Hawaii Accommodation Tax | Highest in US

Maui Won’t Stop New Hotels While Honolulu Looks At Visitor Curbs

If you have been to Hawaii recently, today’s post is a good opportunity to offer advice on things that can be improved. What each island is doing to better manage tourism is fascinating if nothing else. We’ve honestly never seen anything like this process here in Hawaii before. Yesterday, we shared some of the things happening on Kauai. At the same time, Maui and Honolulu are both trying to figure out what to do next. The state is creating Destination Management Action Plans for all of the islands, and Honolulu is next.

Honolulu and Oahu.

The state’s Hawaii Tourism Authority will next unveil its developing plan for Oahu, which is expected to be approved next week. When publically announced as early as next month, it should lay out steps that the visitor industry and community believe will improve the quality of Honolulu’s tourism over the next several years. This will be a community effort together with HTA to help identify opportunities and also promote sustainable tourism.

BOH: What would you like to see in Honolulu that would result in a better experience for both visitors and residents? 

Maui mayor vetoes hotel construction moratorium.

As you know, Maui’s Mayor Victorino recently called for airlines to limit service to Kahului voluntarily. That isn’t going to happen. On the other hand, he also just vetoed Bill 60, also known as the Hotel Construction Moratorium Bill. It had been passed by the County Council earlier this month and was intended to give the county time to implement an action plan related to the impact of the visitor industry on the island.

County Managing Director Sandy Baz said, “We are confident we are on our way to developing a better, more thoughtful approach to managing tourism in a way that will improve the experience of both residents and visitors. While the mayor appreciates the council’s intent and sentiment behind Bill 60, he believes it is more important for legislation to be effective and legal than for it to be fast.”

Baz said that the mayor doesn’t believe the bill would relieve airport crowding, reduce traffic, or reduce illegal vacation rentals. The mayor has been working with Airbnb and Expedia and could announce something soon about vacation rentals.

Could the county council still override the mayor’s veto? It is possible. Baz said, “Whether or not the council overrides that veto is in the council’s purview, and whether or not there are enough votes is really up to the members themselves.”

The group representing Maui hotels was opposed to the bill, obviously, and supported Victorino’s veto. No matter what happens, the issue is not going away for long. There is already a new draft bill in the legislative process. It, too, will look at many of the same issues.

BOH: So we have not heard the last of a hotel development moratorium on Maui. Do you think that this is the priority, or should it be illegal vacation rentals or something else entirely?

Changes ahead on Kauai. 

The Kauai Mayor Kawakami said this earlier in the week: “We see the opportunity to do better in managing visitor impact, and that includes implementing transportation mode change on our island… During the pandemic, our residents were given a glimpse of what life is like without the influx of cars on our roads, and there’s no denying how much traffic had improved.”

We don’t know what Kawakami’s statement means for Kauai going forward, although we see that, among other things, limiting access in the same way as has been implemented at Haena State Park could be extended to other popular places.

At Haena State Park, all non-Hawaii resident visitors are required to purchase both entrance and parking reservations. These reservations are available online and must be purchased in advance of arriving at the park. Visitors and our own experience indicate that these are sold out within minutes of being released, 30 days in advance. Hawaii resident visitors’ admission and parking are free with Hawaii ID.

In yesterday’s post about new Kauai transportation options, we shared a new way visitors can access reservations that might not otherwise be available. Some of you liked that while others did not.

BOH: Do you feel that the Haena State Park access model is working, or would you like to see something else done?

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37 thoughts on “Maui Won’t Stop New Hotels While Honolulu Looks At Visitor Curbs”

  1. We just returned from our first trip to Hawaii. We stayed in Maui with a day-trip to Oahu to see Pearl Harbor, USS Missouri, etc. We had some very interesting conversations with taxi/tour drivers that highlighted some key issues. The state’s top industry is tourism, so if they want to restrict the industry, it would seem other changes need to happen first, or perhaps simultaneously.

    Agriculture used to be a top industry but sadly is not now. One of our drivers worked at the sugar factory on Maui for 30 years, but when the factory sold, it was shut down and everyone was let go. Some of that land now has tiny citrus trees, but it will take years for these to mature to the point of contributing anything to the economy. If the state government were interested in promoting agriculture, they could do this through various incentive programs. It seems to be a lost opportunity that could address a variety of issues including jobs not related to tourism and high food prices.

