STAND. COM. REP. NO. 2148

Honolulu, Hawaii

RE: S.B. No. 2577

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 2577 entitled:

"A BILL FOR AN ACT RELATING TO SPORTS TOURISM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Business, Economic Development, and Tourism to conduct a study of the potential economic benefits and costs of sports tourism in the State;

(2) Require a report to the Legislature; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaiʻi Tourism Authority; Retail Merchants of Hawaiʻi; and one individual.

Your Committee finds that the sports industry is an underutilized market in the State with high potential for growth due to its many revenue streams, including spectator fees, advertising, endorsements, media broadcast rights, and licensing. In 2024, direct spending in the United States for sports tourism totaled $47 billion, with California, Florida, and Texas being the largest beneficiaries. The National Football League Pro Bowl previously hosted in the State offers a notable example of the economic benefits sports tourism can stimulate in the State, contributing $26 million in visitor spending to the local economy in 2014. Your Committee further finds that informed policy and investment decisions are critical to responsibly, sustainably, and effectively cultivate the local sports tourism industry. The study conducted pursuant to this measure will assist the Legislature in making informed policy and investment decisions on sports tourism for the State.

Your Committee has amended this measure by:

(1) Extending the deadline for the Department of Business, Economic Development, and Tourism to submit its report to the Legislature from twenty days prior to the convening of the Regular Session of 2027 to December 31, 2027;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2577, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2577, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair