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Transient Vacation Rental Measure Advances in the Senate
Aloha HLTA Members,
Yesterday afternoon two committee hearings convened that deliberated very important issues to Hawai‘i’s visitor industry: Transient Vacation Rentals and Transient Accommodations Tax on Resort Fees.
The first was a joint hearing with Senator Glenn Wakai’s committee on Energy, Economic Development, and Tourism and Senator Roz Baker’s committee on Commerce, Consumer Protection, and Health to hear Senate Bill 1292 which addresses the hot button topic of illegal transient vacation rentals.
In room 414 at the Hawai‘i State Capitol, the committees discussed the Senate preferred TVR measure, with 42 supporting testimonies before them, 34 of which had come from HLTA members and leadership. On the other side of the spectrum a total of two testimonies were submitted with opposition (Airbnb and their lawyers), and seven had offered comments. Joining me in offering testimony at the hearing were HLTA Chairman Glenn Vergara (Waikiki Resort Hotel), HLTA Chair Emeritus Gregg Nelson (Napili Kai Beach Resort), HTA President Chris Tatum( Hawai‘i Tourism Authority), Executive Director Lisa Paulson (Maui Hotel & Lodging Association), and General Manager Simeon Miranda (Embassy Suites by Hilton Waikiki Beach Walk).
During my testimony I addressed the key factors of transparency, platform and host accountability, enforcement and fines, and the collection of millions in missed revenues that we support in SB1292. I followed up by stating that this is the fourth time that we have come to bat at the State Legislature, and with movement happening at the counties, it is imperative that legislation be enacted. Lastly, I referred to the theme that I have reiterated time and time again, this isn’t a hotel industry versus TVR issue; at the end of the day it is how illegal TVRs are negatively impacting the community.
I was followed by a personal account testimony by HLTA Past Chairperson Gregg Nelson, who pointed to the 2018 Hurricane Season which left 7 couples seeking shelter at his hotel who had originally booked at a transient vacation rental. In one case a couple was given glow sticks by the TVR operator, and was told that they are on their own throughout the storm. That was the last straw for the visitors as they turned to find shelter at the Napili Kai Beach Resort.
Airbnb voiced their opposition by raising the same concern they did in the past citing the potential problem of running afoul of the the federal Communications Decency Act and the Stored Communications Act. San Francisco, in which the current legislation that Tourism Chair Wakai has modeled after, pointed out that this is a shield that host platforms have been hiding behind throughout the nation. That being said, hats off to Senator Kurt Fevella, for his passionate statements on how privacy issues are only an issue for those operators who are running an illegal business, why should they be treated any different from other business operating in the visitor industry? His passion, stems from the visible proliferation of TVRs in his community of Ewa Beach, many of which he knows are not locally owned. Senator Roz Baker additionally chimed in with a statement that I myself have coined in my list of Mufi’s Maxims, “don’t just focus on problems, come up with solutions.” She advised the Airbnb attorney, that he and his client need to come up with amenable suggestions to the measure which the legislature could look at, instead of simply pointing to the same legal concerns year after year.
After hearing the resounding support from the visitor industry, SB1292 was unanimously passed out of the joint committee hearing with amendments, and will now make its way to the Senate committees on Judiciary and Ways and Means.
In case you missed it click Here for Honolulu Star-Advertiser article: “Vacation-rental tax bill advances at Legislature”
Following the joint hearing, the Senate Committee on Energy, Economic Development, and Tourism held a hearing on Senate Bill 380 and Senate Bill 714, both addressing implementation of the TAT on hotel resort fees. SB 380 focuses exclusively on imposing the TAT on resort fees, utilizing the same ambiguous language that was sent to Governor Ige last year and which was ultimately vetoed after the visitor industry spoke out against it. It defines “resort fee” as any charge or surcharge in a hotel for the use of the property, services, or amenities.” SB 714 takes the resort fee language from SB380 and additionally looks at increasing the base in which timeshare occupancy is taxed, and also seeks to tax transient accommodation intermediaries who arrange accommodations at noncommissioned negotiated contract rates, as the same manner as hotel and resort operators.
SB 380 garnered 32 testimonies in opposition from HLTA members and leadership, and 29 testimonies in opposition to SB 714, neither measure received a single testimony in support. I advised the committee to bolster our state’s coffers with the tens of millions being skirted by illegal TVRs instead of constantly looking to tourism as the golden goose for more monies. With increasing costs, which in many cases are passed on to our visitors, we will eventually price ourselves out of a very competitive market. HLTA Past Chair Gregg Nelson testified in opposition, primarily on principle, as his hotel doesn’t incur a resort fee charge. He asked the question “What’s next? Will we soon be charging the TAT on guests buying drinks from a soda machine?”
