Meeting Time: July 01, 2021 at 9:00am HST

Agenda Item

PSLU-67 CC 21-67 SHORT-TERM RENTAL HOME PERMIT CAPS (PSLU-67)

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    Guest User over 2 years ago

    So much attention to short term rentals and no enforcement of illegal un permitted slum rentals. I am suffering with constant burning of garbage in hard to detect smoldering fires, often at night. Plastic toxic fumes. Anyone can make an anonymous complaint about a vacation rental, but lodging a complaint about a probable meth lab requires the complaint to be identified, inviting dangerous retribution. $20,000 fines for illegally vacation rentals and almost nothing can be done about toxic meth neighbors who shorten our lives.

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    Guest User over 2 years ago

    I support a cap on short-term housing units. The benefits for our are far outweighed by the negative effects on our community

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    Guest User over 2 years ago

    Aloha:
    I realize I am tardy in submitting testimony but unfortunately, other matters had popped up. Anyways...I firmly support the CAP on Short-term rentals for Maui Nui. Please remember that everything is FINITE on an island(s). We are being inundated by people who are wealthy, have the opportunity to work remotely, and have ZERO ties to this land, people and culture. Hawaii to them is a matter of convenience rather than a necessity...a house rather than a home...We are a people of an ocean identity being forced to leave to relocate to a realm of a continent or even a desert (Las Vegas). PLEASE...for the sake of our own island people...give us a fair shake and end this truly unfortunate catastrophe.

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    Guest User over 2 years ago

    We are as much taxpayers as the hotels. Protect our rights as much as theirs. We bring in families who spend within Maui.
    Please do not allow us to make a living for others. The housekeepers are paid $25 an hour.

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    Guest User over 2 years ago

    To be able to make payments and Hoa fees and property tax.. it’s a must to have short term rental! Thank you

    Loretta Ross

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    Guest User over 2 years ago

    Dear Council Members:

    I write to urge NOT to lower the current number of operating permits any further. Here are a few major points.

    - Short term rentals in Maui County support our local economy by providing jobs, income and opportunities for local people to earn a living wage in an expensive economy. - Because short term rentals are spread throughout the County, it keeps traffic patterns free and flowing (rather than bottle necking) in high tourist areas.
    - When residents make money on the island, that money stays on the island rather than going to corporate headquarters out of state.
    - Offering different types of accommodations for different types of travelers, makes Maui a desirable vacation locale for the majority of travelers--no matter what type of accomodation they choose--it keeps our economy strong.

    Thank you for your support.

    - Stefano Maffini
    Pu'u Koa Palms Vacations Rentals
    48 and 52 Puu Koa Pl.
    Haiku, Hi 96708
    www.puukoapalms.com

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    Guest User over 2 years ago

    From: Michael T Matoi <onegaishimus@gmail.com>
    Sent: Wednesday, June 30, 2021 5:57:21 PM
    To: Tamara A. Paltin <Tamara.Paltin@mauicounty.us>
    Subject: Short-Term Rental Home Caps Scheduled for Discussion in Committee June 29, 2021, 6:59 PM HST

    Should not cater to transplant that couldn't care less about Maui. Only here to make money. TVRs should be illegal as fireworks should also be. It is not a Maui thing but a Haole and third world country thing. Maui has enough undesirables. Toorisks, transplants and unruly Mauians. Transplants are transplant and not resident unless born and raised on Maui. I have two birth certificates. One from Puunene Hospital and the other from Maui Memorial Hospital. Stop TVRs. There is no affordable housing and even renting is too high. Water shortage and food. Yet there is no shortage of waste in sewers. Don't let Maui become another Rapa Nui. Instead of catering to tourisms and make some Haoles rich. Cater to locals who voted you in office. Not some transplants who pull your strings as if you are a marionette.

