Maui Considering Parking Fees for Visitors

[Henry M.]

I think tourism is a worldwide problem at every attractive destination. Sure, it brings in some revenue, but eventually kills the goose that lays the golden egg. However, it is a difficult problem to address. Just because someone has lots of money doesn't mean they are going to be any better at taking care of things than someone with less money. Thus, increasing taxes and fees just excludes people strictly based on wealth, not on how well they will behave and treat the environment. I suppose that it is more straightforward to reduce the number of visitors than any other, more egalitarian, approach.

I would like to see the number of visitors reduced too. I can't think of a way to reduce numbers more efficiently that just making things expensive for them. It is perhaps discriminatory and not inclusive, but what other mechanism can more directly affect the number of people that come?

Regarding housing, I think AirBnB, VRBO, etc. are very damaging to the local housing market. I have stayed in some wonderful places using these services, but Ithink they cause more harm than good. They generally exacerbate the tourism problem by attracting more people to the area, they make housing completely unaffordable for the local population as whole condos become de-facto hotels without the required hotel safety requirements, and generally turn local neighborhoods into transient accommodations. Additional tourists tend to overwhelm the local infrastructure and generally damage the natural environment that attracts tourists to begin with.

Books like the "Revealed" series popular with visitors are another source of damage, as they highlight lesser known places and encourage visitors to areas that just aren't set up to have throngs of people come by and are not necessarily open to the public.

Overall, I don't think Hawaii truly benefits from tourism, even though it is a great source of revenue. I think they would be better off if the islands were less accessible and could rely on something other than visitors for their livelihood. Growth and progress and not always in the best interest of an area even if they benefit some of its inhabitants.

 

[ScoopKona]

1) I would like to see the number of visitors reduced too. I can't think of a way to reduce numbers more efficiently that just making things expensive for them. It is perhaps discriminatory and not inclusive, but what other mechanism can more directly affect the number of people that come?

2) Regarding housing, I think AirBnB, VRBO, etc. are very damaging to the local housing market. I have stayed in some wonderful places using these services, but Ithink they cause more harm than good.

Numbers added for clarity.

1) A wealthier clientele doesn't necessarily mean a better clientele. I agree completely. (Look at Ironman, for instance. They're the absolute worst. And most of them are riding bicycles which cost more than my truck.) But it DOES mean fewer people visiting the island. And it means they have the means to pay for things -- even if they don't want to. Raising the average net worth of the visitor means that people who offer "build a ukulele" or "learn to cook" classes will do better as a result. The visitor who can only afford Costco can't afford a 70-hour "build a ukulele" class.

2) Short term rentals -- done right -- can actually spur local home ownership. I know several people on Big Island who are renting out a room and using the funds to pay their mortgage. It was still a hard slog to get that down payment together. But that's an example of vacation rentals being positive for the community. Investment houses which are only used as short term rentals do about as much good for local housing as timeshares do, though.

 

[echino]

Many state beaches/parks have different rates for resident/non-resident. How much they differ/vary depends on the state.

I've never seen anything like that. Can you give an example?

 

[slip]

I've never seen anything like that. Can you give an example?

This is from the Devils Lake State Park Website in Wisconsin. It's been that way for decades there.

 

[sponger76]

I've never seen anything like that. Can you give an example?

The town of Surfside Beach, SC has annual parking permits that are $200 for non-resident, non-property owners but residents get two of them for free. Without them, you have to pay hourly, and of course the residents all have them.

 

[Henry M.]

I was thinking more of the dedicated short term rentals, rather than letting someone stay in a room at an owner's residence. There are companies that buy out lots of condos or homes in residential areas just to rent them out as short term rentals. That is much more profitable than renting them to long term tenants but damaging to local residents. I agree that letting someone use part of your home while you are there or on vacation is different.

