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The Hawaii Tourism Authority has released its statistics for December 2019 Oahu vacation rental units. The numbers suggest that Oahu’s crackdown on illegal vacation rentals is having a significant market impact in The Gathering Place.
The numbers include the supply and occupancy rates, as well as average daily price. The numbers do not distinguish between legal and illegal Hawaii vacation rentals. Hawaii’s four counties have different regulatory approaches to vacation rentals. HTA issues separate statistical reports for hotels, resorts, condominiums, and time-shares.
Oahu’s new regulations on vacation rentals saw the number of available units on the island drop by nearly 10% from the previous year. The demand for units on Oahu fell by more than 6%. Conversely, the average daily rate for vacation rental units rose by a whopping 20%.
And while Hawaii vacation rental rates on the Neighbor Islands also rose, so did the supply and the demand for available units. Only on Kauai did the Hawaii vacation rentals occupancy rate drop (6.9%) along with Oahu.
Statewide hotel and resort occupancy also rose from the previous year. The increase on Oahu was tiny (0.4%). The average daily rate on Oahu rose a modest 2%, and revenue per available room (RevPAR) was up 2.5%.
It makes sense that following Oahu’s new rules for vacation rentals hotel rates and occupancy would rise. It also may help explain why numbers on the Neighbor Islands are on the rise. It seems that Oahu’s new rules are turning some Hawaii visitors to the Neighbor Islands.
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That is just what opponents to the new rules feared. It is also just what advocates for the new rules hoped. The vacation rental market in the Aloha State remains fluid. And as the inventory of available units continues to grow on the Neighbor Islands, it seems likely that those communities will ultimately have to adapt to increased demand.
It can be confusing to negotiate the vacation rental market on Oahu. Some visitors have unwittingly booked vacation rentals that are illegal, only to have their reservations cancelled when the owner takes a property off the market for fear of stiff fines and penalties.
We here at Hawaii Aloha Travel know the Hawaii travel industry, and can help you plan your perfect Hawaii vacation. Our personal, customized service can help you decide what is best for you and your family. We’re the local experts!
Posted by: Jamie Winpenny on Feb 2, 2020