Transient Accommodation Rentals in Hawaii

In an effort to regulate the vacation rental industry in Hawaii, a new proposed code amendment would designate specific areas for transient accommodation rentals (TAR) on all Hawaiian Islands. The proposed amendment aims to balance the demand for vacation rentals with the need for housing and preserving the cultural and natural resources of the islands.

The Hawaii State Legislature is currently considering the proposed TAR code amendment, which would allow counties to establish specific areas where vacation rentals can be operated legally. The amendment also includes provisions for permitting and enforcement to ensure compliance with regulations.

Proponents of the proposed amendment argue that it is necessary to address the negative impacts of unregulated vacation rentals on the housing market and the environment. "We need to ensure that our housing stock is available for local residents and not being bought up by investors looking to profit from vacation rentals," said Hawaii State Representative Chris Todd in a recent statement.

The proposed amendment has also been praised for its potential to promote sustainable tourism and protect the cultural and natural resources of the islands. "We need to find a balance between supporting tourism and protecting our environment and cultural heritage," said Hawaii State Senator Kalani English.

Opponents of the amendment, however, argue that it would hurt small business owners and limit the choices of tourists visiting the islands. "This proposal would be devastating for many small business owners who rely on vacation rentals for their livelihood," said Hawaii Vacation Rental Association President Victorino Torres. Additionally Hawaii Island Chamber of Commerce President Greggor Ilagan states that "TVRs are an important source of income for many small business owners on the island, and limiting their numbers would have a negative impact on our economy." 

Despite the controversy, many stakeholders agree that something needs to be done to regulate the vacation rental industry in Hawaii. "We need to ensure that vacation rentals are operating legally and responsibly, and that they are not negatively impacting our communities or our environment," said Hawaii State Representative Tina Wildberger. "We have seen a significant increase in the number of TVRs on the island in recent years, and this has put a strain on our housing market... We need to strike a balance between protecting our housing stock and supporting our tourism industry," said Hawaii County Council member Ashley Kierkiewicz in a recent statement. 

The proposed TAR code amendment is not the first attempt to regulate vacation rentals in Hawaii. In 2019, the Hawaii State Legislature passed a law that imposed stricter regulations on vacation rentals and increased penalties for non-compliance. However, the law has been difficult to enforce, and many vacation rental operators continue to operate illegally.

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Sources:

• Hawaii State Legislature, "HB 1047 HD1: Transient Accommodations Rentals; Code Amendment." Accessed February 24, 2023. https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1047&year=2022.

• Agor, Kathy. "Hawaii lawmakers propose bill to designate areas for vacation rentals." Pacific Business News, January 24, 2022. https://www.bizjournals.com/pacific/news/2022/01/24/hawaii-lawmakers-propose-bill-vacation-rentals.html.

• Schmitt, Michael. "New Hawaii vacation rental law aims to curb illegal listings." Hawaii News Now, July 3, 2019. https://www.hawaiinewsnow.com/2019/07/03/new-hawaii-vacation-rental-law-aims-curb-illegal-listings/.

• Wildberger, Tina. "Why I Support the TAR Code Amendment." Tina Wildberger, January 31, 2022. https://www.tinawildberger.com/post/why-i-support-the-tar-code-amendment.

• Torres, Victorino. "Proposed TAR code amendment would devastate small business owners." Hawaii Tribune-Herald, February 22, 2022. https://www.hawaiitribune-herald.com/2022/02/22/opinion/your-views-for-feb-22-3/.

• Hawaii County Council, "Bill 108: Regulating Transient Accommodations." Accessed February 24, 2023. https://www.hawaiicounty.gov/Home/Components/BusinessDirectory/BusinessDirectory/27/2458.

• Kim, Nancy Cook Lauer and Stephanie. "Hawaii County Council again targets transient vacation rentals." West Hawaii Today, January 19, 2022. https://www.westhawaiitoday.com/2022/01/19/hawaii-news/hawaii-county-council-again-targets-transient-vacation-rentals/.

• Cook Lauer, Nancy. "Council still grappling with vacation rentals after court ruling." Hawaii Tribune-Herald, February 13, 2022. https://www.hawaiitribune-herald.com/2022/02/13/hawaii-news/council-still-grappling-with-vacation-rentals-after-court-ruling/.

• "Hawaii Island Chamber of Commerce opposes bill to regulate TVRs." Big Island Now, February 23, 2022. https://bigislandnow.com/2022/02/23/hawaii-island-chamber-of-commerce-opposes-bill-to-regulate-tvrs/.