Timeshares are essentially condos that are owned by more people. They were usually purpose built in special areas, and not at the expense of housing that would otherwise be used by long term renters. Owners pay taxes and are there a week at a time, but in aggregate would be similar to someone living there full time. However, just like hotels and other high-density housing, they do result in lots more people being in a small area. I suppose at the end of the day, it is an excess of people that is the problem, whether they are tourists or local residents (as in very large cities) driving up the demand for housing and infrastructure. Islands are particularly sensitive to being damaged by this problem.

 

[daviator]

I don’t think I’ve ever seen a better example of NIMBYism in action than this.

I don’t mind paying a reasonable amount for parking or use private lots with validation (such as Whaler’s Village). But, $10-30 for street parking? That’s just crazy and not the way to solve the “too many tourists” issue. Maui could more easily just increase the tax on rental cars (though perhaps they recognize it’s already too high, and this is a way to distribute the tourist tax).


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Yes, and isn't Lahaina one of the areas where pretty much everyone WANTS the tourists to go? It's basically a big tourist trap – I mean that in a nice way – and I can't imagine that many locals go there unless they live or work there. It's the Waikiki of Maui, sort of. (When I lived on Oahu, I almost never went to Waikiki, because that's where all the tourists were...)

Every tourist that's in Lahaina is buying expensive (some might say overpriced) food, drink and merchandise. They might be visiting the attractions there. They are not clogging the beach parks and they are probably doing more for the local economy in Lahaina than if they were anywhere else on the island, simply because there are far more opportunities to spend money concentrated into a small area.

All this is a long-winded way of suggesting that driving tourists out of Lahaina with a $30 street parking fee is just going to hurt the businesses in Lahaina.

 

[Ken555]

Yes, and isn't Lahaina one of the areas where pretty much everyone WANTS the tourists to go? It's basically a big tourist trap – I mean that in a nice way – and I can't imagine that many locals go there unless they live or work there. It's the Waikiki of Maui, sort of. (When I lived on Oahu, I almost never went to Waikiki, because that's where all the tourists were...)

Every tourist that's in Lahaina is buying expensive (some might say overpriced) food, drink and merchandise. They might be visiting the attractions there. They are not clogging the beach parks and they are probably doing more for the local economy in Lahaina than if they were anywhere else on the island, simply because there are far more opportunities to spend money concentrated into a small area.

All this is a long-winded way of suggesting that driving tourists out of Lahaina with a $30 street parking fee is just going to hurt the businesses in Lahaina.

Yup. Somehow I doubt even Maui County would be that stupid to charge $10-30 for street parking in Lahaina. But then, who knows - this is the same group that thinks timeshare owners should pay multiple times what residents pay on property tax. Taxation without representation…


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[ScoopKona]

this is the same group that thinks timeshare owners should pay multiple times what residents pay on property tax. Taxation without representation…

How many residents are living directly on the ocean in a relatively posh condo?

There's one such condo for rent on Big Island -- commanding ocean views; "perfect for Ironman." Looks like most of the timeshares in the area. Rent is $12,000 per month. I imagine the property taxes there are rather steep as well. You can see it on Facebook Marketplace. It popped up when I was looking for coffee roasting machines.

 

[Ken555]

How many residents are living directly on the ocean in a relatively posh condo?

There's one such condo for rent on Big Island -- commanding ocean views; "perfect for Ironman." Looks like most of the timeshares in the area. Rent is $12,000 per month. I imagine the property taxes there are rather steep as well. You can see it on Facebook Marketplace. It popped up when I was looking for coffee roasting machines.

What is the property tax % for condo vs timeshare on the Big Island? On Maui there is a huge difference. Changing rate based on location of the unit is not, I don’t believe, codified in the local property tax regulations. You may be surprised how much Maui charges timeshares vs other real property, even hotels!

 

[ScoopKona]

What is the property tax % for condo vs timeshare on the Big Island? On Maui there is a huge difference. Changing rate based on location of the unit is not, I don’t believe, codified in the local property tax regulations. You may be surprised how much Maui charges timeshares vs other real property, even hotels!

