TechNet - Technology Network

06/11/2025 | Press release | Distributed by Public on 06/11/2025 20:34

Report Finds Nearly $2.5 Billion in Economic Activity Generated From Short-Term Rental Industry in Hawaiʻi County

Hawaiʻi's economy could lose over $750 million in tourism spending

TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, has released an economic impact analysis of the short-term rental market in Hawai'i County. The report, conducted by Hawai'i-based hospitality and economic consultant firm Kloninger & Sims, analyzed visitor spending data from guests at short-term rentals on Hawai'i Island in 2023.

"This study confirms the vital role short-term rentals play in the economy of Hawaiʻi County," said David Edmonson, TechNet Senior Vice President of State Policy and Government Relations. "Given the recent passage of Bill 47 and the fact that the County Council is contemplating future proposals to regulate the industry, it will be important to avoid unintentional consequences that would harm the local economy, especially during these uncertain times."

Key Findings:

Economic Activity - Hawai'i County

  • Visitor spending translated to more than $2.4 billion in total economic activity (direct, indirect and induced spending) on Hawai'i Island during the year.

Direct Spending - Hawai'i County

  • Direct spending by short-term rental visitors totaled $1.3 billion in 2023, representing a significant share of Hawai'i County's visitor spending.

Job Creation- Hawai'i County

  • Short-term rental visitor spending generated an estimated 14,200 jobs on the island.

Fiscal Impacts - Hawai'i County

  • An estimated $24.8 million in County General Excise Tax ("GET") and Transient Accommodations Tax ("TAT") was generated by Hawai'i Island short-term rental visitors in 2023.

Policy Impacts - Hawai'i County

  • Proposed new regulations on short-term rentals that reduce the supply of rentals will likely have a negative effect on the spending, employment, and taxes generated by visitors staying in short-term rentals on Hawai'i Island. The magnitude of the impact can be better quantified once specific policy proposals are made public.

Statewide Impacts

  • Visitors staying in short-term rentals represent a significant share of the state's total tourism market, with visitors staying in short-term rentals spending an estimated $6.1 billion in 2023.
  • On any given day in 2023, about 29.6% of the visitors in the state stayed in a vacation rental.

"Short-term rentals represent a substantial part of the island's tourism sector," said Erik Kloninger, partner at Kloninger & Sims Consulting. "The economic and fiscal impacts as well as the jobs generated by this industry would surely be adversely affected if proposed policies result in a reduction of inventory and visitor arrivals."

Read the full report here .

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