    Aloha,
    Michael

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    Guest User over 2 years ago

    We own a condo in Wailea that we rent out short term when we are not on Island. STR units in Wailea have significant benefits for the community, the county and travellers alike.
    Guests that stay at our condo are shoppers at local entities such as Akamai Coffee, the Paper Garden, ABC, etc and will also be supporting local restaurants such as Pita Paradise, Manolis, etc. Our condo also employs local residents for cleaning and care taking services, shower glass cleaning, air-conditioning maintenance, etc.
    Benefits to the county include the large percentage of property tax that STR units are subject to (which also allows for local's property tax rates to remain low) as well as the 10.25% TAT that is collected on rental income. Removing this revenue stream for the county could easily result in the need to increase local's taxes to cover the shortfall in revenue.
    Benefits to the traveller include the ability to experience Maui in a home away from home situation which differs from the hotels in the ability to cook at home, do laundry, relax in your living room, etc. These benefits are not available at the local resort hotels. Plus, the average room cost in Wailea at the resorts hovers around $700/night, which is out of reach for many seniors and families. Hotels rooms in general are also not very family friendly as they lack differentiation of space, so local Wailea STRs offer a family friendly alternative.
    While we see the negative impacts that excessive tourism can have on the Island, we do not believe that capping or removing allowances for STRs is the optimum solution to solve these problems. Over the last few years, we have seen two hotels permitted and built close to our condo as well as an expansion of one of the local resorts, all adding more and more hotel rooms to the inventory in Wailea (and hence providing more places for more tourists to come to). Stopping additional hotel construction and expansion would assist in limiting the number of tourists in the area.
    Solutions for over used tourist locations could include requiring passes for non-residents to access these locations (Haleakala, the road to Hana, etc). The passes could be sold at a nominal cost to cover the expenses of managing the access location.
    Thank you for hearing our comments and concerns.
    Christine & Colin Holyk

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    Misao1946 Higa over 2 years ago

    Support cap on short-term rental housing. These are owners who don't live here and building large homes in middle income residential neighborhoods as an investment, jacking up real property values making impossible for residents to buy. Just visit several of these million dollar homes and see the design and layout.

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    Guest User over 2 years ago

    Aloha Council and Committee members and mahalo for the opportunity to submit testimony.

    My name is Noelani Ahia

    I support this "BILL FOR AN ORDINANCE RELATING TO SHORT-TERM RENTAL HOME PERMITS ON MAUI AND LĀNA`I."

    I support short-term rental home permit caps for the following reasons.

    68% of Maui County residents agree “the island is being run for tourists at the expense of local people,” according to the June 2021, HTA Resident Sentiment Survey Highlights.

    Maui County and the State of Hawaii do not have adequate staffing or funding to effectively enforce short-term rental accommodation regulations for existing legal and illegal vacation rental units/properties. Illegal rentals operate with impunity in residential and commercial areas. Source: Honolulu Star Advertiser, https://www.staradvertiser.com/2021/05/17/hawaii-news/state-tax-crackdown-garners-millions-in-unpaid-vacation-rental-taxes/

    According to Hawaii's Department of Taxation, many LEGAL short-term rentals are not paying TAT/GET due to a lack of effective tax collection enforcement and a lack of coordination between state and county agencies resulting in millions of dollars in unpaid tax revenue. Source: Honolulu Star Advertiser, https://www.staradvertiser.com/2021/05/17/hawaii-news/state-tax-crackdown-garners-millions-in-unpaid-vacation-rental-taxes/

    Maui has a severe shortage of affordable housing for residents. Short-term rentals decrease long-term housing supply for residents resulting in chronic shortages of teachers, nurses, doctors, and hospitality/tourism workers in Maui County (and statewide).

    Short-term rentals artificially inflate housing and rental costs for residents. Maui’s median household income is approximately $75,000 per year. The median home price is approximately $800,000 and one-bedroom apartment rentals start at $1,800 per month.

    HTA Annual Visitor Research Reports from 2018 and 2019 show that visitors who stay in resorts and hotels spend more money on food, activities, and accommodation than visitors who stay in short-term vacation rentals and timeshares. Resorts and hotels also create more full-time employment opportunities for residents than short-term rentals.

    In addition to the short-term rental home permit cap, Maui County should establish tax rebates and other financial incentives for owners of long-term rentals for full-time residents.

    Mahalo for the opportunity to submit testimony.
    Noelani Ahia

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    Guest User over 2 years ago

    RE: SHORT-TERM RENTAL HOME PERMIT CAPS (PSLU-67)

    Aloha Councilmember, July 1, 2021

    Please amend this bill or create a new bill that will require every vacation rental and bed and breakfast to have a license number. To gain compliance keep the license number application process simple and the fee for the license itself low.

