Could your next Hawaii vacation come with an unexpected perk, in the form of a tax credit or other financial assistance? That isn’t out of the question it appears, as this prospect was just raised by behemoth Booking.com.
Glenn Fogel, CEO of Booking, recently said that the travel industry, outside of the airlines, wants and needs a stimulus package, and he might just be right on. He said, “I would like to see a tax credit for people to spend on travel….” That is not unlike incentives other industries have received, such as electric cars, he added.
Fogel analogized today’s situation with what happened after Pearl Harbor.
“I don’t believe people were saying how much does this aircraft carrier cost? We are in a war we have to win. We’ll spend whatever it takes…” That was what was essential then, as travel is now.
By way of introduction, before coming to Booking, Fogel received a doctorate from Harvard Law School and an undergraduate degree from The Wharton School of the University of Pennsylvania. His company, Booking, has seen an 85% drop in its business in the past 60 days. The owner of brands including Priceline, Booking, OpenTable, and Kayak, just secured $4 billion in additional funding.
Globally, it is estimated that up to 75,000,000 travel industry jobs are currently at risk.
Fogel wants to see the governments “prime the pump” since travel is an important source of employment. “These are people who need to come back to the workforce…We need to stimulate our industry.”
Speaking to what might sound like Hawaii’s situation, Fogel said that travel bans and mandatory isolation periods had created travel “friction.”
Does this seem viable? Something similar has worked before.
Rob (your co-editor) remembers this concept all too well. He once worked on the Targeted Jobs Tax Credit program that was designed to get people in high-risk groups (low income, youth, veterans, etc.) back to work. Employers were offered a tax incentive for hiring.
Beat of Hawaii:
The faster we can deal with the uncertainties including safety for residents and visitors, a decisive plan for reopening Hawaii, and removing the isolation period, the faster visitors will get back to traveling here, and the sooner our economy can recover to any degree.
On good news, we are already hearing from industry stakeholders who are seeing an uptick in bookings for the fall that might be replacing traditional Hawaii summer vacations.
Beat of Hawaii © photo on Oahu near Diamond Head.
Also see:
Hawaiian Airlines Parts-Out 717 and May Suspend Dreamliners.
Testing Visitors to Hawaii: Will It Work, When Will it Happen?
Get Breaking Hawaii Travel News
Very interesting idea! Please keep us all up to date on this proposal!
Mahalo
Hi Dave.
Thanks very much for all of your comments.
Aloha. R/J
Thank you! This is awesome! We were supposed to come to Hawaii in April but our trip was cancelled. We are planning a trip in September now. Do you think this would apply if we booked now? Or should we wait?
Hi Karen.
This is being proposed by booking.com and we don’t know if it will get needed traction or not.
Aloha.
This article is misleading the people who live in Hawaii DO NOT want visitors and we are happy the government extended the visitor quarantine through 30 June, hopefully its extended again. The only people that want visitors here are tourist based companies that need your money (booking.com, etc..). For the real people that live here we value our health over your money. Due to limited resources, remote locations and over grousing we can not support a mass outbreak as the mainland is able to handle. Do us all a favor, save your money or travel someplace other then Hawaii.
Dear John 🤔
I’m quite sure, based on the negativity in your comment, that you have disliked visitors for quite sometime. Did you decide to dislike “visitors” before or after you moved to Hawaii? I’m willing to bet that you too were once a visitor. All visitors are not bad or disrespectful. We are just like you, and love Hawaii. I’d also be willing to bet that you’re financially comfortable and probably retired. Not all residents of Hawaii are happy to be out of work and in many cases unable to provide for the basic necessities of life. I’ll bet that’s not the camp that you sit in. I’ll bet you’re very comfy in your home and financial setting.
Like it or not Hawaii’s primary industry is tourism. Also, Hawaii “IS” part of the United States! For those of us living on the mainland it is very unsettling to hear Hawaii residents make statements similar to the ones you made. Be very careful about what you wish for. If you follow what mainland tourists are saying you would know that the message that you (and a few others) are sending, is being heard loud and clear. Many visitors are in fact choosing to go elsewhere to spend their hard earned dollars; in a place where locals appreciate them.
Hawaii is part of the U.S. and not it’s own country. You have the most unpopular Governor out of all 50 states; and believe me there are some terrible ones out there. So for Ige to be at the bottom is really saying something! Ige is running Hawaii off the cliff. If he doesn’t soon wake up and reopen the state I’m sure those nasty governmental people on the mainland will open it up for him. Ige is taking Hawaiians constitutional rights away from them.
Bottom line is, not all visitors are bad and Hawaii needs us. Visitors should always respect both the islands and its residents. There is both good and bad in every walk of life. Please don’t lump all visitors together and say that we’re all bad. Hawaii is paradise, but doesn’t belong to only you.
