Hawaii’s travel industry is quietly transforming, and visitors may not realize the full cost: fewer options, higher prices, and policies that favor hotels above all else. From aggressive vacation rental crackdowns to legislation shaped with hotel industry input, a clear pattern emerges: Hawaii serves the priorities of its most powerful tourism sector rather than Hawaii travelers.
The Hawaii hotel lobby’s growing power is undeniable.
It’s no longer speculation. A wave of new and proposed laws—from Senate Bill 2919 to county-level short-term rental ban plans—has made clear that the priorities of Hawaii’s hotel lobby are increasingly baked into state policy. These aren’t isolated moves. They follow years of coordination, funding, and strategic appointments that have placed the industry’s goals at the center of Hawaii’s tourism agenda.
The pattern hasn’t gone unnoticed by Beat of Hawaii readers. “It’s fairly simple if you’re paying attention… follow the money,” said Dan M “The ‘small guys’ get blamed for over tourism while the ‘big guys’ laugh all the way to the bank, which coincidentally is located on the mainland.”
Others, like Johnny M., took it further: “Hotels charge what they want, unchecked. Then they get a little competition in STRs and BAM! The gov officials on the hotel industry lobby payroll come running and save the day for them. While the average person struggles.”
The Hawaii Hotel Alliance has emerged as one of the key forces in shaping this shift. It’s the same playbook we’ve seen before: early endorsements for hotel-friendly politicians, full-time legislative lobbying, and, when needed, public narratives that points the blame at vacation rentals for everything from noise to overtourism to housing shortages.
As one reader, PatG., said, “Let’s cap STRs in all zones. Oh, wait, except for one zone… the Hotel zone. Don’t touch that one!”
There’s growing concern that this influence isn’t even entirely local. “It would appear that a lot of lobbyist influence is actually from the mainland,” noted Randy W., citing reporting into out-of-state private equity ownership of Hawaii hotels. That sentiment was echoed by John W., who added, “The small guys have no such friends in State Government.”
Others questioned why officials promote new hotel builds while blaming vacation rentals for housing woes. This narrative seems convenient, if not coordinated, especially when timeshares are taxed more than hotels and vacation rental owners are forced to exit the market while mega-properties continue expanding.
Taken together, the legislation, the lobbying, and the reactions all point to a truth that’s no longer subtle: Hawaii’s tourism future is being guided by those who stand to benefit most, and those may not be visitors or residents.
Jerry Gibson and Mufi Hannemann: industry voices, not elected ones.
While Jerry Gibson, head of the Hawaii Hotel Alliance, is not an elected official, he is a well-liked, seasoned insider and recognizable to many of us, having led operations from Grand Hyatt Kauai to Hilton Hawaiian Village. Nor is Mufi Hannemann elected. He is the former Honolulu mayor, and now, following his contentious resignation from the Hawaii Tourism Authority, the head of the hotels’ Hawaii Lodging and Tourism Association. Yet their influence is felt everywhere in the islands. Both are doing what hotel executives have always done—pushing their agenda forward. What’s changed is how closely their messaging now aligns with the state’s top leadership.
Governor Josh Green’s alignment is not new, but now it’s central.
Governor Green’s policies repeatedly reinforce one side of Hawaii’s tourism divide. He’s long championed green fees and aggressive regulations on vacation rentals. The governor harshly described short-term rentals during a public meeting, as we reported in Governor Uses Profanity Describing Hawaii Vacation Rentals, and has supported zoning crackdowns across the islands. His appointment of Lisa Paulson, former executive director of the Maui Hotel & Lodging Association, to the Hawaii Tourism Authority board further cements that sense of alignment.
Last year, the industry officially announced its approval in a move that raised eyebrows. Mufi Hannemann presented Governor Green with a tourism award for his contributions to Hawaii’s visitor industry. For many, this signaled just how close the bond between state leadership and the Hawaii hotel lobby had become.
One reader said plainly: “Green is doing the hotel industry’s bidding. Residents aren’t winning here—just big business.”
Vacation rentals targeted: a hotel-led war?
Consider Maui’s proposed moratorium on vacation rentals in apartment zones and Oahu’s zoning enforcement expansions. Each has been presented as a solution to the housing crisis, yet neither comes with proof of effectiveness or analysis of cost. What’s clear is who benefits: hotels.
SB2919 is a prime example. It was passed with active hotel industry involvement and cracks down on unhosted rentals. For travelers, it means popular, affordable options are disappearing fast, even rentals previously legal and well-regulated. As Greg shared, “We stayed in a legal vacation rental in Maui for years. Now it’s banned, and our only choice is a hotel that costs twice as much with half the amenities.”
