruepicture,thestate’scurrentcontributiontoTravel&Tourismmarketingisnearly15percentlessthanitwasin1998.Overthesameperiod,unfortunately,themarketingchallengehasgrownsubstantially,sowenowfacethetaskofliterallyhavingtodomorewithless. Butthat’sonlythebeginning.TheLegislaturehasmandatedthattheHTAusethe$69millionnotonlyformarketingbutanumberofotherculturalandcommunityactivities.Theseareadmirablebuttheyarenotnecessarilymarketingactivities.ThisfurtherweakensHawai‘i’sabilitytobeheardinthegrowingworldTravel&Tourismmarketplace.UnlesswespendthemoneytomarketHawai‘i,ourshareoftheworld’stravelerswillcontinuetodrop.

WecankeepthecostofaHawai‘ivacationcompetitive

Onceourpotentialvisitorshearaboutus,theywillonlytravelhereifthepriceoftheirvacationisaffordableandcompetitivewithotherdestinations.TherearesomegreatbargainsoutthereinplaceslikeMexicoandSoutheastAsia,tonamejustacoupleofcompetingdestinations.

Continued on page 9

“So until something far better comes along,

Hawai‘i’s Travel & Tourism industry will remain our “Golden Goose,” laying

14-karat eggs that support so much of what makes

Hawai‘i a great place to live, work and raise a family.”


Everytaxthatthecity,countyorstateleviesontheindustrygetspassedalongtothecustomer,raisingthepriceofavacation,andmakinguslesscompetitive.Unfortunately,Hawai‘ihassteadilyincreasedtaxesthattargetvisitors. TheTAThasbeenrepeatedlyjackedupoverthepasttwodecadesfrom6percentto7¼percentto8¼percentandnowto9¼percent.That’sawhopping54percentincrease. Moreover,thestate’sGeneralExciseTax(GET)wasraisedto4.712percentonO‘ahu,sothatWaikīkītouristsarenowlookingatataxrateof13.962percentontheirhotelrooms. Whilethisisonlyslightlyhigherthanthenationalaverageof13.73percent(accordingtotheNationalBusinessTravelAssociation),ithitstravelersalotharderbecauseroomratesinHawai‘iaremuchhigherthanthe$97nationalaverage.Roomratesaverage$185statewideand$170inWaikīkī.Asaresult,theaveragedailytaxtouristspayontheirroomsinHawai‘icanbealmostdoublethenationalaverageof$13.31,dependingonwhichislandtheyarevisiting. Ofcourse,oneofthereasonshotelratesinHawai‘iaresohighisthattheyreflectthespecialhighpropertytaxratesimposedonhotels.HotelsmustalsopayHawai‘i’scompoundingGeneralExciseTaxonallgoodsandservicestheybuy–fromcarpetstocomputersandwallpapertotoiletpaper.ThepyramidingnatureoftheGETboostsitscosttohotels–andtoallHawai‘ibusinessesandresidents–farbeyonditsapparentvalue.Infact,theTaxFoundationofHawai‘iestimatesthatthankstothispyramiding,thestategovernmentcollectsasmuchfromthe4percentGETasitwouldgetfromastraightsalestaxof10or11percent.2

Todaythereisevenataxoncomplimentaryor“comp”rooms.Hotelsmarketthemselvesbyinvitingtravelagents,corporatetravelmanagers,conventionplanners,andtouroperatorstocometoHawai‘iandfamiliarizethemselveswithourstate’snaturalbeautyandtourismresources.HotelstayshavebeengiventothesemembersofourindustryonacomplimentarybasisforaslongasIcanremember.Somehow,thisbotheredsomemembersoftheLegislaturewhoretaliatedthisyearbyimposinga$10pernighttaxonaroomoccupiedona“comp”basis.It’shardtobelieve,butinHawai‘i,ourlawmakersaresoinnovativethey’veevenfiguredouthowtotaxsomethingthat’sfree!Unfortunately,thistaxonacomproommakesourjoboftryingtoinjectnewenergyintoHawai‘i’s“stagnant”visitorindustryevenharder.


Ourcustomersarealsotaxedateverytransactionthroughouttheirstay.Thetaxesonrentalcarshavebeenrisingataparticularlyalarmingrate.Thattaxhasgonefrom$2perdayto$3perdayto$4perday.That’sontopoftheGET.AndGovernorNeilAbercrombienowhasabillonhisdeskthatwillnearlydoubletherentalcartax,raisingitto$7.50perday.Probablythevastmajorityofautomobilerentalsaremadebyvisitorsbut,alas,this88percenttaxincrease,ifsigned,willalsohitlocalresidentshardwhenevertheytraveltoaneighborisland. Whenviewedseparately,eachofthesetaxesmayappearreasonableandappropriate.Butaddthemalltogether,andcontinueratchetingthemupyearafteryear,andprettysoontravelerswilldecidetovacationelsewhere. ThelessonsIlearnedinEconomics101arestillvalid.Whencostsgoup,volumegoesdown.SoiftaxesonTravel&Tourismgoup,thenumberoftouristsgoesdown.Andsodooureconomy…jobs…andeventhegovernment’staxbase.

