An upcoming increase in the state hotel room tax of less than 1% — or $3 more per night for a $400 room — won’t deter any of nearly two dozen Waikiki tourists from coming back, especially if it provides money to restore beaches, fight erosion and prevent future wildfires, they unanimously told the Honolulu Star-Advertiser on Wednesday.
“It wouldn’t discourage me,” Sam Powell, 33, of Roanoke, Va., said on Kalakaua Avenue in the middle of his first trip to Oahu with his wife, sister, brother-in-law and nephews. “It’s just another $3 a night.”
Visitors up and down Kalakaua and Kapahulu avenues unanimously supported the increase in the state’s Transient Accommodations Tax that begins Jan. 1 and was signed into law by Gov. Josh Green on Tuesday as Act 96.
The increase applies to everyone who stays in a Hawaii hotel, cruise ship or other paid lodging — including local residents.
Green previously told the Star-Advertiser that residents who receive kamaaina discounts would pay less out of pocket compared to tourists who typically book more expensive room rates.
Under Act 96, Hawaii’s TAT — more commonly referred to as the hotel room tax — will increase Jan. 1 by 0.75% — to 11% up from 10.25%.
Before signing Senate Bill 1396 into law Tuesday, Green used a hypothetical $400 a night hotel room rate to say that the higher TAT would add $3 on the current TAT, or $30 for every $4,000 spent on lodging across the islands.
The Star-Advertiser on Wednesday incorrectly reported a higher TAT on a $400 a night room.
Green called it the first effort of its kind in the nation to mitigate climate change and the risk of future wildfires that could serve as a road map for other parts of the country that face wildfires and climate change.
Boyfriend and girlfriend Adam Vasquez, 23, and Kaylee Bertolino, 22, came from Long Island, N.Y., for their first trip to Waikiki.
Bertolino said the upcoming TAT increase will go “to a good cause” and would not deter them from a future trip to Hawaii.
Vasquez called Green’s example of a $3 per night increase on a $400 per night hotel room “not too bad.”
Most of the visitors who spoke to the Star-Advertiser had no idea how much they were paying in hotel costs, so they could not calculate how the upcoming TAT increase would have affected their current bills.
But the TAT represents just one of the many fees that visitors and residents already pay for lodging, including the state’s general excise tax, parking and “resort” fees that include internet and fitness center access.
Green’s $400 a night example runs on the high side of nightly hotel rates on Oahu, which are generally less expensive than neighbor island hotels, said Jerry Gibson, president of the Hawai‘i Hotel Alliance.
Waikiki room rates are currently running from $250 to $450 a night, Gibson said.
“Normally, in summer, they go up,” he said. “But so far its a weak-looking summer, so I think those will be the rates.”
In addition to the state and county TAT rates of 11% and 3%, respectively, visitors also pay state and county GET of 4.712% bringing the total state and county tax on their accommodations to 18.712%.
In addition, Hawaii hotels also typically charge a parking fee that ranges from $20 to $60 a night, Gibson said.
Separate resort fees also vary from $20 to $50 a day and include about 10 to 15 different privileges such as access to body boards and surf boards and hula lessons, Gibson said.
Mufi Hannemann, president and CEO of the Hawai‘i Lodging & Tourism Association, told the Star-Advertiser in a statement that the organization supports the increase in the TAT “because it has a clearly defined and purposeful intent that we can all agree on — to protect Hawai‘i’s environmental resources, which are vital to our state’s resilience, sustainability, cultural heritage, and preparedness for climate change and natural disasters. Just as importantly, there is a strong and direct nexus to the visitor industry — ensuring that this additional tax revenue will help preserve the natural and cultural assets that make Hawai‘i a world-class destination and support the infrastructure of our state’s number one economic driver.”
Hannemann said the new law “reflects transparency and thoughtful balance, and we appreciate that the input of the Hawai‘i Lodging & Tourism Association and the broader visitor industry was seriously considered by both the Legislature and the Administration.”
He agreed with Gibson that “the actual cost to guests is often significantly higher once taxes and fees are applied.”
Sarah Thomas, 30, and her girlfriend, Selina Ramirez, 41, of San Jose, Calif., have been paying $280 a night to stay at the Park Shore Waikiki on Kapahulu Avenue for their first trip to Oahu.
So if they return to the Park Shore after the TAT increases on Jan. 1, their nightly additional TAT cost would fall well below Green’s $3 a night example.
But they don’t mind paying more to help address climate change in Hawaii.
“We’re from California, so we understand the need to protect the infrastructure,” Thomas said.
Following this year’s devastating wildfires in Los Angeles, Ramirez appreciates Hawaii’s efforts to mitigate future wildfires following the Aug. 8, 2023, Maui inferno that killed 102 people, devastated Lahaina and caused $13 billion in damage.
So Ramirez called herself “100%” behind the plan to collect an additional $90 to $100 million annually to restore beaches and prevent further erosion and wildfire risks.
And the couple “would not hesitate” to come back to face the higher TAT in the future, she said.
They have already fallen in love with Oahu’s beauty and the aloha spirit they feel.
“We’ve had a gracious welcoming,” Ramirez said.
Natalie Miller, 27, of Chicago, flew into Oahu from Kona on Wednesday morning with her husband and won’t mind paying a little extra if and when they take another Hawaii vacation.
“I don’t think I would even notice,” Miller said.
Her husband, Mitch Miller, 28, said “another $3 won’t stop me from traveling.”
On the makai side of Kalakaua Avenue, Huma Mohammad, 36, of Redwood City, Calif., agreed that a higher TAT won’t discourage her and her family from a second trip to the islands.
“I don’t think so, if it helps the beaches,” she said. “That’s what you come for.”
She and her husband, Shawn Mohammad, 35, brought along their 2-1/2-year-old son, Keyian.
Shawn Mohammad said they’ve enjoyed learning about Hawaiian culture, along with the scenery.
“That’s why trips like this are good,” he said.
Outside the Park Shore Waikiki — where she’s staying with her husband and four others — Arlene Carwile, 50, of Hicksville, Ohio, said she would gladly make her second trip to Hawaii even if it means paying a higher TAT to protect Hawaii’s environment.
“I would definitely come back,” Carwile said.
Everyone in the group agreed, especially Carwile’s friend, Cynthia Smith, 77, of Ossian, Ind.
Smith has fallen so hard for Oahu that she joked that she won’t have to return because she has no intention of leaving.
“They’re going to have to drag me away,” she said.
Correction: >> In addition to the state and county TAT rates of 11% and 3%, respectively, visitors also pay state and county GET of 4.712% bringing the total state and county tax on their accommodations to 18.712%. The Star-Advertiser published inaccurate GET rates in an earlier version of this story.
