Catamaran operators worry permit bidding will hurt them

The state would require Waikiki catamaran operators to obtain commercial use permits like those required of all other commercial boat companies in the state, under a proposal before the state Board of Land and Natural Resources Thursday.

Ed Underwood, administrator of the state Division of Boating and Recreation, will recommend the permits plan be adopted but will leave to the board a decision to charge either the standard $200 fee or 3 percent of gross receipts per month, whichever is greater; or the operators’ proposal of $60 per seat per year.

Waikiki catamaran companies pay an annual registration fee of $8.50. They acknowledge that the fee is too low and support paying more, but oppose moving to the commercial use permit system.

A majority of the operators say they fear it could lead to a bidding process that pushes out smaller catamaran businesses.

IN SEPTEMBER, catamaran operators met with Underwood and his staff to discuss alternatives to the proposed permits. Seven catamaran operators are in Waikiki: Waikiki Cruises, Welakahao Catamaran Inc., King Parsons Enterprises, Woodbridge Inc., Kepoikai Ltd., Island Beach Activities Inc. and Anela Kai Catamaran Inc.

At that meeting a proposal was made to increase the annual $8.50 registration fee to $60 per seat per year.

Curtis Iaukea, master and captain of the Mana Kai, said it was his impression the Boating Division was satisfied with the proposed registration fee increase and that it was not going to push for the commercial use permits.

"I left the meeting thinking that they were not going to press the commercial use permit and that they were satisfied with the registration fee increase," Iaukea said.

Woody Brown Jr., son of the late beachboy Woodbridge "Woody" Brown, who built the first modern catamaran that sparked a new type of commercial sail tour, said he got the same impression as Iaukea. Brown said he fears smaller catamaran businesses will be pushed out if permits are required in Waikiki, saying operators have seen it happen with surfboard rental concessions.

Underwood said, "We told them to go ahead and give us your proposal, and we would review it and talk about it among staff and move forward from there. At no time did we say (permits) were off the table."

Underwood reiterated that all commercial vessel operators statewide, except Waikiki catamaran operators, pay the commercial use fee. He said he will recommend that the fee "should apply to Waikiki operators, but will defer to the board whether to accept their (the operators’) proposal of $60 per seat per year."

Attorney Cynthia Farias, who represents a majority of the Waikiki catamaran operators, said she will ask the board to defer their discussion on the proposal until next month’s Land Board meeting.

Some operators, she said, will be unable to attend Thursday’s meeting as some catamarans are in dry dock due to this week’s Asia-Pacific Economic Cooperation meetings.