I am the owner-operator of a very small business in Honolulu: a small espresso stand outside of Honolulu, between Waikiki and downtown. It doesn’t get much smaller than me. Every single customer counts. Short-term rentals, especially those located out of tourist areas, have helped my business.
From time to time, I have customers who find me because I’m near the place they’re staying at. These customers are spending their dollars with me, and are able to, because they are staying at more-affordable alternative accommodations in residential areas. Short-term rentals help Oahu.
I understand that many residents are concerned about housing affordability, but severely restricting alternative accommodations will not solve the issue. A report by the Hawaii Appleseed Center for Law and Economic Justice points to the lag of housing construction as the biggest driver behind the lack of affordable housing. It found that between 2011-2014, Honolulu built only 8,458 housing units. That’s a lot less than the 24,551 units needed to keep up with demand.
Making sure local residents can afford Hawaii is important, but we should spend time looking at the real issue driving this trend and not blame it solely on short-term rentals.
Some of my friends and family rely on short-term vacation rentals for additional income. As a local who lives in a small one-bedroom apartment, I’ve also personally relied on available short-term rentals to help accommodate visiting friends and family. However, too often, those benefits get overlooked due to concerns about their potential impact on housing and neighborhoods.
Many of us have been closely following what Honolulu leaders have been discussing regarding proposals to regulate short-term rentals. I hope even more progress can be made in the upcoming hearings.
It’s been 30 years since any of the rules have been updated, so it is definitely long overdue. The people I know doing short-term rentals really do want to be permitted, follow the to-be-established rules and pay taxes. They also hire many locals and people who rely on the consistent work to make a living. I hope leaders and lawmakers take into account the importance of alternative accommodations to our local economy, local businesses and tourism.
I appreciate the leadership of Mayor Kirk Caldwell and others for addressing the matter of vacation rentals. However, the current way that Bill 89 is written would have a negative economic impact. We have more and more visitors to the islands each year and hotels are operating at near-capacity. We need alternative accommodations to help support our economy.
If short-term rentals were allowed only in certain areas like apartment buildings and resort areas such as Waikiki, that would severely reduce the number of visitors to Oahu. Having fewer visitors and visitors with less disposable income would have a trickle-down impact on income for locals and small businesses. Studies have shown that vacation rentals provide more than $2 billion in economic activity and support 12,000 jobs.
Rebecca Atkinson is owner-operator of an espresso stand in Honolulu.