TAT Up 1% Point Tomorrow

Aloha Kakou:

Hawaii's Transient Accommodations Tax is slated to increase by one percentage point on July 1. Combined with last year's one percentage point increase, the TAT has increased by 30% since the first half of 2009.

Said Richard Kelley, head of Outrigger Hotels and Resorts, "Politicians think they can get away with it because visitors don't vote. But they do. Not at the ballot box, but with their pocketbooks."


While Maui's combined TAT and General Excise Tax percentages are lower than many other destinations, the higher room rates can mean more dollars out of pocket to pay the tax.

Hawaii's legislature mandated the tax increase to help close state budget gaps. This year, Maui County expects to receive about $23 million out of the total statewide TAT take of $100 million.

http://mauinews.com/page/content.detail/id/532948.html?nav=10

Hawaii-Korea Connection

Aloha Kakou:

If all goes according to plan, Hawaiian Airlines will start four-times-per-week service between Honolulu and Seoul, South Korea in January, 2011, the airline announced today.

http://www.staradvertiser.com/news/breaking/97514879.html

Recovery Starting: Local Economist

Aloha Kakou:

Paul Brewbaker, the chairman of the State Council of Revenue, said in an address Friday that actual economic growth should begin with the start of Hawaii's fiscal year, July 1.

"You know when you stopped seeing people at Macy's and would (instead) see them at Ross? Well, they're back at Macy's," Brewbaker said.

With financial forecasts calling for a 3% increase in economic growth through 2011, more air seats to Maui to replace those lost by ATA and Aloha Airlines, and a slight increase in General Excise Tax collections, the economy could be headed for a gradual turnaround.

http://mauinews.com/page/content.detail/id/532826.html?nav=10

Condo-style Cleaning Catching On

Aloha Kakou:

More hotels are offering guests options when it comes to daily housekeeping service.

While initially implemented to assist hotels with the labor costs associated with housekeeping, limited service does have it's supporters. And hotels are finding limited housekeeping service is a great way to reduce electricity and water consumption.

http://www.usatoday.com/travel/hotels/2010-06-23-1Ahotelcleaning23_ST_N.htm#uslPageReturn

TAT Increase July 1

Aloha Kakou:

July 1st marks the second of two increases to the Transient Accommodations Tax (TAT). The new TAT will be 9.25% and, when combined with Hawaii's General Excise Tax, means a tax rate of 13.75% on hotel rooms. The average US hotel tax rate is 13.73% but, when combined with Hawaii's higher room rates, the actual amount paid by Hawaii guests will be more than average.

http://www.staradvertiser.com/business/20100625_Paying_the_price.html

Going Green

Aloha Kakou:

The lawn that was removed yesterday from near the driveway has been transplanted in two places. The dirt area used for golf cart parking near the cabana is now covered with lawn and the weedy area near the E building and the turtle pool is now grassy. These projects take the term "going green" to heart!

Landscape Progress

Aloha Kakou:

The landscape crew began removing the lawn near the driveway today in the first phase of the landscape renewal project. The landscaper is due to begin restoration work next Monday.

What's For Sale

Aloha Kakou:

Thanks to Susan DeLoria of Whaler's Realty, here are the details of the units for sale here.

Maui Eldorado 2661 Kekaa Drive Maui HI 96761 Current Active Listings 6/11/2010

G-102 Studio $269,000 LH Jim Foster Chase N Rainbows
661-7994 / Cell 808-870-5858

J-211 Studio $375,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 808-250-5948

K-215 Studio $385,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 808-250-5948

D-107 1B/2B $395,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 808-250-5948

I-203 Studio $395,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext 533/ Cell 808-250-5948

L-102 1B/2B $399,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext 533/ Cell 808-250-5948

I-201 1B/1B $435,000 LH PDenise LaCosta La Costa Realty Hawaii
667-1888 / Cell 808-280-2132

J-120 Studio $450,000 LH Betty Sakamoto Sakamoto Properties Ltd
669-0070 / Cell 808-870-7062

K-202 1B/2B $454,000LH Tom Brzozowski Roos Realty
667-9163/ Cell 808-280-0113

G-105 1B/2B $460,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 808-250-5948

C-102 1B/1B $480,000 LH Betty Sakamoto Sakamoto Properties
669-0070 / Cell 808-870-7062

J-109 Studio $549,000 LH Nancy Montoya Whalers Realty Inc.
661-8777 / Cell 808-250-5073

A-203 1B/1B $574,900 LH Mien Yap Island Southeby’s Int’l Realty
572-8600/ Cell 808-283-8213
K-100 2B/2B $590,000 LH Robert J Cartwright Whalers Realty Inc.
661-8777 ext 223

I-204 2B/2B $1,195,000 LH Casey Fukuda Sakamoto Properties Inc.
669-0070 / Cell 808-264-5362

April Occupancy Up, Rates Down

Aloha Kakou:

Maui's April hotel occupancy was up about 10 percentage points to 66.7 from 2009's 56.2. Of the four main islands, Maui showed the largest gain.

The April ADR for all hotels on Maui was down from last year's $245 to $228.

RevPAR increased for Maui hotels by $14 compared to 2009; Maui's April RevPAR was $152.

The luxury segment of Maui's lodging industry has seen the largest gains in occupancy at 73.8% while the mid-priced hotel segment occupancy was 57.9%

http://mauinews.com/page/content.detail/id/532369.html?nav=10

Difficult Lending Market Affects All Hotel Employees

Aloha Kakou:

Please see David Carey's comments in the attached article regarding the state of lending in Hawaii's hotel industry. David Carey is Outrigger's president and chief executive officer.

Mr. Carey says that, with the financial markets unwilling to lend money to the hotel sector, it becomes "difficult for owners to spend more money on employees and benefit costs."

"In order to generate any business at all in this sort of tougher economy, pretty much everybody's trashed their prices," Carey said. "So owners are experiencing a significant profit squeeze."

http://www.staradvertiser.com/business/20100608_Isle_hotels_in_distress.html

Outrigger Maui Eldorado and PNR/ABX Amex Tvl

Aloha Kakou:

This "brick and mortar" agency is promoting our 3rd night free promotion.

http://www.pnrtravel.com/OfferDetail.asp?sid=6473&PriceId=1926946

Outrigger Maui Eldorado on Tripres.com

Aloha Kakou:

Thought you might like to see our listing on Tripres.com, an OTA (on-line travel agency) that we contract with on a wholesale basis.

http://www.tripres.com/hotels/info.aspx?hotelID=5230&cacheRateID=27220598&checkRates=true