In 2009, AIG Insurance Company received a total of $85 billion from the federal government in the form of a massive bailout to keep the company from going bankrupt. Shortly thereafter, AIG officials were seen spending hundreds of thousands of dollars on events like overseas hunting trips, lavish conferences, and wild golf outings. Federal lawmakers then warned large companies who were receiving government loans not to engage in frivolous travel if they wanted to continue to see federal funding. This lead to a 20 percent loss of business meetings, conventions and incentives business to places like Hawaii, since companies did not want to give the illusion of going to an exotic and fun leisure destination.
The Hawaii Tourism Authority estimates that due to what is now being called the “AIG effect”, the state of Hawaii lost approximately $97.6 million in revenue. Over the past few years, the visitor industry has been working hard to defend Hawaii’s reputation as serious place do to business meetings. President and CEO of the Hawaii Tourism Authority, Mike McCartney, stated, “Our unique culture, the aloha spirit of our people and the beauty of our islands differentiates us from other destinations, making the Hawaiian Islands an ideal place for business and leisure. We have a diverse array of facilities and infrastructure and a proven track record as a business host for high-level meetings.”
Source: Honolulu Star Advertiser, 5-21-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
