A Hawaii County Council committee has supported a proposal for a study about the economic impacts of much-debated changes to the regulations for short-term vacation rentals.
For more than half a year, the council has discussed a trio of bills that overhaul where and how STVRs are allowed to operate. Those bills establish multiple classes of STVR units, new standards of operation, registration fees, and restrictions on what structures are allowed to be operated as a rental unit.
But in light of significant opposition to those proposed changes, Puna Councilwoman Ashley Kierkiewicz — who co-introduced the bills — proposed Tuesday that the county Department of Research and Development conduct a comprehensive study of the economic and fiscal impacts of the transient accommodation industry in the county.
“We recognize that (STVRs) give residents the opportunity to be entrepreneurs,” Kierkiewicz said, adding that the potential of the new regulations to disrupt both individuals’ livelihoods and the greater county economy should be properly evaluated.
The resolution proposing the study cites a 2024 report for the Travel Technology Association stating that in 2023, 43.7% of visitors to the Big Island stayed in an STVR, generating an estimated $1.3 billion for the local economy, more than $17.7 million from transient accommodations taxes, and more than $7.1 million in general excise tax revenue.
While Kierkiewicz expressed hope that the study could be completed by February 2025, Research and Development Director Doug Adams emphasized the scope of the study needs to be established before work could begin.
“If we go too broad, it’s going to get very expensive,” Adams said.
The resolution advises Research and Development to analyze data from third-party firms about rental availability, occupancy rates, pricing, unit market value and other metrics, as well as the direct and indirect impacts of the rental industry to the island’s economy and to housing availability and affordability.
The study also would investigate the feasibility for rental units to be converted into long-term housing units.
Several rental owners and operators supported the resolution Tuesday, as many in the industry have warned that the new regulations will force them to close their businesses.
“While I do not believe that regulating or limiting transit accommodations will produce more long-term housing, affordable housing or attainable housing, I would still like to know the facts of this industry that tourists prefer and that also brings so much needed income into our general economy and our state and county coffers,” wrote Hilo resident Joy Dillon.
The council’s Committee on Government Operations and External Affairs voted to recommend the resolution’s adoption, with only Puna Councilman Matt Kaneali‘i-Kleinfelder voting against it. It will next go before the full council.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.