Another sets of severe blows to Hawaii’s travel industry struck this week, accompanied by a credibility crisis, as two top figures abruptly departed the embattled Hawaii Tourism Authority (HTA). One left under the shadow of a state audit, and the other following allegations of a toxic internal climate. The resignations expose far deeper instability and raise fresh questions about transparency, governance, and how Hawaii’s visitor industry is managed at the highest levels.
HTA Board Chair Mufi Hannemann stepped down after a state audit revealed that two nonprofits he leads—the Hawaii Lodging and Tourism Association and Pacific Century Fellows—received unpaid perks from the state-run Hawaii Convention Center. Both groups held events there while Hannemann chaired the board that oversees the facility.
A few days earlier, Interim HTA President and CEO Daniel Nahoopii resigned. Nahoopii led HTA’s executive team, while Hannemann chaired its governing board. In his resignation letter, Nahoopii cited “persistent political interference from external agents” and stated that the environment at HTA had become hostile, characterized by “conflicting political agendas, inconsistent direction, and decisions that often appear driven by external pressures rather than the long-term interests of Hawaii.”
The board has temporarily appointed Caroline Anderson—currently HTA’s planning director—as interim CEO. She now holds three major roles simultaneously, while the agency operates with no permanent executive leadership in place.
For Hawaii travelers, the fallout could be significant.
Without strong and stable leadership, Hawaii’s visitor policies become harder to track and easier to change without warning—impacting everything from new fees to visitor caps and even cultural expectations. Mufi Hannemann, who led the Hawaii Lodging and Tourism Association, was a driving force behind the crackdown on Hawaii vacation rentals—part of a broader push to serve hotel interests.
Now, with HTA in turmoil, key traveler programs face uncertainty, and mixed messaging from state agencies only adds to the confusion. Combined with rising costs and growing tension between visitors and residents, the instability at HTA risks making the Hawaii travel experience more unpredictable, less welcoming, and increasingly expensive.
Beat of Hawaii has chronicled this dysfunction for years.
We have written more than one hundred articles, documenting HTA’s overlapping leadership, questionable spending, and inconsistent tourism strategy. Time and again, themes of cronyism, political favoritism, and policy instability have surfaced, eroding the credibility of an agency tasked with promoting and balancing Hawaii’s travel industry while attending to the needs of Hawaii residents.
Although the value of the perks Hannemann authorized was only $14,000, the audit still prompted referrals to the State Ethics Commission and the Attorney General. It cited procedural failures, missing approvals, and apparent conflicts of interest—problems that proved too damaging to ignore.
At a public HTA board meeting, Hannemann announced his resignation, citing continued questioning from fellow members. “The best thing for me to do is step down as chair,” he said, while defending the credibility of the organizations and denying knowledge of unpaid bills.
CEO salary of $300K or $188K, which is it?
The search for a full-time CEO remains stalled after Governor Green rejected the HTA board’s proposed $300,000 salary, insisting the role align with the $188,800 pay scale of the lieutenant governor, Sylvia Luke.
This constant turnover has left HTA struggling to implement long-term strategies, undermining its ability to address Hawaii’s complex tourism needs and challenges. There have been 11 directors at HTA in 27 years, yet there remains no stability.
Cozy ties and no accountability.
Hannemann’s influence has long extended beyond HTA. As head of the Hawaii Lodging and Tourism Association, he has consistently championed hotel interests and led a hardline push against Hawaii vacation rentals. His dual role atop both HTA and HLTA drew criticism early on, as it blurred the lines between being of public service and performing private industry lobbying.
Now, with discounted convention center services tied to his nonprofits, the ethical questions have boiled over. Hannemann denies wrongdoing, but to many observers, the optics are simply indefensible.
One reader summed it up: “If you’re running the agency and getting benefits from it, how is that not a problem?”
The audit, conducted by Accuity LLP for the state auditor’s office, found that bad procedures at the convention center allowed unpaid use of resources. While it stopped short of alleging fraud, it highlighted missing signatures, vague approvals, and inconsistencies in how HTA policies were applied. While the matter has been referred to the Ethics Commission and Attorney General, no formal investigation has thus far been opened.
