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Directly addressing the governor of Hawaii, the International Association of Exhibitions and Events (IAEE) President Steven Hacker, CAE, FSAE, expressed concerns in a letter on behalf of the members about the removal of the exemption from the General Excise Tax that had been provided to events and exhibitions occurring in the state.
Hacker says, “While travel and tourism is essential to the state’s economic stability and sustainable growth, Hawaii suffers from some very unique and challenging circumstances. The additional costs associated with the imposition of the General Excise Tax are virtually certain to result in a substantial loss of travel and tourism related revenue, taxation and jobs as organizers of events will seek alternative venues.”
In support of restoring the exemption from the General Excise Tax, Hawaii’s unique circumstances were outlined including increased shipping costs for organizers and exhibitors given its distance from the mainland as well as increased cost of airfare and travel time from many countries, which are considerable deterrents for potential attendees. This additional tax would add another reason why many organizers could look elsewhere for future events.
“The Hawaii Convention Center is not a standard stop in the circuit, and many events are being held for the first-time at this venue, thus it is difficult to maintain adequate occupancy levels, rental income, concession revenue, union labor calls, transportation revenue, and occupied hotel rooms. For these reasons, there is a high probability that Hawaii will not be considered if the exemption from the General Excise Tax is not restored” says Hacker.
The added tax will be very costly to Hawaii and to those in the state who rely upon the exhibitions and events industry for their jobs; however, by restoring the exemption from the General Excise Tax to events, essential revenues derived from the business and leisure travel industry will boost the state’s general economy.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
