Maui County has the power to significantly raise property taxes for hotels, and the increased revenue can be used to fund affordable housing projects.

 

 

Maui County is facing a critical challenge: a severe shortage of affordable housing that is driving local families and workers to the brink. While Maui’s tourism industry thrives and hotels are making record profits, the very workers who keep this industry running are struggling to make ends meet. It’s time for Maui County to take bold action by raising property taxes on hotels and investing those funds directly into building affordable housing. This proposal is not just about fairness; it’s about securing a sustainable future for our community.

​

Economic Reality: Maui’s tourism sector is booming, with hotels reporting unprecedented profits year after year. However, this prosperity is not reaching everyone. The wages paid to hotel employees, many of whom are local residents, have not kept pace with the soaring cost of living on the island. As a result, hardworking families are being priced out of their homes, forced to work multiple jobs, or even leave Maui altogether.

​

The Need for Affordable Housing: The lack of affordable housing in Maui County is a crisis that threatens the social and economic fabric of our community. When workers cannot afford to live where they work, it creates instability, decreases the quality of life, and erodes the sense of community that makes Maui special. This issue doesn’t just affect those directly impacted by housing costs; it affects us all. Businesses struggle to find reliable employees, schools see declining enrollment, and the local economy suffers from decreased spending power.

​

Why Property Taxes on Hotels? Hotels are a natural target for this tax increase because they are one of the primary beneficiaries of Maui’s tourism-driven economy. These establishments benefit immensely from the labor of local workers and the unique appeal of Maui’s culture and environment. However, they contribute disproportionately little to addressing the social costs of the housing crisis their presence exacerbates. By raising property taxes on hotels, we can ensure that the wealth generated by our tourism industry is reinvested in the community.

​

Fairness and Responsibility: This proposal is about fairness. It’s about asking those who are profiting the most from Maui’s economy to contribute their fair share to solving one of its most pressing problems. Hotels have the financial capacity to absorb a modest increase in property taxes, especially when those funds are earmarked for a purpose that will ultimately benefit everyone, including the hotels themselves. After all, a stable, housed workforce is essential to the long-term success of the tourism industry.

​

A Path to Sustainable Development: Investing the revenue from increased hotel property taxes into affordable housing is a smart, sustainable strategy. It addresses the root of the housing crisis by creating more affordable units, which in turn helps to stabilize the local economy. More affordable housing means more local spending, stronger communities, and a more resilient workforce. It also ensures that Maui remains a place where future generations can live and thrive, preserving the island’s unique character and spirit.

​

Conclusion: Raising property taxes on hotels is not just a fiscal decision; it’s a moral imperative. It’s a step toward a more equitable Maui, where prosperity is shared, and everyone has the opportunity to live with dignity. By directing these funds into affordable housing, we are investing in the future of our community, ensuring that Maui remains a place where all of us—not just the wealthy few—can call home. This is the right choice for Maui’s people, its economy, and its future.