As for Mufi’s HLTA event, Mufi stated that it was HTA-sponsored, although the authorization for that use was never signed, and the billing wasn’t presented to HTA until the morning he resigned.
A familiar scandal re-emerges.
Hannemann’s resignation isn’t the only ethical cloud hanging over Hawaii politics. A recent Civil Beat investigation also revealed that an unnamed lawmaker was recorded by the FBI receiving a $35,000 bribe. While the individual hasn’t been named, only one current high-ranking official—Lieutenant Governor Sylvia Luke—has publicly disclosed receiving gifts or payments in that monetary range.
The alleged bribe occurred years ago, yet no charges have been filed, fueling public frustration over the lack of accountability in Hawaii’s murky political system. The silence from officials and prosecutors alike only reinforces the perception of a system more concerned with self-preservation than public transparency.
In discussing the ethical concerns surrounding Hawaii’s political landscape, it’s pertinent to reference the BOH article “Alleged Hawaii Travel Industry Corruption Exposed By NYT”. This piece delves into how clandestine political fundraisers and alleged corruption have adversely affected Hawaii’s travel industry, highlighting the intricate connections between political figures and private interests.
Hawaii visitors and residents are the ones who lose.
HTA’s internal dysfunction has direct consequences for everyone connected to Hawaii travel. Its leadership shapes policies on how the islands are marketed, how many visitors arrive, what they pay, and how their impact is managed.
For travelers, these lapses result in shifting rules, new fees, and a less predictable Hawaii travel experience. For residents, the scandals reinforce a sense that the state’s most powerful agencies serve insiders first—and communities second.
Hawaii’s reliance on tourism demands governance that prioritizes transparency, accountability, and long-term vision. Until that happens, the state is at risk of losing not just public trust, but the very foundation of its most vital industry.
What’s next at HTA depends on the outcome of a Senate Bill.
Lawmakers are now weighing Senate Bill 1571, which could strip HTA’s board of decision-making power and reduce it to an advisory role. That move—once unthinkable—now seems increasingly plausible as the agency’s reputation unravels in real time. One can’t help but wonder if another round of defunding for Hawaii tourism isn’t next.
If passed, the bill would cement control under the state’s economic development department and formally sideline HTA’s governing board.
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Some of the highest tourism taxes in the world has led to corruption. Is anyone surprised?
I absolutely hate the orange man, but Hawaii government needs some of what he’s dishing out.
You can hate the man but you like the message because it’s right on the money (pun intended).
Aloha.
uh, the president doesn’t care about HTA and what’s going on in the 50th state.
If the hotels keep charging the prices no one wants to pay, why would anyone want to come to Hawaii?! The state government runs like a banana republic, payola is common, and everyone is out for themselves.
Seems to me that first the governing body should ask what is best for the people of Hawaii. Then take into account how these issues will affect the economy and lively hood for them. Then have open forem meetings with the heads of the communities and explain what the findings were and find commen ground for new regulations. First it should always be the people of Hawaii first their well being up front and foremost. Nothing hidden from them and if or when an issue is found then inform the people right away. Open communication between government and it’s people is always best especially for Hawaii.
Mufi and all the rest of these so called public servants supposedly doing “what’s best for Hawaii” are very competent- in enriching themselves
Wow, institutional bureaucracy in the aloha state? Get out!
Living in Hawaii sometimes feels like living in a not so funny SNL skit.
The whole State is run by a bunch of corrupt incompetent clowns. Repeat tourists such as myself will never come back to Hawaii because they’ve destroyed the Aloha Spirit. It’s now a cash grab state. Hawaii tourism is doomed.
What’s even more demoralizing is that I don’t see one Hawaiian name in these comments ..
I don’t know the specifics but what they are calling a bribe sounds like lobbying to me which is a common practice in Washington so I don’t doubt they won’t get charged for doing that.
