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RENTALS
Continued from A1
people are breaking quaran-
tine to stay in illegal rentals,
I would not want to see vio-
lators in our communities,
where it is more difficult to
monitor them,” Caldwell
said Friday.
The 14-day quarantine for
out-of-state passengers runs
through July 31, and Ige is
expected to extend it. How-
ever, starting Aug. 1 passen-
gers with approved negative
COVID-19 tests taken within
72 hours of their trip to Ha-
waii may bypass it.
The quarantine isn’t very
appealing to travelers, who
are required to confine
themselves to a designated
location for two weeks after
arriving in Hawaii or face up
to one year in jail and a
$5,000 fine.
Properties hit hard
While Hawaii’s entire visi-
tor industry is struggling, va-
cation rentals, especially on
Oahu, have been among the
hardest hit.
Only 9% of short-term
units statewide were occu-
pied in May, a month when
emergency bans were active
on all islands and occu-
pancy experienced a 61.7
percentage-point drop. In
comparison, Hawaii’s hotels,
which are deemed essential
businesses, were more than
14% occupied last month.
The loosening of emer-
gency restrictions on Maui,
Kauai and Hawaii island al-
ready have bolstered perfor-
mance on the neighbor
islands. Given there’s
pent-up demand for vaca-
tion rentals in Hawaii and
nationwide, further momen-
tum is expected from the
Aug. 1 testing program.
Loosening tourism restric-
tions have provided an op-
portunity for the closed
Hokuala — A Timbers Re-
sort, to reopen Wednesday,
said Gary Moore, managing
director of the 450-acre Kauai
resort, which includes 47 lux-
ury vacation rental resi-
dences and 72 timeshare
units.
“We were impacted by the
fact that people couldn’t
come here,” Moore said. “We
shut down at the end of
March like almost every
other resort on Kauai. We
had to furlough 180 out of
200 staff members. Now,
we’re taking a leap of faith.
We’re reopening the resort,
Hualani’s restaurant and our
golf course. We’ve already
brought back 50 employees
and that number is increas-
ing every day.”
Andreea Grigore, vice
president of property man-
VACATION RENTAL MELTDOWN
Hotels have been devastated by the drop in travel demand amid COVID-19 fears and government lockdowns, but at least they are essential businesses under
emergency orders. Nearly all vacation rentals, even the legal ones, were sidelined for all of April and May. The emergency orders on vacation rentals were
loosened in some counties in June, but they remain sidelined on Oahu.
Unit supply Unit demand Unit occupancy Unit average daily rate
2020 2019 % CHANGE 2020 2019 % CHANGE 2020 2019 % CHANGE 2020 2019 % CHANGE
State of Hawaii 326,176 926,198 -64.8% 30,620 658,237 -95.3% 9.4% 71.1% -61.7% $185.47 $341.85 -45.7%
Oahu 120,823 314,668 -61.6% 11,278 225,954 -95.0% 9.3% 71.8% -62.5% $148.18 $281.05 -47.3%
Waikiki 62,152 128,955 -51.8% 6,341 97,952 -93.5% 10.2% 76.0% -65.8% $122.68 $266.94 -54.0%
Maui County 104,781 282,119 -62.9% 7,511 214,740 -96.5% 7.2% 76.1% -68.9% $242.93 $396.57 -38.7%
Wailea/Kihei 42,507 136,623 -68.9% 2,482 104,460 -97.6% 5.8% 76.5% -70.6% $201.04 $378.70 -46.9%
Lahaina/Kaanapali/
Napili/Kapalua 47,319 110,598 -57.2% 3,894 84,751 -95.4% 8.2% 76.6% -68.4% $282.28 $445.39 -36.6%
Hawaii island 74,177 214,291 -65.4% 7,676 131,551 -94.2% 10.3% 61.4% -51.0% $144.46 $281.56 -48.7%
Kona 31,869 98,296 -67.6% 3,280 65,479 -95.0% 10.3% 66.6% -56.3% $147.79 $258.85 -42.9%
Hilo/Honokaa 20,094 49,768 -59.6% 2,703 28,042 -90.4% 13.5% 56.3% -42.9% $100.01 $164.76 -39.3%
Kauai 26,395 115,120 -77.1% 4,155 85,992 -95.2% 15.7% 74.7% -59.0% $258.58 $457.17 -43.4%
Source: Hawaii Tourism Authority STAR-ADVERTISER
standing with Expedia,
SLIGHT AIRBNB REBOUND
which includes VRBO and
Although Hawaii 90-day Airbnb occupancy rates have recovered significantly in the HomeAway under its um-
past few months, they are still far from 2019 levels. As of June 21, 90-day Airbnb brella.
occupancy rates reached 23.5%, a week-on-week growth of 17.4% and a Amanda Pedigo, Expedia
month-on-month growth of 31.4%. Compared to the previous year, 90-day occupancy Group’s vice president of
rates in Hawaii are still down 39.5%. government affairs, said Fri-
day, “I don’t recall us having
Booking Index a voluntary and proactive
MOU with any location in
OCCUPANCY RATE
Curve North America that leads to
COURTESY PHOTO
balanced vacation rental
50% Latest policy that allows tourism to
Amanda
7 days ago continue to thrive.
Pedigo:
“We consider this to be
14 days ago Expedia Group’s vice
40% the first step in a long part-
president of goverment
30 days ago nership with Kauai to make
affairs said the
sure that listings in Kauai
company will work
30% 2019 are and continue to be per-
with Kauai County
mitted,” she said.
to combat illegal
Expedia has agreed to re-
vacation rentals
20% quire that Kauai hosts pro-
———
vide a tax-map-key property
identification number to ad-
10%
vertise on its hosting plat-
form and to provide the
Rental crackdown county with monthly re-
0% One of Caldwell’s chief ports that include these