    Require the license for all the short-term rentals and also for all units covered by the Montoya decision, mostly condos.

    All advertising for short-term rental units must include the license number. And there will be appropriate penalties for non-compliance with the license requirements.

    Utilize a license number system that identifies the community plan district. For example all licenses in South Maui would begin with the letter S, UpCountry units would begin with U, West Maui with W, Central Maui with C, North Maui with N, East Maui with E, Lanai with a L, and Molokai with a M. This requirement would make it much easier to conform with district short-term vacation rental limits.

    If Maui County someday adds a transient accommodations tax, having a numbering system will make compliance with revenue collection much easier to implement and enforce.

    Mahalo, Dick Mayer
    cell 808-283-4376
    dickmayer@earthLink.net

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    Guest User over 2 years ago

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Thank you for the opportunity to testify on PLSU 67.

    While supporting managed and regulated STR homes in Maui County the caps currently in place should be maintained insuring inclusion of all existing legal STRs including those in the renewal process and pending applications. During the pandemic it has become more obvious how essential our visitor industry is to our economy. Vacation rental homes are in even higher demand as families desire increased privacy and intimacy.

    The limits in each area of Maui were set carefully after a 2005 study showed the locations of existing single family homes being used for STR purposes. This study should be updated. By setting the cap lower than the number of people currently operating legally the county would effectively put owners that followed the ordinance, the law, out of business.

    Reducing the number of legal STRs will serve to increase demand for illegal vacation home rentals reducing the taxes paid to the State and County. Few if any illegal STRs pay TAT or GET tax. In Maui we have a plethora of second homes. When used by friends and family they are many times mistaken for vacation rentals contributing to visitor counts but not paying STR property taxes, GET or TAT taxes.

    Many STR owners have spent much time and money to obtain a permit and operate legally as a means to continue living on the island we love. We can all relate to the expense of living here. Myself as a widow would have to sell and leave Maui after 25 years also eliminating the many jobs my home provides.

    Please have the study updated and realize 1. Permitted STRs are a very desirable part of our visitor industry. 2. The number of permitted STRs are less than half a percent of total households yet contribute significantly to the county tax income. 3. Permits are below the current caps, why reduce the caps?

    Typical guests in my home are multi-generational families coming together from all corners of the mainland and even the world. It is a privilege to experience their joy, renewing their love, seeing grandbabies for the first time or a long time, crying and so relieved they are sharing a home vs being spread out in a hotel or condo complex. One of my favorite stories was the complete breakdown of a mother’s excitement seeing her son by complete surprise returned from 2 years in Iraq. I saw him walking up the driveway, Granma talking to me with her back to him turning around to see what I was looking at. We all cried together. I have dozens of these stories. Memorable, personal experiences are even more desired in our post-pandemic era.

    Mahalo for considering my testimony.

    Angelia Crim, Owner
    PacificParadiseMaui.com
    Direct: 808.280.1024

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    Guest User over 2 years ago

    Aloha Chair Paltin, VC King and Committee members,

    Mahalo for allowing me to testify.

    I am in favor of the permit Caps proposed by the Council with the exception of Kihei-Makena (keep existing cap @ 50). There are many new homes in Kihei that need to be used for long term rentals or purchased. A new owner would have to wait 5yrs before it can be used for a STRH.

    Pāʻia/Ha’iku should remain at 47. There is need for long term and affordable rentals. Many of our shoreline homes are STRH. They will remain that way until they sell their home. Even though the current number is 47, there are many illegal STRH’s in Pāʻia/Ha’iku area. There could be more than the proposed number of (55).

    We also have to keep in mind the Bed and Breakfast units. There is also the question whether the owner's live on the property.

    I would like clarification on Item “K” — the number of bedrooms - no greater than (6) on Lana’i and Maui? Dosen’t Maui have (3) bedrooms with (2) guest per room, or are we amending the amount of rooms per dwelling.

    I would also like to comment on enforcement. My concern is when there is concern for inspection by the inspectors that the owner has no rights to deny. I’m not sure if corporate council would have concerns with that.

    Mahalo again in allowing me to give testimony.

