Image courtesy of Airbnb
Consider the long-term effects of a rental ban
By Damien Perez, Editor
The tragedy of Lahaina and the resulting loss of income were felt throughout the island.
Studies show that nearly 20% of tourists have decided to spend their holidays elsewhere. In business, everyone knows that the fool makes the quick decision because it is conspicuous. However, long-term effects can lead to falling property prices, job losses and even forcing you or your family to move elsewhere.
What can be a quick, emotional decision can be a “not welcome” Sign for tourists. To many of us who feel inconvenienced by their improper behavior, this seems like a great idea. However, any economist will stress that one should not make emotional decisions when the largest part of our economy could be at stake.
As an adult, I always try to look at all sides of an issue without giving importance to the short-term consequences. Personally, I am indifferent to this decision because, although I have lived here for a few years, the decision is not mine.
NO TOURISTS… NO ECONOMY…
Is it a smart business decision to eliminate a resource that is extremely popular with tourists? Is the noisy behavior of a small percentage of tourists worth losing another large part of our tourism economy?
Anyone who complains about tourists wouldn’t feel that way if their main source of income was drying up. I think if your family has to move to the desert in Nevada or Arizona, you might want to see a haole. By then, it might be too late to get their presence and money to boost Maui’s economy. 40% of our economy on Maui is based on tourism. If that takes away even 2%, one or more of your family members is guaranteed to have to leave the island.
WILL THE BAN ENABLE AFFORDABLE HOUSING?
The Maui County Council meets Tuesday to vote on the agenda for an affordable housing project at 258 Kupuohi St. Federal and state money is pouring in. Why accept a short-term solution when we can have both?
Let’s face it: development, retail and healthcare are all important industries, but none of them can stand on their own two feet without the constant flow of money from tourism. There is no industry that can provide a constant and surplus income for enough people to spend the money an economy needs.
The resorts try to make us believe that their main interest is to keep tourists in these areas.
We are not the first city to want to implement a short-term rental ban (STRB), but if we initiate the ban, we would hopefully be the first region to do so successfully.
RESULTS OF THE STRB
Short-term effects of most decisions are usually not sustainable. The long-term benefits and consequences should be the determining factor in any decision an adult or business owner forms an opinion on.
One thing in particular strikes me about this short-term ban on accommodation: Most people living here see this decision as a victory against disrespectful tourists.
In reality, the initiative came from hotel industry lobbyists and was not a grassroots initiative to support the people of Maui.
It would be a shame if we were to side with the hotels, who are responsible for the largest water consumption on our island and are drying out our land, making it an even greater fire hazard.
TAX REVENUE:
In fact, thanks to the significant tax revenues generated by short-term rentals, municipalities are able to provide more public services, which is a significant boost to the economy.
Do you like your public restrooms to be clean and functional? How about the quality of your beach parks? What about the countless aspects we take for granted, much of which is indirectly funded by the tax dollars of tourists renting short-term accommodation.
According to Real Estate Weekly, revenues have dropped significantly due to the ban on short-term rentals.
“Work has been done to bridge disparities in areas like Maui County, where leading STR marketplaces have provided assistance in enforcing vacation rental laws.”
A recent and surprising Harvard Business Review study found that cities that restrict STRs have a negative impact on development, while cities with a robust STR market are more likely to experience improved development and faster growth.
WHAT IS THE ANSWER?
A study by HARVARD BUSINESS has found a direct connection between cities where short-term rentals harm development and growth.
“These are practical, actionable solutions that have the potential to positively address a specific problem and contribute to stabilizing the local economy in the long term.”
Rather, in every decision, it is important to consider the views of the opposition in order to make a comprehensive long-term decision that does not paralyze your economy.
We have all seen how the smallest changes can bring down an economy and slowly create divisions. The most unstable factor that citizens actively change is their own economy. Most economies are extremely unstable. The tourism economy is the most volatile, so major changes can lead to economic collapse.
Since Lahaina is resting, is it a good decision to combine both changes?
Tourists can be a nuisance in any town. But Maui is a tourism-dependent economy. Resorts and hotels are lobbying for this because they theoretically fear that the same visitors who are banned from short-term rentals will completely change their idea of vacation and stay at a resort.
While my views oppose the ban on short-term rentals, I have seen Mayor Bissen and his team take conscious and decisive action to keep the community together and always have a voice. So if Bissen wants it, let’s get through it. I trust his leadership and staff will make the right decision.
Damien Perez is an editor at The Maui News.
