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For years, Oahu residents complained that the city was ignoring the thousands of illegal vacation rentals sprouting up in their neighborhoods, with online booking sites spreading the word.
It’s hard to say that now. On Aug. 1, the city’s stricter short-term vacation rental rules went into effect. And while it’s early yet, Ordinance 19-018 appears to be making a mark.
Some owners of unlicensed vacation rentals report that they will shut down or convert to long-term rentals, a blow to their bottom line. Tourists are writing letters to the editor, saying they won’t be coming back. Tourism officials expressed surprise to learn that some areas thought to be in resort districts, like Kuilima Estates, would be subject to the new law. The city’s Department of Planning and Permitting sent out 5,000 notices of possible violations, prompting a backlash from people who said they were wrongly targeted. One vacation rental group has sued.
In other words, the city’s not ignoring illegal vacation rentals anymore.
“I have a strong feeling that there is this train wreck that is unfolding,” said Paul Brewbaker, principal of TZ Economics. The state hosted 9.9 million visitors last year, more than the hotel industry can handle, Brewbaker said. “We need vacation rentals to add capacity.”
True, if adding visitor capacity is the ultimate goal. But of course it’s not. The primary goal is to prevent residentially zoned neighborhoods from turning into commercial resort areas, with all the baggage (literally and figuratively) that comes with them. Of course, the law might need adjusting to ensure it’s applied fairly. But for some of the law’s supporters, fewer tourists is a feature, not a bug.