Please don’t ever call Mufi or any other government employee, elected official or appointed ones “government servants”. With a salary north of $180k there is only one persons served by this position, him.
As long time 3 month a year snowbirds we resent having to contribute to the nepotism slush fund that fuels the Hawaii travel experience.
dennis
So no one knew of these problems until now? Hard to believe.
Put HTA under DBEDT. They are not fiscally responsible to self manage and the board should just advise not set policy. Too much infighting.
“The definition of insanity is doing the same thing over and over and expecting different results” Welcome to Hawaii politics!!
A cool $300K for doing nothing. Doesn’t anyone in Hawaii care that the HNL airport is a joke? The most recent terminal was added over 60 years ago. The million$ spent in airport ‘renovations’ still haven’t addressed the dire need for escalators, people movers, etc. in each terminal and between terminals. What an embarassment!
So who is actually either shocked or amazed at this turn of events considering Hanneman’s previous records throughout Hawaii!? Of course it is a rhetorical question because he is the consummate political retread that just keeps finding other places to be in order to further scam the people of Hawaii! Just remember Hawaii, the stuff going on across the Hawaiian Islands is exactly what you all voted for over and over again which absolutely fits the definition of insanity when you keep expecting “Them” to change when you won’t do it yourselves in how you vote! This should be just another wake up call that you need to stop hitting the snooze button on!!
Love your investigative reporting on the HTA. I hope you can spare some attention to OHA which for decades has been controlled by multiple executives who don’t recognized conflict of interest, or self interest constraints with its public trust. It is an unforgivable tragedy that OHA has not developed the Kewalo, Kakaako properties they received makai of Ala Moana Boulevard the decades ago before Howard Hughes build any high rises in the area.
The Hawaii TAT (Transient Accommodations Tax) is where the HTA (Hawaii Tourism Authority) is funded from. Total of the increase of 2% from a Hotel 18% tax to this new proposed 20% tax. Many people wonder where is all the money going? IMO makes it hard to support hotels or any visitor fee’s when corruption is present. Fool me once shame on you, Fool me twice shame on me.
They are killing the goose. $1000 night hotel rooms, stiff hotel taxes and the usual expensive meals. Cutting back on vacay rentals will not put more rental units available for locals. Just helping the hotels who are gouging
What a disgusting mess of corruption and gross mismanagement. Hawaii is way over due for a complete house cleaning from top to bottom of all state and local public officials, including the various agency and department bureaucrats. Nepotism, and the “good old boy network” have been alive and well in Hawaii for decades. Get Elon Musk’s chainsaw and get to work, figuratively speaking. Your so called public servants are fleeceing the people and destroying this beautiful and very special place.
Aloha to all.
Government of the wealthy, by the wealthy for the wealthy.
Finally, Muffys corruption is out in the open! The AG should take action to clean up the HTA or dissolve it, too long has it been obvious that these people and corruption at the highest state level be investigated for being in the back pocket of the resort owners in our state, pushing for STVR to end, thus only leaving vacations to only the elite wealthy, a vast majority of locals could not afford to purchase these properties but yet STVR’s are the problem, kickbacks have been happening too long to appease the greedy Resort owners, the AG must call for accountability to prove there is Some honesty in government.
This is a sad situation. Thanks for reporting on it. I briefly met Mr. Hannemann years ago, when he first ran for Honolulu mayor. I was working downtown and walking near the state capitol building when he and an entourage walked toward me. He wanted to shake my hand and did. He was an imposing figure with a firm handshake and I remember being impressed. That’s the problem with public officials –it’s not easy to get to know anything about them. Voters often have to base their decisions on very scant information.
One question –you described the crackdown on short-term rentals as driven by hotel interests. If following the money, that makes sense but it’s often sold as putting housing stock back on the rental market. I suspect these properties are expensive and most couldn’t afford to rent them anyway. What do others think?
