Saturday, July 20, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, June 14, 2024
$11.3B Loss: Elimination of TVRs Would Drive Hawaii into Economic Depression
By News Release @ 3:01 PM :: 1973 Views :: Maui County, Economy, Small Business, Tourism

Travel Tech Releases New Economic Analysis on Costs of Phasing Out Legal Short-Term Rentals on Maui

Study shows short-term rentals generated $2.2 billion in economic activity for Maui and $11.3 billion across Hawaii in 2023

News Release from Travel Technology Association, June 14, 2024

KAHULUI – Today, the Travel Technology Association and Hawaii economic consultant Kloninger & Sims released a study on the economic and fiscal impacts of the short-term rental market in Maui County and across the state.

According to the report, under Mayor Richard Bissen’s proposal to phase out approximately 7,000 short-term rentals on the Minatoya list, Maui County could lose up to $91.8 million in annual tax revenue and up to $280.9 million in total tax losses if all short-term rentals are discontinued in the county. If other counties followed suit and phased out short-term rentals, the State could lose as much as $554 million in annual tax revenue.

The study also underscores the significant economic activity short-term rentals contribute to Maui and Hawaii yearly. The analysis found that short-term rental guests in Maui County directly spent $2.2 billion in 2023, resulting in $4 billion in economic activity. Across Hawaii, short-term rentals generated $11.3 billion in economic activity in 2023 and 66,000 jobs.

Key Findings:

If all short-term rental units on the Minatoya List are phased out, Maui County could incur the following annual economic and fiscal losses:

  • $53.3 to $91.8 million in real property (RPT), transient accommodations (TAT), and general excise tax (GET) to Maui County
  • $1.3 billion in economic output
  • 7,800 jobs

If all short-term rental units in Maui County are phased out, the following annual economic and fiscal losses  could occur:

  • $128.3 to $280.9 million in RPT, TAT and GET to Maui County
  • $2.2 billion in economic output
  • 23,000 jobs

If all short-term rental units throughout the state are phased out by the counties, the following annual economic and fiscal losses could occur:

  • $803.3 to $955.9 million in taxes to the State and Counties, that includes:
  • $554 million in State TAT and GET
  • $121 million in all county GET and TAT surcharges 
  • $128.3 to $280.9 in Maui RPT
  • $11.3 billion in economic output
  • 66,000 jobs

“Roughly a third of all visitors to Hawaii use short-term rentals. On Maui, that ratio is even higher,” said Erik Kloninger, economist and partner of Kloninger & Sims. “Reducing the number of short-term rentals would limit accommodation options and likely lead to a decrease in visitors, resulting in job losses across various sectors of the economy and a significant shortfall in tax revenue for Maui County and the State.”

“Short-term vacation rentals have been a staple of the Maui economy for decades,” said Laura Chadwick, President and CEO of Travel Tech. “They’ve opened the island’s beauty to countless visitors and provided jobs and tax revenue to support the local community.  We hope Maui and Hawaii leaders will consider other options to balance the economic benefits of short-term rentals and housing needs of the community.”

PDF: Read the Study

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

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

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

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

HiFiCo

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

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii