Vacation Rental Background and History What are Vacation Rentals? In Maui County, vacation rentals are any property rented for less than six months. This could be a B&B, private home, vacation condo or farm stay. This could be anything from a couple of rooms in somebody's private home, to a large luxurious estate. At this time, the county ordinance states that anything less than a 6 month rental is technically illegal. This includes all month to month renters. Who owns Vacation Rentals? Vacation rental owners are both local residents and part time residents. They are from a wide variety of backgrounds, and rent their properties for a wide variety of reasons. A few examples: • • • • • Farmers trying to support ag on their land rely on the additional income. Local parents supporting their families. Mainland owners that make several visits each year on Maui. They cannot long term their property, if they are using it for their personal visits. Retired residents feeling the "squeeze" of higher property taxes, medical bills and the high cost of living on Maui. Local residents that use the extra space when family, friends, and visitors come to visit. Who Stays in Vacation Rentals? With the changing trends in tourism, there are many groups of travelers that look for vacation rentals when they plan their vacations to Maui, or to other locations around the world. Some of these are: • • • • • • • • • Guests looking for an eco experience Honeymooners looking for privacy Multi generation families that want to enjoy a whole house together Guests with family living in the area Families with small children that are adverse to having all meals in restaurants or being in a hotel setting Elderly people that can’t deal with being in a busy hotel environment Guests looking for exposure to non-commercialized Hawaiian culture Windsurfing and other sports minded guests Guests with an interest in agriculture Most of these travelers have stayed in a condo or hotel previously, but are looking for a quieter, more restful environment. People that contribute to their own community want a chance to experience the Maui community. Many professional travelers frequent hotels on business trips, and are looking for a more private, relaxed and "off the beaten path" setting. Economic Benefits of Vacation Rentals Vacation Rentals provide tremendous benefits to the working families of Maui County. Unlike the hotels and mega resorts whose profits go directly to mainland corporate stockholders, Maui vacation rental profits stay in Maui and benefit the whole community. Read the Kauaian Institute report on Maui Vacation Rentals. History of vacation rentals in Maui County The county law inhibiting vacation rentals was written to require resort developers to provide employee housing. The resorts have managed to sidestepped the law for years. Now the County will be wrongly applying the law to residential property owners for whom it was never intended. In the 1960's it was agreed that tourists should stay only in "vacation compounds". The face of tourism is changing, adventure travel is the latest trend amongst Baby Boomers, and they are looking for the local experience. Market demand is changing, not because of the existence of Maui's TVR's, but in spite of Maui TVR’s. This is a worldwide change, and ... This is a common travel trend in many other countries. HVB info did show that visitors might go to a resort for their first or second visit, but will later look for a new experience. Visitors are looking for a unique experience. This demand did not exist 15 years ago in Maui, when the resorts were planned. Who opposes Vacation Rentals? A small, but vocal minority of concerned individuals who are frustrated about the changes occurring on our island and mistakenly feel vacation rentals are to blame. • • • • • • • • There are neighbors that have had a bad experience with a vacation rental. Some feel that vacation rentals encourage tourists to be let out of resort areas and this is “bad”. Some residents feel that TVR's are taking away from the local long term housing market, although there is not evidence of this. Some feel protective of ag land, and believe that accommodating a visitor on ag land is incompatible with the intended use of the land. Some feel that TVR owners are "cheating" and making easy money (greedy). Some feel that TVR on ag land are taking advantage of ag water rates and tax rates. Some feel mainlanders’ speculation in real estate is encouraged by vacation rentals. This it not the case, it takes significant time to set up a vacation rental business. The General Plan and the Community Plan do NOT prohibit vacation rentals, they require that they have restrictions or limitations. • • • • Some feel that TVR’s are changing character of our neighborhoods. Our neighborhoods are defiantly changing, however the effect of TVR’s is minimal. Many feel they can't afford to be here anymore. That is true, but TVR’s are not the cause of the high cost of living. Many are regretting loss of the Maui lifestyle. This is true, but TVR’s are not responsible for the huge changes happening on Maui. In fact, TVR’s help preserve and protect the Maui lifestyle in many ways. At least one individual who already has a vacation rental license and doesn’t want the completion of any others getting their licenses.