As a community, we should do everything we can to help improve and enhance Waikiki, the economic driver of our state, for the benefit of both residents and visitors. Hilton Hawaiian Village has done that with its sole sponsorship of the weekly Friday evening fireworks display.
Hilton spends $446,887 out of its own funds annually for the fireworks show that takes place at the Hilton Hawaiian Village. Additionally, Hilton also pays for all related expenses including security, maintenance and cleanup after the event. Hilton makes this contribution because it believes that this community event contributes to the enjoyment of our local community and visitors, including military guests at the neighboring Hale Koa Hotel.
This community event also benefits local businesses such as restaurants, tour boats and dinner cruises, which receive a market boost on Friday evenings from the fireworks production. The state of Hawaii receives a related general excise tax boost from this increased business activity.
Hilton’s Friday evening fireworks tradition over the past 25 years should be encouraged as a valuable community contribution, not discouraged. The state Department of Land and Natural Resources’ (DLNR’s) initial 1,000 percent increase in Hilton’s permit fee from $50 per weekly event to $550 per weekly event is a deterrent to continuing this community contribution.
The department’s subsequent change to a 400 percent increase in its permit fee to $250 per weekly event, an increase of over $10,000 a year, was cast as a compromise. We still do not believe that any substantial fee gives the appropriate recognition deserved by this popular community benefit.
Hilton is a responsible business citizen, and pays its fair share of fees to the state DLNR. Hilton pays the department in excess of $1.3 million in annual fees to the department for its beach concession, pier concession and use of the sidewalk proximate to the beach. At its own expense, Hilton also ensures that the Duke Kahanamoku Beach on a daily basis is kept in pristine condition. In addition, Hilton expends $2.3 million annually to maintain the lagoon premises.
The DLNR states that Hilton should be treated like other fireworks permittees on the basis of fairness. Hilton does act within the department’s stated position of fairness. When Hilton has commercial fireworks shows for corporate guests, Hilton pays the department’s standard $550 per event fee. There is no other department permittee, commercial or otherwise, which pays $446,887 annually out of its own pocket for a weekly program that brings so much enjoyment to our residents, visitors and military community, and boosts our local businesses and state general excise tax collections.
This has become an event that the community and neighboring businesses plan around. We should support private businesses that contribute money from its own funds to sponsor events and develop product that help to enhance Waikiki’s physical, economic and cultural environment.
The Waikiki Improvement Association respectfully requests that DLNR reconsider the $10,000 per year increase. This is not the way to raise additional funds for the department’s good work, not from a solid corporate citizen already paying in excess of $1.3 million a year. Many businesses and community members I’ve heard from also share this sentiment.
Rick Egged is president of the Waikiki Improvement Association.