As the Honolulu City Council moves toward consideration of new regulations of alternative accommodations, the travel technology industry group Travel Tech commissioned a study by Hawaii-based economic consulting firm Kloninger & Sims to analyze the impacts to the economy if severe restrictions on the industry are enacted. For the first time in Hawaii, both Expedia and Airbnb shared data with a consultant to get the most accurate picture to date on the importance of alternative accommodations on Oahu.
The new report concludes that Oahu’s economy would be significantly and adversely harmed by over-regulation. Substantial restrictions could result in the loss of $1.2 billion in economic impact, including the losses of $336 million in household income and more than 7,000 jobs.
Put simply, overregulation of alternative accommodations would be a drastic blow to Oahu’s economy. Locals will lose income and jobs, only making it harder to deal with Oahu’s high costs. Small businesses and restaurants will lose customers, and air flights to Oahu will be lost. That is not how it has to be. We are confident that in partnering with Honolulu leaders we can find a balanced solution that will protect neighborhoods, the island’s housing stock, and the economy supported by alternative accommodations.We hope you will join us in helping to craft a thoughtful way forward.