Thursday, June 13, 2024
Hawai'i Free Press

Current Articles | Archives

Saturday, March 21, 2015
TAT: Tourist Dollars not an Infinite Resource
By Grassroot Institute @ 2:37 AM :: 4573 Views :: Taxes, Tourism

Grassroot Testimony on Raising the Transient Accommodations Tax

From: Grassroot Institute of Hawaii

President Keli’i Akina, Ph.D.


Dear Chair and Committee Members:

The Grassroot Institute of Hawaii would like to offer its comments on HB 169, which would gradually raise the transient accommodations tax for resort time share vacation units to 9.25% of fair market rental value.

This bill is yet another example of a tendency on the part of the state government to treat tourist dollars as an infinite resource that can be tapped as needed. At this time, the state should be looking for ways to be attractive to tourists, not raising the cost of visiting Hawaii (and making other, less expensive destinations more attractive in comparison).

The argument has been made that raising this tax is merely an attempt to achieve “fairness” in the industry. However, this not only ignores the differences between time shares and other vacation units, but also misses the greater problem. This “parity” could also be achieved by lowering the tax rate across the board. Instead, the state seeks to overcome issues in budget and spending by raising taxes yet again and ignoring the long-term effect on business and the state’s economy.

Considering the centrality of tourism to Hawaii’s economic health, any proposal that could have far-reaching effects on the state’s ability to attract new visitors and reach new markets must be considered carefully before action is taken. If we continue to raise the cost of tourism in our state, we will see an overall decline in revenues. What is needed is more responsible spending, not regular tax increases.

Thank you for the opportunity to submit our comments.


Keli’i Akina, Ph.D.

President, Grassroot Institute of Hawaii

HB169 (Text, Status)


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii