Today Green confirmed plans for reducing Hawaii vacation rentals, and increasing visitor fees.
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192 thoughts on “Governor Confirms Maui Rental Moratorium, New $25 Tourist Fee, + Increase In Accommodation Tax Possible”
Steff……make bank? You are lacking a lot of information…I challenge you to call around and find the cost of HOA dues, insurance and pick a cheapy mortgage…ohh say 300,000$ at 7%….you tell me most people you know could afford to buy? I forgot to mention the 10% down payment…and thats ifyou can find a place for 350K…and you would have to make 3 times the payment you just did the math on…to qualify…perfect credit and not much other debt…you need to do some math before you throw out such statements that owners are keeping the homeless from having a studio condo.
I am a kama’aina that moved away because of the high cost of living for a single parent at the time. Coming home to see family, I usually rent a STR so my family can visit leisurely with us in comfort. Are these taxes and fees stacked? Does this now mean I can no longer afford to visit? This is looking out of control!
So the 4 billion dollar award is not going to fix this?
Hawaii residents and that 27% of short-term rental unit owners own twenty or more units
That is obscene and should be stopped. Also the out of state ownership should be taxed out of existence. The fact that folks are making bank at the expense of Hawai’i homeless is ridiculous
I don’t own a STR on Maui so I don’t have any skin in this game. We do come to Maui a couple of times a year for 2-3 weeks each time and we typically rent a VRBO. I’m confused as to what “bank” you feel these owners are making. If you break down the fees taxes etc (their mortgage if they have one) there is not a ton of “bank” leftover and that’s even assuming the unit is rented out every single day of the year, which is not realistic. The only ones making “bank” are the state of Hawaii from the above cuts on each rental as well as the money the tourists spend while on the islands. I have a feeling quite a few of these owners would gladly sell their unit at fair market value but who can afford them…..or are you hoping the state of Hawaii buys them and gives them to the “less fortunate”.
As I mentioned before, Washington DC puts anyone who owns more than 5 rental units under rent control (meaning DC decides how much rent owners can charge). In addition, owners who keep their properties unoccupied have a heavy tax penalty. Maybe something to consider here in Maui ..?
Why are STR’s the “sudden” reason for lack of affordable housing after so many years of knowing such a predicament was already in place? Is this really our fault?
STR’s provide affordable rentals for guests who spend lots of taxable dollars and further provide the jobs necessary to spend them. Forcing them out of the market will eliminate many tourists and thus eliminate the jobs needed to take care of them. What then? Locals living in FEMA paid housing for a limited time, their jobs decimated (thus less income) and your tax base seriously damaged. Less jobs means less income tax and more tax money going out to provide for housing and unemployment. That is a no-win for everybody except corporate-owned hotels/resorts.
Real estate taxes and fees for vacation rentals are already the highest in the country. Three times higher for comparable rental ocean front properties in Florida. Eventually you will kill the Golden Goose
Vast majority of west maui is condo’s where HOA are in the thousands per month, The people who lost their homes, Not many people anywhere in the USA can afford rent that would be 5 grand a month.
As usual screw the little guy, Hotels will make even more as they will jack rates even higher
Hawaii visitors and condo purchasers are becoming affordable only to the wealthy
More killing the goose that lays the golden eggs
More evidence of the government simply hiking it’s taxes on out of state condo owners to pay for their rapidly increasing spending on welfare programs, pensions, and who knows what else with obvious mismanagement of funds and liberal priorities.
Despite the large amount of taxes paid by Poipu visitors, we have dealt with tons of potholes, lack of safe and attractive roadside walkways that make walking between hotels safe – for the 34 years I have owned a condo there – and my guests paying $22,100 in taxes imposed on rental condo owners only. My overhead includes $22,640, $34, 056 management, cleaning fees $10,000, property tax $13,000 per year – and more. If you have to pay a mortgage?
Rolf,
Exactly.
And with those liberal policies and what it has brought, one would think that Hawaiin voters would learn. Doing the same thing over and over and expecting a different result does not make sense.
I have read your articles for several years. I sense mismanagement of money at all levels. I know that’s a very general statement, but we experienced something specific last week. We visited Waimea Canyon January 25, 2024. We paid $30 for parking and for the four people in our group. A female of our group used the restroom, and she said it was the worst restroom she’s been in. That says a lot because we have traveled in Europe and South America. It seems that, with a collection of $10 parking/vehicle and $5/visitor, the restrooms should be maintained properly – facilities updated and kept clean. I have never been to a national park restroom that was in gross and terrible shape.
