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Nickle-And-Dimed To Death | Hawaii Visitors Reeling

August 29, 2022 by Beat of Hawaii 212 Comments

Hawaii Airfare War | 12 Routes | Alaska, Hawaiian, Southwest, United

No matter how much money they may have, visitors don’t like the feeling of being nickeled-and-dimed to death. Had we not heard those exact words used countless times in your comments, it may not have caught our attention in the way that it just did. Here are some examples. Let us know which comment you agree with most.

Lori: I would rather pay one fee than be nickeled and dimed at each park, beach, and attraction.

Steve: It appears that rather than welcome tourists, the goal is to nickel and dime them over every little thing possible. Every trip I find more things that are being charged for, and while some are worthwhile, many are just a way for the state to take in money, with little of the money spent on improving the park or area.

Lynn: Budget determines where folks can and will go. This may cause Hawaii to lose money from visitors choosing not to go somewhere where they will be nickeled and dimed for everything on vacation.

Andy: Airlines continually nickel and dime the traveler over and over and they are oblivious to the fact that they are notoriously hated.

Rita: As a frequent visitor… we already pay higher taxes for residing at Hawaii hotels /resorts… It seems like visitors are perhaps being nickeled and dimed to death and not appreciated… Unless the goal of the Hawaiian government is to keep visitors away.

Barbara: I would gladly pay a “visitor’s fee” rather than be nickel-and-dimed every day when I want to visit a beach. I totally understand that concept of visitors participating in maintaining Kauai but please don’t hit me over the head every day of my stay!

Jim: Doesn’t matter how rich one is. No one likes to be nickel and dimed.

Jen: We’ve loved going to Hawaii for years. But the taxes and fees are getting to the point of being ridiculous. I feel like Hawaii is making it clear that tourism is not wanted. We usually spend a good amount of money there. We don’t go cheap but want to spend our money where we can go and know that we won’t be nickeled and dimed.

Tony: What I believe Kauai should try to avoid is looking like the Disneyland Money machine where every time you turn around you are laying out more cash and feel nickel & dimed to death… Where does $ go?

Tana: These islands seem to be nickel and diming tourists and it’s getting really old and annoying. Hawaii is expensive to go to and stay at, real people have to save and work extra to go, all these fees will add to the difficulties of going.

Nickle-and-diming feels like the antithesis of aloha.

It isn’t just how much you charge, but the perception of the value of both the product offered and the visitors who are the consumers. At every level, Hawaii has clearly missed the boat in this area.

Hotel rates and resort fees: How does the $1,600/night average rate sound?

In the latest month reported by the state (see report below), Wailea hotels lead the average rates being charged with a whopping $1,136 per night. Not including taxes and fees including resort fees. In total, that represents approximately $1,600/night on average.

Accommodation taxes: the highest in the country.

The accommodation taxes added to hotels and vacation rentals went up 3% in the last year. Hawaii’s legislature kicked off these increases via HB 862. That measure went into effect starting last October. As a result, the state now has the highest combined accommodation tax in the US.

The state legislature approved the accommodation taxes. Previously, the counties received an allotment of the statewide uniform 10.25% accommodations tax rate, but that ended. Instead, each county had to add its own 3% surcharge to that existing statewide tax. Those taxes are plus an additional 4.17% GST on Maui and 4.712% GST elsewhere in Hawaii. The combined tax on hotels and vacation rentals is approximately 18%.

It is worth noting that Hawaii residents and visitors pay the exact same taxes on accommodations.

Hawaii beach parking fees.

We recently reported that Maui is implemented a paid beach parking system for visitors with possible rates of up to $30. The other islands also have similar plans in the works. So it isn’t a question of if but of when and how much.

Hawaii state park visitor admission fees.

Of the 50 Hawaii parks in Hawaii, 10 already have visitor admission and parking fees (those are typically $5 per person and $10 per vehicle). That includes Hanauma State Park, where the entrance fee was increased to $25/person. Hawaii residents are exempt. Visitor admission fees will also come to all of the state parks. We don’t yet know when they will arrive at the other 40 parks, how they will be managed, and what the fees will be.

Airlines and airlines fees.

