Linda Moore President and CEO at TechNet | Official website
Hawai'i's tourism sector could face a significant decline if short-term rentals are phased out, according to a new survey released by TechNet, a network of innovation economy leaders. The findings suggest that up to 25% of travelers might opt against visiting Hawai'i if such accommodations are prohibited, potentially costing the state over $750 million in tourism revenue. This proposal encompasses Maui Mayor Bissen's plan to eliminate approximately 7,000 short-term rentals on the island.
The survey, which TechNet conducted in collaboration with Penta, indicated that visitors are significantly less likely to choose Hawai'i as a destination if hotel prices rise following the phasing out of short-term rentals. This policy shift could adversely impact the local economy, which heavily depends on tourism, contributing to more than $300 daily spending per visitor on local businesses and experiences.
Moreover, more than half of Hawai'i residents surveyed expressed concerns about the potential negative consequences on the tourism economy and local businesses. "This study points to the significant consequences of restricting short-term rentals in Hawai'i," stated David Edmonson, TechNet Senior Vice President of State Policy and Government Relations. He emphasized the potential disruption to local businesses and the broader economy.
The discussion around this proposal comes as new economic findings from UHERO predict a possible $900 million loss in local visitor spending. The Maui County Council is scheduled to consider this measure in June.
TechNet's survey included participants from the United States and Canada, along with Hawai'i residents, to gauge perceptions of past visitors and those intending to visit within the next three years. According to the survey, travelers are more inclined to select short-term rentals due to cost savings, greater space and amenities, and the opportunity to experience local neighborhoods. Additionally, short-term rentals account for a significant portion of visitor spending on local businesses, with daily expenditures averaging $110 on dine-in restaurants and $98 on rental cars.
The research underscores the value of short-term rentals in bolstering the state's tourism economy, fostering economic activity in local neighborhoods, and offering affordable lodging options.