My two cents
I have greatly admired the leadership that has come from Mayor Kawakami to keep Kauai safe and our COVID-19 infections under control.
I have been disappointed by the leadership I’ve seen at a state level, both in a video conference with state legislature leaders and the public statements by the governor. Their main concern seems to be focused most on finances. State legislators talked primarily about budget shortfalls and Ige has come with ideas about cutting state workers incomes by 20%. This is not leadership. It’s bean counting.
If society is to overcome this deficit spending at a state and federal level will be required. The question I’m sure is on their mind is, “How will we ever make that up?”
Pre-pandemic, Hawaii was leading the nation in tourism, often hitting occupancies of 90-100%. The statewide average for 2019 was 81%. This will return once the pandemic is under control and the economy heats up again.
Whenever I’ve asked a public official about taxing tourists more, I get some version of the following (the figures aren’t exact but they make the point), “Tourists only account for 20% of the people here but they already cover 30% of income.” So what? An extra $50 per week tax to a family staying in a $300-600 per night hotel or a timeshare with a $2k per week maintenance fee means nothing to them and they’ll easily pay it. They pay that much for family lunch at a food truck, for goodness sake. Cutting essential services, lowering state workers incomes or additionally taxing the working-class residents of the islands should be the last fixes we consider.
I hope we get more leadership and vision about what’s possible from our state leadership and less fear and bean counting.
One guy’s thoughts,
Jason Blake, Puhi
Jason, I take it you have never owned a business. You don’t make up shortfalls by simply raising prices. It is called asymmetrical warfare,…..you attack on multiple fronts.
Sure, increase the TAT, but also increase the GET. Cut State and County Government workers pay…..many have been collecting a paycheck while doing nothing for over a month. Everyone needs to contribute. Don’t piss off the tourists. Hawaii produces nothing but, sun, surf, and beaches. Tourism is the only industry here on the islands. The Caribbean is just as nice, and much, much cheaper.
I run a half a million dollar per year business. Governments aren’t businesses, FYI.
I would just like to point out that maybe my screen handle but that’s not in my letter.
But I do agree mayor kawakami, is doing an excellent job.
Yes it sucks right now,I know I’m not the only one who wants to hang out at friend family gatherings but
We just got to hang in there.
Reopening the tourism industry is going to be tricky.
But we’ll figure it out we always do.
Governor just wanting a Federal Handout so he can pay the State’s Debt! How much is it? $12-$25 Billion is Pension Shortfalls? McConnell says it will not Happen!
Those are blunders made in the Past!
Jake, Jason is an insurance agent. That’s exactly what his industry does….”simply raise prices”. They’re in the business of collecting premiums; not paying claims.
Unfortunately our economy is not going to recover for years. Even after they remove the Hawaii travel restrictions, who wants to get in a flying petri dish with two hundred strangers for six hours to fly to Hawaii. Until they develop a vaccine things are going to be tough.
I am reading that the airlines are now doing a ‘fogging’ routine to sanitize air in planes and increasing filtration….my question is WHY haven’t they been doing it all along since planes have always been petri dishes!
Realty check Jason:
Tourists already pay 14.962% GE and TA tax on the rent for their accommodations.
A few years ago the State made it mandatory to charge both of these taxes on departure clean fees too (it used to be just GE tax).
And, last year the County increased GE tax by 1/2% for tourists and residents.
Then of course visitors pay tax on their rental cars, groceries, dining out, activities, and gifts they purchase during their stay.
Someone renting a house for a week at $500/per night, with say a $400.00 departure cleaning is paying nearly $600.00 in taxes just for their accommodation. The biggest complaint visitors have is the taxes, and you want to charge more? Might want to stick with insurance Jason.
BTW: There is NO accommodation that charges $2K ‘per week’ maintenance fees. Some owners are charged that ‘per month’ for HOA fees.
Considering there’s approximately 250,000 newly unemployed residents, it’s obvious how much we depend on tourism. Like Jake said above, keep increasing the taxes and they’ll just travel to a less expensive tropical destination.
Kai:
I spoke with a few friends this week that were able to retain their jobs and they’re already getting rental reservations for 2021. Not nearly as many as they’re used to, however people are already planning future vacations to Hawai’i.