State boating officials plan to meet with Waikiki catamaran operators to discuss a proposal requiring commercial use permits and fees.
The Board of Land and Natural Resources deferred a decision yesterday on a proposal by its Division of Boating and Recreation to require catamaran operators to obtain a commercial use permit and pay fees to conduct activities at Waikiki Beach. Several operators testified in opposition and informed the board they weren’t aware of the division’s proposal until 10 days prior, when they received letters from the department.
Boating division Administrator Ed Underwood is proposing that catamaran businesses pay $200 or 3 percent of gross receipts per month, whichever is greater. Underwood said he wants to standardize commercial use permits and user fees for catamaran operators statewide.
The issue has been brought before the state Legislature for the past three years, he said. In May 2008 the board approved the issuance of commercial use permits and fees for 10 Kaanapali, Maui, catamaran operators.
Seven catamaran businesses operate at Waikiki Beach: Waikiki Cruises, Outrigger Catamaran, King Parsons Enterprises, Woodbridge Inc., Kepoikai Ltd., Island Beach Activities Inc. and Anela Kai Catamaran Inc.
Board Chairman William Aila Jr. deferred the request and told boating officials to meet with the operators to discuss the issue. Underwood also plans to discuss the possibility of providing slips at the Ala Wai Small Boat Harbor for the Waikiki catamaran operators.
George Parsons, president of King Parsons Enterprises, said he was happy with the decision to defer action. He said he recalls the board holding a meeting with Kaanapali catamaran operators in 2003 concerning commercial use permits and the inclusion of Waikiki operators. Even so, Parsons said, he was “flabbergasted” when notified two weeks ago about the hearing.
Waikiki catamaran operators now pay a registration fee of $8.50 a year. Parsons and other operators who testified yesterday acknowledged the fee is low and support an increase.
For the past 36 years, Parsons has operated the catamaran Mai Tai. If a commercial use fee is imposed, Parsons said, operators would be forced to increase passenger fees, which are typically $20 to $30 per person. “If we have to pay a 3 percent fee, we would have to pass that on to the tourists, which we’re not really excited to do,” he said.
Curtis Iaukea, master and captain of the Mana Kai, said operators want a chance to reach a compromise with the state before approaching the board with a solution. “We weren’t given a chance to give any input,” he said. “The commercial use permit is unfamiliar and untested, and it could lead to a severe bidding process,” he stressed. Smaller boats like the Mana Kai could go out of business, he said.
Woody Brown Jr., a business partner of Woodbridge Inc., testified that commercial use permits are unnecessary and unwanted.
Brown is the son of late surfing legend Woodbridge “Woody” P. Brown, who is credited with building the first modern catamaran to take tourists on rides off Waikiki.
“We are all happy with the decision today,” Brown said.