Hi Carolyn.
We’re so sorry to hear that. We’ve actually done articles about the state maintained beach/park facilities before. Thanks for your comment.
Aloha.
If they want my timeshare week they can pay for it. I’m fine with that. My wife and I are only nurses who get rest on our trips. We will save more by going somewhere else where we are appreciated and not ostracized by their elected representatives.
I feel bad for the investors. After my trip this summer, I’ll stick to the Caribbean. Less people, better beaches, and less government overreach.
The Mexican Tourist Board thinks this is a great idea
When you price visitors out of coming to Hawaii what will be the plan then?
Planning to visit Kaanapali in April. Are visitors welcome to that area? What is the impact to visitors?
I live near the Westin Kaanapali Villas and it seems to me that visitors mostly hang around the pool. I am surprised that they no longer have signs at the beach entrance that alcoholic beverages are not allowed, but as long as Maui doesn’t become Cancun, I am ok. Since most are timeshare, they stock up at Costco for the week. Not sure how much interaction they have with the local population…
i was a life long visitor to all the islands . . just like I was to Vegas . . until like you, I was choked out of ever coming back.
Vegas hotels are now bumping resort fee’s to $50
Very true. Prices are going up everywhere, but based on what I have priced-Hawaii leads. Plus the last trip was not the best-you could tell the Aloha Spirit was gone. So, we’ve cancel our trip and will return when it sounds like Hawaii wants people to visit.
Perhaps, the mainland tourists need to contact our legislators to stop federal funding on interstate Highways in Hawaii since they don’t connect states. Anywhere else, the roads would be state funded highways. Why are mainland tax dollars paying for highways we are not welcome to drive on.
Welcome or not, you are driving our roads when you visit and most are not small cars either ….
The Interstate Highway System has always had a military purpose. Perhaps not its main one, but it’s been in the list.
H1 connects Barbers Point/Ewa to Pearl Harbor/Hickam, and I suspect the Waikiki extension was to UH-Manoa primarily.
H2 adds Schofield Barracks and Wheeler AAR (formerly AFB) to the mix.
H3 added Kaneohe MCAS to the list of connected military facilities. As I remember Like Like and Pali were getting a bit crowded, even back in the 80s.
Many people forget that the official name is National System of Interstate and Defense Highways.
I do own a place in Maui and I am very aware of all the costs. If you can afford to have a vacation condo or home on the island and leave it vacant for over six months every year, you’ve got some serious money. Why is the Mayor and FEMA send out letters and admittedly targeting And threatening short term rentals that have bookings many times years into the future. These people would need to cancel all these bookings that paid deposits and often times have purchased airfares, which seems either illegal or at least unethical. Look around the long-term rental inventory from Kapalua to McKenna sometime and you’ll see that they are ghost towns half of the year. The rich Snowbirds should give up their two or three months they use.
I am perplexed why you think owners should give their condos up for whatever period of time you think is appropriate, let’s make is 5 years or 10.
We have struggled through the Covid years with no rental income. How we afford it is Not part of this conversation.
This is the point: Give all who lost their homes-a place to live…Now where do all those people work? …..their jobs are gone.
Is there work on the other side? they want to live on the West side. housing only on the West side, live in a condo, taken by imposed law. Infuriating that everyone is very generous with someone else rights/property. Rent would be close to 5K to cover a condo. Who is going to be pay that when FEMA cuts off funds?
The governors Short term rental count on Maui is 100% Inaccurate !!!!
******”He said there are some 27,000 short-term rental units, of which he wants 10% to be converted to long-term rentals for fire victims and others.
There are just under 13,800 STR legal properties-consisting of: bed and breakfast (150)all locally owned, STRH permitted homes (164-Maui) (13 Lanai) 50% +locally owned, TVR homes (12) (11 Maui, 1 Molokai)and the remaining are condos type properties.
There are over 72,000 housing units on Maui.
This is not a solution to our housing problem, this is a taking of property rights and a killing of our local island economy.