0 30 days 60 days 90 days 120 days 150 days 180 days
concerns about lifting the numbers. If the county finds
nonessential business ruling that a vacation rental has
Source: AllTheRooms Analytics STAR-ADVERTISER for Oahu vacation rentals is provided an invalid TMK or
the county’s historic strug- a TMK that isn’t in a zone
agement for Elite Pacific same period. agers to advocate for legal gle with complaints about that allows vacation rentals,
Properties, which manages While other counties are vacation rentals. short-term rentals. Expedia has agreed to re-
approximately 300 short- showing vacation rental im- “Mayor Caldwell’s glaring Last Aug. 1, the city move the listing.
term and 400 long-term provements, Oahu’s vaca- omission of legal vacation ramped up enforcement of Grigore, who lives on
properties statewide, said tion rental industry is likely rentals from any reopening suspected violations of Kauai, said she is a propo-
the company’s vacation to continue bottoming out plans on Oahu is discrimina- short-term rental laws after nent of regulating illegal va-
rental business is starting to unless Caldwell has a tory against lawfully operat- Ordinance 19-18 took effect. cation rentals and supports
show signs of recovery. change of heart. ing, tax-paying vacation The new law made it illegal the intent of the MOU be-
“New bookings have been Still, Grigore said even on rental owners and opera- to advertise properties for tween the county and Expe-
climbing steadily for three the neighbor islands vaca- tors,” Grigore said. “The obvi- short-term rentals of less dia Group, but has concerns
weeks in a row, and while we tion rentals are not being ous consequence of this is than 30 days unless the about maintaining privacy
still have a long way to go be- treated equally to other that it’s causing severe eco- property owner had previ- and security for owners if
fore we catch up to last year, businesses in the accommo- nomic hardship for individual ously obtained a noncon- the TMKs are publicly ad-
we are finally on the path to dations sector. owners of vacation rentals as forming-use certificate. It vertised.
recovery,” Grigore said. “While the mayors of well as vacation rental man- also required properties “Expedia Group and other
To be sure, AllTheRooms Kauai, Big Island and Maui agement companies.” that have a nonconform- (online travel agencies)
Analytics’ Forward Booking have allowed legal vacation Another hui member, ing-use certificate to include could collect the TMKs, per-
Index notes a rebound of rentals to reopen to guests Munro Murdock, founder of that registration number in mit numbers and tax ID
Airbnb bookings in popular who do not have to quaran- Love Hawaii Realty and their advertisements. numbers from each vacation
U.S. vacation rental destina- tine, visitors from out of Love Hawaii Villas, said va- City crackdowns meant rental owner and supply
tions, including Hawaii — state must quarantine in a cation rental losses, espe- Oahu vacation rentals were that information to the
though it’s near the bottom. hotel or motel before being cially on Oahu, are shrinking even before the county without making this
According to AlltheRooms, allowed to stay in a vacation mounting. COVID-19-related emergency information public,” Grigore
Airbnb’s 90-day occupancy rental,” she said. “From the end of March ban. said.
rates in Hawaii are down For these reasons and through June, we’ve lost However, Larry Bartley of Pedigo said Expedia also
39.5% from 2019. In compar- others, Grigore and other $300,000 as a management Save Oahu’s Neighborhoods, is talking with Maui and
ison, nationwide occupancy property managers across company for 30 owners,” said he’s been “receiving would welcome the oppor-
during the same period only the state are forming a hui of Murdock said. “We’re pro- comments from the North tunity to come back and talk
dropped 2.6% during the licensed professional man- jecting well over $2 million Shore, Kailua, Waimanalo to Oahu.
in losses for our owners.” residents that temporarily “We are reviewing options
He said unemployed ho- empty illegal vacation rent- including Kauai’s agree-

Waiawa Phase 2 Solar + Storage tel workers have gotten lots als are now filling up again
of attention but vacation and that the tourists are not
ment,” Caldwell said.
Bartley said he’d like
rental industry employees quarantining.” Oahu to consider entering
Join Us! also are struggling. Other islands also have into a similar agreement as

July 8, 2020
“I was initially able to struggled to control the Kauai.
bring 15 employees back to spread of illegal vacation “This is a good step in the
work with (Paycheck) Pro- rentals with varying degrees right direction,” Bartley

Virtual Community Meeting tection Program funds, but of success. Kauai County
they’ve run out and my em- had a breakthrough Thurs-
said. “Can you imagine
booking a hotel room that
ployees are laid off again,” day when it entered into a refused to divulge its loca-
he said. memorandum of under- tion until after a deposit?”

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