HomeMy WebLinkAboutCOM 0675.513 2022-2024Hawai'i County Council
Policy Committee onPlanning, Land Use, and Development
HGvvai'i County Building c�
25AupVniStreet ;%
Re: BILL 121RELATING TOTRANSIENT ACCOMODATlC}NRENTALS AND HOSTING ^^'
PLATFORMS
Aloha Councilmembers,
Mahalo for the opportunity to comment on Bill 121, related to transient accommodation rentals
and hosting platforms.
Aidmb appreciates the effort the HowayiCounty Council has made to create msustainable
short-term rental program. The Council has recently passed mresolution requesting en
economic impact study on short-term rentals and their effects on the island's economy. We urge
the Council to complete this important study to better understand the negative impacts of Bill
121 before moving tmenact further legislation.
Last month, Travel Tech and local economists atKkoningerand Sims released their own
on the |0c8| short-term nantG| industry. |tfound that short-term rental guests in
Hawai'i County spent over $1.3 billion in 2023 alone — approximately 10% of the county GDP. In
addition, the same report finds that short-term rental guests represent approximately 43% of the
entire island's tourism and visitor market.
In its current form, Bill 121 creates onerous registration requirements, unreasonable registration
fees, and confusion for residents who currently host but are unsure ifthey will beable tointhe
future. The measure's economic consequences could be severe and have a lasting adverse
impact on the livelihoods for generations of residents who rely on tourism.
We urge the County Council to:
� Simplify the mules, license requirements, and registration process. In our
expehence, m complicated registration system which requires hosts toobtain mvariety of
permits and documentation leads to low compliance and undermines the public's
confidence that short-term rentals are being properly regulated. In order to maximize the
number ofhosts who comply with the license registration, the County should consider
creating a licensing system which allows all hosts to submit an application online and
creates a straightforward registration process with clear requirements of application and
approval.
� Create clear guidelines for who can host. We have received feedback indicating that
the following host groups are confused by whether or not they will be able to continue
hosting under Bill 121.
o Hosts who began sharing their ohana unit as a hosted short-term rental since
January 1.2O24.
m The proposed regulation requires these hosts toprove that the ohenounit
was used for hosted TAReaaofJanuary 1.This leaves agap between
then and whenever the proposed regulation iepassed and takes effect.
o Hosts who have been renting their listing for un-hosted short-term rental stays of
31-180dmyo.
� These hosts are currently not subject toregistration requirements (end
therefore unlikely tohave existing nonconforming use nertifioatee).and
the proposed regulations inBill 121 donot allow for the issuance ofnew
nonconforming use certificates for un-hoahydshort-term rentals.
Weencourage the County mfHawai'i tmfollow through omits resolution to conduct an
economic impact study on short-term rentals and their effects omthe Hannai,i economy
before moving forward with Bill 121.
We are committed to working with lawmakers on fair rules that address local concerns while
also protecting the economic benefits of home sharing for homeowners and local communities
that rely on tourism.
Mehalo.
Alex Folsom
Senior Policy Manager