HomeMy WebLinkAboutRES 556 Draft 01 2022-2024COUNTY OF HAWAII
STATE OF HAWAI`I
RESOLUTION NO. SSG 24
A RESOLUTION REQUESTING THE DEPARTMENT OF RESEARCH AND
DEVELOPMENT TO PROCURE A COMPREHENSIVE STUDY ON THE ECONOMIC
AND FISCAL IMPACTS OF THE TRANSIENT ACCOMMODATION RENTAL
INDUSTRY IN HAWAI`I COUNTY.
WHEREAS, over the years, Hawai`i's tourism industry has evolved with the onset of
hosting and booking apps, expanding the variety of available accommodations to meet diverse
traveler needs and price points; and
WHEREAS, transient accommodation rentals provide an opportunity for residents to
become entrepreneurs by leveraging their properties to generate additional income, which can be
used to support their families, invest in their homes, and contribute to the local economy; and
WHEREAS, Kloninger & Sims Consulting LLC prepared a report dated June 12, 2024,
for The Travel Technology Association titled State of Hawai `i and Maui Economic and Fiscal
Impacts of the Short -Term Rental Industry, which states that in 2023, 43.7% of all visitors to
Hawaii Island stayed in transient accommodation rentals, contributing an estimated $1.3 billion
to the local economy, resulting in more than $17.7 million in transient accommodations tax
revenue and more than $7.1 million in general excise tax revenue; and
WHEREAS, there is a need to understand the broader economic and fiscal impacts of
transient accommodation rentals in Hawaii County, including potential impacts on tax revenue,
employment, economic activity, housing affordability, neighborhood character, infrastructure,
public services, and local businesses; and
WHEREAS, there is a belief that existing transient accommodation rentals, if phased out
or restricted, will be converted to long-term housing units, thereby increasing the availability of
housing for residents and potentially alleviating housing affordability issues; and
WHEREAS, it is important to assess the validity of this assumption and understand
the actual likelihood of existing vacation rentals being converted into long-term housing; and
WHEREAS, an economic and fiscal impacts study would provide valuable insights and
data to inform additional policy decisions and regulatory measures for transient accommodation
rentals in Hawaii County that work for residents, taxpayers, transient accommodation rental
hosts, and visitors alike; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that the
Department of Research and Development is hereby requested to engage an economist to
conduct a comprehensive study on the economic and fiscal impacts of the transient
accommodation rental industry in Hawaii County.
BE IT FURTHER RESOLVED that this study shall assess and analyze:
• The daily data on AirDNA, a third -party data and analytics firm, relating to the
transient accommodation rental listings in Hawaii County, including types of
available rentals, occupancy rates, pricing, geographic distribution, market value of
the land/building, proximity of the owner, number of structures, and other key
metrics;
• The direct and indirect economic contributions of the transient accommodation rental
industry to Hawai` i County's economy;
• The impact of transient accommodation rentals on housing availability and
affordability for residents of Hawaii County; and
+ The potential and feasibility for transient accommodation rental units to be converted
into long-term housing units.
BE IT FURTHER RESOLVED that the study shall include engagement with relevant
stakeholders, including transient accommodation rental hosts, local businesses, housing
advocates, and industry representatives, to gather input and ensure a comprehensive analysis.
BE IT FURTHER RESOLVED that the Department of Research and Development and
the contracted economist are requested to report their findings and recommendations to the
County Council by February 28, 2025.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Honorable Mayor, the Director of Research and Development, and the Director
of Finance.
Dated at Kona , Hawai`i, this 24th day of July , 20 24 •
INTRODUCED BY:
CO CIL MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES ABS EX
Hilo, Hawaii EVANS X
GALIMBA X
I hereby certify that the foregoing RESOLUTION was by INABA X
the vote indicated to the right hereof adopted by the COUNCIL of the KAGIWADA X
County of Hawaii on July 24, 2024
KANEALI`I-KLEINFELDER X
KIERKIEWICZ X
ATTEST: KIMBALL X
LEE LOY X
VILLEGAS X
8 1 0 0
1` )(4%-94e--el Reference: C-928/GOEAC-146
9U3 Y CLERK IRPERSON&PRESIDING OFFICER RESOLUTION NO. 55G 24
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