This reminds me of the mayor asking for people not to come to Maui after the fire. The intention is good, but it ended up hurting the island financially. The long-term condos are owned by rich snowbirds that come for one to six months and because they can’t rent short-term, they leave it vacant the rest of the year…like all those West and South oceanfront houses that you never see anyone in. There is a housing shortage and there are condo complexes in West and South Maui that are 90% vacant for six to 11 months out of the year where those that are displaced wouldn’t be living next to vacationers coming and going every week. Snowbird condos and homes are the problem and the solution to those displaced. They are selling you a mongoose!
Anyone who does not own a place in Maui should not sum up all owners as rich sun birds. You don’t have all the details, so don’t generalize. Making comments like that causes disgust and anger. Each situation is different and there are many reasons an owner can’t or won’t participate in the governors “ Plan”. If you had a business and you were told “we have decided you must close down because we can make you” and either you do it our way or we will force you….are you signing up for that? Quote: today you tomorrow me…..its a narrow ledge…w slippery slope
Aloha rose, I get what your saying. But unfortunately the facts are in the article, over 50% of short term rentals owned by non residents. It’s a problem and is getting out of control to the point that it’s hurting local business.
Is owning a condo in Maui by a non-resident illegal? The solution is not to steal a non-resident’s condo but to build more multi-family, affordable housing. According to MSNBC Business News, over a billion dollars have been raised or donated, including money from the federal government, plus insurance money for the Lahaina fire victims. When will more of this money reach those in need?
It’s not about money reaching those in need. It’s about corporations and politicians expanding their fortunes. They are grifters, chiselers, defrauders, gougers, scammers, swindlers, and flim-flam men. What ever you want to call them, sadly, you have no power to change things. It’s the American way. Think of all the super wealthy that own all the estates along the beautiful shores prohibiting access by the public. Fema is in cahoots with corporate condo owners to save them from having to convert their property to STR. Fema is requiring condo owners to use a property manager of their choice. What does that tell us? Corruption!
Greg…STR’S hurt the economy? HOA fees which employ locals, guests who spend money, we pay taxes, the guest pays…18% plus…we pay a cleaner , a one woman business. We pay a handyman to fix and repair. We contribute to economy! we are being skewered for buying something and making sacrifices to keep for over 23 years. We are not the problem nor the enemy. Green should be so passionate about getting houses built as he is about forcing owners to walk away from their properties. I am Old, way past retirement age, I still work to keep what we have! I am not a trust baby and fought hard for what we have. I may go down but I won’t just hand him the keys because he thinks others are more entitled to own my condo than I am
Aloha Eva, I’m with Ed B. We’re going to be in Wailea March 1-10. We decided it will be our last trip to Hawaii after many. Unfortunately, more and more over time we, as tourist, have been made out to be the source of Hawaii’s housing problem. Yes, It’s true that we enjoy the value of short term rentals because it’s what we can afford. However, we spend, spend, spend while we are there and are happy to support the local economy and we love the locals. Hawaii.gov Needs To Make Affordable Housing Happen A.S.A.P.!
Mahalo
Hey Bill,
I am with you on this. We have been visiting Maui for over 30 years and most people that visit the Island Spend, Spend, and Spend which is essential to Maui’s economy. I am not sure why visitors and out of State owners are the ones to blame. My vote is for every big Hotel or Development built more affordable housing should be developed. Its a shame we are thinking of selling our place which has been in our family for years. I hear Montana is the new Maui….
Would love to visit Montana one day, but it would be in summer, since the climate is obviously not the same than in Hawaii. On the other hand, if you are selling your property on Maui, I am a Realtor!
