May's hotel figures bottom out - Hawaii News

Though summer is well under way, Hawaii's struggling hotel industry has little hope of rising out of its prolonged slump, according to a report released today.

[ALAN]

RAISE THE HOTEL TAX-Since the number of vistors is dropping, the revenue shortfall will grow..better raise the hotel taxes again now, and don't wait.

[yep]

ALAN wrote:

RAISE THE HOTEL TAX-Since the number of vistors is dropping, the revenue shortfall will grow..better raise the hotel taxes again now, and don't wait.

yep, just like a failing restaurant raising prices
a recipe for complete disaster

you continue to elect them

[ex local]

It would be interesting to see what happens to the Hawaii economy as the velocity, depth, and global nature of the decline is unprecidented. Tourism IS the money that drives all aspects of the economy. How long can Hawaii maintain current living standards from localized commerce. The only way is to tax the people and/or reduce all services to the levels of the 60's and 70's. I remember those days. It was quite lean. We had the depression era generation running the show back then and they knew what belt tightening was. Right now, the prices and the total cost of living there are already unbearable given the job and salary base. I don't know if everyone in Hawaii is grasping the magnitude of this problem. The effects will be felt in terms of homelessness, family instability, community safety, crime rates, drug and alcohol abuse, etc.. The only thing that can offset this is the simple notion of the old "Local Spirit"... but that has been eroding for years now.

[Von]

Hawaii is not so bad.

By Dennis Cauchon, USA TODAY

Taxes on travel are soaring as states and cities target the wallets of tourists and business travelers for new revenue.
Hotel taxes, car rental fees and other charges were jacked up in many states in an effort to balance budgets by last week, when the fiscal year started in 46 states.

Popular tourist destinations were hit especially hard. Among places where taxes rose:

•Hawaii. The hotel room tax increased from 7.25% to 8.25% on Wednesday and will rise to 9.25% in July 2010.

•Nevada. The room tax will increase up to 3 percentage points, to a maximum of 12%. In Las Vegas, the hotel tax jumps from 9% to 12%. Reno's tax was already 12% and is not scheduled to change.

FIND MORE STORIES IN: Massachusetts | Tax
•New Hampshire. The tax on rooms and restaurant meals rose from 8% to 9% and was extended to include recreational vehicles at campgrounds.

•Massachusetts. Cities were given authority to raise the hotel tax from 4% to 6%, in addition to the state tax of 5.7%. Taxes on eating out will rise from 5% to 6.25% statewide, plus another 0.75% if cities choose.

•New York City. The city, which raised its hotel tax March 1 to 14.25%, not counting other fees, will start charging more for Internet reservations.

"You couldn't pick a worse time to make it more expensive to rent a hotel room," says Mark Woodworth, executive vice president of PKF Hospitality Research in Atlanta. Hotel occupancy this year will be at its lowest level — 55.5%— since his company started keeping track in 1936, Woodworth says.

Legislators say tax hikes were needed. New Hampshire, which doesn't have a sales or income tax, made painful spending cuts in addition to hiking taxes and fees, says New Hampshire state Rep. Marjorie Smith, a Democrat.

"We didn't have an enormous number of options, and that was one," she says.

Room taxes generated $14 billion in 2008, the American Hotel & Lodging Association reports. That amount is expected to fall in 2009, even with higher tax rates.

Car rental fees are rising, too. A new 5% tax at the Newark airport will fund economic development. Wisconsin approved hiking the car rental fee in Milwaukee from $2 to $18 to subsidize mass transit.

Adding an $18 fee to a car rental is outrageous, says Caleb Miller of the National Business Travel Association. "In what other context can you charge a 50% tax rate and get away with it?" he says.

He says businesses are very sensitive to travel costs in this recession and higher taxes hurt local businesses, not just visitors from out of town. "It's not the whole story to think,'We tax someone from out of town. What's the big deal?' "

Most travel tax hikes ran into light opposition this year. The Nevada Hotel and Lodging Association didn't oppose the state's hotel tax hike aimed at generating $100 million a year. "We support education," says Van Heffner, the association's president. "What could we do? We stayed neutral."