Transparency and traveler choice are being left behind.
Decisions framed as benefiting residents and the environment often lack clear evidence. Where’s the proof that banning legal rentals improves housing affordability? And why aren’t travelers informed that their options are shrinking due to industry lobbying, not public interest? Travelers deserve transparency.
If your favorite rental is no longer available, it may be due to policy decisions shaped behind closed doors. Cheryl, a recent visitor, wrote, “We paid $600 a night in Waikiki with zero service. If I’m going to pay that much, I want options—not just what’s left after the hotels win.”
This isn’t just Hawaii’s issue, but it does feel different here.
Other destinations have wrestled with this debate. Barcelona, Amsterdam, Venice, Lauterbrunnen Valley, and New York have all imposed various restrictions. But Hawaii’s approach feels uniquely one-sided.
Instead of a balanced policy, we’re watching coordinated efforts that align nearly exclusively with hotel industry goals. Pam told us, “Our favorite Big Island rental was banned. We looked at hotels and couldn’t believe the prices. We canceled the trip.” That kind of story is becoming far too familiar.
Beat of Hawaii readers have seen this coming.
This isn’t the first time we’ve written about Hawaii’s vacation rental war, hotel price surges, or rising visitor fees. What’s changed is how many reader stories now share the same theme: a feeling of being priced out and pushed toward limited, often overpriced, choices.
Mike bluntly said, “Hotels are gouging us while pretending to help residents. It’s getting harder to justify coming to Hawaii at all.”
These aren’t isolated gripes—they reflect a growing frustration that echoes through our inbox and comment threads every day.
What to watch next as Hawaii hotel power grows.
Caroline Anderson’s interim role at the Hawaii Tourism Authority, further shakeups in short-term rental enforcement, and the next round of zoning debates will all shape what comes next.
Travelers planning trips should double-check their options. That rental you loved may no longer be available, and hotel prices aren’t likely to come with lower prices or added value.
As Hawaii’s tourism policies evolve, travelers and residents must ask: Who is this really for? And what can we do to ensure Hawaii remains a destination for everyone?
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The Hotels got paid by the government $1000 a night to host fire surviors. $1000 a night times 30 night is $30,000 a month per fire survior times about 8 to 9 months. The hotels actually made hirer profits during this time. while fire surviors were homeless. The hotels were not just hosting to be nice they took advantage of a situation. Our Governor could not negotiate a better price during a huge desaster? Vacation rentals were a a better option and a huge cost savings to the goverment. Yes we never got a thank you instead they threatened to take away our ability to rent short term. It was convenient when they needed it. And the Governor said we could resume back to short term rentals if we all helped. We did and now he has gone back on his word. Our small complex had 27 out of 30 units cancel vacation rentals to house fire surviors at a fraction of the hotel cost and better amenities. And now we get punished and the hotels get rewarded. This is so wrong on so many levels.
Every lawmaker in Hawaii needs to read this article and this one quote says it all;
“It’s fairly simple if you’re paying attention… follow the money,” said Dan M “The ‘small guys’ get blamed for over tourism while the ‘big guys’ laugh all the way to the bank, which coincidentally is located on the mainland.”
Maui’s prior unconstrained growth of vacation rentals created an unsustainable situation. It’s now coming back to haunt all who played a part in this debacle.
Coupled with the appalling lack of planning by Maui’s elected leaders, a perfect storm was brewing long before the tragic Lahaina fire.
Ultimately, it falls on Maui voters to elect competent leadership.
This is so true. The locals need to pay attention it is not the little vacation rentals that is hurting them. These big hotel companies are going to run the whole island pretty soon. And there tax dollars are less and the money goes to the states where the corporations of the holes are based not to the State of HI. So this will not help the locals. The hotels pay very little to the employees that work there creating a difficulty for people to.work there and live. Maybe if they payed better wages people could afford to.stay in Hawaii. Compare what they charged the goverment during the Maui fires. $1000 a night . With these big increase in rates what were the increases in salary’s for the employees?
STRs destroyed Americas housing. No sympathy at all. Ban all thos VRBOs
I love Hawaii. Where else can you hop on a bike, soak in the warm sunshine, and glance out to see a mother sperm whale and her calf playfully gliding through blue waters just off the shore?
My most recent visit was a few weeks ago and I stayed in a resort for a few days before checking into a STR. I had no choice because there was not a single short term rental available during my dates.