    Aunty Mopsy (Francine Aarona)
    Pūlama Pāʻia

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    Guest User over 2 years ago

    I definitely support the cap on short term vacation rentals in Hawaii. This has gone way to far overcrowding our island, overtaxing our roads making it impossible to go to our own beaches, parks, restaurants. There has to be limitations and common sense in how many people are allowed to have these rentals especially in residential areas. This also has made it harder for the people of Hawaii to have homes. We need to contol and limit this horrible and selfish over tourism just so these short term owners can make money and not care about the people who live and work here. Use common sense and dont turn your head on tne people who have called this their home all their lives.

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    Arthur Riggs over 2 years ago

    Aloha. I just want to watch the meeting. Why do I not have a video link? Thank you.

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    Guest User over 2 years ago

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.

    As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.

    We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.

    The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.

    The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.

    The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.

    We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.

    These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.

    Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.

    Thank you for considering my testimony.

    Diane K Pool, RB, ABR
    Wailea Realty Corp
    a Boutique of Windermere
    808-276-2004
    diane@SoldOnMaui.net

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    Guest User over 2 years ago

    From: Mark Sloane <marksloane@hotmail.com>
    Sent: Thursday, July 1, 2021 6:02:58 AM (UTC-10:00) Hawaii
    To: Kelly King <Kelly.King@mauicounty.us>; Keani N. Rawlins <Keani.Rawlins@mauicounty.us>; Tasha A. Kama <Tasha.Kama@mauicounty.us>; Alice L. Lee <Alice.Lee@mauicounty.us>; Mike J. Molina <Mike.Molina@mauicounty.us>; Tamara A. Paltin <Tamara.Paltin@mauicounty.us>; Shane M. Sinenci <Shane.Sinenci@mauicounty.us>; Yukilei Sugimura <Yukilei.Sugimura@mauicounty.us>; Gabe Johnson <Gabe.Johnson@mauicounty.us>; PSLU Committee <PSLU.Committee@mauicounty.us>
    Subject: PSLU item 67, testimony
    Mahalo for the opportunity to submit testimony.

    Tamara Paltin, Chair
    Maui County Planning and Sustainable Land Use Committee
    200 South High Street
    Wailuku HI 96793

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Thank you for the opportunity to testify on PLSU 67. I support caps, I support managed STR home numbers in Maui County, and w

    A great amount 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.

    I want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.

    The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.

    The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.

    The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.

    We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.

    These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.

    Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.

    Thank you for considering my testimony.

    Sincerely,

    [ Please add your own personal touch with your own unique story here. Please talk about the positive benefits and experiences you and your family have had working in the vacation rental industry. Here are some examples to help you get started:]

    EXAMPLES:

    The typical visitor who stays in my home is a family with 3 kids. This is not their first trip to Maui and usually come to the same location. They typically stay for a week or more and visit and support local businesses...”

    “If I did not have the ability to have a permit to run a short term rental home, I would leave my home empty when I am not using it. We would no longer be employing the property managers, housekeepers, landscapers, maintenance, and carpenters necessary to run this small business. This home would not be a long term rental, as I still need to use it.”

    “I have lived on the North Shore for 10 years, I rent to local families coming from other islands for family functions who all want to stay in the same place …”

    “I run a local restaurant or small business in Paia for 23 years. We get lots of business from vacation rental guests, without them we would really have trouble making ends meet…”

    “My parents bought this home in Haiku over 30 years ago, it’s where I grew up. After their death we inherited it and we want to preserve it for our children…”

    “I have lived in Paia for 15 years. My husband and I are retired and we need the income from our permitted STR to support life here in Hawaii, the extra income provide allows us to keep

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    Guest User over 2 years ago

    I support short term rental caps! We currently have poor oversight and regulation of both legal and illegal short term rentals. We need both a cap on rentals and increased enforcement. Too many residential homes are being used and abused by non hawaiian resident owners and there is not sufficient tax revenues garnered by the state to justify any short term rentals. I work as an ER physician and many visitors are being given little to no instructions on caring for themselves and our island

  • Default_avatar
    Guest User over 2 years ago

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Thank you for the opportunity to testify on PLSU 67.

