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Home My WebLink AboutCOM 0928.030 2022-2024p Coincs l Res, 5%-2L( COMM, �128 Nobuk co-tof RESORT ASSOCIATION July 19, 2024 Heather Kimball, Chair c. C n Hawaii County Council Hawaii County Building --C —t 25 Aupuni Street , ; C: Hilo, HI96720 '' -ZF-- Support for and Comments on Resolution 556-24 Dear Chair Kimball and Members of the Hawaii County Council, The Kohala Coast Resort Association (KCRA) supports Resolution 556-24, requesting that the Department of Research and Development procure a comprehensive study on the economic and fiscal impacts of the transient accommodations rental industry in Hawaii County. We are grateful that you are seeking an assessment and analysis of rental listings including available rentals, occupancy rates, pricing, geographic distribution, market value of the land/buildings, proximity of owners, number of structures, and other key metrics; economic contributions of the transient accommodation rental industry to Hawaii County' s economy; the impact on housing availability and affordability for Hawaii County residents; and the potential feasibility of conversion to long-term housing. The KCRA conducts an independent economic and community impacts study every few years in partnership with third - party organizations (SMS Research, First Hawaiian Bank). We've shared those reports with all of you and include highlights from the report in our testimony. Frankly, it has been challenging to assess the impact of TAR properties located within our resorts, as each one is owned and operated independently. The monthly Vacation Rental Report, produced by the Department of Business, Economic Development and Tourism (DBEDT) through a contract with Lighthouse Intelligence, Ltd., and shared monthly on the research section of their website by the Hawaii Tourism Authority (HTA), contains some of the information you hope to source through this report (average daily rate, occupancy, etc.). However, there is a caveat at the bottom of that report stating it only represents 33.5% of the estimated transient accommodations rentals throughout the state. Many testifiers have stated that this analysis should be done before any changes are made to existing TAR laws on Hawaii Island. Many hale been in opposition to Bill 121 proceeding without this study, or even at all. We believe that the suite of TAR bills (Bills 121, 122 and 123) should continue to proceed without delay. Every day that implementation of the TAR legislation is delayed, is another day that Hawaii County does not accurately know who it should be collecting Transient Accommodations Taxes (TAT) from, nor how much they should be collecting in TAT and GET based on the average daily rate and occupancy. That puts a significant and unnecessary strain on the county's resources. In 2023 the members of the KCRA paid $17 million in TAT to Hawaii County. The TAT budget line item for fiscal year 2023-24 was only $24 million. And we do not represent the hotels and timeshares in Hilo, Kona, Waimea and other parts of the island. We have to bust that corporations in those geographic areas that we don't represent have also been regularly paying their county TAT and GET, because if they weren't, they'd swiftly receive notice from the State Department of Taxation and Hawaii County's Finance Department. So if all the vacation rentals on the island, which AlltheRooms.com states is 19,000 units (please see attached report), were paying their taxes wouldn't collections be much higjier?' �v Comm. o `('�IIi.Y Ref. mate 2 4 20�1} This resolution is in alignment with Hawaii