[islander]

yep wrote:

<quoted text>
yep, just like a failing restaurant raising prices
a recipe for complete disaster
you continue to elect them

How about this quotes by Franco Mancassola in the Star Bulletin:

"I believe that time has come for us here in Hawaii to do some self-examination and make up our minds as to what we want to be as a tourist destination. Hawaii seems to have lost its identity as an affordable and desirable tropical paradise, with beautiful weather, pristine beaches, unspoiled scenery and plenty of Aloha spirit. A paradise that welcomed visitors with open arms, offered them relaxing and lazy days in the sun and all at a price that was affordable. We had a blend of new and older buildings, restaurants and little stores that were attractive and fun to visit. Hawaii had a perfect niche with the average American and foreign visitor. Waikiki welcomed us Kamahaina’s with special warmth, making us feel that we belonged here and that our money was as good as any.

Then came the frenzy of the 90s and then suddenly it all changed. The Japanese tourist arrived with their appetite for designer clothes and designer accessories and we got mesmerized and seduced by their spending power. Quick thinking developers and shortsighted hotel executives rushed to redesign Hawaii. Up went a glut of non-descriptive skyscrapers, fancy but useless shopping malls and trendy restaurants that few could patronize. Gone were the affordable family hotels, the affordable eateries and the cute although somewhat 'passe' little shops. The price of the new refurbished hotels, shops and restaurants made it ‘off limits’ for most residents and visitors alike."

And:

"No doubt the economy is partly to blame for the decline in visitors to our islands. The people, who perceived themselves as rich discovered that they were not really rich, just intoxicated by the temporary spending power that the little plastic rectangular credit card gave them. And temporary it was. But our "tourism experts" did not realize it and rushed to cash in, built and expanded, altering and in some cases obliterating the natural beauty of this land until Hawaii was no longer recognizable.

When the economy recovers, and it always does, there will be profound changes in people's spending habits. Tighter credit policies will be implemented and, as a result, the legions of the really wealthy and famous will have probably shrunk into mere platoons. Hawaii will have to readjust once again and go back to catering to the traditional visitors of the past and, in order to compete, will have to lower the entire pricing structure. Have we adjusted our sail yet?"

[localandstaying]

I took my family to the Oceanarium restaurant for brunch one Sunday recently and I was blown away by how rude the workers were. I'm a local born and raised and I don't expect to be treated like royalty, but a nice smile and a thank you goes along way. I told my wife these hotel workers get what they deserve with the type of service they are giving. So sad. I work for a local family company and a number of our customers tell me daily that they try and shop local and I'm thankful for them trying to remain loyal. You will see a smile on my face and being quick to say thank you and I know that doesn't guarantee that they will come back. Get back to basics local workers. Your jobs depend on it.

[wendell]

Von wrote:

Hawaii is not so bad.

By Dennis Cauchon, USA TODAY

Taxes on travel are soaring as states and cities target the wallets of tourists and business travelers for new revenue.

Hotel taxes, car rental fees and other charges were jacked up in many states in an effort to balance budgets by last week, when the fiscal year started in 46 states.

Popular tourist destinations were hit especially hard. Among places where taxes rose:

•Hawaii. The hotel room tax increased from 7.25% to 8.25% on Wednesday and will rise to 9.25% in July 2010.

•Nevada. The room tax will increase up to 3 percentage points, to a maximum of 12%. In Las Vegas, the hotel tax jumps from 9% to 12%. Reno's tax was already 12% and is not scheduled to change.

Maybe, but in addition to the hotel tax, doesn't the Hawaii hotels charge the GET?

I think Nevada has no other tax added than the 12%. Plus aren't rooms in Vegas and Reno generally lower tha Hawaii hotels'? I stayed at Silver Legacy, in Reno, a couple of months ago for $45 per night.

[Chris]

I agree with Von a lot. The only difference is of course (with the exception of Las Vegas) the rest of these places don't live and die on tourism like Hawaii does. Its hard to believe that in even these hard times the decision to come to Hawaii or not is going to based on a slight increase in the hotel tax.

[Yes We Cant]

I just moved to one of the most friendly places I have ever been, it is unreal how the service industry treats you. From Lowe's and the Depot to restaurant's and 7-11's. Always a hello and thank you. Hawaii better wake up.

