All the Coconuts: Hawaii Tourism May Travel to New Shop By Kathy Tyre

The Hawaii Visitors Bureau is expected to put its $5-million state advertising contract up for mandatory review by year's end. While local agen

MVG’s contract expires this month. The review, which takes place every four or five years, is on hold until the Bureau names a new president to replace Stanley Hong, who will return to the private sector at the end of June, after nine years on the job. Meanwhile, senior vp/marketing Gene Cotter will move to Belgium this fall to direct the Bureau’s efforts in Europe, an important new target for the state. A new president will appoint a new marketing director.
The changes come at a critical point for Hawaii tourism. ‘The recession has dealt a blow to Hawaii,’ said Nick Ng Pack, MVG president. ‘California is our base market, it’s been devastated, and the Far East (another base market) is slowing down in growth.’
Last August’s hurricane on the island of Kauai hurt business throughout the state. Additionally, the major airlines cut back on available seats to Hawaii by 11-12% last year due to the unprofitability of the route, according to Pack. Many visitors use frequent flyer miles to go to the islands, he said. To improve the situation, the Hawaii state legislature is expected to propose an increase to the tourism advertising budget in coming months.
Pack said he is confident MVG will keep the account.
Dave Park, president of DDB Needham/L.A., was moved in to shore up MVG after the death of its chairman Frank Valenti earlier this year. Park, whose current responsibilities are chairman of MVG and DDB/L.A., was president of MVG before moving to L.A. Park was unavailable for comment.
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