March 1, 1981Citing the tourist industry’s current slump, the Senate Tourism Committee yesterday killed three bills that would have created a controversial hotel room tax.

The “tourist tax” has been proposed in various forms for years, but has traditionally met strong opposition from those who say the fee would discourage visitors. However, there was some thought that at least one of the bills would fare better this session because it was authored by the two Senate coalition leaders.

Senate President Richard Wong and Republican Floor Leader D.G. “Andy” Anderson had proposed doubling the 4 percent general excise tax on hotel rooms and other “transient accommodations,” a move that would have generated up to $28 million annually.

The committee also killed two related bills: a proposal by Sen. Neil Abercrombie to establish a $1-a-day tax per hotel room and another to increase the excise tax on accommodations from 4 percent to 6 percent.

But Committee Chairman Joe Kuroda and Sen. Richard Henderson said they felt the bills were poorly timed in light of the ailing tourist industry. And Henderson questioned the rationale for proposing a new tax when the state is faced with a surplus.

Sen. Duke Kawasaki, who has in the past proposed his own tourist tax bill, supported the measures.

“I don’t stay out of Japan because they have a tourist tax there,” Kawasaki said. “It doesn’t deter me one iota.”

Wong and Anderson had been confident their bill would be passed — at least in the Senate. Wong, who for the past 16 years has proposed such a bill without success, said he was convinced the measure would find support this season.

“As to where they think the votes are, only they can answer,” Kuroda said. “I think they are aware that the composition of the Tourism Committee would not be favorable to a hotel tax.”

The Wong-Anderson bill would have set aside 60 percent of the revenue for promotion and improvements, and 40 percent to buy beach-front property and access rights.

Wong introduced a similar proposal in 1976, which barely passed the Senate and never made it out of the House Tourism Committee.