The race is on.

The Hawaii Tourism Authority has less than a month to shore up uncertainties surrounding its budget, leadership for the agency and for some key contractors before the state Legislature convenes its 2024 session.

HTA has faced increased scrutiny over the past several legislative sessions; however, this year the stakes are higher as lawmakers concluded last session with unfinished business. HTA was left without a dedicated budget when House Bill 1375, which contained HTA’s only appropriation, was deferred because Senate conferees, who sought to establish an Office of Destination Management under the Department of Business, Economic Development and Tourism, were at an impasse with House conferees.

HTA Chair Mufi Hanne­mann said following Thursday’s board meeting that HTA is prepared for the session and has plans to “convey that life is different now, and we are going to try to address the concerns and criticisms that have been levied at HTA not just at the staff, but also at the board in year’s past.”

Hannemann added, “It’s a lot on our plate, but I think we have an opportunity to use this (Maui) crisis to demonstrate that there is a need for an HTA. We are going to be (talking) with the key stakeholders. This economic recovery plan that we came out with for Maui (on Thursday) is a great example of how we went out there and we listened. Even the group of protesters, we addressed one of their major concerns, which was a post-arrival educational program.”

Still, there are some headwinds on the horizon. HTA asked for a $69 million operating budget for this year, but it was cut to $60 million by Gov. Josh Green and the state Budget and Finance Department. The HTA board went into executive session Thursday to discuss the revised budget but did not take any action. Hannemann said the board will hold a special meeting at 10 a.m. Jan. 2 to determine whether it will make cuts or instead seek full funding from the state Legislature.

The board also postponed taking a vote on initiating an executive search as well as establishing a hiring process and compensation parameters for two key vacancies, including the HTA president and CEO, and HTA chief brand officer positions. The issue now goes to the board’s Administrative and Audit Standing Committee for review, and will then come before the full board for a vote at the regular meeting in late January.

HTA Chief Administrative Officer Daniel Naho‘opi‘i has been serving as interim president and CEO since former HTA President and CEO John De Fries resigned Sept. 15. Naho‘opi‘i also has been focused on branding since Kalani Ka‘ana‘ana, HTA chief brand officer, has been transitioning into a comparable stewardship leadership role.

In addition to leadership uncertainty at HTA, changes also are in play for two of HTA’s largest contractors. Hawaii‘i Convention Center General Manager Teri Orton announced that Legends has acquired ASM Global, which manages the center for the HTA. Orton said Legends is well known in the visitor industry for premium experiences, and the “acquisition will add convention center management to their upscale portfolio of venues and services.”

Hannemann said he has asked the Legends leadership team to come before the board.

“We want to be able to query what it all means,” he said. “The coming transition at the Hawaii Visitors and Convention Bureau is another big change.”

It was announced Thursday that HVCB President and CEO John Monahan is stepping down from the role that he has held since 2003, effective Dec. 31, and the search for his replacement is ongoing.

A transition will begin Jan. 1 with Tom Mullen, HVCB’s senior vice president and chief operating officer, also serving as interim president and CEO until a permanent replacement for the position is in place. Mullen, who has more than 35 years of travel and tourism experience, joined HVCB’s executive team in 2015. However, he had served on its board of directors from 2000 to 2008, and as chair from 2006 to 2008.

Monahan will continue to serve as an adviser to HVCB through the end of January. The departure is a big one for HVCB and for Hawaii tourism in general, and the importance of the role is reflected in Mona­han’s compensation, which has been listed in the ProPublica Nonprofit Explorer data set as more than $509,000 in fiscal year 2020, the most recent year for which data is available.

Monahan said in a statement, “It has been a tremendous run the past 20 years and I’m incredibly grateful for all my partners at HVCB over that time who have allowed me to succeed. It is a good time for me to step away and let our great team continue forward to help lead the industry into the next generation of regenerative tourism. I have great confidence in Tom Mullen and his abilities to lead HVCB in all facets of the job.”

Mullen, whose HVCB salary is listed in the ProPublica Nonprofit Explorer data set as more than $322,000, has a long history in Hawaii. In addition, he also has been on the board and a chair of the Los Angeles Tourism and Convention Board. He also served on the board of San Francisco Travel. Prior to HVCB, he led American Express Travel and Merchant Services. He also served as the Los Angeles Tourism and Convention Board’s chief administrative officer.

Choosing the right person to replace Monahan is of great importance to HVCB and HTA. To be sure, HVCB is the only HTA contractor ever to handle its largest U.S. market, where in 2022 visitors spent $16.2 billion in Hawaii, an average of $231 per visitor per day. HVCB’s latest contract award for the U.S. market, which began in June, is worth nearly $38.4 million for the initial 2-1/2-year term with an option for one two-year extension.

During his tenure with HVCB, Monahan is credited with implementing management and internal controls after a critical state audit in 2003. He also oversaw the closure of HVCB’s offices in Tokyo and Shanghai as HVCB pivoted from a global HTA contractor to one that handled primarily North America, though it still handles global single- property meetings, conventions and incentives sales and marketing.

Monahan was at the helm when his team faced the 2008 financial crisis, a number of hurricanes and other disasters, as well as the closing of ATA and Aloha airlines. HVCB also has supported HTA through COVID-19 and the Maui fires.

Monahan also spearheaded HVCB through a contract protest after it almost lost its largest HTA contract in 2022, and helped establish a working relationship with its competitor the Council for Native Hawaiian Advancement.