Have you ever taken a boat tour along the Napali Coast on Kauai, sailed around Waikiki, or done a Manta Ray night viewing on the Big Island with a commercial operator?
Hawaii is determined to balance tourism and environmental preservation by limiting related permits. If Senate Bill 3166 passes, commercial ocean activities might become as challenging to reserve as the Road to Kee Beach, and prices might increase.
These legislative moves catch boat tour operators off-guard, especially smaller ones likely to be most impacted. A similar bill was introduced last year and was vetoed by the governor for that very reason. While he believes “Hawaii must strategically regulate commercial uses across our shared ocean for the perpetuation of our natural and cultural resources” and that the “commercial permitting system requires reform,” he was also concerned about the loss of jobs and negatively impacting small businesses.
What this means for Hawaii visitors:
Hopefully, this can evolve into a sustainable form of ocean recreation management that might benefit both residents and visitors.
For example, DLNR has also targeted manta ray night viewing operators in specific harbors, including Makako Bay and Keauhou Bay on the Big Island. DLNR wants to limit the number of operators for these tours from 70 to 24.
State: The islands are “being loved to death.”
The state of Hawaii has indicated it seeks a drastic reduction of boat tours by 60% or more. That is based on the belief that tourism promotion, including in social media, has deluged the islands. DLNR previously said the islands are “being loved to death” and that reducing the number of permits is the only viable solution.
The new bill will curb what the state deems to be excessive commercial boating activities by limiting companies’ permits. This could significantly overhaul the operations of boat tours, kayak companies, and scuba diving operators, among others.
The new law, if passed, would impose restrictions on commercial permits issued at all 23 harbors and boat ramps across the state. It includes commercial permits from being transferred upon a change in legal ownership and allows DLNR to use the public auction process to reduce the number of permits available when limits have been exceeded.
The likely result is that permits will go to the highest bidders at auction.
That could mean, however that all but the largest boating activity providers could be eliminated. The bill claims this is the proper way to address the rampant issuance of permits that have led to overcrowded conditions at state harbors.
Highlights of the bill now before the Hawaii legislature.
The legislation aims to raise fees on ocean operators, which will result in higher costs for visitor boating activities that help fund DLNR.
Among the highlights is that a public auction will be the primary means to limit permits for these activities. When more than the allowed number of permits have been issued (as is frequently the case), the state will remove all existing permits and offer new ones to the highest bidders at auction. That will ensure that only the largest operators survive, with small companies unable to compete.
Governor Green vetoed last year’s efforts.
The current legislation builds on groundwork laid in 2023’s vetoed Bill 1090 which also focused on creating a new permitting process and addressing too many boat operators at Hawaii’s harbors. If nothing else, this year’s bill reflects the continued commitment of Hawaii to controlling and managing commercial ocean activities.
DLNR wants to regulate permits that now exceed their determined appropriate limit.
Unfortunately, most permits had already been granted before the limits were set forth, leading to demand exceeding the existing capacity.
Boat harbor infrastructure is inadequate for current demands.
This issue traces back about a decade when Hawaii began imposing limits on permits due to increased tourism that occurred without any improvements in the infrastructure at boat harbors. At that time, boat operators anticipated restrictions and flooded the state with permit applications. Many were then approved in what seems now to have been an oversight. More than a decade later, the situation has evolved into a chaotic scenario, with the number of permits far exceeding the newly established limits.
Chime in. Do you feel it is good to protect Hawaii’s natural environment from over-tourism in this way, or is this a non-tourist-friendly idea?
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Is there a follow-up to this article? Thanks
I have been trying to oofind hb2477 with no luck can anyone get the right information on this not so well thought out bill. Maybe Boh has wrong information.
Hi Don.
Thanks. We updated to have the correct bill number. We appreciate you pointing that out.
Aloha.
Thank you for the update on this matter it was very helpful 😀
Selling the permits to the highest bidders??? So the only operators will be large scale business???