    While supporting managed and regulated STR homes in Maui County the caps currently in place should be maintained insuring inclusion of all existing legal STRs including those in the renewal process and pending applications. During the pandemic it has become more obvious how essential our visitor industry is to our economy. Vacation rental homes are in even higher demand as families desire increased privacy and intimacy.

    The limits in each area of Maui were set carefully after a 2005 study showed the locations of existing single family homes being used for STR purposes. This study should be updated. By setting the cap lower than the number of people currently operating legally the county would effectively put owners that followed the ordinance, the law, out of business.

    Reducing the number of legal STRs will serve to increase demand for illegal vacation home rentals reducing the taxes paid to the State and County. Few if any illegal STRs pay TAT or GET tax. In Maui we have a plethora of second homes. When used by friends and family they are many times mistaken for vacation rentals contributing to visitor counts but not paying STR property taxes, GET or TAT taxes.

    Many STR owners have spent much time and money to obtain a permit and operate legally as a means to continue living on the island we love. We can all relate to the expense of living here. Myself as a widow would have to sell and leave Maui after 25 years also eliminating the many jobs my home provides.

    Please have the study updated and realize 1. Permitted STRs are a very desirable part of our visitor industry. 2. The number of permitted STRs are less than half a percent of total households yet contribute significantly to the county tax income. 3. Permits are below the current caps, why reduce the caps?

    Typical guests in my home are multi-generational families coming together from all corners of the mainland and even the world. It is a privilege to experience their joy, renewing their love, seeing grandbabies for the first time or a long time, crying and so relieved they are sharing a home vs being spread out in a hotel or condo complex. One of my favorite stories was the complete breakdown of a mother’s excitement seeing her son by complete surprise returned from 2 years in Iraq. I saw him walking up the driveway, Granma talking to me with her back to him turning around to see what I was looking at. We all cried together. I have dozens of these stories. Memorable, personal experiences are even more desired in our post-pandemic era.

    Mahalo for considering my testimony.

    Angelia Crim, Owner
    PacificParadiseMaui.com
    Direct: 808.280.1024

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    Guest User over 2 years ago

    Subject: STR CAP

    Aloha Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    I was born and raised here on Maui. I manage my family's vacation rental business which consists of my childhood home in Kihei. We are the original owners of the property since the 80's. Having this business has allowed my father to have a retirement that was comfortable in the place he called home. It also gave him the money to be able to get the medical attention that he needed as he fought cancer. It allows me to work from home and be a stay-at-home mom. The money that is brought into our business is spent here in the local economy. We employ housekeepers, handymen, yard workers, tree trimmers, we participate in a local composting business that picks up our guests waste and then sends fertilizer to local farms, we point our guests in the direction of the Maui Hub to order groceries before they arrive, not to mention all the people we send to locally owned activities, restaurants & cars. We do all that we can to help the island we love and call home.

    The sharing economy has become the "enemy" on the island when actually it brings more good than harm.
    • Vacation Rentals are the number one source of revenue for Maui County in Real Property Taxes, and has been for the last three years.
    • In fiscal year 2020 about 14 cents of every dollar budgeted in Maui County came from vacation rentals.
    • Short term rental homes make up around 220 homes of the 54,479households on Maui. This is 1 in 248 homes.
    • Vacation rentals are also the single biggest contributor to the Affordable Housing Fund for the County of Maui. They have generated $12.8 million for the fund since 2018.
    This information should be shared more widely with the local community. I'm sure none of the above information is new to you but I'm sure if the residents on the island were made more aware of this information we wouldn't get the bad name we have in the community.

    Yes, the island has become overcrowded with tourism. Yes, our infrastructure can't handle the daily tourist population. But there are bigger problems than vacation rentals.

    There are other issues that should be addressed and regulations put in place that will positively impact the Kama'aina population than limiting STR & B&B permits. Just a few ideas (which I am sure you have heard before) are tickets/tolls for the road to Hana, Paid parking lots at the beaches, Local only days at certain beaches, heck maybe even close down each beach a certain day out of the month - Let place like Makena get a break from the sunscreen & abuse once a month, mandate electric cars for all new rental cars brought back to the island, tourism education on the planes regarding wildlife, there are so many ways to deal with the tipping point we are at.

    Mahalo for taking the time to listen to this side of the conversation from you constiuates.

    Alexandra Pucherelli