After receiving droves of opposing testimony from the industry, the Committee on EET made the decision as expected to amend each measure by narrowing the language to only address “mandatory” resort fees incurred by our properties throughout the state. Both bills now head to the committee on Ways and Means.
I would like to thank all those from the lodging sector who heeded our call to action and submitted written testimony, and especially to those who showed up to the hearings and gave oral testimony. We sent a strong message to the legislature on where we stand on these vital issues, and we could not have made such progress without your engagement and participation. We will keep you apprised as the measures move towards their next subject matter committee so that we can continue to keep you engaged - your voice does make a difference!
Stay Tuned.
Best,
Yesterday afternoon two committee hearings convened that deliberated very important issues to Hawai‘i’s visitor industry: Transient Vacation Rentals and Transient Accommodations Tax on Resort Fees.
The first was a joint hearing with Senator Glenn Wakai’s committee on Energy, Economic Development, and Tourism and Senator Roz Baker’s committee on Commerce, Consumer Protection, and Health to hear Senate Bill 1292 which addresses the hot button topic of illegal transient vacation rentals.
In room 414 at the Hawai‘i State Capitol, the committees discussed the Senate preferred TVR measure, with 42 supporting testimonies before them, 34 of which had come from HLTA members and leadership. On the other side of the spectrum a total of two testimonies were submitted with opposition (Airbnb and their lawyers), and seven had offered comments. Joining me in offering testimony at the hearing were HLTA Chairman Glenn Vergara (Waikiki Resort Hotel), HLTA Chair Emeritus Gregg Nelson (Napili Kai Beach Resort), HTA President Chris Tatum( Hawai‘i Tourism Authority), Executive Director Lisa Paulson (Maui Hotel & Lodging Association), and General Manager Simeon Miranda (Embassy Suites by Hilton Waikiki Beach Walk).
During my testimony I addressed the key factors of transparency, platform and host accountability, enforcement and fines, and the collection of millions in missed revenues that we support in SB1292. I followed up by stating that this is the fourth time that we have come to bat at the State Legislature, and with movement happening at the counties, it is imperative that legislation be enacted. Lastly, I referred to the theme that I have reiterated time and time again, this isn’t a hotel industry versus TVR issue; at the end of the day it is how illegal TVRs are negatively impacting the community.
I was followed by a personal account testimony by HLTA Past Chairperson Gregg Nelson, who pointed to the 2018 Hurricane Season which left 7 couples seeking shelter at his hotel who had originally booked at a transient vacation rental. In one case a couple was given glow sticks by the TVR operator, and was told that they are on their own throughout the storm. That was the last straw for the visitors as they turned to find shelter at the Napili Kai Beach Resort.
Airbnb voiced their opposition by raising the same concern they did in the past citing the potential problem of running afoul of the the federal Communications Decency Act and the Stored Communications Act. San Francisco, in which the current legislation that Tourism Chair Wakai has modeled after, pointed out that this is a shield that host platforms have been hiding behind throughout the nation. That being said, hats off to Senator Kurt Fevella, for his passionate statements on how privacy issues are only an issue for those operators who are running an illegal business, why should they be treated any different from other business operating in the visitor industry? His passion, stems from the visible proliferation of TVRs in his community of Ewa Beach, many of which he knows are not locally owned. Senator Roz Baker additionally chimed in with a statement that I myself have coined in my list of Mufi’s Maxims, “don’t just focus on problems, come up with solutions.” She advised the Airbnb attorney, that he and his client need to come up with amenable suggestions to the measure which the legislature could look at, instead of simply pointing to the same legal concerns year after year.
After hearing the resounding support from the visitor industry, SB1292 was unanimously passed out of the joint committee hearing with amendments, and will now make its way to the Senate committees on Judiciary and Ways and Means.
In case you missed it click Here for Honolulu Star-Advertiser article: “Vacation-rental tax bill advances at Legislature”
Following the joint hearing, the Senate Committee on Energy, Economic Development, and Tourism held a hearing on Senate Bill 380 and Senate Bill 714, both addressing implementation of the TAT on hotel resort fees. SB 380 focuses exclusively on imposing the TAT on resort fees, utilizing the same ambiguous language that was sent to Governor Ige last year and which was ultimately vetoed after the visitor industry spoke out against it. It defines “resort fee” as any charge or surcharge in a hotel for the use of the property, services, or amenities.” SB 714 takes the resort fee language from SB380 and additionally looks at increasing the base in which timeshare occupancy is taxed, and also seeks to tax transient accommodation intermediaries who arrange accommodations at noncommissioned negotiated contract rates, as the same manner as hotel and resort operators.