I admit I don't know the answer. But since it's 1/52nd of "screwage," it can't be all that bad.

I see you're in Los Angeles. And I'd be willing to wager my property taxes vs. yours. I'll pay yours, you pay mine. There's always the chance I roll snake eyes and you've got a palace in Brentwood. But I know what I pay, and it is egregious -- because it's no longer zoned agricultural after I bought the place. I have to whack at the jungle and then call the county for an inspection for every acre I clear.

Coastal properties pay exorbitant taxes, large properties pay exorbitant taxes, fee-simple properties pay exorbitant taxes.

EDIT -- Let's go with the timeshare down the road from me. Kona Coast. I can drive there in 10 minutes. Residents probably think they're being taxed on their 1000 square feet of condo. But it's so much more than that. Those four acres of useless rocks by the water? That is all taxed at the same rate. As is all the grass landscaping, the pool, the barbecues, the trails. Any timeshare which isn't "small and tight" is going to have egregious taxes compared to some local who has one-tenth of an acre and a small house. And frankly, that's as it should be.

 

[Ken555]

I admit I don't know the answer. But since it's 1/52nd of "screwage," it can't be all that bad.

I disagree with your implied suggestion that it doesn’t matter since it’s only 1/52, nor that since it’s a luxury item the rich should pay more.

I’m on a train with poor internet or else I’d do the research right now and post links, but it’s been discussed on TUG for years. IIRC, Maui timeshares pay 14% property tax, while hotels pay ~8% and condos/homes are about 2%. Let’s stick to this issue and try not to distract ourselves with rationalizations, as you have done several times now. Do you think it’s justified that timeshare owners pay ~7 times as much as residents in property tax, additional daily room taxes, car rental taxes, etc etc? In addition to all that, you also think it’s also okay for these same people to pay up to $30 to park a rental car so that they can spend more money at Maui businesses?


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[krj9999]

I've never seen anything like that. Can you give an example?

Delaware: $5/vehicle resident, $10/vehicle non resident (ocean parks, daily cost)
Passes, Tags and Fees - Delaware State Parks (destateparks.com)

Maryland - different parks have different pricing (entrance or parking)
Service Charges for Maryland State Parks

The town of Dewey Beach in Delaware has lower seasonal parking pass costs for property owners.
Town of Dewey Beach Delaware - Parking Meters and Permits in Effect

 

[ScoopKona]

Do you think it’s justified that timeshare owners pay ~7 times as much as residents in property tax, additional daily room taxes, car rental taxes, etc etc? In addition to all that, you also think it’s also okay for these same people to pay up to $30 to park a rental car so that they can spend more money at Maui businesses?

Yes, I think it's justified. And yes, the parking fees are fine.

Maui is trying to throttle visitors to the point where they dwindle to one-third of the island's total population. Short of a visitation lottery, raising fees and taxes is the surest way to decrease head count.

From what I've seen, locals have had enough. After two years of greatly-reduced tourism, they don't want to return to pre-pandemic numbers. They are voting for tourism-limiting policies and for people who promise to continue throttling tourism. Mitch Roth is very likely to lose his seat on the Big Island over Ironman. "Why did you bring it back? And why is it TWO days now? You didn't consult with ANYONE. We don't want this here."

When I lived in Las Vegas, I occasionally heard visitors grouse about the all the room taxes they pay. "Locals barely have to pay ANYTHING! We're paying it all!"

Locals: "That's right. Thanks for subsidizing my property taxes. Good luck at the tables!"

I'm totally rooting for Maui. I hope they find some kind of balance. And then the other islands can follow Maui's lead.

 

[lynne]

What is the property tax % for condo vs timeshare on the Big Island? On Maui there is a huge difference. Changing rate based on location of the unit is not, I don’t believe, codified in the local property tax regulations. You may be surprised how much Maui charges timeshares vs other real property, even hotels!

