Q&A: Murray Towill, President, Hawaii Hotel & Lodging Association

*Answers in bold

NaHHA Tourism Conference
May 2 - 4, 2006
Panel Discussion:  "Progress on the Front Lines"

Comments & Questions to Murray Towill:

  • Time did not allow you to expand on your 3rd point – Healthy Communities.  Please elaborate.
    • I believe to be truly sustainable our community(ies) must be strong and healthy.  This applies to the health of individuals and the overall health of our society.  People need to have good jobs, places to live, access to health care…  The educational system must also provide us with the skills to be successful.
  • What preparations are being made for the possible disruption in the hotel industry (this summer based on a uniting (power) issue (out of state)?
    • I think this question refers to the expiration of the hotel worker contract at some of the major Waikiki hotels this summer.  Obviously, we hope negotiations will be successful and there will not be a work stoppage.  Each of the affected companies is doing its own contingency planning.
  • What is HHLA doing to address the impact of increased lodging on our islands?
    • In recent years, we have not had an increase in lodging units.   We have seen hotels converted to condominiums and timeshare units.  Collectively the number of traditional lodging units has stayed about the same or gone down.  The increase in lodging has been in transient vacation rentals often located outside of the resort areas.  We have been concerned about the impact of these units in communities across the state and whether these units are operating with the appropriate government approvals and paying taxes.  We have testified to that effect at the legislature and before City & County Councils.
  • You mentioned a Citizenship Scholarship.  Will you consider Native Hawaiian scholarships for Native Hawaiian Hotel Managers or phase in Executive positions?
    • We presently offer the Clem Judd Scholarship to a Native Hawaiian student.  We are also exploring how we can fund additional scholarships to benefit Native Hawaiians.

  • As a consultant, I am told these days that there is no time for training.  Five years ago I was told there was no money.  How can we get hotels to make a real commitment?
    • The amount and type of training will vary from hotel company to hotel company.  The only suggestion I have is to work with the Human Resource Department or Training Offices to demonstrate the value and importance of the training you offer.
  • How can a small plumeria farmer in Waianae bring small (10 – 25) groups of visitors to our farm?  In your business capacity you deal on a macro level and I know this question is on a micro level.  Your response would be greatly appreciated.  We are three (3) generations of lei makers.
    • I would encourage you to work with the concierge at the different hotels to inform them about your operation.

For all the panelist:

  • Panelists have indicated the uniqueness of Hawaii with the host culture.  What do hotel executives do to express concern about overdevelopment that impacts upon the protection of our oceans, & sun, our floral & farms?
  • I think most people in our industry are concerned about overdevelopment.  We do not want to see development reach unacceptable levels.  In this area, we need to define development in the broadest sense not just development for the visitor industry. We have supported efforts to identify “acceptable” levels of development and the focusing of development in specific areas in order to reduce or prevent development of other areas.  We believe this is a necessary public policy discussion for each county.
  • Does your organization/business participate in career days at predominantly Native Hawaiian communities, for example, Nanakuli H.S., Waianae H.S.?  If not, would you be willing to?
  • Yes, our office and many hotel companies participate in career days at schools throughout Hawaii.  In fact, we have recently funded a grant proposal jointly submitted by Nanakuli Intermediate & High School and the J.W. Marriott Ihilani Resort & Spa to conduct a career fair. 
  • What do you attribute your success to as leaders in the industry?  e.g. Did you have a mentor, were you mobile – is that necessary to succeed?  In your selection process for leadership positions in your organization/business, do you have any preference (all things being equal) to Hawaiians?  Do you have an upward mobility program for your current employees?
  • I have been very fortunate in that I was able to get a good education and early in my career I had a mentor who was both supportive and informative.  Being willing and able to move to other cities provided some flexibility as I advanced in my career.
  • We have a very small office of 5 people with very little turnover.  However, our priority is to promote from within so existing employees are given the first chance at any job that does become available.
  • The Hotel industry recognizes the under-representation of Native Hawaiians in its industry.  There are few Hawaiians in leadership positions.  What specific outreach do you do to Native Hawaiian communities to inform them about careers in the hotel industry and/or the availability of your scholarships?
  • We inform school guidance counselors at all public schools about available scholarships. The listing of scholarships are also available on our website at www.hawaiihotels.org  In the past, we have also shared this information with Kamehameha Schools and the Office of Hawaiian Affairs (“OHA”)
  • When contracting out for services what preference is given to local businesses?  Perception is that hotels go with big name companies many of who are located on the mainland.
  • At the Hawai`i Hotel & Lodging Association, we give a preference to businesses that are members of our association.  Most of our members are local businesses. Hotel companies all have their own policies.  These policies may require competitive bidding or seeking the best price (regardless of the location).  However, I believe these companies often prefer to work with local companies when quality can be obtained.  This is especially true in food and agricultural products.
  • Is Hawaii’s Tourism Hotel Tax the highest anywhere?
  • Hawaii’s Hotel Tax (aka Transient Accommodations Tax or “TAT”) is in the middle of the range of hotel taxes across the country.  It is however, one of the highest in resort areas.  Most of the higher taxes are in large cities with more business travelers than leisure travelers.
  • We conducted a comparison a couple of years ago about the tax revenues the hotel tax generated per room per night.  Due to our high room rates, our tax revenue per room night in Hawaii was second to only New York City.
  • What role will the state play in helping to curb the impact of tourism on small rural towns throughout our islands? 
  • The major role the state and counties can play in preserving small rural towns will be regulating development with land use and zoning regulations.

Question for Rex Johnson, Murray Towill, & David Carey:

  •  (all 3 panelist and/or Peter)  Would DLNR, HTA, HHLA and individual Resort/Hotels entertain and invite canoe clubs back to Waikiki beaches (where they belong) as they look for alternate practice locations due to the Ala Wai water quality issues?  What would it take?
  • On behalf of the Hawai`i Hotel & Lodging Association, we would support the return of canoe clubs to Waikiki.  I believe one of the major challenges would be the storage of canoes.  There is very little secure storage space along the beach.
  • (Murray & David)  “Family” is one very important value in Hawaiian culture.  Visitor industry management positions require long hours, nights and weekends away from family.  How are you overcoming this gap or any good ideas?
  • You have identified a very real challenge for the hospitality industry.  Hotels are true 24/7 operations.  The industry has personnel on duty at all times.  This leads to people working nights and weekends.  I don’t know that there is any way around this situation.