The pampered resort experience was pleasant. It was nice to talk to the employees who spoke highly of the hotel and how they had been able to build a life working at the hotel. They had insurance and had been able to purchase a home. The STR experience for me is a step above though; the quiet mornings sipping coffee off the deck are mind clearing, he exciting afternoons spent spent in the water are beautiful and the evening meals prepared with family create amazing memories. I can sit by a loud pool, eat greasy food, and stand in line in the Caribbean. Hawaii is better with STRs
I work with budget travelers a lot. They come here to move here, work on their land to move here or visit family who don’t have room for them. They can’t necessarily afford hotels – happy to have hosted a family of up to 7 part of whom came from the mainland, the other part from Japan.
It is a 4BR house in Hilo that was on the market for over a year with a STVR permit. It needed too much work for the first party who made an offer on it. I did or am doing a lot ofthe work on it myself.
To offer it for long term rent State/County would first have to get rid of the squatters’ rights (and the planning department from threatening to take the short term rental permit away if I rent for more than 30 days).
If anybody would have wanted it (it was at about median asking price when I bought it), they could easily have beat me to it.
My family depends on our hosted vacation rentals ( where a local family lives on-site and uses the STR revenue to pay the bills ). Without it we will be forced to leave Hawaii.
Our guests love the farm. We get rave reviews and our operations impact no-one. Without this income, our best financial option is to cut down all of our coffee and sell the property as a luxury second home to a wealthy mainlander who will only visit a few weeks a year.
I bought my farm from a billionaire and our hosted rental is the only way we can afford to be here.
Quit making blanket statements about how “bad” we are and open your eyes to what is going on. The hotels don’t want competition and are using their power and influence to get rid of it. It will hurt local families, hurt the local economy and result in an out-migration of local residents.
No, STR’s have not destroyed America’s housing. Maybe blame foreigners and investors buying up all the available real estate, and Democrats unwilling to expand supply.
We thought it over and skipped HI this year, flew a few extra hours to Fiji. What a revelation. Friendly locals, cheap prices, and just as beautiful if not more. Hard to get used to driving on the left though…Bye HI.
If we didn’t have family in Hawaii we would not come back. We’ve loved our trips there to 4 of the islands. But when we have a larger family group the short term home rentals kept us all together rather than in hotel rooms. it gave us options to eat out or cook in.
There is no way we could afford a family trip to Hawaii with whats happened to prices. Sad.
sad story, all the governor, mayor and council members tout is most condo’s are owned by people that don’t live in Hawaii.. no mention all the hotels corp offices are off island.. and the $$ is sent off island, yep that goes un said.. the little guy don’t matter
I’ve said this before and it’s just now starting to sink in, banning or restricting STR’s isn’t helping with the housing shortage, most Hawaiians couldn’t or can’t afford to purchase the apartments or condos used as such, we have one, a small 1 bedrom, the mortgage pmt is $1860.00 and the HOA or maintenance fees are $1080.00 for a total of $2914.00 per month add utilities onto that and then groceries and it’s out of reach.
You mention that visitors, and Hawaiian residents deserve ‘transparency’ in government. Do you really think that is going to happen? If it did, the actual corrupt practices that are being pursued by the hotels and politicians would be exposed. Do you seriously believe that either group is going to make their ‘back-room deal making’ public because they have nothing to hide and it’s the right thing to do??? (excuse me, I have to stop laughing for a moment). It’s not going to happen. The sad thing is, when a corrupt organization gets control of gov’t, they appoint fellow corrupt persons like themselves as regulators. There is no ‘regulation’, because these same types of persons are the ones who are supposed to police them. Kind of like watching laundry go round in a dryer.
I visit Hawaii a couple of times a year & I savor every second I’m there. Hawaii faces a heated debate where many blame STRs for the housing shortage. It’s an easy narrative to sell, & well-funded hotel companies are quick to capitalize—shaping the dialogue to serve their profit interests while pushing crafted talking points to local politicians.
These well-connected lobbies aren’t benefiting local residents or enhancing visitor experiences. Instead, they create tourist trap resorts that bring more noise, traffic, and inflated prices—all while siphoning off revenue to corporate headquarters. Sure, hotels can play a role in a community’s success, but when they dictate or steer local policies, residents ultimately lose. The hotel industry is just a very small piece of what makes destinations like Hawaii special, yet their influence is disproportionately large— eroding the very essence of what makes these communities unique.
Hello do you remember when former mayor of Maui said that he wanted to restrict travelers to tourist zones making parts of the island off limits to non-residents?
Obviously that’s against the constitution, but eliminating STR’s, especially on Maui, goes a long way to making this dream come true.