Hawaii County does not separate out timeshares from resort/hotel properties. Condos that are not owner occupied are taxed at the apartment rate same as homes that are not owner occupied are taxed at the residential rate based on assessment.
Hawaii County Tax Rates

Property Class	Taxable per/$1000
Affordable Renting Housing	$6.15
Agricultural/Native Forests	$9.35
Apartment	$11.70
Commercial	$10.70
Conservation	$11.55
Homeowner	$6.15
Hotel/Resort	$11.55
Industrial	$10.70
Residential (<$2M)	$11.10
Residential (>$2M)	$13.60

 

[Ken555]

Yes, I think it's justified. And yes, the parking fees are fine.

Maui is trying to throttle visitors to the point where they dwindle to one-third of the island's total population. Short of a visitation lottery, raising fees and taxes is the surest way to decrease head count.

From what I've seen, locals have had enough. After two years of greatly-reduced tourism, they don't want to return to pre-pandemic numbers. They are voting for tourism-limiting policies and for people who promise to continue throttling tourism. Mitch Roth is very likely to lose his seat on the Big Island over Ironman. "Why did you bring it back? And why is it TWO days now? You didn't consult with ANYONE. We don't want this here."

When I lived in Las Vegas, I occasionally heard visitors grouse about the all the room taxes they pay. "Locals barely have to pay ANYTHING! We're paying it all!"

Locals: "That's right. Thanks for subsidizing my property taxes. Good luck at the tables!"

I'm totally rooting for Maui. I hope they find some kind of balance. And then the other islands can follow Maui's lead.

I agree with the goal of limiting tourism, but I think there may be a better solution than this. After all, Maui approved construction of all those hotels and timeshares. They exist. The owners of those properties want them filled. I would suggest that if Maui wanted to limit tourists the first thing that they should do is ban all private short term rentals via companies like Airbnb. Yes, people like your neighbor would be impacted (if they rent nightly) but they weren’t likely renting before Airbnb and they are now directly contributing to the problem of over tourism.


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[Ken555]

Hawaii County does not separate out timeshares from resort/hotel properties. Condos that are not owner occupied are taxed at the apartment rate same as homes that are not owner occupied are taxed at the residential rate based on assessment.
Hawaii County Tax Rates

Property Class	Taxable per/$1000
Affordable Renting Housing	$6.15
Agricultural/Native Forests	$9.35
Apartment	$11.70
Commercial	$10.70
Conservation	$11.55
Homeowner	$6.15
Hotel/Resort	$11.55
Industrial	$10.70
Residential (TD] [TD]$11.10
Residential (>$2M)	$13.60

First page with the rates from Maui:

MAUI REAL PROPERTY TAX RATE 2022 - 2023 | Mary Anne Fitch

Maui County Council shaves property taxes for owner-occupied homes

soldmaui.com

Note this page also states:

New rates approved this past May by Maui County Council trim property taxes for most residents who live in their own homes.

Owner-occupied rates of $2.41 at Tier 1 and $2.51 at Tier 2 per $1,000 of net taxable assessed value were shaved to $2 and $2.10, respectively. Owners at the highest Tier 3 remained the same at $2.71.

Council voted 6-0, with members Shane Sinenci, Kelly King and Mike Molina absent and excused, to set real property tax rates for the next fiscal year, which began July 1.

So not only are they increasing taxes on tourists they are reducing the cost to many of the residents. This may be fully justified…I simply find it interesting that they are reducing taxes on locals (who vote) and continuing to increase taxes on tourists (who don’t vote).

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[geist1223]

Maui should shut down the rental of single family homes. Allow the ocean free rein in Kaanapali and other areas. Limit the number of Passenger Jets.

 

[ScoopKona]

I agree with the goal of limiting tourism, but I think there may be a better solution than this. After all, Maui approved construction of all those hotels and timeshares.

The people who live there now didn't approve timeshares from 30 years ago. Or they were children when those projects were approved.