The housing crisis, which is real, is a red herring for their actual agenda which is to eliminate competition for hotel corporations IMO
Short term rentals are affordable, that is why hotels want them gone pay $300 a night in a short-term rental or pay $650+ resort fees+ parking fees+ beach towel fees..at a hotel, your choice? hotels and activists both want the STR’s gone
Hannemann? Pfffft… He’s like a bad penny. He’ll be back. Guaranz…
Best Regards
One Party Rule, and the mysteries that are attendant to same. No coincidence, though Governor Green supposedly turned down a raise of +40%, instead saying 15% would be sufficient, it is no coincidence the 9 highest paid Governor’s would have Governor Green in the ‘Top 5’, Nationally, the U.S. Military and Tourism being the two largest Industries and supporters of the Economy. Of the Top 9 NY, Ca., Pa., Mass., Hi., Wa., Ill., N.J., and De., all are Democrat Governor’s! Then there are Expenses, and in Greens case, he was away out of State during the Lahaina fires and has already made 2-3 trips to Japan in the last months, trying to encourage tourism. Call me cynical.
Current experience seems to suggest that corruption isn’t limited to the Democratic Party. Why do you think Trump has fired departmental auditors? The issue is lack of proper oversight, irrespective of who is in control. Plenty of states have one-party control by Republicans. Do you think Louisiana, Alabama, and Mississippi are free of corruption?
Well said Steve, power corrupts regardless of the party.
That’s why freedom of the press is so important as well as the checks and balances of our legal system.
The Right seems to like to believe the Left (see ‘Liberal’) is incompetent and corrupt. Just ask your president, he will tell you whom to hate/mistrust, individual thinking not required. The ‘nice’ thing about corruption and greed is that they don’t discriminate, they’re traits available to anyone who chooses to cultivate them. Let’s try to evaluate individuals and not brand parties, folks. There’s enough ‘group hate’ in the world already, let’s not add to it.
The “local” hate for visitors and tourists is both cognitive dissonance (justification, rationalizing, failure to recognize reality), and subterfuge (deceit used in order to achieve one’s goal).
Cognitive dissonance, because residents refuse to acknowledge, let alone admit, the persons they have elected and appointed to all levels of Hawaii state government are corrupt, incompetent, and many of them are on the take. Nor will residents ever admit it, because — and this is the truth — residents share the same ethnic background as the perpetrators.
Subterfuge, because there is significant deceit about visitors and tourists “disrespecting” and “desecrating” the Islands. This also is untrue. This was vividly displayed during the pandemic. Hawaii had zero tourists, yet vandalism, property destruction, trash, etc. was significant while Hawaii was shut down. Use search engines or AI, you’ll find multiple reports.
I don’t agree. I am a 30+ resident, home/business owner on Maui and am not the same ethnicity. I don’t know anyone who has voted for Hannemann or for the mayor and committee members of Maui. This makes us wonder who is doing the voting counts. Residents (sorry not Hawaiian descent) are rallying together for change and awareness. We do admit that the current and past government who with the hotel industry are lining their own pockets. I am disheartened reading posts that say it is our fault for voting in these criminals. Disheartened that even when caught in deception they are not fired, lose their pension or go to jail. Instead I read that they are asking for raises. We, residents are the ones losing with the tourism deliberately driven down (we do welcome and need visitors!) increase in taxes and cost of living and now prejudice even those of us that have lived here for decades now feel like we are not welcome and made to feel like we are part of the problem.
I do agree that the abandoned cars and appliances along the roads and the areas we 4 wheel in were not dropped off by tourists. Please do not feel that all of us in Hawaii put blame on tourists or do not welcome them. Tourism is our main commodity especially on Maui. There is not one person that does not benefit in one way or another from tourism.
Sad. Hawaii’s main industry is tourism so you think it would see a need to have a strong HTA with checks and balances for oversight and they would be good at the one industry that keeps the island economically viable (federal government doesn’t count, state doesn’t manage that). Coffee and plants can’t keep it alive alone and there are no other natural resources than plants and beaches so tourism is the one thing the state needs to get right above all else.
