HomeMy WebLinkAboutCOM 0675.104 2022-2024 Hale 'Ohu
Bed Breakfast
January 21, 2024
To: Hawaii County Council Policy Committee on Planning, Land Use, and Development
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Sent via email to: counciltestimony@hawaiicounty.gov
Re: Opposition to Bills 121 and 122
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We are writing to oppose Bill 122 that would eliminate legally recognized Bed & Breakfasts
(B&B) and include B&Bs under newly proposed Bill 121 relating to Transient Accommodation-
Rentals (TARs).
In 2016, we fulfilled our lifelong dream to purchase a B&B and run it as a family operation. We
purchased a long-established B&B in Volcano Village along Old Volcano Road which had an inn
license to operate ten rooms which we amended to a B&B permit (Special Permit#966)to
operate up to five rooms. In making this major life change, we moved our entire life to Hawaii
which included leaving our jobs and spent much of our life savings on this new exciting venture.
Our B&B is our sole source of income and it feels like the County wants to put us out of
business.
Running a small business is not an easy feat. We have dealt with the 2018 eruption that closed
the national park for four months.As the primary reason for visiting Volcano is the park, this
was a huge downturn for our business.Then, the pandemic hit and the same scenario occurred.
Lastly, with the Maui fires and the high inflation perception, we saw a significant drop in guests
from mid- 2023.
What is the point of eliminating B&Bs in Bill 122? As you probably know,traditional and legally
permitted B&Bs are not vacation rentals i.e. AirBnBs. AirBnB is a company that has co-opted the
term B&B and created the perception that a B&B is a short-term vacation rental.That is simply
NOT true!The AirBnB concept has nothing to do with a real B&B. Plus,their platform does not
allow B&Bs to collect sales taxes. It is unfair for real B&Bs, such as ours, to be included with
vacation rentals. We operate like a hotel. We currently adhere to all rules and regulations in
Chapters 25 and 14,Article 4,Section 14-20 of the Hawaii County Code. If there are B&B
properties not adhering to these regulations, enforcement should be the responsibility of the
County.The self-reporting component of this legislation does not fix the lack of previous
oversight and enforcement by the County. Comm. N..1f(.9 C.
Ref. To: gi��'
Ref. Date JAN 2 3 2024
19-3896 Old Volcano Road ' PO Box 2102 a Volcano, HI 96785 ® +1808.731.5243 ® www.haleohu.com
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Hale 'Ohu
Bed �) Breakfast
Our B&B consists of three one bedroom, one-bathroom units.These units do not have kitchen
facilities as a short-term vacation rental would include. Additionally, each room has its own
private entrance. We live onsite and manage all aspects of the business. We would welcome
the Council to come by for a visit so that we can show you how a traditional B&B operates.
These rooms would never be suitable for long-term housing if that is the reason to eliminate
B&Bs.
Since 2017, our small B&B has collected $81,587.54 in GET,TAT and HCTAT taxes. We have also
paid $28,596.59 in Hawaii county property taxes.Additionally, we estimate that our guests
spend hundreds of dollars eating out during their stay since we do not offer kitchen facilities.
Also, we pay local people for lawn, gardening and maintenance work who, in turn, spend this
money locally.Can the County really afford to lose these revenue sources from B&Bs?
We are curious how the Council drafted these proposed changes? Did you have a working-
group that included STVRs, B&Bs and Hotels? Do you recognize the economic impact on the
Volcano community as a whole? Without visitors staying overnight, many people and services
will leave. Volcano will become a ghost town similar to how it felt in 2018 and 2020.
Small businesses are the backbone of any local economy, but Hawaii County seems not to be
supportive of small businesses.Trying to solve the shortage of affordable housing would be
better served with more favorable zoning and planning changes to attract developers.The lack
of apartments, especially in Volcano, is shocking.
Please reconsider eliminating B&Bs for the sake of the sustainability of Volcano Village's future!
Mahelo,
Nicole and Gabrielle Naughten
Owners/Innkeepers
Hale 'Ohu Bed & Breakfast
reservations@haleohu.com
19-3896 Old Volcano Road • PO Box 2102 • Volcano, HI 96785 • +1 808.731.5243 • www.haleohu.com