The residents have spoken -- they want visitor numbers dialed back. If they over-do it, they might regret that choice as well. But they are allowed to have agency over their community. Tourists lack such agency. If it were up to me, we'd find a way to limit only the dumb-dumbs. But since we can't interview people as they try to board a plane -- to weed out the litterbugs, wildlife molesters, insanely-bad drivers, and the perpetually indignant -- some other mechanism is necessary.

And we know raising taxes and fees works.

My guess is that people who live there saw the bumper stickers other islands use: "Keep Kauai Beautiful: Tell your family to go to Maui" and decided that's quite enough.

What can tourists do? They can self-police. If a tourist sees another tourist behaving like a spoiled child, call him or her out. "Stop that. You're making people miserable." Servers, bartenders, clerks and tour guides aren't allowed to say anything. They have to smile and take it -- keep that money flowing. I just did that the other day during Ironman. A triathlete was hectoring a clerk at Choicemart over the price of eggs.

"Stop it. She doesn't have any control over the price. That's what eggs cost."

He looked at me like I just threw cold water in his face. But he took his eggs to the register.

Decades of "the customer is always right" has turned too many people into spoiled, demanding blowhards.

My guess is that Maui is going to keep slinging policy-pizzas at the wall until something sticks.

 

[Tamaradarann]

I admit I don't know the answer. But since it's 1/52nd of "screwage," it can't be all that bad.

I see you're in Los Angeles. And I'd be willing to wager my property taxes vs. yours. I'll pay yours, you pay mine. There's always the chance I roll snake eyes and you've got a palace in Brentwood. But I know what I pay, and it is egregious -- because it's no longer zoned agricultural after I bought the place. I have to whack at the jungle and then call the county for an inspection for every acre I clear.

Coastal properties pay exorbitant taxes, large properties pay exorbitant taxes, fee-simple properties pay exorbitant taxes.

EDIT -- Let's go with the timeshare down the road from me. Kona Coast. I can drive there in 10 minutes. Residents probably think they're being taxed on their 1000 square feet of condo. But it's so much more than that. Those four acres of useless rocks by the water? That is all taxed at the same rate. As is all the grass landscaping, the pool, the barbecues, the trails. Any timeshare which isn't "small and tight" is going to have egregious taxes compared to some local who has one-tenth of an acre and a small house. And frankly, that's as it should be.

I think you may go broke if Ken555 from LA took you up on your property tax swap offer. I don't know the exact amount of his LA property taxes but I do know that the property taxes in Hawaii are really low. We owned a house worth about 300K in New York and the property taxes were over $8,000/yr. The property taxes on my 600K Condo in Honolulu are under $2,000/yr.

 

[easyrider]

The Golden Rule will likely decide everything as it always does and that is why nothing will change except an unenforceable ban on certain sun tan lotions and inconsequential fee's for most tourists, imo.

Bill

 

[Henry M.]

I think the problem on Maui is the sheer number of visitors. Most are good people, but there is just too many of us.

Another approach to limiting the number is to just allow so many visitors per day. One visitor has to leave for another one to be let in. Since almost all come by air, it should not be that hard to control. It would be one heck of an inconvenience to plan a trip, but it will limit the number of people and does not rely on people's finances to discriminate on who gets to visit. It would be the luck of the draw.

Personally, I'd hate such a system, but I also don't like the current level of tourism either.

Just brainstorming some possibilities, they could limit short term rentals to just owner occupied properties that rent out a room or a cottage. They could also cut back on the number of flights allowed from the mainland, with perhaps some preferential system for permanent residents of the islands.

 

[Tamaradarann]

Hawaii has three major problems: lack of housing, low wages and pollution. The housing problem is a double-edged sword because that's also pushing average rent up. Too many non-residents snapping up property as investments and "to retire to someday."

Developers don't build affordable housing because there's more profit building McMansions. And try to get a permit from the county to build anything at all -- it can take years.

