STAND. COM. REP. NO. 1330-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2577

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committees on Tourism and Economic Development & Technology, to which was referred S.B. No. 2577, S.D. 2, entitled:

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

beg leave to report as follows:

The purpose 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 and report its findings to the Legislature; and

(2) Require certain funds appropriated to the Hawaii Tourism Authority in the Supplemental Executive Budget to be expended by the Department of Business, Economic Development, and Tourism for the study.

Your Committees received testimony in support of this measure from the Hawaii Tourism Authority; Retail Merchants of Hawaiʻi; Maui Chamber of Commerce; Hawaiʻi Bicycling League; and two individuals.

Your Committees find that sports tourism can provide significant economic benefits to the State by encouraging visitors to come during shoulder seasons, which will support local jobs and strengthen the State's visitor economy. Your Committees further find that the study proposed by this measure will ensure the State has timely data that will enable it to appropriately develop plans to maximize the economic and social benefits of sports tourism-related projects.

Your Committees have amended this measure by:

(1) Requiring the Department of Business, Economic Development, and Tourism to identify all sporting events that may attract diversified, high-spending visitors, rather than just small-scale sports events;

(2) Requiring the Department of Business, Economic Development, and Tourism to determine if any existing large-scale sporting facility other than the new Aloha Stadium would be capable of supporting sports tourism in the State;

(3) Requiring the Department of Business, Economic Development, and Tourism to identify:

(A) Any potential drawbacks, such as time zones, and means to mitigate them; and

(B) Any potential pathways for Hawaii to serve as a training ground for large-scale out-of-state sporting events, such as the Olympics; and

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

As affirmed by the records of votes of the members of your Committees on Tourism and Economic Development & Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2577, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2577, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism and Economic Development & Technology,

____________________________ GREGGOR ILAGAN, Chair

____________________________ ADRIAN K. TAM, Chair