Except for most competitive routes, Hawaii airfares are going high and higher. Competition is shifting, and on most mainland routes it is now diminished. That became obvious when Southwest Hawaii flights were terminated on 10 routes. Airline fees are resuming too, and we recently got stuck with a huge airline change fee, as we reported.

Can you avoid being nickel-and-dimed in Hawaii?

One of the differences is that tourists are being asked to pay exorbitant rates for everything, plus different additional fees that residents don’t pay. While true in other countries, it is far less common in U.S. interstate travel. As we pointed out, however, everyone, including residents, pays the accommodation taxes.

Where do Hawaii taxes and fees go?

As you’ve pointed out, Hawaii has squandered most of its tax dollars in perpetuity. So we are left with ridiculously high rates and largely third-world tourism infrastructure. But sometimes, we see changes when admission fees are added. One case in point is Diamond Head. Before fees, hawkers ran rampant, tunnels and bunkers were not lit, and the trail needed work. All of that has been remedied, and a staircase added near the top to create an alternate route for visitors.

 

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Comments

  1. John L says

    March 20, 2023 at 6:18 am

    My wife and I are in the process of scheduling our 50th Anniversary trip for next year. She worked for United and we started going to Hawaii in 1974 and we have probably been to Maui and Kauai 20 times or more. We loved the Aloha Spirit. We were good visitors, always cleaned up after ourselves and were not a “problem” visitor. I detect a real loss of the welcoming Aloha Spirit. It’s apparent (excessive hotel rates, excessive fees and taxes on accommodations and meals, Paid parking at Public beaches, etc) that Hawaii thinks they can make it without tourism. Agriculture is minimal now, Defense exists on Oahu. Without tourism, how will the residents pay their bills? I don’t get it. Help me understand the economics here.

    Reply
  2. Linda D says

    March 16, 2023 at 5:31 pm

    Visiting the North Shore of Oahu and Pipeline Beach is on a lot of visitor’s bucket list. It would be nice for some of that accommodation tax to go toward a decent shower and changing facility there.

    2
    Reply
    • Ernie S. says

      March 19, 2023 at 6:06 am

      You are correct but I would really be afraid of what it would look like within 2 weeks never being cleaned, serviced, or restocked. I’ve been stuck using a couple of Nasty, doesn’t even come close, facilitates on Oahu. Not all are that way,however, the ones that are will challenge you!

      Reply
  3. Mary D says

    March 14, 2023 at 4:08 pm

    Last time I reserved a room 3 weeks ago,I understood that it is customary to reserve a hotel with a credit card, no?
    Here’s a new one for you in the fees department.
    Please no! One of my favorite hotels, the Alohilani, now requires this:

    Please Note: Effective March 3, 2023, a credit card processing fee of two percent (2%) will be assessed on all credit and debit card transactions relating to hotel guest stays, and charges throughout the property.

    1
    Reply
  4. Ray O. says

    March 11, 2023 at 10:52 pm

    I agree with “ALL” the comments that were written. That is the reason we No longer visit Hawaii. I know just stay home and go to places that do Not nickle and dime me. Sorry Hawaii you lose.
    Oh, I should mention that lots of the locals will be out of work, now Sad.

    1
    Reply
    • Ernie S. says

      March 19, 2023 at 6:15 am

      It is a sad fact that people will be reduced in hours, some losing jobs. Once the building is near completion there’s plans to have plenty of employees flooding the newly available jobs market, most will be illegal immigrants. The Exodus to the mainland will continue, unfortunately, and the Islands will slowly become a Haven. Lower prevailing wages and employers sponsoring crowded living conditions will be the norm. Alas, Hawaii, I Once enjoyed your Heritage and People Well. Tomorrow the Burrow will sleep.

      Reply
  5. Ernie S. says

    March 5, 2023 at 7:44 am

    I, don’t agree with, recognize the right to charge parking fees for beaches and other County/State areas. To charge a Parking Fee And an Admittance Fee per person I Do Not. Nowhere that I have ever Vacationed has there been Both, unless the only place to park was on a Metered City Street. Hawaii needs more and more money to keep their social programs funded, a Balanced Budget Approach would correct this. Why raise prices continuously on Tourists to pay for the States Failed Policies and Overburdened Finances! Cut the unnecessary waste, stop Stealing from the Only Industry that You Have, Tourism! I know that I would never be elected to office in Hawaii!

    1
    Reply
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