Maui Plans Phase-Out of Vacation Rentals, Risks Economic Impact

Maui Mayor Richard Bissen's proposal to phase out vacation rentals in order to address the housing crisis in the aftermath of the 2023 wildfires has sparked significant debate. A report from the University of Hawaiʻi Economic Research Organization indicates that while the plan could add up to 6,127 long-term housing units—equivalent to a decade's worth of new construction—it may also lead to a decline in the local economy, with potential losses of nearly $900 million in visitor spending and around 1,900 jobs. The Maui County Council has delayed voting on the proposal, seeking further information on its economic impacts, particularly as it may reduce tax revenues by approximately $60 million by 2029. This plan, first introduced in May, aims to address a severe housing shortage but faces criticism for potentially harming the tourism-dependent economy. Bissen emphasized the need to consider the lived experiences of residents alongside economic models, which may not capture the full scope of community impacts. As the council continues its review, the timeline for implementing the proposal remains uncertain.