SB 380 garnered 32 testimonies in opposition from HLTA members and leadership, and 29 testimonies in opposition to SB 714, neither measure received a single testimony in support. I advised the committee to bolster our state’s coffers with the tens of millions being skirted by illegal TVRs instead of constantly looking to tourism as the golden goose for more monies. With increasing costs, which in many cases are passed on to our visitors, we will eventually price ourselves out of a very competitive market. HLTA Past Chair Gregg Nelson testified in opposition, primarily on principle, as his hotel doesn’t incur a resort fee charge. He asked the question “What’s next? Will we soon be charging the TAT on guests buying drinks from a soda machine?”
After receiving droves of opposing testimony from the industry, the Committee on EET made the decision as expected to amend each measure by narrowing the language to only address “mandatory” resort fees incurred by our properties throughout the state. Both bills now head to the committee on Ways and Means.
I would like to thank all those from the lodging sector who heeded our call to action and submitted written testimony, and especially to those who showed up to the hearings and gave oral testimony. We sent a strong message to the legislature on where we stand on these vital issues, and we could not have made such progress without your engagement and participation. We will keep you apprised as the measures move towards their next subject matter committee so that we can continue to keep you engaged - your voice does make a difference!
Stay Tuned.
Best,
Mufi Hannemann
President & CEO
Hawaii Lodging & Tourism Association
President & CEO
Hawaii Lodging & Tourism Association
Tourism Day at the Capitol
On Wednesday February 20th, we hope that you will join us for the 4th Annual HLTA Tourism Day at the Capitol. This is a popular event with our legislators, who turn out to mix and mingle, talk story and visit our mini trade show.
I encourage you all to participate; it is a great way for us to illustrate to our legislators the strength, diversity, and commitment to advocacy that is shared by the members of HLTA. We invite our industry executives to join us at our annual legislative breakfast meet and greet at the Capitol from 8-9am, which will be well attended by our government leaders. Additionally, we encourage everyone to visit our mini trade show on the 4th floor from 9am-12 noon.
Should you have any questions about getting involved, please contact Jared at jhigashi@hawaiilodging.org.
I encourage you all to participate; it is a great way for us to illustrate to our legislators the strength, diversity, and commitment to advocacy that is shared by the members of HLTA. We invite our industry executives to join us at our annual legislative breakfast meet and greet at the Capitol from 8-9am, which will be well attended by our government leaders. Additionally, we encourage everyone to visit our mini trade show on the 4th floor from 9am-12 noon.
Should you have any questions about getting involved, please contact Jared at jhigashi@hawaiilodging.org.
Waipahu High School - Marauder Cafe
Waipahu High School’s academies are growing and thriving. This spring semester is the first time that Waipahu has been able to hold two sections of their Culinary Arts class. Now, regardless of whether it’s an “odd” or “even” period day, there are aspiring students learning about hospitality, food service, and what it takes to run a dining room. This hands-on class, facilitated by Waipahu educator Elaine Matsuo, provides these high schoolers an opportunity to immerse themselves in the culinary experiences.
The Marauder Café, which is open to the public by reservation on Tuesdays and Thursdays, is a wonderful opportunity to support these bright, motivated young minds. Ingredients used in their dishes are locally sourced whenever possible with proceeds funneling back into the program to pay for students’ lunches.
I invited Wade Gesteuyala, General Manager of the Hampton Inn & Suites Oahu/Kapolei to join my staff and I last Friday for Opening Day Part 2 and enjoyed some ono Korean dishes prepared by the students. Mahalo to Principal Keith Hayashi, his faculty and to their future culinary leaders for giving us an up close look at their Culinary Academy.
The Marauder Café, which is open to the public by reservation on Tuesdays and Thursdays, is a wonderful opportunity to support these bright, motivated young minds. Ingredients used in their dishes are locally sourced whenever possible with proceeds funneling back into the program to pay for students’ lunches.
I invited Wade Gesteuyala, General Manager of the Hampton Inn & Suites Oahu/Kapolei to join my staff and I last Friday for Opening Day Part 2 and enjoyed some ono Korean dishes prepared by the students. Mahalo to Principal Keith Hayashi, his faculty and to their future culinary leaders for giving us an up close look at their Culinary Academy.
Hospitality Industry - Public Outreach & Updates
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