County's Destination Management Action Plan (DMAP) 2021-2025, which was completed with community, government and industry stakeholder involvement in partnership with HTA, the Island of Hawaii Visitors Bureau (IHVB) and County of Hawaii Department of Research and Development. Understanding the impacts and better management of TARs was identified in the top 10 needs for Hawaii Island and can be found here - HTA i ia-��-ail Island Action Plan (hawaiitourismauthor•ity.or�,,). With better information, hard data, and accurate statistics, we can better manage tourism on Hawaii Island together. The KCRA is a collection of master -planned resorts, situated north of the Ellison Onizuka Kona International Airport at Keahole. KCRA's members employ more than 5,500 Hawaii Island residents, supporting more than 17,000 family members, at our hotels, timeshares, golf courses, restaurants, shopping centers and spas. KCRA's members paid nearly $45 million in GET and $75.7 million in TAT to the State of Hawaii and the County of Hawaii in 2023. KCRA's members, as well as the businesses and residents within the resorts along the Kohala Coast, paid more than $151 million in property taxes to Hawaii County in 2023, accounting for more than one-third of all property taxes collected island wide, according to Hawaii County's Real Property Tax office. We encourage your support of Resolution 556-24. Sincerely, AA�L ",L P &A Stephanie Donoho Administrative Director, Kohala Coast Resort Association Craig Anderson, VP Operations, Mauna Kea Resort —President Pat Fitzgerald, CEO, Hualalai Investors — Vice President Charlie Parker, Regional VP and General Manager, Four Seasons Hualalai — Secretary / Treasurer Chris Sessions, DOSM, Fairmont Orchid — Board of Directors Daniel Scott, Regional VP and Managing Director Rosewood Kona Village — Board of Directors Scott Head, VP Resort Operations, Waikoloa Land Company — Board of Directors David Givens, General Manager, Hilton Waikoloa Village — Board of Directors Rob Guntliner, Area VP Resort Operations, Hilton Grand Vacations — Board of Directors Pete Alles, General Manager, Mauna Lani, Auberge Resorts Collection — Board of Directors Michael Howe, Resort Manager, Waikoloa Beach Marriott — Board of Directors PO Box 6991, Kamuela, HI 96743 * (808) 747-5762 * kohalacoastresortassn�Dgmail.com * www.kohalacoastresorts.com Ma r k e t ■ Selected Market Boundary Characteristics k. SELECT MARKET* Provider Hawaii County, Hawaii, United States o... (4) airbnb, booking,_ - Filters Property Type Instant Bo... Sleeps Min ... Max... Beds Number Of Revi... I I , (3) True, Fals.. - - - Is Managed Is Active Rooms Min Stay L... Max... Bath... Rating (2) True, False False 4Li True _ 0 100 Revenue LTM Average Da... Average Ac... Booked Nig... Hosts Properties $213M $275.05 6,947 775,094 4,546 19,655 Provider Listing Distribution alrbnb booking M homeaysy M vrbo M 61II! 0— 1.31 k (6.6795) 1 — 6.63k (33.7296) �'. 2 — 6.78k (.53%) � 3 — 3.45k (1717.5396) ® 4— 1.OIk(5.12h) 5 — 344 (1.75 V,) 6 — 83 (0.4295) 7 — 31 (0.16?5) 8 — 15 (0.08%) 10 — 4 (0.0296) I 1 — I (0.0195) 12 — 1(0.0115) —.11 +n rn ncin Sleeps 0 — 196 (1.00%) 1 — 153 (0.7896) ` .,III 2 — 3.69k ( 3 — 1.07k (5.4294) 4 — 5.43k (27.6396) 27.63 5 — 871 (4.43%) 6 — 5.2H(26.4340 — 259 (1.3296) 8— LSIk(7.6W,) 9 — 89 (OASI'i) 10 — 594 (3.02S0 11 — 41 (0.2196) 12-252(1.2856) 1 a 1 o 1n noon% Bathrooms Is Super Host Property Types aparthotel barn boutique hotel bus campervan Casa particular chalet condo cottage earth house farm stay guest suite homestay hotel house igloo lodge minsu other recreational ve... resort village shipping