The fact of the matter is that Hawaii doesn't have the infrastructure for the amount of people who are visiting. So who is going to pay for that? Locals? Most of 'em are holding on by their fingernails already. Everyone who visits knows how expensive this place is. Now try it on $12/hr wages. (Which is what most people who work in the tourist areas make.) That minimum wage just went into effect this month. It took years to implement -- by the time workers here get a higher minimum, it's already too little to live on.

You have mentioned before that you have friends that make a living on tips from tourists. Well I just read that Hawaii is concerned now that tourists have started to give up on coming to Hawaii. The gravy train of taxing and charging tourists that Hawaii has been riding on may be subsiding. Those that live off the income and tips that come from tourists may start to be hurting. Less Tourists, less jobs, less hours, less tips. You may be getting your wish that less tourists will come. You may have an opportunity to pay some bills for friends and families that can no longer afford food since they have no job, or less hours at their jobs, or less tips.

Furthermore, we tip very well. We always tip at least 20% for restaurants, $20 for bellman, and we tip cabs when we have lots of luggage or lots of groceries between 30-50%. However, if we (or tourists) feel that they are being ripped off by parking fees, arrival fees, or TAT(transit accomdations taxes) that may be the reason for poor tipping. One wants to feel good about coming to Hawaii on vacation not pissed off by unusual fees and taxes. DON'T BITE THE HAND THAT FEEDS YOU, DON'T KILL THE GOLDEN GOOSE!!

 

[ScoopKona]

I think you may go broke if Ken555 from LA took you up on your property tax swap offer. I don't know the exact amount of his LA property taxes but I do know that the property taxes in Hawaii are really low. We owned a house worth about 300K in New York and the property taxes were over $8,000/yr. The property taxes on my 600K Condo in Honolulu are under $2,000/yr.

I would give my right arm to have property taxes of $8,000 per year. My property taxes are the two biggest checks I write each year. When the farm changed hands, it lost its "grandfathered" status and the whole big mess was classified as residential.

As I clear each acre and restore/replant (there are thousands of coffee trees which only need to have the christmasberry removed so they can thrive), my property taxes go down from $13.60 to $9.50 per thousand. I've managed to clear three acres in roughly one full year of restoring the farm. (Previously, I was back-and-forth to the mainland, winding down my life there.) Here full time, and with some help, I hope to have the rest done by the end of the decade. That will help. But my taxes are still going to be sky high.

You have mentioned before that you have friends that make a living on tips from tourists. Well I just read that Hawaii is concerned now that tourists have started to give up on coming to Hawaii. The gravy train of taxing and charging tourists that Hawaii has been riding on may be subsiding.

The restaurants around here (such that they are), are slammed-busy most nights. If we cut numbers in half, they'll STILL be busy.

I have absolutely no fear that people will wake up one day and decide to stop coming. (Also, it wouldn't affect me. But I don't want my neighbors to suffer.) People are going to fly here because it's nice all the time. Can't say that about most places.

If Maui wants to put the squeeze on in order to winnow tourists, that's their prerogative. If they go too far, they'll know it almost instantly. I wish them luck -- if they find the secret sauce which limits visitor numbers but still makes for a robust economy, great! We can copy their policies. Over-tourism is a problem -- and that is more likely to "kill the goose" than raising fees. If the islands become trashed, with dead coral reefs and plastic strewn everywhere, people will stop coming. I would rather they stop coming because they don't like the prices than stop coming because the islands have been beaten to death.

 

[RunCat]

I agree with the goal of limiting tourism, but I think there may be a better solution than this.

Easier solution:
1) Limit the number of flights that can land at the airport. It worked during the Covid-19 crisis. It could probably work again.
2) Limit construction size and shutdown hotels. If there is no place to stay, people won't visit.

But both of those things will dramatically affect the income of the island. It is much easier to increase the parking fees in order to collect more money from those that are visiting, and at the same time pretending to do something about the problem. I lived most of my life in Santa Monica, parking and tourism are HUGE problems. But charging more for parking has not stopped people from visiting; they just parked somewhere else.