Defunding the Hawaii Tourism Authority is becoming more of a possibility as the organization's financial situation continues to decline, a Hawaii News Now report said.
The agency, which is responsible for leading the tourism industry statewide, and tourism recovery from the pandemic, was first established in 1998 by Legislature. Due to the pandemic, it has seen significant financial cuts from the state.
"Gov. David Ige issued an executive order after the outbreak of the coronavirus pandemic ceasing transient accommodations tax disbursements to the authority," the Hawaii News Now report said. "The agency in 2019 received $79 million in transient accommodations tax funds and another $16.5 million for the Hawaii Convention Center. "
For 2020, the agency was only able to receive the first four months of this tax.
"The agency cut its fiscal budget in September to $48 million from $86 million, followed by another cut in November to $41 million," the report said.
The agency is currently operating through funds from prior years and reserve funds. If funds are not restored by Gov. Ige, the agency would dwindle its funds to approximately $10 million by the end of FY 2021, or June 30.
“Defunding them will mean employment for our neighbors will continue to evaporate,” Sen. Glenn Wakai (D-Kalihi-Salt Lake-Foster Village) and committee chair, wrote in the letter, as reported by Hawaii News Now.
Gov. Ige replied in a letter stating that "the state would revisit the tax suspension 'as revenues improve,'" according to the report.