    Another driver confirmed that there are no large corporate headquarters located in Hawaii–his take on it was that A) Hawaii is too far from other places, and B) people like island time, which is not necessarily conducive for fast-paced, deadline-driven companies. But perhaps this is another lost opportunity; something in shipping immediately comes to mind.

    All that to say, if Hawaii does not want approximately 21% of its economy tied to tourism, then focusing on cultivating and supporting other industries is key. Building supportive infrastructure (like more robust ports/harbors and wider roads) adhering to a clock and casting an updated vision for the state economy would seem to be good places to start. We didn’t find much in the way of the “aloha spirit” there anyway, so maybe the islands need to shift focus away from tourism and take a hard look at diversifying their income streams through other industries.

  2. Just returned from Maui and Oahu 8 days. First time there and crammed as much as can be done in those days, diving, snorkel,local food, Road to Hana all the way, Wikki beach and city life. Stayed at the classic hotels and loved them, spent large and tipped well. Aloha is at risk though restrictions to get into several parks. I get it but a way forward needs to be made requiring reservations into a park with a two day window and a web site that shuts you out says don’t bother. Hawaii is at risk of being overly loved so some way forward is needed. The plan to return is definitely in the works but for me and mine Maui is the plan. Mahalo lui loa

  3. Aloha Guys
    Hawaii’s nice and lot of people want to go there…can’t change that.
    This is not an easy fix.
    What’s happening now is the type of tourism that is exploding. Internet savvy bargain hunters that want to avoid the resorts and are flooding private neighborhoods and often acting “like they are on vacation”. No surprise there, however being noisier than you would be at home, are less worried about were you park, throwing parties etc etc is not being a good neighbor. No not everyone is like that an nothing wrong with being well informed about a planned destination. Also a family traveling to Hawaii and sharing it’s wonders with their kids is a very magical thing. I do not want to come out as being against that in any way.
    I’m afraid the concept of requiring a reservation for some beaches will just shift the crowding around and in fact make it harder for residents as the people that can’t get a reservation just go elsewhere to hit the beach.
    Not sure there is a lot that can be done except perhaps a strong crackdown on illegal vacation rentals. Since the airlines are deregulated and can’t be stopped, it’s important to put the so called “SWA effect” in perspective. They have tried to aggressively expand their presence by feeding their extensive domestic market into Hawaii. We really don’t have the room to support all their frequent fliers looking for a bargain. The so called SWA effect has huge ramifications for a destination that cannot handle unchecked growth and contributes more than their fair share to the degradation of Hawaii as destination.
    We do not have the room that Las Vegas or Orlando does.

  4. Hi…will be looking forward to visiting tour “beautiful” island..on early October/ 2021..after..Oahu”…visit.🤙🤙🤙🤙😎😎…to really find out what they word of..”Paradise”…is really like.!!!🙏🙏🙏🙏💞

  5. To me, it’s really as simple as the “pandemic”🙄flushed out the locals not wanting the islands to continue to get overrrun. While that is great for them, and I *do* support where they are coming from, I lived out there. Did my homeless time on a few good occasions….not that I was not working, hustling, oh yeah, yes I was. But there’s no opportunity out there….unless if you belong to one of those few fams who run the islands, who “grad” from the proper school.
    I totally agree with the comments about pandering to the rich, the bag holders on island, the pretend “leaders” who are all vying for table scraps, they will continue to ensure that hotels get built. That the rich will continue to get taken care of. Me, I left. As many young people have, and will continue to do…..

  6. We love Hawaii but will probably go to other tropical destinations.its gotten crowded over the years.i feel for local residents but local people have really become poor stewards of their own environment the amount of trash burned out vehicles and lack of care by the community is frankly disappointing. If folks can’t take pride in the islands then the tourism problem will solve itself

  7. Aloha,

    I just got back from 10 days in Waikiki and I had last been on Oahu in the late 80s/early 90s. Wow, what a difference!
    In the 80s, I strolled into Hanauma Bay on a whim, was alone atop Diamonhead and was amazed how empty the beaches were.

    Luckily, this time I did book several things in advance, but I was surprised by the lines and everything being booked up. Every morning breakfast was like a scene from Hunger Games due to the lines.

    The Hanauma Bay reservations may be a good idea, but the system is buggy. Other places seem to be hit or miss, like Diamondhead. We sat in the waiting line to park, but just a few minutes.

