A letter to the editor (“Unlike hotels, rental money stays here,” Star-Advertiser, June 14) criticized an article about vacation rental guests contributing less to the economy, saying it was “misleading” because money spent on hotels (rather than B&Bs and rental houses) largely does not stay in Hawaii (“Vacation rental guests contributing less to Hawaii tourism economy,” Star-Advertiser, June 10).

I believe the original article is correct and the letter writer is in error.

Think about it: Most of the dollars spent for hotel rooms largely do initially stay in Hawaii. Hotel employees’ pay remains in Hawaii, plus electricity, water and other costs. Restaurant food and beverage labor and materials are immediately procured in Hawaii. Don’t forget the general excise and transient accommodation taxes. At least some of these non-legal B&Bs neglect to pay these taxes. It would be nice to have accurate statistics on much money actually stays in Hawaii initially, but probably not more than 25% goes out as profits to out-of-state owners.

Ward Mardfin

Hana, Maui

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