As a long term Maui resident and working single mom, I am happy to see that the most important issue of resident housing is properly addressed and brought back into balance for the benefit of all who love Hawaii. Those who live and work here often feel subject to the needs of tourism above residents who contribute to the function of our islands for visitors enjoyment. Each island is unique and has something special to teach each of us as we come together for a way to move forward for a better future. I look forward to a brighter tomorrow as we hold dear our Lahaina Survivors and take care of them as only a state with a Law of Aloha can! Mahalo Nui Loa
Targeting short term rentals does not seem like the spirit of aloha. Don’t you think that those displaced in Lahaina would rather be surrounded by long-term renters than short term vacation renters? They keep on making condo complexes in the tourist areas that are bought up by snowbirds that stay there from 1 to 6 months And leave the condos vacant the rest of the year. Shouldn’t the governor and mayor be asking these snowbirds to be the ones to give up their homes and condos for those displaced? It would be easier for them to vacation somewhere else with this money given to them for a year or two than to ask the short term rentals to cancel all their reservations
I agree and didn’t understand why FEMA was emphasizing on short term rental apartments. They are generally smaller and used as a hotel alternative. That said, there are a lot of flaws with their system …
It doesn’t make sense that the mayor and governor are hating on short-term rentals when they do the same thing as hotels… Bring in money for the industry that is over half of Maui‘s economy. Long-term rentals in West and south have thousands of vacancies as Rich snowbirds are starting to leave for one of their other homes
Well Maui ( the Government)is about ready to convert a life long traveler to Maui into a non traveler to Maui…heading to Cancun this summer!!
I have been to Cancun once at that was enough for me, but if you like it, Maui wasn’t the right place for you anyway. I certainly hope that Maui will never be like Cancun (we got close to it on the West side).
Us too!!! Been going to Hawaii for years. Maui and Kauai were my go to spots. After facing backlash for being white and not showing respect for trashy highways, littered streets, abandoned cars all over, entrance fees for everything. Instead of using my timeshare, it cost me $5,200 additional for 1 of 2 weeks at A VRBO. Lahaina residents occupied my timeshare. I left a week early and stayed in Vegas instead. Mexico is my new go to baby. I’m done with Hawaii. Thanks Governor.
I rather go to Cancun, Mexico. You get more for your money there. I think the government of the state of Hawaii is getting too greedy. It’s not enough that we tourists get hit with all kinds of fees just to get to the islands ,now they wanted to get more money out of the tourists.
I agree !!!.. Hawaiian politicians are shameless and conveniently saddlebag tourists with all new monies they need for projects that the state taxes should cover. My son visited me for a week and spent 15,000 on hotel, car and excursions. There is a lot of taxes already paid and Hawaii would like to add another 50?.. Have the locals pay a mil levy and stop taking advantage of tourists. Locals enjoy the beaches 365 days a year!! Politicians fear taxing locals and losing their jobs!
After coming to the islands a minimum of 2 times a year, and many times more than that, since 1975, I am taking a moratorium on hawaii visits. I like all the islands, and feel devasted about Lahaina as I was back when Iniki hit Kauai. However, this constant gouging of added fees and taxes is over the top. I’d rather go to the Caribbean where I will feel like I got fair value for my vacation $.
I’m sorry but the State of Hawaii is taxing itself out of the tourist industry. For my wife and I to go to Waikiki from Canada for a 12 day stay will cost us over $10,000.00 CA. which would not include our food, which I would guess to be another $1000.00 US. which comes to around $1300.00 US. This does not include any tours or such. This will be the very last time I will travel to Hawaii.
Yeah the government solution is always “add a new fee” and/or “increase the tax”. Attack the real underlying issues such as significantly reducing the permitting time for new construction. Maui County roadblocks are ridiculous.
I think that Maui needs to do some “out of the box” thinking concerning it current crises. Housing right now is a real problem and we’re grasping at straws for solutions. There simply isn’t a simple solution to anything right now. That being said, I also think that Maui needs to be careful with what measures of solutions it comes up with. There are a lot of people, not just in Hawaii but on the mainland as well and even other countries pulling for Lahaina as a whole..
Imposing higher taxes on hotel reservations and a guest fee of $25 is only going to drive people away from visiting Maui. The cost of a Maui vacation is already among the most expensive stays for a vacation. People already come and spend thousands of dollars.
We loved Maui and looked forward to visiting the island and the wonderful people we had met on the island. We visited 14 years, consecutively and stopped coming due to the pandemic! It has become unaffordable to us.
Sadly, the VRBO property prices, have become so high, plus paying the taxes it is out of our budget guidelines. We have explored other areas since, Tahiti, Mexico and Costa Rica! These so far are affordable, offer the same climate and they seem to appreciate the tourism. My heart breaks for the local island people and I sincerely wish them the well. ❤️
One of the reasons property is so high here is because people from off island buy property here, turn around and rent at high rates. People who buy here should live here full time.
With less people buying, prices would probably drop.