    Hawaii is becoming like Disneyworld imo. It’s on everybody’s buckelist or favorite place to go. Therefore, I think, like Disneyworld, access is going to need to be limited to reflect Hawaii’s limited size.

    If people can be warned in advance they need passes for these popular attractions, they can plan around that. That’s better than arriving unaware and being frustrated they can’t visit popular sites – or eat breakfast.

  8. There is pent up demand for a vacation as Hawaii is safer than most places (covid) and it is located in the United States. The problem is that restaurants are still on limited capacity and a majority of restaurants have outdoor seating. The other issue is rental cars. I believe a lot of the rental cars were shipped out of state while Hawaii was shut down by Inge from March-October 2020. Then you add the auto chip shortage and you have a downright shortage. More people coming with less cars and less availability seating for restaurants creates a lot of frustration. We have both family over there and a place of our own which we rent out. We have informed renters, to make reservations as early as possible like a few months ahead. It seems doable if you are ahead of the game and can make your reservations. Renting a car for a week for $2k plus is outrageous. Uber and lyft drivers are very minimal on Maui. Sometimes you can get one, and sometimes you can’t. There are taxis which have helped. Not sure what the answer is to the overcrowding but we have been in Oct, Nov, Dec, and a few times in 2021. 2021 is the busiest I have ever seen it. We mostly go to Maui, so maybe they need a visitor tax to improve the infrastructure like building a two lane highway from the airport to Lahaina area. The car situation will correct itself eventually but the limitation on dining can be fixed by the governor. Happy and safe travels everyone.

  9. I like to compare Honolulu to LA on a rock. I don’t go there. However I have a good friend who is in love with Honolulu and what it has to offer, they go there two three times a year and have done so for over twenty years. I guess to each his own.
    Aloha Guys

  10. As an annual visitor to Kauai, my fear is that by imposing visitor “restrictions” will mean raising prices so only the uber rich will be able to enjoy the Islands. Cracking down on illegal rentals is a must – not fair to those that are following the rules. As one that has sat in traffic around Kaapa several times, our discussion has focused about a needed moratorium on new hotels/condos. No matter the island, there is limited infrastructure, so limiting housing seems to be a good place to start. We have not yet been to Kauai since the limits on visiting Haena, but think it was a long time coming. I am not looking forward to paying to park to go to Poipu Beach or Waimea Canyon, but hoping they will offer a weekly/monthly pass so we could pay once and be done. Looking forward to getting back to Kauai in December!! Mahalo for all the information you provide.

    1. My first exposure to Hawaii was in 1965 as a 21-year-old Marine transiting home to the Mainland from Japan. Have visited here at least 30 times since then. My family is here right now – we arrived on July 8 and head home to SoCal on July 29.

      I am feeling very unwelcome here by the governor and some others. He needs to look at a map – Hawaii is close to nothing and it depends on tourism and the military. Without that the people of Hawaii will suffer great financial harm. I know, with their attitude, my family is seriously considering going to more welcoming places in the future.

      I predict more Hawaiians moving to the Mainland to find work if the Governor has his way.

  11. So, the Maui locals dislike tourists (sometimes for good reasons, sometimes not), yet more hotels can be built? Something doesn’t make sense.

    Ben Franklin said that the people get the gov’t that they deserve. Maui clearly deserves its bad housing problem for locals and natives since they continue electing people who represent the landed, wealthy interests, and not those of the common folk. This is why i find it hard to empathize with many of the island’s problems – they’re self-inflicted much of the time. Start with some reasonable zoning restrictions to ensure that more affordable housing is built, and slot restrict Kahalui Airport as many airports on the mainland are (there’s a drawn out process for this, but its attainable) to limit the number of tourists to more manageable and sustainable numbers. Move on from there. Then, we’ll see.

    Until then, Maui is truly getting what it deserves – Maui is getting what its electing, election after election after election after election…

    1. Thanks patty, these are pervasive issues with all of hawaii. Like you said, tourists are good and bad but thats anywhere.

      With Hawaii, some locals have a pre concieved expectation of how tourists should behave, where they should stay. It seems like Hawaii could manage tourism much better. Part of it is the culture with slow way of doing things and putting off till tomorrow.

      Another problem hawaii has is that it is expensive. Innovation is stifled and young people need affordable housing snd better paying jobs so they move to the mainland.

