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February 16,2021
Matt Kanealii-Kleinfelder, Chair COUNTY CLERK
Heather Kimball,Vice Chair COUNTY OF HAWAIII
Hawaii County Finance Committee RECEIVEDTime 6: i
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Hawaii County Council
Via Email - counciltestimony@hawaiicounty. ov to FEB 1 6 2021 '
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RE:Comments on Communication 100
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Aloha Chair Kanealii-Kleinfelder,Vice Chair Kimball and Members of the Hawaii County Council,
On behalf of Fairmont Orchid,a resort located in Hawaii Island,we appreciate this opportunity to provide comments
on Communication 100.
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This pandemic has cast a grim financial reality upon the hospitality industry. Our property temporarily suspended
operations for the majority of last year in support of local authorities and COVID-19 mandates. We have recently
resumed operations but have only been able to bring back our colleagues in phases,given that it will be an extended
period before we see a full recovery.
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We remain deeply committed to the wellbeing of our Fairmont Orchid'ohana,which includes nearly 500 employees
includingthose that remain on furlough.We resumed operations on November 13,2020, but we head into the new
year with a mix of hope that that the COVID-19 count remains low on Hawaii Island, coupled with concern that this
crisis continues to afflict the rest of the country.This has dramatically affected our occupancy rate,which continues
to run at about-80%to last year. Despite, and throughout these challenges, we have remained dedicated to the
Hawaii Island community and our colleagues in the following ways:
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• We donated nearly 1,600 masks to North Hawaii Community Hospital, Kona Community Hospital I
Foundation, Kohala Hospital in Kapaau and Hamakua-Kohala Health in April 2020.
• We invested over$2m in medical benefit costs for our furloughed employees in 2020.
• Our property conducted bi-weekly food drives for three months in partnership with the Kohala Coast Resort
Association, we partnered with IRONMAN Hawaii on two occasions to offer drive-thru food pick-up
distributions and we took a road trip around the island to deliver care packages to our colleagues.
• Through our parent company, Accor, we were able to offer financial assistance to colleagues who were
particularly hard by the pandemic thanks to our ALL Heartist Fund.A significant number of our colleagues
received grants ranging from $250 to$2000 to assist with rent payments, utility bills and food expenses.
Given the acutely difficult business conditions, and the protracted economic recovery that is expected, we
respectfully ask your consideration of a reduction in the hotel/resort tax class rate for the next three fiscal years.
This would help alleviate an ongoing financial burden, allow us to continue to invest in our employees, and to
stabilize our business during this unprecedented time.
We are very grateful for your consideration in this regard.
Sincerely,
Charles Head, General Manager
fairmont.comlorchid-hawaii i f You e a
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