[bbb-kansas city]

I would love to come back to Hawaii been there six times but the last 2 the people made me feel as an intruder (ahole), the price doesn't bother me as much keeps out the trash, treat the tourists (customers) well and maybe we will come back

[Von]

Chris wrote:

I agree with Von a lot. The only difference is of course (with the exception of Las Vegas) the rest of these places don't live and die on tourism like Hawaii does. Its hard to believe that in even these hard times the decision to come to Hawaii or not is going to based on a slight increase in the hotel tax.

Aloha Chris

At one time only the rich a famous could visit Hawaii. Hawaii was a far off tropical dreamland and no one complained at all to see Hawaii via
a three month ocean liner cruse.

People like a mystical dreamy wonderland experience and me too. Look at all the old travel brochures and post cards with a hula girl, palm trees and a full moon. That is what makes money. People want a dream. It's not Facebooks, Cell phone calls, instant TV, mass discount tour groups and so on.

Because of the bad economy the air is pure and the water is clean. Plants, trees and things are green once again. So never mind the Hawaii Travel Bureau and all those people. Just market Hawaii as a far off dreamland and you got it.

Be sure and bring a big fat billfold full on money and have a good time. Let’s market Hawaii for the rich and famous and do it right.

[Dissatisfied State Worker]

ALAN wrote:

RAISE THE HOTEL TAX-Since the number of vistors is dropping, the revenue shortfall will grow..better raise the hotel taxes again now, and don't wait.

Raise the taxes and milk the suckers oops tourists who are still coming because they cant cancel their trip. By the end of summer not going to have anymore tourists coming.

[CCC]

bbb-kansas city wrote:

I would love to come back to Hawaii been there six times but the last 2 the people made me feel as an intruder (****), the price doesn't bother me as much keeps out the trash, treat the tourists (customers) well and maybe we will come back

Exactly, couldn't have said it better myself, get back to the basics, simple hello's and aloha's, thank you's, there are two guys at the Ilikai hotel, concierge and bellmen, these guys went through hell with the Brian Anderson fiasco, and all that has gone wrong at the Ilikai over the last few years, but I'll be damned if they didn't treat every person including myself with the utmost respect, a smile, a thank you, a "can I help you" type of attitude each and every day, this was while they didn't know what or where they might be working each week because of the turmoil within the establishment. This attitude is what is required from staff in hotels, and any service (tourist) from the top to bottom in all establishments. I don't have a problem paying a little extra tax, paying a little higher rate even, when the service I receive is given. have you checked out the HHV or Marriot, Hyatt, unbelievable rude thankless staff who treat you as an annoyance rather than a paying customer. I cannot help it if the wage or hours does not meet the standard of living that you feel is owed to you living in what I call paradise (or used to call) I have been visiting the islands for over 40 years, every year it gets worse and worse, the rich (credit card freaks) are gone, forever, many in the tourist hospitality industry better take a good long hard look at their establishments, their staff and themselves, bring back the aloha, bring back the value for money spent, bring back the local flare, get rid of all the non hawaiian crap on display on Kalakaua, human statues, steel drum
bands, coupon after coupon handlers annoying the hell outta people, what is HTA thinking, what does and will it take for you to understand the average tourist wants your beaches, your weather, your
Aloha, your traditions, your local flare, not Coach, Gucci, and other ridiculous shops,$200.00 lunches and $400.00 dinners,$ 12.00 Mai Tai's, this is not rocket science, take the bull by the horns and re-adjust to the tourist of the 80's and 90's, the average family, cause in my honest opinion, this could be the last chance you get to rebrand and go back to the way it was, the crappy service, unfriendly attitudes, overpriced hotels and eateries, along with the homeless and crime is doing a damage to your reputation that may never be rekindled, it's now or never..wake the heck up people.

[Its your neighborhood]

Sounds like the homeless are friendlier than the shop keepers and hotel/restaurant staff. Too much traffic. EVen a major condo rental agency has raised prices to laughable rates. 2010 bookings will be a challenge for everyone!!!