Send That idea back to the drawing board. Hard to see if it’s corruption or just more idiocy.
…the islands are “being loved to death”
That pretty much underscores the problem.
For those who have been coming here for years, do we simply say, no “new” visitors? Or do we say, you’ve had your fun, now let someone else have a turn? The bottom line is that we can’t accommodate everyone. We’ve been ignoring the problem for far too long.
Now that the problem has finally gathered enough momentum to actually do something about it, everyone is up in arms. Well, if you’ve got a better solution, we’re all ears!
We have been going to Hawaii once or sometimes twice a year for 30 years but with the changing attitude toward tourists, we think we will start to look at options in other locations. Mahalo for many years of wonderful memories but it is getting ridiculous.
Does the Hawaiian government realize they are still part of the USA? They sure do not act it…
this is a non tourist friendly move. all of Hawaii is becoming a unfriendly, expensive and for the rich only destination. instead of highest bidders-that will put out the Native operators, just have a lottery if this goes thru. will be going to Hawaii this upcoming summer and will be the last since we can go to the French Polynesian island with better beaches, same water life, little but good restriction and friendly people.
Why doesn’t Hawaii just come out and say we don’t want tourists. I’ve been coming yearly for 30 plus years and it now seems the massaging and excessive prices, and added taxes for tourists, just send the message to stay away and don’t come back.
Hotel rates go up, the number of visitors goes down. The state raises accommodation taxes and they want to raise other fees and taxes to reduce the numbers even more. If all these reductions are successful then there won’t be enough visitors to support the excessive number of permitted businesses and they go out of business. Problem solved.
Been to maui 12 times in the last 7 years, but with the crazy rates and taxes we are done. I will go to Mexico or Costa Rica. Git married by Lucky at KBH but it is no longer affordable for the middle class. Used to be 250 a night and now is around 600 plus ridiculous fees. Hopefully your state goes broke since tourism is really the last thing you have left. Once they took out the suger cane train, we all knew what was next. Goodbye hawaii.
We have been on great boat excursions and very bad ones, one in particular that was breaking environmental and conservation rules.
I favor restrictions, and limiting contracts to reduce environmental impact.
I don’t think contracts should be awarded on the basis of money, rather they should be chosen based on past environmental record and whether the company has shown themselves to be responsible and respectful to the islands and their people and wildlife!
I believe that this a non-tourist-friendly idea. One of the reasons for coming to Hawaii is to enjoy the nature. Seems like your state government doesn’t want me to come around anymore.
More regulations, more restrictions this is what I know Hawaii to be, every sign starts with the word No! This one seems like greed driven by the DLNR. Fix the infrastructure. The harbors make a ridiculous amount of money and none of that is being put back into the infrastructure of the harbors. You need to put higher expectations on the harbors to accommodate the tourism not restrict it. Hawaii you are a glass half empty.
Mahalo, BOH, for your excellent reporting. So, if the state is successful in significantly decreasing the number of tourists coming to the islands by its lodging policies, won’t it become unnecessary to clamp down on water activities? The tourists who do manage to pay for lodging will have even less money in their budgets for diving, whale watching, fishing, kayaking, etc. How does a huge increase in resort lodging revenue (the profits of which leave the islands) benefit the local economy more than if tourist dollars are spent directly in local businesses?
Not sure Ke’e was a win. Those displaced tourists now go somewhere else with no plan. Many end up at Lumahai. No toilet, no lifeguard and it’s a dangerous beach. Meanwhile Ke’e is underutilized. Most people that torture themselves getting a permit to do the hike, not the beach. So a life guarded, safe beach with toilets is quite often deserted.
Meanwhile everyone involved in this transformation are walking around patting each other on the back. Some people are better at leading than others.