My wife is a prime example she never wants to explore Maui she’s perfectly happy with being waited on hand and foot at her favorite Wailea resort. A big adventure for her is a drive over to Mama’s or heaven forbid a drive upcountry to the Maui winery.
So I agree it’s both Big Corp and Big Government working hand and to wipeout the little guy. Neither one is ever satisfied and always looking to gouge as much as they can from all of us.
My daughter and BF visited a few years back – He told me that he had been to Hawai’i before as a kid, Maui to be exact, paid by his Grandpa and they never left the resort where they were staying.
When they visited here (staying at my TVR) they put 900 miles on my car LOL, she wanted to show him everything.
IMO go to Walmart, Target, purchase a tent. Pack a tent in your suitcase. Skip the hotel. Who wins then. They can’t stop everybody. Heck they can’t even control the homeless.
They Can control the homeless – look at what Newsom did for Xi in San Francisco – they just Won’t.
Even airlines are IMO in on this deal. Book a Hawaiian vacation package through Alaska Vacations, Delta Vacations, Southwest Vacations and such and the hotels designate such said amount of reserved rooms on a designated floor for the airlines booking system. I found only certain airlines only offer certain hotels in their options. NO STR;s, No condo’s, private party etc. IMO not only the hotels are in control but the airlines and their pricing, hotel options also are in this deck of cards. Same as Las Vegas except without the gambling and beaches. Unless you consider the strip the beach.
well, what else is new? I was born and raised in Ohau in the 50s-70s. and I worked in the hotel industry all those years; and now that I’ve moved to the mainland for the past 30 years, I can see that nothing has changed for the tourist who wants to visit the Aina. it’s not traveler friendly then and now, the hotel industry always want more, I was a union member and I sure didn’t want to see less money ? but Hawaii hotels and just pricing themselves out of the market. I haven’t been back home for over 40 years. There is so much more to see in the world than home. sorry to say
Sorry to hear if you still have family here
Short Term Rentals need to be banned across the entire State of Hawaii in Residential and Ag zoning, no exceptions. They should be allowed only in Resort Zoning.
and that will accomplish what??? Locals can afford them. Owners have high mortgages. So who benefits? No one.
Keep it up and soon No tourist will come, Then what?
One of my Christmas wishes is to see the big hotels bankrupted and their shiny palaces demolished. Take a look at pictures of HI back in the 30s, 40s and 50s. That was ‘paradise’ then. It isn’t now. And sadly, you can’t go back. Paradise lost.
It might have looked like better times, but there was poverty, and back-breaking, long-hours work for low pay in the fields.
As imperfect as modern Hawaii is, life expectancy, overall quality of life are better now.
So when I want to rent a condo in Napoli Shores they are trying to do away with these STRs?
So sad!!
The Hotels want to each become a destination…you arrive and they supply everything you need…food, entertainment, lodging, their own beach… all in one package. They learned it from years ago when the Japanese had moved in and bought and built hotels…sold complete packages in Japan…only thing the visitors needed to buy in Hawai’i was trinkets to take home. Except for local help they need, the rest of “paradise” can go take a hike. And with prices going up so much, only the well healed can come. And if they like it enough, they buy their piece/chunk of paradise and don’t need to deal with any of the “riff raff” that aren’t in their inner circle-the Oprah’s, Zuckerburgs and so on.
I’ve put it out before – I’m not much of a conspiracy type, but just connecting the dots on all of the state’s and hotel industry’s actions to me at least, seems as though they are actively trying to attract a top 10% demographic and exclude the 90% below that.
I’ve long suspected that wealthy 1 percenters and the PTB in the state are trying to turn Hawaii into a safe haven shelter for the very rich and powerful because they are concerned about societal unrest in the continental U.S. . Particularly since many former safe haven destinations such as New Zealand no longer allow the purchase of land and homes which were being snapped up by the billionaire class from the U.S.
Guess time will tell…
They told us they want the rich to come – but not the budget travelers. They are getting what they want.
Corruption in Hawaii? Really? It’s so well ingrained into government here, but it’s not even corruption. It’s the way of doing business.
Yes! You’ve hit the nail on the head as the saying goes. I tell folks that HI is just a shiny ‘Banana Republic’, like those down south. The government practices are in tune with the needs/demands of the corporations, who have the money to ‘influence’ the gov’t. That’s one reason why timeshares, owned by the subscribers, are taxed higher than the hotels, who contribute to the welfare of the gov’t elected by the populace. You get what you pay for. What HI needs is more taxes! With the high cost of dining out regularly, politicians are having to cure back. Save the gov’t ! (LOL!)