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UPDATED 4/11/11 2:37 p.m.

Correction: An earlier version of this article reported that the University of Hawaii could close its independent tourism school. University officials say the school would remain a school within the Shidler College of Business.

One consequence of the state’s current budget crisis could be another attempt to make the University of Hawaii’s tourism school a part of the Shidler College of Business.

There’s disagreement on campus and in the industry over whether such a move would help or hurt travel industry students. But as recently as 2009, UH Manoa Chancellor Virginia Hinshaw expressed a desire to merge the schools.

UH leadership believes the Shidler name will help make tourism a more attractive major for prospective students. The move is also expected to save money by eliminating the tourism school dean’s position, among others.

But opponents of the merger say that Hawaii ought to maintain an independent school. Tourism is the state’s top economic driver, making it an ideal place to learn the industry. Without an independent Travel Industry Management School, critics worry it’ll become harder to funnel local talent into top positions in Hawaii.

“It’s a living-breathing laboratory here (in Hawaii), as one of the top tourist destinations in the world. It would be shame not to have a specialized institution for tourism,” said Joseph Toy, a tourism school alum and president and CEO of Hospitality Advisors, which provides consulting services for hotels such as the Four Seasons, Marriott and Ritz Carlton.

Hinshaw has wanted to merge the two schools since 2009, but tabled her initial proposal amid strong protests from students and alumni. Hinshaw could not be reached for comment, but her spokeswoman said the issue may see light again as the university considers ways to save money.

Diane Chang, Hinshaw’s spokeswoman, said in an email that Hinshaw told her, “There is a lot to handle right now, with the budgetary challenges for the state and university, so that is where our focus is. Depending on that outcome, many items might have to be on the table.”¹

Growing Local Talent

The school has about 400 undergraduate students and is the sixth most popular major for undergraduates at UH Manoa.

The school’s operating budget of $2 million represents the smallest budget of UH Manoa’s 19 schools and colleges.

Some notable alumni include Toy, of Hospitality Advisors; Ted Sakai, general manager of Miramar Hotel in Waikiki; and Paul Yokota, president of FCH Enterprises, a company that manages Zippy’s and Napoleon’s Bakery.

Toy said the tourism school has helped to funnel more local talent into top positions in the tourism industry.

“When I first came to Hawaii, a lot of companies recruited managers from the mainland,” he said. “Eventually we saw a number of homegrown talent come out of the industry and take positions in these companies. A lot of them are TIM graduates and I think we broke that glass ceiling.”

“That executive talent might diminish and the glass ceiling might be put back in place (if the schools merge),” he said.

Toy said the school’s independent status allows it to attract and retain top local talent, who enter the industry understanding the places they work.

“Tourism in Hawaii is a multi-billion dollar industry and the hotels that are here really need managers, operators and executive talent that have the skills and familiarity with the destination. So it’s important to continue to graduate bright, young people who can enter the executive and operational side of it,” he said.

Possible Effect On Tourism Industry Donations

Juanita Liu, interim dean at the Travel Industry Management School, says that because many students specifically attend UH Manoa for its independent travel industry school, a merger with the business school could result in a decrease of TIM students.

“A merger will not save any money but will actually cost more and we will lose students and tuition revenues, Liu said. “It defies all logic.”

Johnson Choi, a tourism school alum who owns a consulting firm that focuses on trade with China and has served on the school’s board of directors for 20 years, said the merger could have a direct effect on donations to the school and discourage donors and businesses.

“If the schools are merged, it makes it difficult (for the tourism program) to raise money and receive donations,” he said. “The business school and Travel Industry Management School are two different animals.”

Donna Vuchinich, president of the UH Foundation, the central fundraising agency for UH Manoa, disagreed.

She believes that a merger will not affect donations or the current endowment and in fact may strengthen the program.

“It is more of (a change of) administrative reporting structure but the endowment stays the same,” she said.

“I think it would help encourage donations (to the program) because the Shidler College of Business is top-ranked, they’re nationally in the top 10, I don’t see how it would be a disadvantage from the fundraising standpoint,” said Vuchinich. “I don’t see it diminishing (tourism fundraising efforts) at all.”

She said the travel industry school is an excellent school with successful alumni but many universities have had to cut back and consolidate to save money.

Mike McCartney of the Hawaii Tourism Authority said there is a need for a strong tourism program at the University of Hawaii. However, he does not want to question the decisions of the administration.

“There’s no question that there needs to be a tourism program at the university and its important for work force development. It provides billion dollars of revenue to Hawaii a month,” said McCartney.

“There’s a lot of decisions at the university, and I respect the decisions the university and Board of Regents will make. How the university structures it is their internal decision they have to make,” he said.

Merger First Considered in 2009

A proposal to merge the schools, driven by Hinshaw, was first considered in 2009. Formerly part of the business school, the tourism school was granted autonomous status by the Board of Regents in 1991. Liu, the interim dean, said this helped to strengthen the program and define tourism industry management as a viable major.

Vance Roley, dean of the business college, declined to comment on the proposal.

The suggested merger was part of Hinshaw’s evaluation of schools with fewer than 30 faculty members, which were assessed for potential absorption by larger schools. The travel industry school has about 30 faculty members.

A merger would be more costly for tourism program students as Shidler students pay $1,000 more per year. The move would also change the degree offered. Tourism school students currently earn a Bachelor of Science degree in travel industry management. Under the business school, this degree would change to a bachelor of business administration.

Nothing is yet decided, as Chancellor Hinshaw has not yet written a formal proposal for the merger. The UH Board of Regents would have to sign off on any potential merger.