  12. Aloha, I wish someone had an answer to the problems that Hawaii is facing. I understand how the residents of Hawaii feel about overcrowding and over use of their precious land. My husband and I were very concerned when we noticed the effects that tourism was having on Kauai when we were there in 2018. So I am very concerned about what it is like now. I don’t believe Kauai should be building more hotels as I agree with others that I like the country settings. (Don’t get me wrong, I also like to shop.) But when I wake up in the morning, I want to hear the waves and nature sounds, not cars honking and people yelling. That’s why we loved Kauai so, because of it’s quieter and more untouched land! If I wanted city life, I’d go to Oahu. I know Kauai and other islands depend on tourism, but there does have to be a happy medium. The mainland is experiencing the same problems with immigrants going there. If people can’t find a place to stay, they won’t go to Hawaii or they will go at a different time when they can find accommodations. I’ll continue to pray that you find an answer to your dilemma soon. Mahalo!

  13. Why not have the state hol an auction to win limited number of tourist permits. Then, all the hotels except one on each island could be torn down to make room for the unemployment and bread lines that will follow. No non-residents would be allowed to rent cars but the hotel on each island would be allowed two charter busses each day to take tourists to grocery stores as most of the restaurants will have closed or converted to sop kitchens for the unemployed.
    Finally, all those vacant store fronts and the vacant factories where commercial businesses that make tourist oriented purchases, store and distribute food, wah linens for the now converted hotels and repair and service car rentals canbe converted to low or no income housing for the folks who don’t like tourism. That will likely include some former tour escorts like John DeFries who currently heads HTA.
    OR, county governments could start widening roads, get rid of single lane bridges, and create some parking spaces.

    This current boom is very temporary. Higher prices, the realization that the relief checks are ending, and people going back to work will slow the rush. If some politicians’ plans to raise taxes are enacted, tourism might just return to Covid quarantine levels. Then, some folks will be happy and many more will be miserable.

  14. Great reporting by BOH. Your articles are always interesting, thought-provoking and unlike the mainstream media, you don’t take sides. Whenever I see you on my e-mail page I immediately click on it. Mahalo

  15. I prefer a beach front country feel to my Hawaii experience and I am not a resort girl. I like to take my family and get a beach front house and enjoy more nature and less people. I hike, swim, paddle board, enjoy trees and ocean, sunrise and sunset. I don’t like cities. I also can’t manage to spend a month. 3-5 days or a week is all we can manage to get away from work, being a contractor. Any longer and the work will no longer be there when we get back. I feel like the changes in laws are forcing visitors into cities or resorts and that’s not the kind of experience I need. I don’t know the answers to all the complicated problems facing Hawaii tourism, and I’m thankful for the good experiences I’ve had there. I may not keep coming back if I have to stay in the city, resort, or condo complex.

  16. There’s an abtruse reality that discrimination is acceptable in some cases but not others.

    Charging nonresidents to visit public places is absolutely discriminatory. If you’re going to charge people, charge everyone and charge less. It’s ironic that most people accept these types of discriminations without question, yet loathing protest and even riot, if it’s perceived as racial or racially motivated. 🤷🏽‍♂️

  17. I think it’s long past due for a reckoning of Hawaii travel. Start with the aggressive airlines constantly increasing number of flights. Airfare wars really are a terrible thing for Hawaii. A hotel construction moratorium sounds good too. I like being able to rent private homes but everyone needs to follow the same rules. Limit number of cruises and tour buses too! I have loved both living in and visiting Hawaii for 50 years and I’m very sad about the current state of tourism.Too much for too long will destroy everything.

  18. We are on Ouahu right now. We spent a week at Waikiki and we’re on our second week up on the North Shore. Waikiki is crazy busy. Make dinner reservations at least two months before you come. Make all of your activity reservations months before you come. Everything is sold out and if there’s a place there’s a line around the block. The North Shore is busy but not crazy busy like Waikiki… And the food trucks are awesome, we keep visiting different ones and have not been disappointed once yet! We did not brave Giovanni’s shrimp truck because the line was so long but most other places the lines are short… Unless you want shaved ice then you’re standing in a long line.

  19. Too many people on Maui. It was truly paradise in the 70s and 80s. By 2000 too many people and now just a crying shame. Visitors DO need to be limited. No more new hotels and crack down on illegal rentals is a MUST.
    Hoping also that other vacation spots open soon and a raise in airfare will help remedy the problem as well. Mahalo for always keeping us well informed…kamaaina and visitors as well.

