Kohala Coast Resort Association backs Hawaii bill for short term rental accountability

In the heart of Hawaii County, a pivotal discussion unfolded as community leaders gathered to address the pressing issue of short-term vacation rentals. Stephanie Donahoe, representing the Kohala Coast Resort Association, passionately advocated for Bill 47, a measure aimed at ensuring that all short-term vacation rentals are registered with the county. This initiative is seen as crucial for maintaining safety and accountability within the tourism sector.

Donahoe emphasized the importance of tracking these rentals, stating that it allows Hawaii County to know their locations and ensure they are contributing fairly to the local economy through the Transient Accommodations Tax (TAT) and General Excise Tax (GET). In her testimony, she highlighted the significant economic impact of the resort industry, revealing that in 2024, the county's TAT revenue reached $24 million, with Kohala Coast members contributing a substantial $17 million. This left only $7 million from other sources, raising concerns about compliance among the estimated 9,000 short-term rentals on the island.

The Kohala Coast Resort Association's findings, supported by data from Granicus, indicate that many of these rentals are currently not paying their fair share of taxes. This discrepancy poses a challenge not only to the local economy but also to the integrity of the tourism experience in Hawaii. As the meeting progressed, it became clear that the enforcement of registration and tax compliance is essential for sustaining the region's economic health and ensuring a safe environment for visitors.

As the committee deliberates on Bill 47, the implications of their decisions will resonate throughout Hawaii County, shaping the future of its tourism landscape and the livelihoods of those who depend on it. The call for accountability in the short-term rental market is not just about revenue; it’s about preserving the charm and safety of Hawaii for generations to come.