The controversy about unpermitted vacation rentals in residential areas continued to flare Wednesday, with more than 300 people attending a public hearing on a proposal to tighten the enforcement of laws barring them.

Vacation rental supporters say businesses in some Oahu communities would be severely hurt if the measure passes.

But opponents say the lack of enforcement has raised the prices of potential long-term rentals and crowded out residents.

"Stop bed and breakfasts … Keep country country," said Polly Grace, a Waianae resident.

The Honolulu Planning Commission heard fewer than half of the 93 witnesses signed up to deliver public testimony before it continued the hearing until 10 a.m. Aug. 24 at the Mission Memorial Auditorium.

A city bill supported by the Carlisle administration would require vacation rentals on Oahu to list their permit number, address and tax map key in their advertisements.

The proposed city ordinance would impose a fine of up to $1,000 if the permit number was not listed and between $1,000 and $2,000 a day seven days after the owner is warned of the violation.

City officials said under the current ordinance, inspectors have to make a number of visits and witness the unpermitted vacation activity.

David K. Tanoue, director of the city’s Department of Permitting and Planning, said the bill would help inspectors with enforcement.

"In order to enforce the law, we need additional help," Tanoue said.

Charles Prentiss, chairman of the Kailua Neighborhood Board, said his group supports improved enforcement and opposes any expansion of tourist vacation rentals.

"If we can improve it by something as simple as requiring a valid permit number in the advertisements, it’s a no-brainer," he said. "It has no impact on those who are legal … it may improve their marketability by showing that they are government approved."

Windward Oahu resident Mike Green said a study done in 2007 found 60 percent of the 78 illegal vacation rentals in Lanikai were owned by people who did not live in his community.

"It’s out of control," he said. "This bill is necessary."

Those opposing the bill said enforcement would severely harm an industry that brings in at least $65 million annually and provides more than 1,000 jobs.

Island Treasures Art Gallery owner Gail Allen said about 70 percent of her customers are visitors staying in Kailua and warned that the financial impact upon businesses would be great.

Critic of the bill said the measure enforces a bad law enacted in the late 1980s that called for eventually diminishing the number of permitted vacation rentals.

In 1989, legal vacation rentals totaled 2,235 but that number has dropped to a little more than 900, according to the city.

Critics said fewer than 200 of the legal vacation rental permits are outside Waikiki.

Vacation rental supporters also criticized the requirement to list their addresses and tax map keys in advertisements, saying the information would be used by criminals to target their units.

Carolyn Hiatt, a retired teacher, said she was among those who had a vacation rental permit in the late 1980s but was unable to renew it after a late payment to the city.

Hiatt said she operates an unpermitted vacation rental and fears the city will close it unless the number of permits is increased. "They need to do more permitting … There are very few licensed ones left," she said.

Critics said vacation rentals in residential areas attract people who otherwise wouldn’t visit Hawaii because they’re not looking for a hotel experience.

Windward Oahu resident Puaala Wong, a vacation rental operator, said her customers frequent grocery stores, visitor attractions, and restaurants.

"The list is endless," she said.