  20. Your article referenced AirB&B, and when AirB&B and VRBO first started, we stayed in so many charming properties in Hawaii. Owners made a point to make them inviting and unique. Cooking supplies were stocked, sometimes you’d receive a basket of local fruit and a bag of coffee to get started. You would have good beach chairs and good snorkel equipment. Many of the properties were on farms, or a “tiny house” (700 sq. ft.)on a larger property. Owners were friendly and went out of their way to make you feel wanted.

    Those places have virtually disappeared! Cramped condos abound. VRBO stands for Vacation Rentals by Owner, not rental agencies yet they are there. They creatively double dip in their fees, charging owners fees for listing the property and charging the renters a “convenience fee”. We have always talked with the owners when questions came up, not VRBO – that would be inconvenient! Many owners are now charging high rents with uncomfortable furnishings. I miss the old days.

    Maui has gotten so built up, if they keep adding the hotels and resorts, I don’t see how the infrastructure will support it.

  21. I appreciate the concern the leaders and citizens have about protecting the Islands from mass, unbridled tourism. It’s a fine line, though. HI lives on tourism. Best of luck on developing strategies and keep getting feedback from tourists so you can monitor and adjust.

  22. For Maui, or any of the islands, it seems that there needs to be a mix of vacation rental options. There should be houses available, as well as condos and hotel rooms. That, to me, means that the whole accommodation industry needs to develop an overarching strategy that melds well with the highway, transportation, restaurant, grocery industries. If one regulates just one piece (assuming that action is legal) some other sector will take up the slack.

    Covid, with the lack of travel, should have demonstrated not only the “need” for visitors but what sectors were most impacted. The restart should have shown, too, where continued weakness lies.

  23. We travel to Hawaii often to see family, and attend board meetings for our condo, but I’ve never seen it as crowded as it was in June. Perhaps that’s because we don’t usually travel there during summer months, or maybe it was due to pent up travel from COVID, or maybe it was really just that crowded in the Waikiki area. Our son avoids Waikiki due to the crowds, and I can understand that. I think putting a reservation process in place for popular sites would be a boon to both locals (it would reduce crowds), and tourists (it would cut wait times). I’m not sure HTA is the organization to do this, as it hasn’t been very successful in the past. It would require capable, stable leadership, and that hasn’t been there for a long time. Once other areas open for travel the problem may solve itself, and then Hawaii will be looking for new ways to attract more visitors!

    1. Aloha! I agree with Lee S. When international travel opens up, there will be less people going to Hawaii. My family and friends that have been planning to go to Europe & Asia have opted to go Hawaii instead due to restrictions. It’s easier for mainlanders to get to Hi especially for fully vaccinated individuals and everybody has been longing to go on vacation. I always check out BOH to get updates on Hi travel and I love reading comments from other readers. Have a safe and enjoyable summer everyone.

  24. Here they go again. Mismanagement and limits on tourism will only cause less tourists to visit and spend money. A continuation of hurtful political policies in the islands. Heres an idea build more eco friendly hotels with covid funds

    1. I don’t understand … you talk about how everything is hurting tourism in Hawaii, and yet I read all the time that tourism is up and a lot of complaints about overcrowding, etc. So, which is it? I think the problem is that crowds are up, and that issue needs to be addressed. The question is, how to best address the issue, not if the issue exists.

      1. Joerg thanks for the input.

        I actually read that this is called revenge tourism. It’s probably temporary so hawaii should be taking action now. But i think it will wait and do as little as possible. The overcrowding happens because most places to stay are in the main cities on the islands. Nothing has been done about this issue before or after covid, which is why im complaining about it.

        1. CF,

          Revenge tourism! I just called it “pent-up demand”. in either case, it looks like an increase in travel is here to stay, at least for the foreseeable future. I think that there are a couple of issues that need to be addressed in Hawaii. First, as you say, all the hotels are in the “tourist areas”, and traffic there gets really bad. The hotel moratorium is a reaction to that problem. But I’m not sure that’s going to roll back the problems that already exist. the second issue is the fact of overcrowding at popular locations for tourists. The issue here isn’t just parking. It’s the fact that just that many people has a negative impact on the very locations that are so beautiful and if something isn’t done, they won’t be so beautiful anymore. It’s a difficult issue since Hawaii is so dependant on tourism, and yet, that tourism is destroying the very reason people are coming there. Overall, no matter what the government does, it’s going to make someone unhappy.

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