Lodging association endorses David Ige

Gov. David Y. Ige will head into the Aug. 11 Democratic primary with the endorsement of the Hawaii Lodging & Tourism Association, the state’s largest private-sector tourism organization.

Ige secured the gubernatorial endorsement with a unanimous vote from all four HLTA county chapters and the statewide endorsement committee. Some 700 visitor industry members across the islands belong to the association, collectively representing more than 50,000 hotel rooms and nearly 40,000 lodging workers.

Much of Ige’s success likely had to do with his announcement at a July 2 HLTA candidate forum that he would veto Senate Bill 2699, which would have included resort fees in gross rental proceeds that are subject to the transient accommodations tax.

On July 10, Ige vetoed the measure because “the vague language could subject restaurants, spas and other businesses located in hotels to add the TAT to their services.” Ige said the additional taxes imposed by the measure could result in “significant increases in accommodation costs for our residents and visitors staying in Hawaii hotel properties.”

Mufi Hannemann, president and CEO of the group, said in a statement that Ige’s “leadership on tourism was reflected in how he heard our views on a potentially harmful resort fee bill and subsequently vetoed it. His administration’s stand on the as-yet-unresolved transient vacation rentals issue, which is a top priority for HLTA, closely mirrors ours.”

Last year, the Ige administration pursued a private tax agreement with Airbnb that would have allowed the online vacation rental hosting site to serve as a tax collection agent for its hosts. Although unsuccessful, some lawmakers and community members said they supported the effort, which could have brought additional money to state coffers by advancing an issue that has repeatedly stalemated in the Legislature.

Hannemann also praised Ige’s democratic opponent, U.S. Rep. Colleen Hanabusa, singling out her actions as a state senator in supporting the Ko Olina resort development.

HLTA also is supporting Kauai Mayor Bernard Carvalho Jr. for lieutenant governor in the Democratic primary.

“The mayor has been a staunch supporter and ally of the visitor industry during his 10 years in office. He has been there for us through thick and thin, an important quality given the challenges Garden Island tourism has experienced over that time,” Hannemann said.

While Hanabusa didn’t get HLTA’s endorsement, she did win over the Sovereign Council of Hawaiian Homestead Associations. In a news release announcing the endorsement, Robin Danner, the group’s chairwoman, said efforts to provide more affordable housing and homestead lots to Native Hawaiians have stalled under Ige.

Danner said Hanabusa, as a member of Congress, is vastly more familiar with Hawaiian homes issues and more likely to steer the Department of Hawaiian Home Lands in the right direction and reduce waitlists for lots.