Some catamaran operators in Kaanapali, Maui, say it’s fair for state boating officials to require Waikiki operators to pay commercial use fees that other commercial operators are paying statewide.
It’s reasonable that Waikiki operators play under the same rules as those in Kaanapali, with the reasonable expectation that their permits will be renewed as long as they operate under the law, said Jim Coon, who operates the Trilogy catamaran in Kaanapali and is president of the Ocean Tourism Coalition.
Officials of the Division of Boating and Recreation plan to meet with Waikiki catamaran operators during the third week of September to discuss the state’s proposal to require operators to obtain commercial use permits and pay fees. Catamaran businesses in Kaanapali pay 3 percent of gross receipts or $200 a month, whichever is greater.
Waikiki operators currently pay an annual $8.50 registration fee and a small percentage of their gross income for harbor fees.
Some Waikiki operators such as Woody Brown Jr. say they’re not worried about paying commercial use fees, but are concerned about implementing a system of commercial use permits.
Brown, who owns and operates the Mana Kai, said they fear a permit system could lead to a bidding process and potentially drive smaller businesses out of the market.
"We’re not complaining about the fees," Brown said. "We understand the registration, $8.50, is pretty low. We know we’re going to have to do the 3 percent fees. It’s the bidding that we’re worried about in the future."
Sheila Lipton, who operates the Kepoikai II, echoed Brown’s sentiment. "I’m more than willing to pay the 3 percent," Lipton said. "All of us are afraid to be put out to bid. We’re all very small businesses."
Boating Division Administrator Ed Underwood has said it’s not the state’s intention to put permits out to bid. Underwood plans to return to the Land Board on Oct. 28 with recommendations.
Three years ago the Land Board approved the issuance of commercial use permits and increased fees on Kaanapali operators to 3 percent from 2 percent. There are nine catamaran operators in Kaanapali.
Coon said the fee increase, coupled with the economic downturn, affected catamaran businesses. "Most of them had to cut staffing and trim their operating costs, but it’s been very difficult for the majority of them to raise prices in this current economic environment. That’s a challenge," he said.
Mike Kelley, president of Teralani catamarans in Kaanapali, said he agrees with boating officials that commercial use fees should be consistent statewide. Kelley and Steve Dettwiler, operations manager of Gemini Charters — the oldest catamaran business in Kaanapali — said they were surprised to hear Waikiki operators do not pay commercial use fees.
Currently, passenger fees at Gemini are $70 for children, $90 for teens and $110 for adults. The fee increase imposed three years ago slightly affected Gemini, Dettwiler said. Nevertheless, the catamaran business has continued to do well despite the challenging economy. "There hasn’t been any real change," he added.