contai... tell tipi townhouse vacation home yurt 0 Sk 6.081 k ■ 0 - 1.35k (6.85%) 1 - 8.04k (40.88%) ,'I. ■ 2 - 7.08k (36.04%) 3 - 2.25k (11.44%) - ■ 4 - 596 (3.03%) 5 - 197 (1.00%) ■ 6 - 113 (0.57%) to 7-22(0.11%) ■ 8 - 12 (0.06%) 11 -2(0.01%) Min Length Stay 1 - 5.97k (30.39%) 2 - 3.62k (18.43%) ■ 3 - 3.13k (15.90%) 4 -1.33k (6.79%) ■ 6-17(0.91%) 7 8-7(0.04%) 9-5(0.03%) ■ 10-33(0.17%) 12 - 3 (0.02%) ■ 14 - 45 (0.23%) ■ 15 - 3 (0.02%) 1 c . - -.11 Hosts, Gross Revenue and Properties by Portf... Gross Revenue ■ Hosts 50.00 S400,000,000,000.00 Gross Revenue ■ Properties w N 10 -- 19 N O 0 LL 0 20 -- 45 n 50 -- 91 100 -- 267 8170--8170 0 2,000 4.000 6,000 8,000 Hosts, Properties ■ False True )''� null null - 4.92... I's false - 6.... true - 8.59k (43.... Max Length Stay ■ 1 - 7 (0.04%) ■ 2 - 13 (0,07%) 3 - 38 (0.19%) W1 4 - 22 (0.11%) 5 - 54 (0.27%) 6 - 59 (0.30%) 7 - 333 (1.69%) ■ 8 - 24 (0.12%) ■ 9 - 11 (0.06%) 10 - 112 (0.57%) €91 11 - 4 (0.02%) 12 - 19 (0.10%) 13 - 7 (0,04%) 1e -11 lent. Gross Revenue by Properties Under Managem... $750M ■ 100 -- 267 10-- 19 ■ 1 -- 1 20 -- 45 ■ 2--3 4--9 ■ 50--91 8170--8170 $5506 Property Operator Groups by Revenue by Port... Portfolio Bin PORTFO... Group Hosts SIZE Gross Revenue Properties 2 3,228 1 -- 1 $61,948,623.41 3,228 3 888 2--3 $97,856,290,27 2,025 4 310 4--9 $153,965,754.18 1,686 5 54 10 -- 19 $145,683,568.01 730 6 43 20--45 $576,382,144.11 1,334 7 12 50 -- 91 $752,687,862.38 777 8 11 100 -- 267 $5,499,339,246.20 1,640 9 0 8170 $545,833,050,991.13 8,235 X AIITheRooms. Summary for Hawaii County, null Supply, Demand & Revenue KPIs at a glance The market overview lets you analyze the key performance metrics of the selected market in a quick snapshot. The key metrics are aggregated by month. Use the SELECT MARKET dropdown to toggle between purchased markets. Use the PLATFORM dropdown to toggle between Airbnb, VRBO, and booking.com. The Timeframe menu allows you to view the data for various periods. SELECT MARKET* Hawaii County, Hawaii, United States of America - county ADR $325.28 Monthly Metrics TIMEFRAME PLATFORM* - 8 Last 12 months (02/2023 ... Airbnb Booked Nights 591049 Revenue $191207,436.48 Mo... Revenue ADR RevP... Occup... Active S... Available S... Mean Stay L... Booked ... Month N... Sum of Available... 202... S19,207,4... $32... $4,06... 40.31% 7,298 4,725 5 59,049 January 146488 202... S19,481,2... $31... $3,81... 39.31% 7,224 5,103 5 62,182 December 158200 202... S16,165,2... $27... $3,02... 37.15% 7,167 5,351 5 59,647 November 160539 202... S16,716,5... $26... $3,03... 36.58% 7,188 5,510 5 62,486 October 170818 202... S15,306,S... $25... $2,68... 35.77% 7,145 5,695 5 61,119 September 170855 202... S 17,907,4... $27... $3,23... 38.22% 7,003 5,535 5 65,S85 August 171591 202... S17,091,3... $28... $3,25... 37.19% 6,991 5,248 5 60,S07 July 162679 202... S16,514,5... $26... $3,06... 38.57% 6,794 5,393 5 62,402 June 161785 202... S17,352,0... $24... $3,12... 40.30% 6,808 5,557 5 69,422 May 172264 202... S17,836,4... $26... $3,41... 43.65% 6,717 5,226 5 68,425 April 156776 202... S20,803,4... $27... $4,20... 49.17% 6,557 4,9S1 5 75,453 March 153466 202... $18,804,8... $27... $3,97... 51.96% 6,425 4,730 5 68,817 February 132452 SUMMARY $213,187,011.92 40.68% 6,943 $275.61 $3,407.67 12 rows - 16 colunin, Sum of Revenue - Avg of Occupancy - Avg of Active Supply - Avg of ADR - Avg of RevPAL Key Summary Metrics for Hawaii bounty S20,000,000.00 $15,000,000.00 w c W 510,000,000.00 S5,000,000.00 S0.00 2023-02 Market Revenue 2023.04 2023-06 2023.08 2023.10 2023-12 Month $213,187,011.92 Gross Market Revenue 775,094 Total Nights Booked