I am the granddaughter of Samuel Kaaumoana Kalama III, and generations of our family were raised being proudly self-sufficient on the island of Molokai. As a former legislative aide, resident, caretaker and property manager, residing on the North Shore of Oahu today, I know that land in Hawaii is precious, and citizens work hard to establish a way of life that is pono — providing sound decisions for our keiki and future generations.
This includes protecting our right to keep our property and lease them as short-term vacation rentals. The biggest myth perpetrated by both the ill- informed and hotel lobbyists, is that this is an out-of-towner industry. That couldn’t be further from the truth. Many owners, like myself, lease out property as short-term vacation rentals to provide the income we need to make ends meet and afford Hawaii’s high cost of living.
Mufi Hannemann’s opinion that vacation rentals are to blame for February’s lower visitor count is incorrect and dangerous (“Vacation rentals harm hotel industry,” March 31, Island Voices, Star-Advertiser). When you compare the facts and data, it is unfair and shortsighted to target the transient vacation units. For years, Hawaii’s hotel industry has enjoyed nearly sold-out occupancy during the same time that the transient short-term rental industry has responsibly grown. Many visitors today desire alternative lodging with unique cultural experiences.
As some hotels steadily increase their prices and fight paying their employees fair wages, many visitors have turned to vacation rentals because they simply cannot afford hotel stays with exorbitant related costs like hotel dining prices, parking rates and mandatory resort fees. Local economists and the media have been reporting expected lower visitor counts for months now citing local, world and macroeconomic trends — not vacation rental popularity.
While some support City Council Bill 89 and its latest amendments, other locals and the long-standing vacation rental community oppose them.
The truth is, the proposed amendments protect the ability of the wealthiest landowners, including hotels and their “out-of-town” owners to generate income through providing hospitality services to Hawaii’s tourists and prohibit local poorer landowners from earning valuable income. Additionally, the penalties for violators are excessive and the requirements discourage participation and appropriate regulation of an important revenue stream for property residents. Comparable to Jim Crow laws, these penalties may look harmless on the surface, but are really barriers to participation to keep out those of us of middle income.
The income generated statewide from our state’s alternative lodging is staggering. Removing vacation rentals means removing a vast majority of the critical economic and employment opportunities that we as kamaaina need. Vacation rentals provide important income for locals, offer excellent alternative lodging accommodations for visitors, and allow us to employ many with steady and flexible employment — from house cleaners to plumbers, yard workers and countless other associated small businesses, such as local dining establishments and small retails shops. We count on these opportunities to keep our doors open. We pay our fair share of taxes and spend our hard-earned income supporting our local economy year-round. We live here.
Alternative lodging property owners and managers want and support regulations that will work. Bill 89 and its latest amendments will not.
Wealthy landowners should not be the only ones able to provide hospitality services to Hawaii tourists. I encourage our city and state leaders to take this opportunity and work through the complex myriad of proposals that can benefit the citizens, our counties and our state. Small business is the backbone of Hawaii’s economy. Don’t let big hotel chains push you around.
Ann Otteman is a North Shore resident, caretaker and landlord, and a member of the Oahu Short Term Rental Alliance (OSTRA).