Building Oratory wrong solution at the wrong time | News, sports, jobs

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The Maui Planning Commission will hear a move Tuesday establishing Chapters 19.98 and 20.41 of the Maui County Code, which declare a moratorium on new temporary housing on Maui. The proposed measure raises several concerns that could have far-reaching effects on Maui’s economy.

While the purpose of the ordinance is to reduce the number of visitors to Maui by halting the development of temporary housing, there is no data to suggest that it would be an effective strategy. Visitors will still come to Maui looking for other accommodations, even if accommodations are limited.

As we’ve seen, visitor traffic is likely to be pervaded by an increase in short term vacation rentals in Maui’s residential areas and apartment units, which is the fastest growing segment within the Maui visitor accommodation industry. If the bill is to reduce visitor numbers, (1) additional regulations may be required to limit the number of legal short-term vacation homes in Maui County and (2) enforcement to stop illegal short-term vacation rental units in residential neighborhoods.

The moratorium will also have a material adverse economic impact on the Maui economy, while economic recovery should be sought. Why run the risk of foregoing significant investments in the economy, creating jobs and generating vital tax revenues, especially given the recent surge in COVID cases that could continue to affect the visitor industry?

Resolution 21-98 targets the wrong visitor accommodation at the most inopportune time. The American Resort Development Association of Hawaii, which represents the vacation ownership and resort development industry in Hawaii, is surprised that the county wants to prevent timeshare visitors from coming to Maui. The timeshare visitor has the exact profile of the type of visitor we should be welcoming, with higher incomes and more off-home spending at restaurants and local shops.

Timeshare visitors are usually property owners who have invested on the island and who plan to return regularly. They are more likely to take care of their property, which for most is a home away from home, as they are owners, not passers-by. Additionally, people may be surprised that of the 26,034 Hawaiian households that own timeshare, nearly 17,000 of them own in one of the Hawaiian islands.

Additionally, the timeshare industry is currently a strong contributor to the Maui economy as it provides more than $ 73 million a year in state and local taxes in addition to the jobs and incomes of Maui residents.

We agree that a solution is needed to enable residents to continue working while addressing the significant impact of the influx of visitors until Maui can transition to a more diversified economic base. But resolution 21-98 is not the correct answer. We urge the county’s Tourism Management Preliminary Investigation Group to work with the tourism industry to carefully review these concerns before instituting a moratorium to prevent unnecessary damage to Maui’s fragile economy, which is struggling to recover from the pandemic.

* Mitchell Imanaka is the chairman of the American Resort Development Association of Hawaii.

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