I sincerely hope that you are doing well. Good luck to you and all other residents of Hawaii.
Mahalo and Aloha!
Hi TJ.
Thank you for your many comments!
Aloha.
I agree with TJ… come on you probably not no Hawaiian …. don’t knock it
Aloha, John, you might want to check with the many working people in Hawai’i who are getting desperate. You might also read the angry posts by Hawai’i locals (I just read one on this site from the Big Island) who are very eager to see tourism return. (Just read the responses to any CO VID-related article in the Honolulu Star-Advertiser.) All those big companies are employing many thousands of people and those people need money to buy food and survive. Plus all the other businesses, including many Mom & Pop, and all their employees, who have had to shut down or cut way, way back. Bars, restaurants, small stores, barbershops, etc. Tens of thousands of people affected.
After seeing flights on TV where the seats are full and only some passengers are wearing masks, I doubt I will fly for a long time.
I see some unpleasant comments here having nothing to do with Hawaii. There is no good reason to vent your unhappiness here. Please politely check yourselves and find another place as there are many that anyone can visit. This is about Hawaii and for those of us that love her and want her to do well.
Moderator perhaps you might step in here.
I would be against additional credits for a Hawaii vacation! I understand what we currently face (I lost my best friend to this) and understand the risks. But, it’s clear Hawaii does not want anyone from the outside. When you take some of the steps they have – they are clearly saying – we don’t want you! I’ve loved going to the Islands for many years now – but I am truly having second thoughts about returning to the islands anytime in the near future.
I know we should take slow steps and use good science to minimize the risks. We have got to do that!! But, if you want a “0” risk, all travel to and from the islands should be cut off. We are all from the same country – at least I thought….
Other states have done the same thing. And the quar antine applies to returning residents as well. And actually, under the California “lock down” (and other states, too) it wasn’t technically legal to go to the airport to fly to Hawai’i (or anywhere else) for tourism since that wasn’t “essential.” Do some research before attacking Hawai’i.
California and New York “subsidize” other states every year when they pay federal taxes. For instance New York pays 29 Billion, Kentucky takes 37 Billion, Florida takes 30 Billion. Thank you for giving us all your up to date info. I hope Hawai’i continues to do well in the epic battle. Stay safe!
Hi Ann.
Thank you.
Aloha.
I wish everyone in the travel industry would be preemptive and do a “spend $500 get a $700 credit” or something similar. Omggggggg. Between work hotels and flights I have to book to vacation w the fam I would very happily spend some cash now to support and also get a bit out. Obviously it’s not the same industry but that has worked really well for mine (salon/hairstylist). Plus many of my clients even are like YES YES please do!! Those that have some excess seem to be willing to put it into travel for later! Worth a consider. Ps- my husband and I LOVE LOVE LOVE Hawaii. We would happily buy up deals like that to support the travel there.
On this possibility being a Canadian is definitely a disadvantage as we don’t have international air travel yet and for sure a US tax credit wouldn’t be of any value. However Hawaii itself is incentive enough for me to get back as soon as I can.
Not in favor of subsidizing Californians pensions or vacations.
Do you feel that way about all states?
Yes …but especially the sanctimonious “holier than thou” Californians.
I agree completely. How does that play for states that have been fiscally responsible?
Why should other states subsidize California, NY, New Jersey and others that have not spent their tax dollars wisely. People in those states need to be incentivized to elect more responsible government representatives. And by incentivized I mean that their state finances would be in better shape. I’m definitely not in agreement of subsidizing any state that has continuously misspent and mismanaged the states tax dollars.
You’ve totally veered off topic. This issue has nothing to do with states’ spending. It is about giving individual people a cash incentive to take trips, to support the travel industry.
Seriously???? If this takes off, count me in!! I’ll make it a point to come to Hawaii a couple times of year…humbly doing my part in growing Hawaii’s economy.
It seems that it will only be if you book through Booking.com, who gets at least 15% of the lodging fee. And of course the travel credit would only be for more trips placed through Booking.com. I would check directly with your preferred hotel first. I think many will offer incentives. I just received one from a very nice place in Orlando—3 nights for $99 and I have 18 months to use it. Stick with the bigger places on thAtvsort of thing, unless you’re certain they won’t be out of business in 18 months.
Can you please tell me when we will know if the quarantining date of May 31 will be extended?
Hi Becky.
As soon as we have additional information, we’ll be publishing it.
Aloha.
Mayor Kawakami just announced a few minutes ago: Mayor’s emergency rule #9: Mandatory two week quarantine for all visitors and residents returning to Kaua’i is extended through June 30.