Great article. Thank you! It is about time the corrupt government gets hands slapped. Corruption has previously been uncovered without consequence. This is one victory.
There needs to be prosecution not just resignation.
Okay, now lets look into who appointed Mufi Hannemann to the HTA. My guess is there are many wiggly worms in this bucket.
What? Dishonesty, bribes, payoffs, etc.? How shocking!
Not.
What happened to Mahi is she still in charge of millions in grant money going to her family, she’s on paid leave. So let’s rob the store and still get paid and how is the investigation going, was she charged or just on an extended paid leave.
When locals come up to the crossroads where you either do the right thing or line their pockets, it’s going to line their pockets, Maui’s Luana Mahi was just caught giving all the grant money to businesses she and her family own. They’re all on the take and it has to be the governor and Mayors are on the take as well. What happened to Mahi is she still in charge of millions in grant money going to her family, she’s on paid leave. So let’s rob the store and still get paid and how is the investigation going, was she charged or just on an extended paid leave.
Greed and corruption are going to kill what is left of your state. People can’t find affordablehousing, Maui hasn’t started to rebuild after almost 2 years, but the major players in the government and HTA seem personally to be doing very well financially. If people could see results from all the fees and taxes they pay to come there it would still be expensive, but at least they would see that their hard earned money is actually going toward the things they say they need the money for. But when it is either going straight in to the politician’s pockets or they totally lose track of the money altogether, people will not put up with it and will go elsewhere, as they should. I fear Hawaii is going to soon hit the point of no return…..then what?
Maui is rebuilding, they actually moved in some temp housing, guess who paid? Not state…paid with federal government funds.. Maui nor the State won’t use any of the $$ they have – all you hear is “oh we need affordable housing” Oh we are make permits easier to get” while they actually do nothing -ongoing political rhetoric – Front street on the ocean won’t be rebuilt.. wonder why… oh climate change “predicts” they’ll be underwater, even tho the Pioneer Inn on Front Street was built in 1901… lost in a fire,
Beach erosion is a real issue. Buildings are leaning into the ocean which will cause severe damage to our reefs. Setbacks must be enforced. We knew this was coming. We didn’t know about global warming or whatever cause is making news when these building were built. The ocean side of Front street can’t be rebuilt because it is partly in the water now let alone in the future. There is quite a bit of building going on. The affordable housing projects were first. Lahaina town looks clean & ready to build. The permits are getting approved including non conforming structures that were lost in the Lahaina fire. We don’t all agree with rebuilding some of those 10-13 bedroom houses but there is finally rebuilding being done. Lahaina town was protected for its history which unfortunately was lost in the fire including our beloved Pioneer Inn. Safe regulations are required for our future.
While on Island like I have been for over 36 years, I stay at the Maui Eldorado, which is the only property on the west side that has a beach cabana structure. There have been times where I could literally walk underneath the cabana and not be able to get anywhere even close to the underside of the deck and within a week or so they had to install the sand guards on the fencing around the deck so that it was not inundated with sand. The bottom line to this post is that the ocean takes the sand away and it brings it back so the erosion that you speak of is not a constant anywhere around Maui.
I wish that was a true fact. Unfortunately it is not. I have lived on Maui for 33 years and have seen our beaches disappear. The Eldorado Is on the protected side of Black Rock. That area does see the sand appear and reappear because it almost in a bay and again protected on one side. That is not the case all around Maui nor the other islands. Wishful thinking will not make it so. We would love to have our beloved Lahaina back but t is doubtful that it will be anything close to what it was.
The “protected side” of west Maui!? I was there when waves were crashing up and over the cabana at the Eldorado so I guess that we have different ideas on what the word protected even means. I have also spent enough time walking along the wall on Front Street where the same thing happened with the sand based upon the wind and the tides!
You are certainly free to believe whatever you want as am I
This organization has always been a mystery to me!!! Do they publish their financials for all to see?
their financials? or do you mean their bank accounts? maybe off shore ones..