We were turned away at Kee Beach last year and told the reason for road closure and new permitting process was a large rock fell off hill and couldn’t be removed. BS. This closure was ok’d because locals wanted less traffic on “their” road. Typical HI. Hawaii is only for the very rich now. You get what you vote for!
Aloha BoH folks. Thanks again for all you do.
First want to say that an auction for permits is Not the way to do this and not fair. A lottery would put everyone on a equal footing. We need the smaller operators to have space.
I am glad to see this conversation coming up in the legal area. There are way too many boats and people floating around on noodles at local beaches where we swim. We have stopped going to favorite places because of this. And….the fish and turtles have stopped also. During covid there was such a healing of the reefs and return of sea life. Now once again there are days when we see maybe 5 fish the whole hour in the water.
I think the idea of selling boat tourism permits in auction to the highest bidder is disgraceful! The big-bucks operators can push aside the smaller ones. I think a lottery system would be better, giving all a fair shot at getting a permit, with also providing special consideration for native Hawaiians. After all, is this policy about control of the environment or scooping up more money for the government?
Ugh, another regulation. To be fair, I’m not sure I understand completely the problem they are trying to resolve. That said, it seems like Hawaii is destined to upset as many interests as they possibly can. I understand that certain parts of the island are getting over run, maybe this is a shame on us tourists for not being more respectful. We are visiting our beloved Kauai in September and it is discouraging that more than likely we will not be able to visit Kee beach without riding a shuttle, which is not my idea of a good time.
I feel for the small local companies like boat charters that are subjected to the new power of those now in charge. Is it their unlogical methods of protecting the environment or just the flexing their muscles. Next year they will demand all boats in Hawaii’s waters will be electric. They can find better methods of environmental protection without destroying local families livelihood with these un logical regs. If you don’t want outsiders to come visit and share the beautiful islands than just restrict the airlines to a limited number of daily flights and make the airlines bid on the restricted number of arrivals. That will accomplish their goals of restricting the tourist to only the rich with lots of money.
Seems like Maui Leaders are full of non-tourist-friendly ideas.
Yes, everyone loves the Islands especially Maui. I don’t believe for a minute that the leaders are really trying to keep residents and tourist best interest in mind. I live in a tourist destination and everyone can work together to have it all without compromise.
What about the electric ground affect planes? Aren’t they boats before and after they are planes? Also won’t they require major changes at harbors to create terminals. I’m guessing the proposed $30 ride to another island is a little low. I’m Feeling sorry for the little guy again. But you can count on your voted for state and local politicians to make the right decisions for you.
Wow! Everywhere you turn Hawaii has made it obvious. Don’t come! Let’s all put a moratorium on visiting the Hawaiian islands. Tourism is their economic driver and although I understand their efforts to mitigate the impact of this on the environment, pricing tourism through the roof is not the answer.
This is crazy. except for a few highly sensitive bays. We are deeded property owners and have been regular visitors to HI over 30 years. Typically stating 3 weeks at a time and spending thousand’s of dollars, many with local small businesses. As the bureaucrats continue to make it more difficult and more expensive they will accomplish their goal of returning the islands to places that only the super rich can afford. What they don’t realize is that as tourists visits go down costs to Hawaiian residents will sky rocket and jobs and opportunities for successful small businesses will disappear. Looks like its time to sell our property.
Lottery is the fairest way to issue permits. Auctions can be gamed, and this will destroy new and young business owners and tour operators. Older, larger operators will have an absolute lock on permits, the antithesis to a healthy, robust market.
More generally, we understand the efforts to eliminate short-term rentals and limit aquatic activities. Citizens, take note: Hawaii is a terrible state to start a small business. Hotels and old-line business have captured the government. You are on notice.
For the Economically challenged, reduce the # of Boats, Catamarans, Subs, the big get bigger, paying off the over-lords who pocket the vig for their bureaucratic largesse. Then only the Super rich can partake, Waikiki with a single Catamaran, seems fair, the ‘Green Wave’, gosh, wonder profits!