[Steverino]

Von - Unless you're rich and famous (or at least rich) yourself, you'd better think twice about wanting to reserve Hawaii for only the wealthy. We had a nice, laid back, rural, and relatively cheap lifestyle here in WA. Then the Californians started moving up with boatloads of money. Soon, not only were property prices through the roof, but - and this is important - so were property assessments and taxes. Before long, families that had owned "desirable" property for generations were letting it go because they could no longer afford to simply live there. That could be the Hawaii of the future. For example, you get enough rich movie stars up on the north shore of Kaua'i and you won't find a "local" family that can afford to live anywhere from Ha'ena to Kapa'a. In fact that's happening now. Do you really want that for Hawaii? Rich, self-absorbed white guys and their trophy wives zooming around in Bentleys? Or would you rather have a family-oriented, maybe a bit more modest, but fun and affordable Hawaii? That's for you all to decide - the rest of us will be holding our checkbooks and waiting.

[CCC]

Von wrote:

<quoted text>
Aloha Chris
At one time only the rich a famous could visit Hawaii. Hawaii was a far off tropical dreamland and no one complained at all to see Hawaii via
a three month ocean liner cruse.
People like a mystical dreamy wonderland experience and me too. Look at all the old travel brochures and post cards with a hula girl, palm trees and a full moon. That is what makes money. People want a dream. It's not Facebooks, Cell phone calls, instant TV, mass discount tour groups and so on.
Because of the bad economy the air is pure and the water is clean. Plants, trees and things are green once again. So never mind the Hawaii Travel Bureau and all those people. Just market Hawaii as a far off dreamland and you got it.
Be sure and bring a big fat billfold full on money and have a good time. Let’s market Hawaii for the rich and famous and do it right.

Hawaii is a US State, 5 hours from the mainland, the "tropical dream" days are long gone, I read and respect most of your posts Von, I am hoping this was strictly for humour on your part, unfortunately their are 50+ more exotic dreamlands reachable within this world we live in, and the idea of marketing for the rich and famous, is exactly what has you in this mess now, of course the economy and demise of cruise ships and flights into the islands have helped fuel this slowdown, but I honestly have to tell you that, people are really coming back dissappointed with the overall Hawaiian experience and seriously look for alternatives for their next vacation, you can get what Hawaii has on the mainland, you want a dream tropical experience, then take it back to when and where there was Hawaiian culture, music, shops, and some sort of affordability, the Hawaii you have now, is Miami, Fort Lauderdale, San Diego, same things different locations, the bad press and experiences coming out of the islands, might be unrepairable, this coming from a 20+ time visitor who is enfactuated with the islands, and I will still keep coming until it gets so bad it will leave me no choice but to search out more hospitable, reasonable and safer environments for my vacation dollars. I hope it never comes to that, but some serious changes need to be made and starting very soon, when this economy comes back, Hawaii tourism just might not, without these changes taking place.

[COlohe1]

Went to MBC (the restaurant above the watercress farm) and was treated like S#@T!!! I'm local born and raised. Won't shed a tear if they sut that place down. Got better service from the other servers rather than from the "lead waitress".

[The Republican]

It's the unions fault, the workers at the hotels are getting paid too much especially the maids and food service workers and the hotels have had to raise their prices to compensate for it. Get rid of Unions!!!

[The Republican]

It's the union's fault! get rid of the union! Lay off the workers!
The poor hotels had to raise their rates because the workers get paid too much!

[Former Maui Resident]

Von wrote:

<quoted text>
Aloha Chris
At one time only the rich a famous could visit Hawaii. Hawaii was a far off tropical dreamland and no one complained at all to see Hawaii via
a three month ocean liner cruse.
People like a mystical dreamy wonderland experience and me too. Look at all the old travel brochures and post cards with a hula girl, palm trees and a full moon. That is what makes money. People want a dream. It's not Facebooks, Cell phone calls, instant TV, mass discount tour groups and so on.
Because of the bad economy the air is pure and the water is clean. Plants, trees and things are green once again. So never mind the Hawaii Travel Bureau and all those people. Just market Hawaii as a far off dreamland and you got it.
Be sure and bring a big fat billfold full on money and have a good time. Let’s market Hawaii for the rich and famous and do it right.

The rich and famous want clean beaches, clean beach parks (with clean restrooms), don't want to deal with homeless on the beaches, don't want to have to worry about security, or traffic.....we have a ways to go to continue to lure the non-owner R&F tourists back. Unless they just stay at the Four Seasons and don't explore the rest of the island.