Paradise for Sale: How Hotels Are Controlling The Future Of Hawaii Travel

Hawaii’s travel industry is quietly transforming, and visitors may not realize the full cost: fewer options, higher prices, and policies that favor hotels above all else. From aggressive vacation rental crackdowns to legislation shaped with hotel industry input, a clear pattern emerges: Hawaii serves the priorities of its most powerful tourism sector rather than Hawaii travelers.

The Hawaii hotel lobby’s growing power is undeniable.

It’s no longer speculation. A wave of new and proposed laws—from Senate Bill 2919 to county-level short-term rental ban plans—has made clear that the priorities of Hawaii’s hotel lobby are increasingly baked into state policy. These aren’t isolated moves. They follow years of coordination, funding, and strategic appointments that have placed the industry’s goals at the center of Hawaii’s tourism agenda.

The pattern hasn’t gone unnoticed by Beat of Hawaii readers. “It’s fairly simple if you’re paying attention… follow the money,” said Dan M “The ‘small guys’ get blamed for over-tourism while the ‘big guys’ laugh all the way to the bank, which coincidentally is located on the mainland.”

Others, like Johnny M., took it further: “Hotels charge what they want, unchecked. Then they get a little competition in STRs and BAM! The gov officials on the hotel industry lobby payroll come running and save the day for them. While the average person struggles.”

The Hawaii Hotel Alliance has emerged as one of the key forces in shaping this shift. It’s the same playbook we’ve seen before: early endorsements for hotel-friendly politicians, full-time legislative lobbying, and, when needed, public narratives that point the blame at vacation rentals for everything from noise to over-tourism to housing shortages.

As one reader, PatG., said, “Let’s cap STRs in all zones. Oh, wait, except for one zone… the Hotel zone. Don’t touch that one!”

There’s growing concern that this influence isn’t even entirely local. “It would appear that a lot of lobbyist influence is actually from the mainland,” noted Randy W., citing reporting into out-of-state private equity ownership of Hawaii hotels. That sentiment was echoed by John W., who added, “The small guys have no such friends in State Government.”

Others questioned why officials promote new hotel builds while blaming vacation rentals for housing woes. This narrative seems convenient, if not coordinated, especially when timeshares are taxed more than hotels and vacation rental owners are forced to exit the market while mega-properties continue expanding.

Taken together, the legislation, the lobbying, and the reactions all point to a truth that’s no longer subtle: Hawaii’s tourism future is being guided by those who stand to benefit most, and those who may not be visitors or residents.

Jerry Gibson and Mufi Hannemann: industry voices, not elected ones.

While Jerry Gibson, head of the Hawaii Hotel Alliance, is not an elected official, he is a well-liked, seasoned insider and recognizable to many of us, having led operations from Grand Hyatt Kauai to Hilton Hawaiian Village. Nor is Mufi Hannemann elected. He is the former Honolulu mayor, and now, following his contentious resignation from the Hawaii Tourism Authority, the head of the hotels’ Hawaii Lodging and Tourism Association. Yet their influence is felt everywhere in the islands. Both are doing what hotel executives have always done—pushing their agenda forward. What’s changed is how closely their messaging now aligns with the state’s top leadership.

Governor Josh Green’s alignment is not new, but now it’s central.

Governor Green’s policies repeatedly reinforce one side of Hawaii’s tourism divide. He’s long championed green fees and aggressive regulations on vacation rentals. The governor harshly described short-term rentals during a public meeting, as we reported in Governor Uses Profanity Describing Hawaii Vacation Rentals and has supported zoning crackdowns across the islands. His appointment of Lisa Paulson, former executive director of the Maui Hotel & Lodging Association, to the Hawaii Tourism Authority board further cements that sense of alignment.

Last year, the industry officially announced its approval in a move that raised eyebrows. Mufi Hannemann presented Governor Green with a tourism award for his contributions to Hawaii’s visitor industry. For many, this signaled just how close the bond between state leadership and the Hawaii hotel lobby had become.

One reader said plainly: “Green is doing the hotel industry’s bidding. Residents aren’t winning here—just big business.”

Vacation rentals targeted: a hotel-led war?

Consider Maui’s proposed moratorium on vacation rentals in apartment zones and Oahu’s zoning enforcement expansions. Each has been presented as a solution to the housing crisis, yet neither comes with proof of effectiveness or analysis of cost. What’s clear is who benefits: hotels.

SB2919 is a prime example. It was passed with active hotel industry involvement and cracks down on unhosted rentals. For travelers, it means popular, affordable options are disappearing fast, even rentals previously legal and well-regulated. As Greg shared, “We stayed in a legal vacation rental in Maui for years. Now it’s banned, and our only choice is a hotel that costs twice as much with half the amenities.”

Transparency and traveler choice are being left behind.

Decisions framed as benefiting residents and the environment often lack clear evidence. Where’s the proof that banning legal rentals improves housing affordability? And why aren’t travelers informed that their options are shrinking due to industry lobbying, not public interest? Travelers deserve transparency.

If your favorite rental is no longer available, it may be due to policy decisions shaped behind closed doors. Cheryl, a recent visitor, wrote, “We paid $600 a night in Waikiki with zero service. If I’m going to pay that much, I want options—not just what’s left after the hotels win.”

This isn’t just Hawaii’s issue, but it does feel different here.

Other destinations have wrestled with this debate. Barcelona, Amsterdam, Venice, Lauterbrunnen Valley, and New York have all imposed various restrictions. But Hawaii’s approach feels uniquely one-sided.

Instead of a balanced policy, we’re watching coordinated efforts that align nearly exclusively with hotel industry goals. Pam told us, “Our favorite Big Island rental was banned. We looked at hotels and couldn’t believe the prices. We canceled the trip.” That kind of story is becoming far too familiar.

Beat of Hawaii readers have seen this coming.

This isn’t the first time we’ve written about Hawaii’s vacation rental war, hotel price surges, or rising visitor fees. What’s changed is how many reader stories now share the same theme: a feeling of being priced out and pushed toward limited, often overpriced, choices.

Mike bluntly said, “Hotels are gouging us while pretending to help residents. It’s getting harder to justify coming to Hawaii at all.”

These aren’t isolated gripes—they reflect a growing frustration that echoes through our inbox and comment threads every day.

What to watch next as Hawaii hotel power grows.

Caroline Anderson’s interim role at the Hawaii Tourism Authority, further shakeups in short-term rental enforcement, and the next round of zoning debates will all shape what comes next.

Travelers planning trips should double-check their options. That rental you loved may no longer be available, and hotel prices aren’t likely to come with lower prices or added value.

As Hawaii’s tourism policies evolve, travelers and residents must ask: Who is this really for? And what can we do to ensure Hawaii remains a destination for everyone?