As the state and counties look to take action on short-term rentals, it’s important that they realize the significant impact their decisions will have on the future of tourism in Hawaii, on the state’s economy and on the people and businesses who rely on visitors to stay afloat.

Hawaii has long been a top destination for visitors from all over the world. While many opt to stay in traditional hotels and resorts, visitors are also increasingly interested in a more authentic and local experience. Our average visitor is vacationing in Hawaii for the fifth time. They have ventured out from the resort areas and have discovered areas of the islands they enjoy.

Some choose to stay in alternative accommodations rather than hotels. In doing so, they support our economy with hundreds of millions of dollars in spending. In addition, they generate tens of millions of dollars in potential tax revenue for the state — funding that Hawaii desperately needs.

I recently conducted an analysis of the alternative accommodations industry on behalf of Airbnb. The analysis yielded some important findings about guests’ contribution to Hawaii’s economy:

>> Alternative accommodations generated over $120 million in general excise and transient accommodations taxes statewide in 2016 (lodging and non-lodging spending). If the state had a system in place to allow platforms such as Airbnb to collect and remit these taxes from operators, this tax revenue would be more fully and effectively captured.

>> Visitors using Airbnb, just the third-largest platform in Hawaii, spent an estimated $649 million in 2016, including $484 million on non-lodging expenditures such as food and beverages, contributing significantly to the success of local businesses and restaurants outside of traditional visitor destinations like Waikiki.

>> Airlift to Hawaii grew by 28.6 percent between 2011-2016, yet hotel inventory has been growing at a much slower rate. As a result, the additional elastic supply of alternative accommodations available through platforms such as Airbnb has supported the increased arrivals and visitor spending.

The state is grappling with budget deficits and as was recently reported, Gov. David Ige has already counted on tens of millions of dollars from alternative accommodation platforms to fill the gap. While short-term rental operators are eager for a mechanism to more easily pay their taxes and the state has been seeking a solution to the long-standing problem of effectively capturing tax revenue from this industry, the current tax proposal at the Legislature is overly punitive, unworkable and cumbersome, according to former Attorney General David Louie.

What’s more, as the counties consider updating their land use regulations for short-term rentals, it’s prudent to keep in mind that regulations that severely restrict alternative accommodations, will most certainly have a negative impact on tourism and our economy. Already, hotels on Oahu are nearly at full capacity with almost 85 percent occupancy rates, and we have record level airlift coming to Hawaii — far exceeding the available inventory of traditional hotels. Without alternative accommodations, visitors will be forced to go to other destinations, blowing a hole in Hawaii’s biggest industry.

In addition to the contributions to the economy, more and more residents rely on occasional short-term rentals to supplement their income and keep up with the high cost of living in the islands. Airbnb hosts, much like the guests they welcome, are spending their extra income in the communities where they live, contributing to local businesses.

The substantial economic impact generated in Hawaii by vacation rental platforms such as Airbnb should not be dismissed as state and county leaders debate policies relating to alternative accommodations. Lawmakers and stakeholders should be looking to shape sustainable tourism that benefits all communities, rather than regressive policies that would adversely impact the industry that is the very backbone of our economy.

Erik Kloninger is the principal of Kloninger & Sims Consulting, a Honolulu-based firm specializing in tourism research and analysis.