HomeMy WebLinkAboutCOM 0645.073 2020-2022 P/5pccia( Counci(
8iII 1%
coot.c,Lis
Ko/thlii Cvt
RESORT ASSOCIATION N
CI
May 13,2022 ,�, p
CD
c
Maile David,Chair
Aaron Chung,Vice Chair
Hawaii County Council W �
C
Hawaii County Building r7;.►"
25 Aupuni Street, Hilo, HI 96720 W >.rn
1w/ m 7C
Comments on Bill 126 Draft 2—Hawaii County Budget Fiscal 2022-23 `0 _'
Dear Chair David,Vice-Chair Chung,and Members of the Hawaii County Council,
On behalf of the Kohala Coast Resort Association,we deeply appreciate that Mayor Mitch Roth's administration is proposing a
forty-five cent decrease in the hotel/resort property tax rate for fiscal year 2022-23,and we encourage you to support that rate
adjustment.
As you know,our hotel and resort members undertook significant deficits in 2020,as we invested in medical benefits and food
programs for our furloughed employees while the visitor industry was completely shut down. Last year was also a challenge,
with the surge of the delta variant,and state leaders encouraging visitors not to travel to Hawaii during the summer season.We
hope that 2022 will continue to be a year of rebuilding and stabilization, but are still awaiting the return of international visitors,
as countries adjust their COVID-19 protocols to address ever-changing conditions. UHERO has estimated in its projections,that it
may be 2024 before the visitor industry fully recovers.
Thank you for also understanding that businesses are seeing significant increases in the day-to-day costs of operations in nearly
every arena:salary increases,increases in the cost of family medical benefits,food costs for both our guests and our employee
meals,energy and gasoline costs,construction materials costs and delays,supply chain disruptions,the new Hawaii County TAT
implemented in January 2022,and significant increases in real property tax values in 2022-23.
Across the Kohala Coast,we had seven properties that saw the value of their buildings increase by 50%and more.One hotel
even saw the value of its buildings increase by 124%between 2020 and 2022!These types of increases make it difficult to plan
and are not sustainable long term.That's why we're also in support of Councilmember Lee Loy's proposed Bill 156,so that there
will be guardrails in place for future years.
KCRA members employ 5,000 people,supporting 20,000 Hawaii Island residents at their hotels,timeshares,restaurants, retail
outlets,golf courses and spas.Additionally, in 2022, KCRA members will pay an estimated$60 million in state and county TAT,
and$40 million in state and county GET. Further, KCRA members,and the residents within our resorts, paid$73 million in
property taxes to Hawaii County last year, nearly one fourth of total property tax collections.
Mahalo for the opportunity to share our perspective onBill 126, Draft 2.
Sincerely,
1
Stephanie Donoho
Administrative Director, Kohala Coast Resort Association
PO Box 6991,Kamuela,HI 96743*(808)747-5762*kohalacoastresortassn@gmail.com *www.kohalacoastresofs
Comm. No. 4 11
Ref. To: I ROM
M
Ref. nate MAY 9 2022