Wecanmakethevacationexperiencebetter

Ourvisitorsexpectcleanattractions,saferoads,cleanbathrooms,andeitherneworwell-maintainedbuildings.Weallhavearesponsibilitytomaintaintheinfrastructureusedbybothvisitorsandresidents. ThereisnoquestioninmymindthatalllevelsofgovernmenthavefailedtomaintainandimproveHawai‘i’sharbors,airports,parks,sewers,roadsandbeachestothestandardsvisitorsexpectintoday’sglobaltourismmarketplace.TherapidlyapproachingAPECmeetingshavestimulatedourgovernmentstotrycorrectingsomeofthesedeficiencies,particularlyonO‘ahu.It’sbeenalongtimesinceWaikīkī’ssidewalksandroadshavelookedthisgoodand,ifweareseriousaboutTravel&Tourism,thisshouldbethestandardfromnowon.

GovernmentneedstomakeTravel&Tourismarealtoppriorityforthestate

Thingsaresomewhatbetternowthantheyusedtobe.IcanrememberthatitwasyearsbeforethestateDepartmentofBusinessandEconomicDevelopmentchangeditsnameandfocustotheDepartmentofBusiness,EconomicDevelopmentandTourism.However,ifstategovernmentwasreallyseriousaboutTravel&Tourism,therewouldbeaseparateDepartmentofTourismanditsdirectorwouldbeamemberofthegovernor’scabinet.

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Saturday BriefingPage �0

Governmentneedstobettersupportentrepreneursanddeveloperswhowouldliketoaddtoandimprove

Hawai‘i’stourismfacilities

Therearemanyexamples.Themostrecentwasthesadtaleoftheeffortbyaprivatecompanyinvestingitsownmoneytorunthehigh-speedSuperferrybetweenHawai‘i’sislands.Thecompany,itsvision,itsjobs,anditsbankaccountwerebledtodeathbyathousandcutsofbureaucraticredtapeandregulations.Iremembernooneingovernmentprovidingeffectivesupportandleadership. ThedevelopmentoftheHawai‘iConventionCentertook15yearstoaccomplish.Therewassupportatthegovernor’sofficeandbysomeintheLegislature,butwhileothersingovernmentditheredorfoughttheconcept,thepreferredsiteonaportionofthegroundsatFt.DeRussyinthecenterofWaikīkīwaslostandcostssoared. Iknowfrompersonalexperiencethatduringthepasttwodecadesparticularlyithasbeenvery,verydifficultandexpensivefordevelopersandinvestorstoobtaingovernmentpermitstorenovate,improveoraddtotheprivatesector’stourismplantorinfrastructure.

WecanmakeiteasiertogettoHawai‘i

Someofourpotentialvisitorsarestilldeterredbythedifficultyingettingatouristvisa.ThegovernmentneedstodomoretomakeiteasierforforeignvisitorstocometoHawai‘i. Manygovernmentleaders,includingformerGovernorLindaLingleandformerHonoluluMayorMufiHannemann,haverecognizedtherapidgrowthinthevasttourismmarketsinAsiaandtheirpotentialforHawai‘i,butgovernmenthasyettoreallyfocusonandsolvetheissueofrestrictivefederalvisaregulations.ThedifficultiesencounteredwhentryingtoobtainavisatotraveltotheU.S.havediscouragedmanyofthoselivinginChina–theworld’slargestandfastest-growingoutboundtourismmarket–tocometoHawai‘i.Thisissueneedsa“full


courtpress”byHawai‘i’sgovernmentleaderstohelpsolveHawai‘i’stourismstagnation. Perhapsharderbutevenmoreimportant,wemustjointogethertosupportchangingfederalcabotageregulations,whichrestricttheaccessofforeignairlinesthatwouldliketoprovideservicetoHawai‘ienrouteto

theU.S.mainland. Wecan’tchangetheweather,butweallneedtoworktogethertoimproveHawai‘i’sbusinessclimate. AfewparagraphsagoIcitedtaxesasoneofthereasonshotelratesinHawai‘iaresohigh.Anotherimportantreasonisthehighcostofdoingbusinessinthisstate.Therearethousandsofdailydecisions,regulationsandexamplesofbureaucraticredtapethatshapetheperceptionofHawaii’sbusinessclimate.ThecurrentissueofChief Executive magazine3ratesHawai‘i’sbusinessclimateasnumber43ofthe50states.Thatputsusinthebottomeight,alongwitheconomicallyailingMassachusetts,NewJersey,NewYork,andlastplaceCalifornia.Hawai‘iis

downoneplacefromlastyear,sothingsarenotimproving.

Summary

IapplaudRichardLim’sconcernforHawai‘i’sfutureandhiswillingnesstoaskseriousquestionsaboutourtourismindustry.EveryoneintheOutrigger‘ohanaisconcernedtoo,asIcertainlyam.Ibelievethatthemostprudentcourseofactionisforusalltoworktogethertoimprovethehealthoftheindustry.Strengtheningourmarketingefforts,keepingtaxesdownandthepriceofafamilyvacationaffordable,andmaintainingourinfrastructurewillpayoffhandsomely.AndtakingTravelandTourismtonewheightswillgiveusthebaseneededtothendevelopmany,manynewindustriesandopportunities,asLimsuggests.Butforrightnow,tourismisstill…everybody’sbusiness!

“We can’t change the weather, but we all need to work together to improve Hawai‘i’s business climate.”

1 Summary of ERTF proposals – http://tinyurl.com/3ctkvvg2 Pyramiding of GET – http://archives.starbulletin.com/2003/03/16/news/story6.html3 Best and Worst States for Business – http://tinyurl.com/6bvhspo

june 11, 2011 a message from richard r. kelley to our...

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