Hannemann is front-runner for HTA board seat

The composition of the beleaguered Hawaii Tourism Authority board is set to change again, and former Honolulu Mayor Mufi Hannemann is considered the front-runner to secure Gov. Josh Green’s latest appointment.

HTA board member Ben Rafter paved the way for the change when he tendered his resignation from the board Friday, saying that Thursday’s meeting would be his last. Rafter’s decision leaves Green a spot to fill on the 12-member board, which is made up of unpaid volunteers who set HTA policy and oversee how the agency spends its budget, which so far this year is $71 million, including a provision for the Hawai‘i Convention Center.

Rafter said in a letter Friday to leadership at the state Department of Business Economic Development and Tourism and HTA, “Next week’s board meeting will be my last and I’ve notified the governor that he should proceed with replacing me shortly thereafter.”

Green has not officially named Rafter’s replacement; however, the governor teased during the Honolulu Star-Advertiser’s “Spotlight Hawaii” livestream program on July 17 that “we are going to have quite a big surprise for you for the HTA Board in two weeks, so stay tuned. It’s on the level of Gov. Abercrombie.”

Members of Hawaii’s tourism industry and other sources connected to government have said Green is expected to name Hanne­mann, who has headed the Hawaii Lodging & Tourism Association since 2015.

If Green selects Hanne­mann, insiders say it compares to his decision in May to include outspoken former Gov. Neil Abercrombie among three interim appointments to the University of Hawaii Board of Regents. Some observers viewed Abercrombie’s appointment, which began July 1, as having the potential to cause a shift in the measured culture of the board and in the university’s fractured relationships with some state senators.

HTA, like UH, has been in a tug of war with the state Legislature over autonomy and has been the target of heavy scrutiny by some legislators. Green also has been critical of HTA’s ability to get the necessary legislative support to fund its missions.

Visitor industry and government sources say Hannemann’s seasoned political acumen could help HTA bridge the gap with lawmakers.

He is currently serving a two-year term on the U.S. Travel and Tourism Advisory Board, which advises the U.S. secretary of commerce on matters that relate to the nation’s travel and tourism industry.

Through HLTA, Hannemann has educated lawmakers about the hospitality industry and provided advocacy as lawmakers weighed bills. Hannemann played a role in reopening Hawaii tourism during COVID-19.

Hannemann also worked with lawmakers this past year to find a path forward for tourism when House Bill 1375, the sole-funding source for HTA, was deferred. Had the bill not been deferred, it could have repealed the HTA in favor of establishing an Office of Tourism and Destination Management within DBEDT.

While HTA was saved by the deferral, it was left without funding as its operational budget was not in the final version of a state budget bill. Lawmakers, however, did open the door for HTA to petition for money from the state Budget and Finance Department.

Keith Vieira, principal of KV & Associates, Hospitality Consulting, said Hannemann would be a good addition to the HTA board, which has needed greater balance and stronger leadership for some time.

“He understands the big picture. He understands that it’s not just about tourism management, it’s also about driving tourism spending,” Vieira said. “He understands the sensitivities that we are going through like every other major tourism destination.”

Still, there are those that worry that Hannemann is a political figure in his own right, and say that it will take great skill to balance the interests of HTA, which may or may not be aligned with those of HLTA.

Sources say Rafter, who was appointed by Gov. David Ige to a four-year term on the HTA board in 2018, was a strong advocate for Hawaii’s visitor industry because he owns the companies where he works and has the freedom to comment on issues without running it by a boss.

Rafter is president and CEO of Springboard Hospitality, a boutique hotel management company with more than 45 hotels and resorts in approximately 13 states. He also is managing partner of Jororo LLC, his investment company, which is primarily focused on acquiring hotels in Hawaii, the Pacific and West Coast markets.

In his resignation letter, Rafter praised HTA, saying, “We’ve made real progress in managing tourists and their impact on Hawaii, something that is critical to our future.”

Rafter said Hawaii’s tourism brand is one of the best in the world, which is why it’s discouraging that “more often than not, after the initial smile and excitement about meeting someone from Hawaii, the question I now get asked is, ‘How come Hawaii doesn’t want tourists?’

“Tourism in Hawaii is fragile: our infrastructure is poor, our products are aged, we’re the most expensive market in the U.S. and we have the highest TAT per stay in the world. I simply can’t figure out our value proposition anymore.”

Rafter, whose term expired June 30, 2022, has been the sole holdover on the board since July 7 when Green abruptly announced replacements for former HTA Board Chair George Kam and Keone Downing.

The two were replaced by Hawaiian Airlines’ Blaine Miyasato and Business, Economic Development and Tourism Director James Kunane Tokioka.

Miyasato’s appointment is for a four-year term, which will expire June 30, 2026. Tokioka’s term will follow his status as DBEDT director, which is still subject to state Senate confirmation.

Miyasato also will require state Senate confirmation to keep his board seat, as would Hannemann if he is appointed.

HAWAII TOURISM AUTHORITY BOARD

Listed are the current board members and their terms:

>> Kimberly Agas: First term expires June 30, 2026

>> David Arakawa: Second term expires June 30, 2024

>> Dylan Ching: First term expires June 30, 2024

>> Mahina Duarte: First term expires June 30, 2026

>> Stephanie Iona: First term expires June 30, 2026

>> Jim McCully: First term expires June 30, 2026

>> Sherry Menor-McNamara: Second term expires June 30, 2024

>> Blaine Miyasato: First term expires June 30, 2026

>> Ben Rafter: First term expires June 30, 2022; holdover status

>> Jimmy Tokioka: Ex-officio voting member; term length follows director’s status

>> Mike White: First term expires June 30, 2026

>> Sig Zane: First term expires June 30, 2024

Source: Hawaii Tourism Authority

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Staff writer Esme Infante contributed to this report.