A national hotel industry group is watching Honolulu, along with other key destination cities, closely to see how the municipal government navigates the taxing and regulating of vacation rental platforms like Airbnb. Kekoa McClellan is the Hawaiʻi spokesman for the American Hotel and Lodging Association (AHLA). McClellan says “There's a problem with illegal short term rentals. They hurt local families.”

McClellan points to a report by the Hawaiʻi Appleseed Center for Law & Economic Justice entitled “Hawaiʻi Vacation Rentals: Impact on Housing & Hawaiʻi’s Economy,” which explores the consequences of the proliferation of vacation rentals in Hawaiʻi. The report’s conclusion is that vacation rentals put pressure on Hawaiʻi’s already-stressed housing market by reducing the shelter available for Hawaiʻi residents and driving up rents, thereby contributing to homelessness in the Islands.

No matter the outcome, this is a topic that affects thousands. The Hawaiʻi Appleseed report found that one out of every 24 housing units in the state is now a vacation rental.