April 29--Until very recently, nearly all news involving Hawaii's tourism industry was golden.

Unprecedented rates of arrivals, with a record 7.99 million visitors last year spending $14.3 billion -- and 8.5 million forecast for this year. Hoteliers and developers reinvesting to refurbish properties or to build new projects, particularly in Waikiki. Airlines tripping over themselves to add more seats and hubs to and from Hawaii.

Now come signs of market correction: A reduction of flights is expected in the second half of this year, worrying state tourism officials about a stunt in growth.

Encouragingly, though, steps are being taken to stem the stunt -- by industry officials with targeted marketing strategies, and by legislators in an important move to stabilize funding.

Lawmakers have advanced Senate Bill 1194, which would make permanent the current 9.25 percent transient accommodations tax, also called the hotel room tax; it cleared conference talks Wednesday and heads to full floor vote.

In the midst of recession several years ago, legislators increased the hotel tax from 7.25 percent to 8.25 percent in 2009 and temporarily to 9.25 percent in 2010, with that temporary rate slated to expire by July 2015.

But with tourism going gangbusters, it's been proven that the industry can sustain this level of 9.25 percent -- it generated $323 million in the last fiscal year for state coffers -- with little hurt. It's reasonable to now make it permanent.

Earlier this session, the Abercrombie administration had floated the prospect of a 11.25 percent hotel room tax, but that was a virtual non-starter, fraught with economic unknowns. Now, with the imminent cooling of airlift to Hawaii, the 9.25 percent seems, in the words of Finance Committee chairwoman Rep. Sylvia Luke, "a good compromise. ... The important portion was increasing the allocation to Hawaii Tourism Authority to allow them to do marketing, especially in the next few years as the market is going to be soft."

Indeed, targeted marketing will play a critical role in drumming up business to fill those empty airplane seats. Hawaiian, United, Alaska and Allegiant airlines all will be cutting capacity to Hawaii in the fall after rapid expansions resulted in a glut of empty seats.

"We need to make sure those seats coming to Hawaii continue to be filled, because in some markets there's more seats than demand," said HTA President Mike McCartney. "We're ... coming up with some programs to stimulate the market. We must remember we're in a fragile and competitive world."

To that end, SB 1194 increases HTA's share of the hotel tax by $11 million, for a total of $82 million. Lamentably, though, the counties' share remains capped at $93 million total. Given visitor stresses on county infrastructure and facilities, lifting of the counties' cap to provide more maintenance money would have been better -- but at least the funding level was not reduced.

The onus now is on HTA officials to produce positive results with their increased budget. Greater scrutiny will be on spending the money wisely: Of its $11 million increase, for example, is it really necessary to plunk $1 million for a Hawaiian center and music-dance museum at the Hawaii Convention Center?

We realize it's crucial to maintain well the goose that lays Hawaii's golden eggs. But keeping it healthy and vigorous, without getting fat and flabby, is the concerted mission of all involved: the airlines, hoteliers and retailers, counties and especially the entity charged with its care, the Hawaii Tourism Authority.

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