Accounting for Hawaii’s Shanghai Trip
Hawaii was the featured attraction at the 2010 Shanghai Expo’s USA Pavilion June 6-12, and state officials made sure the week was done local-style.
The Hawaii Tourism Authority budgeted nearly a half-million dollars to promote Hawaii to the world’s most populous country. But the two-week trip, led by Gov. Linda Lingle, was not without controversy. Some questioned whether the trip was a good use of state funds considering that only 45,000 Chinese visited Hawaii in 2009 — Japan sent 1.1 million visitors to the islands. HTA director Mike McCartney later defended the trip, saying “for Hawaii’s future investment we had to do it.”
Responding to a recent request from Civil Beat, the HTA produced records showing it spent $446,939 on the trip. More than half that amount ($250,000) went directly to sponsor the pavilion, which was largely paid for through commercial advertising by U.S. businesses.
The remaining $196,939 went to cover airfare, lodging and other expenses to fly the 32-member state delegation. (The HTA’s entire $71 million annual budget comes through the taxes levied on hotel rooms and other accommodations.)
Some noteworthy expenses paid out include $18,783 spent on nine members of Tihati Productions, a Hawaiian and Polynesian entertainment company owned by HTA board member Cha Thompson; $5,690 for uniforms for student ambassadors and staff to wear during Hawaii Week, including two giant display aloha shirts from Hilo Hattie; and $14,000 to Honolulu ad agency MVNP to produce two 30-second videos with Chinese subtitles to play in the pavilion.
The HTA says the trip actually came in $1,000 under budget and that it did not have to tap into a $15,000 contingency fund. The agency called the trip a success by spotlighting Hawaii in a fast-growing outbound travel market that is expected to total 100 million by the end of this decade. Chinese typically spend several hundred dollars a day when traveling to Hawaii.
Visa hassles and lack of direct air service to Honolulu, however, remain obstacles to building a Chinese tourism wave. (Lingle said this week she would make one more trip to the Middle Kingdom before her term runs out in early December to push tourism and other initiatives.)
Civil Beat takes a look at how the HTA spent its half-million.
Other expenses for the Shanghai trip included the following:
Decorations and Set Up $16,401, including $10,569 to the Shanghai Jing Qu Zhi Dao Culture Communication Co. for production of steel hangars, printing, signage, flowers, ribbon-cutting material, a sign-in book, manpower and filming.
Marriott Industry Event The HTA paid half the $10,000 bill for a cocktail reception for 110 invitees.
Uniforms $5,690 for student ambassadors and staff to wear during Hawaii Week. Nearly half the expense went to shipping and custom charges for the two extra-extra-large aloha shirts from Hilo Hattie.1
Hawaii Week Entertainment $14,099, which includes the entertainers’ per diem, visa and passport costs, and miscellaneous items such as water and cups, umbrellas and first-aid supplies.
Transportation $32,465, most of it to Japan Airlines, but also for buses and taxis.
Accommodations $35,875 to the JW Marriott Shanghai.
LED Video Display $14,000 to Honolulu ad agency MVNP to produce two 30-second videos with Chinese subtitles to play in the pavilion.
China, by the way, adds an 8.28 percent tax to all goods and services.
The Shanghai Expo, which opened May 1, was expected to attract about 70 million visitors (mostly Chinese) by the time it closes Oct. 31.
In July 1 letters thanking Hawaii delegates for their participation in helping to “spread the aloha spirit,” HTA President and CEO Mike McCartney wrote, “Mahalo for being a part of Hawaii’s history.”
Here are costs HTA paid for key members of the Shanghai delegation — including airfare, lodging, visa expenses and a per diem — though some delegates paid part or all of their expenses. Not every delegate participated in every event.
- Gov. Linda Lingle, $632
- Reddford Makue, Lingle security, $632
- Joseph Napeahi, Lingle security, $632
- House Speaker Calvin Say, $1,740
- State Sen. Donna Mercado Kim, $1,740
- Kelvin Bloom, HTA chairman, $1,792
- Sharon Weiner, HTA vice chairwoman, $2,080
- Douglas Chang, HTA board member, $2,939
- Patricia Ewing, HTA board member, $923
- Kyoko Kimura, HTA board member, $846
- Michael Kobayashi, HTA board member, $175
- Ron Williams, HTA board member, $170
- Eight members of Hawaiian hula halau (including kumu hulu Blaine Kia), $21,135
- Nine members of Tihati Productions (including HTA board member Cha Thompson), $18,783
- Jeff Peterson, musician, $2,169
- David (Chino) Montero, musician, $2,062
The state per diem rate is $58 a day, and the performers were not paid performance fees. The HTA had approached the Polynesian Cultural Center about sending some of its performers to Shanghai, but those performers required a minimum $130 per diem. Other performers could not make the trip because of prior commitments.
