Monday, September 19, 2011

Economic Impact of Transient Vacation Rentals (TVRs) on Maui County

This 2008 study by Dr Loudat of TAL Associates, and Dr Kasturi from Radford University in Virginia, details the economic benefits of vacation rentals, and discusses their role in supporting tourism on Maui.

From the Conclusion:

          "Our essential research conclusion is that the TVR accommodation industry generates significant, positive economic benefits to Maui County and the State of Hawaii. At the high end of our estimation range, our results indicate positive economic benefits approaching: $318.8 million in total output (i.e. sales), $100.6 million in labor income, 3,478 jobs, $19.7 million in Hawaii State taxes and $191.1 thousand for Maui County’s share of the TAT (transient accommodations tax). These are significant economic values being generated by an industry utilizing only 1.7 percent of all housing units available in Maui County.

          Elimination of the TVR industry could result in the full loss of the TVR industry's economic value. The extent of the loss of the TVR industry due to government regulations depends to what extent TVR visitors substitute an alternative Maui County accommodation type to TVRs if they are unavailable or not sufficiently available to meet the current and expected future demand level for their accommodation type. In a global market place with alternatives to Maui destinations offering a literal potpourri of accommodation experiences, the modern, well-informed and sophisticated visitor can find the accommodations experience that best fits their tastes and preferences."

Read the entire study ...

No comments:

Post a Comment

Thoughtful comments are welcome, whether you are in favor of vacation rentals or concerned about the impacts of VRs on your community. Comments that contain advertising, including ads for properties, will be deleted.