Most Hawaii vacation costs are controlled by non-Hawaii corporations, which the state has no say in.
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48 thoughts on “Why Hawaii Visitor Money Doesn’t Stay In Hawaii”
Most Hawaii vacation costs are controlled by non-Hawaii corporations, which the state has no say in.
Great idea! I will definitely look for local owned businesses in the future.
Unfortunately, we haven’t stayed at local hotels, but always seek out small independent restaurants and businesses, shop at local farmers markets, attend local craft markets and support local events whenever we can. Last trip (Oahu 10 days) we attended three local farmers’ markets and one local craft market, and ate all our meals at locally owned businesses – (Poke Fix, St.Louis Drive-Inn, Side Street Inn, Poi Factory to name just a few). Why would we want to eat at national chain when there are so many amazing locally owned options? The reason we want to keep coming back is the culture – so very different from the rest of the USA. I would love to come back, but I don’t want to add to strain that tourism is putting on the islands.
Yikes, it’s complicated.
Every vacation rental conversion is one less affordable housing option for Hawaiian residents.
Ban all vacation rentals and young Hawaiians might not be forced to move to the mainland to afford housing.
Ban the vacation rentals that have been here 40-50 years won’t solve the housing need, those condo’s are not new buildings, they were built for vacation rentals meaning one parking spot, no storage, thin walls, no pets high condo dues and assessments, condo dues are $1500 a month add that to a mortgage payment that is not affordable housing no matter how you slice it. Hawaii elected uses that as an excuse to keep the Hilton’s in business and in their pockets.. they still allow time shares and hotels to go in, 388 Hilton accommodations going in right now in Kihei, with a restaurant on the beach! how does that happen? All while they try to shut down the Short term rentals that have been here since the 70’s- 90’s.hmmm called brain washing
Corporations and individual investors are buying up houses and land all across America.
Would we be ok with someone buying all the food or medicine or water and charging double or triple?
How much of Hawaiian housing do you think should be AIR BNB? Are you ok with 50% or70% or 99%?
Think of the young people that have no hope of even affording rent.
There is a housing crisis nationwide, just like you mentioned.. do you really think that airbnb/vrbo/tripadvisor is the issue? Not so, nor are the “investors” buy up all the housing, Not so.. food, medicine etc was plentiful during the last administration.. not now, I see the grocery store shelves here on Maui empty most of the time, and oh gas prices.. Costco leased ships to get their shelves full, the rest rely on??? hmmm Other States provide housing with affordable rents, however the 14.42% hotel tax money here in Hawaii goes to Oahu.. its being used to build a gazillion dollar rail to nowhere, it could have been used for housing. who is going to profit from the sale of condos/homes here HI/Federal capital gain taxes
B, The older condos we rent are made from concrete and re bar. You couldn’t hear a bomb go off next door.
Aloha
Renting a condo at the llikai For one week in October. I’ve always loved our trips to Hawaii and look forward to doing business with the local residents and insuring them of our support for their community. Also we will be back again in 2023.
Robert, are you saying the Ilikai is locally owned?
This is from an article in Pacific Business News Jun 26, 2015:
“New York’s iStar Financial, which acquired more than 200 residential condominium units at the Ilikai Hotel in Waikiki through foreclosure more than five year ago, has settled a lawsuit with two individual owners of units at the condo-hotel, the head of the firm’s Hawaii regional office said.”
I think locally owned is somewhat meaningless. Would we look for locally owned businesses in Hawaii & not at home.
And, what does that even mean – owned by a small business or just a local billionaire. And, who pays higher wages and benefits – my guess is large businesses pay more to that local talent.
Don’t forget that the State of Hawaii has allowed all of these corporations to set up shop in Hawaii and that the state receives tax monies from those corporations. I do try to spend my money as locally as possible while in Hawaii and stay in vacation rentals by owner, but even those are just as expensive as the big hotel chains.
Hotels pay property tax and income tax in Hawaii. Perhaps other taxes as well.
Hotels pay less property taxes than the Short term rentals do, the mill rate is higher for the “little guy”.. wonder why? The HI GET and TAT are the same for both. The “little guys” property taxes during covid were not forgiven, the higher taxes were still collected
Just a quick comment about money staying local with private rentals….. I agree that many rentals are owned by off island owners, but chances are as much $$ is going to the management company (which is hopefully local) as it is to owner after taxes and mortgage….. so I will continue to rent through them as opposed to a giant hotel conglomerate. 🤙🏼🌺
BOH,
“Large hotel chains aren’t owned in Hawaii. The money is shared between the owners, based elsewhere, and their management company.”
A little misleading – Hilton, Marriott, and Holiday Inn are just a few of the hotel chains with properties in Hawaii. Those and many others are publically traded on stock exchanges. So, Hawaiians, like all Americans can and do buy stock in those companies. And, retired Hawaiians may have indirect investments through their retirement funds. In fact, most of the money does remain in Hawaii, for salaries, local purchases of food, furniture, maintenace…
I know more mainlanders who will no longer go to Hawaii because some of the the local Polynesian people are do rude to them. They say Mexico is cheaper and the locals are not rude. I have been to the islands 8 times and love Hawaii. However I may not be back.
while grocery chains like Safeway, all their money is funneled out of state to their corporate headquarters, the very next day, this is true in every state they operate in.
More reason on why we should not be funding tourism promotion with tax dollars.
Instead of renting a car would calling an Uber or Lyft help Hawaii more? Can I trust that my Uber or Lyft driver has insurance and a good driving record? I don’t know who regulates Uber or Lyft drivers. I would think the State of Hawaii would have some regulations for Uber and Lyft drivers. How do I find Hawaii owned businesses, i. E. Hotels, motels, restaurants. Is there a website to find all Hawaii owned businesses. One hotel I believe is Hawaii owned is the Kamuela Inn on the Big Island. I highly recommend this hotel to anyone visiting the Big Island. I also recommend an adventure tour on the Big Island called ‘Welcome To The Jungle”. You can book thru Air BNB, it is a Hawaiian owned business & Umekes restaurant & food truck.
Thanks. This is good info. A ‘list’ of locally owned hotels and restaurants and businesses would be nice to have as a reference. We had our 50th Anniversary photos taken by a local Kona girl (just starting out) and they were lovely and I can guarantee 100% of the money we paid her stayed in Hawaii. :0) Just happened to see info about her on 365Kona and it was a wonderful experience and we are hoping our business helped her as she began her career. We also bought hand made in Hawaii dresses for our granddaughter as souvenirs. I must admit we also bought the little plastic hula girls for our windowsill. :0) But supporting local is the way to go if at all possible. Thanks again for the tips.
Hi Colleen.
Good to hear from you! Not sure we will do that list but concur it would be a useful to have. You have always been a big Hawaii supporter, we know that.
Aloha.