Jerry, that may be true but let’s face it…those properties are out of the price range of many residents. Otherwise…they could have purchased them when they were for sale
OMG, I am sorry I have to spoil the pity-party on this topic. If I read “You are making it too expensive” one more time my head will burst. People will still come no matter what the governor charges – because it’s something you can’t find anywhere else. Take Disneyland, for example – 10 years ago a day’s pass was 80 dollars. Today is $180. But there’s so much demand you have to make reservations to get in. And lines are longer than ever! It doesn’t make a difference in this economy. The money is out there (wake up and look around). Good. Don’t go to Hawaii. Someone will gladly take your place.
Looks like I won’t be spending my inheritance money in your state like I was planning
sorry, our experience has been that people who earned their money were more respectful than those that “inherited” it and for reasons I can’t understand seem to feel more “entitled”. Also, trust fund babies are part of the reason that West Maui’s prices went out of reach for most locals.
As someone who loves Hawaii and is respectful of the islands. You are Priceing me almost out of my beloved islands .I am planning a long awaited family trip , with my son and his family. Don’t know if I can spend that kind of money. Mahalo
Taxes,fees, already high costs of living have given me zero desire to visit Maui or anywhere else in Hawaii for that matter.I have gone to Tahiti already and are planning a trip to the Cook Islands in May.In addition to the absurd costs it seems the locals dislike the tourists even though a lot of people depend on it.Many people including myself will take our money to a destination that appreciates us.And I am a very respectful tourists.Your loss.
Until there is a plan to build more homes for the residents, they are just collecting money and moving people into temporary accommodations without a plan to end this shortage. Residents should have at least 3-4 new communities to purchase a new home. And expedite it, not on a normal slow Hawaii timescale. It would need to be subsidized with funds so those who lost their homes can afford them. In many parts of the US, a new home can be built in 3 months. So let’s get homes built and land ready for building in the next 6-8 months, and in two years, this could be a great outcome. I doubt this will happen with the politics of Hawaii.
Home built in 3 or 4 months won’t last ….just look at what happens when a hurricane, fire or flood goes through those communities. Let’s do it right, even if it takes longer.
Dear Governor Green and State Legislators,
This is with respect to the $25.00 fee upon arrival, in addition to resort fees, high hotel room rates, taxes and fees on car rentals, and fees to enter certain beaches and parks, and high restaurant prices; shouldn’t we be concerned that we are pushing the people who provide a living to the people of our state to other lesser expensive world destinations? The people who run our state need to be very careful that we don’t price ourselves out of the destination market and end up crying for people to come here to “live Aloha!”
Stopped going to Maui years ago… Locals hate tourists. I’ll go to Costa Rica or Tahiti first. So, mission accomplished! You can keep those fees you aren’t getting from me… Bottom line, I’m a respectful tourist. I am Always courteous when I travel and my heart breaks for Lahaina. But… I remember the way I was treated and spending my time with locals who Don’t want anything but my money can be happy I’m never coming back!
fascinating ….you stopped going to Maui years ago because locals hate tourists (not entirely true) and you vow not to come back, yet you are still on this site. Missing Maui already?
Is a family going to live in a 600 sq ft studio? Even without a mortgage our monthly outlay (HOA, utilities, taxes, leasehold, maintenance, insurance, etc) is $2500. Who is going to pay this for a long-term rental? Yes it is clear we can get this if we engage the program the governor is pushing for upto 2 years.
But, it is a studio. No storage, one car allowed. Small kitchen. Not much more than a hotel.
The point is by stopping all rentals your killing the VAT/GAT and other income to Maui and the state.
Many transient rentals are not what the government wants to have available for the families, like my unit. Owners like me will go $2500 a month in debt, in addition the the already thousands in loss realized so far!
This plan, it’s Not the solution. It has not been thought out to the very end. It’s a money grab and does not fix the problem…but he can say he did what he could and will stay in office as off island owners don’t vote. Owners have struggled over the good and bad times in Maui by foregoing lots of things to stay afloat, how can anyone tell them what you must do with your home. It’s not a crime to own a car and not drive it. Many locals don’t own…and they couldn’t even if we give our place to them. Look at HOA fees alone, forget the insurance or mortgage. I want it so I can have it is a child’s wish. This narrow idea has not been thought through and its results will kill the locals and the islands only industry.