Probing the intimacy between Hawaii Hotels and government as revealed by a recent tourism award. Are these relationships beneficial collaborations or a concerning overlap of interests?”
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26 thoughts on “Does Hawaii Tourism Award Expose Cozy Government and Hotel Ties?”
Hawaiians are disgusted with how State politicians are greedy for their lobby money. Unfortunately, lobbying is not an issue exclusive of Hawaii, and, unless we start voting them out, they’ll continue counting their lobby bills from hotels, and hotels will continue to do whatever they want.
I completely agree!
It’s fairly simple if you’re paying attention… follow the money or in other words, if you need to ask the question, you already know the answer. The ‘small guys’ get blamed/punished for the rise in ‘over tourism’ while the ‘big guys’ laugh all the way to the bank, which coincidently is located on the mainland.
Totally agree!
“Yes”
Aloha Rob and Jeff. I have found some of your recent articles very interesting as far as hotels pushing str’s out, nightly rates, etc. Also the tourists complaining about rates and the lack of Aloha towards visitors. So I decided to follow the money, and found an interesting article that explains a lot of it. It would appear that a lot of lobbiest influence is actually from the mainland. I won’t give a link, but my source was Dec. 18, 2023 issue of Hawai’i Business Magazine. It is a well researched article that gives a lot of answers. Mahalo
Randy, I found the article you referenced. Not surprised mainland private equity is behind much of the hotel ownership on the islands, and therefore is behind a lot of the lobbying efforts. But the article also discusses locally-based private equity as having an increasingly-significant share in some of the larger hotels.
Anyway, thanks for the reference. The article does provide a “big-picture” perspective not usually seen by those of us down in the weeds. 🙂
Hotels are (and have been for over 70 years) purposely built in areas zoned for this type of business, pay GET/TAT taxes, hire staff that supports HI’s economy, create business opportunities around the hotel and are easier to regulate. Airbnb, VRBO and the like (which are relatively new business models) do not meet these standards, frequently create real problems (noise, parties, parking, traffic) for adjacent residential properties and their owners, are extremely difficult and costly to regulate and have limited financial benefits to HI. In addition, the original idea of renting out a room has expanded into a business model that is more like a small hotel without any of the required controls. They are not the same.
I am both a host and a frequent Airbnb guest, and I do not see things your way.
I always stay at the Mauna Kea to get over the jet lag when I first arrive Hawai’i. There are no business opportunities near the hotel, as there are no businesses within 25 miles of the Mauna Kea. You are basically forced to dine there 3 meals a day. And the staff I’ve spoken with are not paid a decent wage, and many travel by bus from Hilo just to get to work.
Airbnb hosts pay more taxes than big corporate hotels.
I pay my local housekeepers $50 an hour to clean, and I hire local gardeners and handypeople. More, my guests shop at local grocery stores and dine locally. This money stays on island, the Marriott is worldwide.
Ray – as a condo STR owner (using VRBO) I couldn’t disagree more. You say hotels: “pay GET/TAT taxes” – so do we; “hire staff that supports HI’s economy” – we pay housekeeper, on-island rep, local trades people for maintenance, shop locally for condo upkeep; “create business opportunities around the hotel” – our guests do the same things hotel guests do and support local businesses. Here’s the difference you fail to point out: STRs compete with Hotels to bring down prices and Hawaii’s Hotel monopoly wants to stop them.
This is textbook corruption. You would have to be crazy to not see it. And it’s been going on forever. Hotels charge what they want, unchecked. Then they get a little competition in STR’s and BAM! The gov officials on the Hotel industry lobby payroll come running and save the day for them. While the average person struggles.
Same thing happened with the ferry system. Remember that? Yet the train disaster happens because it didn’t hurt the hotel or car rental industry.
I really wish we would stop pretending and just call it what it is…. Corruption.
Thank you for the sane response.
Mufi Haneman created the Hawaii tourism agency so he would have a job to go back to whenever he’s not in the political arena… it’s Mufi’s baby and it’s tie in with the state government… no secret there!
Maui County STR-reducing Strategies
A Brief History of Recent Maui STR Legislation
– Let’s try neighborhoods. “STRs destroy neighborhoods! Let’s cap STRs in neighborhoods!” Done.
-Not enough…other ideas? Ah, let’s blame “Overtourism”. “If we get rid of STRs, it will reduce the tourist load! Let’s cap STRs in All zones. Oh, wait, except for one zone….the Hotel zone – don’t touch that one!”. Done.
(Hotels hold tourists, do they not?)
-STRs Still trouncing hotels. How about “STRs take away housing!” More STR bills introduced.
STRs divert $$ from hotels. Attempts will continue to try to reverse this.
The Sad Truth: These strategies have zero to do with serving the needs of the people.
Of course there is a concerning relationship, the State Government is attacking local small business (AirBnB, etc.) cutting them out of tourism, while not imposing the same on out of state hotel chains.