The Hawaii Lodging & Tourism Association has hit back at a proposal to raise the Transient Accommodations Tax (TAT).
The HLTA is irked at plans to hike it by an ‘unprecedented’ 30% and the last minute nature of the amendment to the Senate Bill.
"This proposal came at the eleventh hour during conference committee and provided no opportunity for the public to provide input or testimony as is the case when bills are heard, particularly when of this magnitude and impact," said Mufi Hannemann, HLTA president and CEO in a statement.
It is also miffed that the tourist industry alone is footing the bill via TAT to pay for the Honolulu rail project and education spending.
"We are not opposed to rail or to improvements to our public education system; however, we believe that this tax should not be targeted solely at the tourism industry."
‘The proposed TAT in combination with the General Excise Tax would impose a 16.7% tax on visitors and residents who patronize our accommodations, adding to Hawaii’s unfortunate reputation as one of the most expensive places to visit," Hannemann added.
"This puts us at a competitive disadvantage that could lead to fewer visitors and less visitor spending, and cause a ripple effect that may negatively impact small businesses."
The HLTA says it expects some hotels to absorb some of the tax increase themselves to stay competitive which could mean cost cutting elsewhere and possibly job cuts.
