Mauis Breaking Point

Locals Demand Housing as Council Weighs Vacation Rental Phase-Out

WAILUKU, MAUI — A showdown over the future of Maui’s housing and tourism economy played out Monday both inside and outside the Kalana O Maui Building, where overflow crowds gathered to weigh in on Bill 9—a controversial proposal to phase out approximately 6,000 legal short-term vacation rentals on the island.

With the August 2023 Lahaina wildfire still casting a long shadow over the community, the debate has exposed deep divisions between residents calling for long-term housing justice and those warning of economic catastrophe if the bill passes.

A Morning of Symbolism and Sides

Before the Council’s Housing and Land Use Committee meeting even began, two rival groups formed outside the County Building.

On one side, supporters of Bill 9—many wearing red Lahaina Strong shirts or yellow ILWU colors—held signs reading “Maui People First,” “Homes Not Vacation Rentals,” and “Fresh Out of Aloha for Short-Term Rentals.” Many were wildfire survivors or lifelong residents fighting to stay in their home community.

Nearby, a quieter but equally determined group of vacation rental owners waited to testify against the bill, which they fear will upend their livelihoods and further destabilize Maui’s tourism-driven economy.

The Stakes: A Home or a Business?

At the heart of Bill 9 is a simple yet deeply polarizing question: Should Maui’s limited apartment-zoned housing be prioritized for residents, or continue serving tourists through short-term vacation rentals?

For wildfire survivor Shannon Iʻi, the answer is clear. “We are tired of watching our communities get carved out for outside gain while we are left fighting for scraps,” she told the Council, her voice breaking with emotion.

Iʻi currently lives in temporary housing in Lahaina. “Don’t tell me there’s no space,” she said. “We are to the point where our ʻohana have moved away, our kanaka living in tents on the beach or parked in their cars.”

Supporters argue that phasing out short-term rentals is about reclaiming spaces that were never meant to be tourism hubs. “This is not about taking something away,” Iʻi said. “It’s about restoring what should have never been taken in the first place.”

The Opposition’s Fears: Economy and Legal Fallout

On the other side of the debate, vacation rental owners and managers say the proposed policy could bring economic disaster, particularly in a post-fire Maui still reeling from lost revenue and job dislocation.

“Tourism is our lifeblood,” said Dave Englert, who manages dozens of vacation rentals and employs nearly 100 people. “Maui isn’t London or New York with multiple industries to fall back on. If these rentals go, so do the jobs.”

Lisa Persinger, a 40-year Maui resident, detailed the skyrocketing costs of ownership—from $1,400 monthly maintenance fees to unexpected $6,000 assessments—arguing that owners will either hold onto units or sell to off-island cash buyers, which won’t increase local housing stock.

Others, like Heather Quesade, warned of potential legal challenges. She pointed to a case in California where vacation rental restrictions were overturned, suggesting that similar lawsuits in Hawaiʻi could cost the county dearly.

Generational Tensions and Historic Injustice

For many testifiers supporting the bill, the fight over vacation rentals is part of a broader reckoning with historic injustice in Hawaiʻi.

“From sugar cane and pineapple plantations to the sandalwood trade and now tourism, the story is always the same: profit for outsiders, struggle for locals,” said Nāpili resident Ceone Nojima-Jacinto.

Paele Kiakona of Lahaina Strong said the movement is about healing and reclamation. “We’re still here, taking care of each other,” he said. “We will no longer let this continue.”

Council Dynamics: Calls for Compromise

While emotions ran high, Council members tried to steer the conversation toward clarity and compromise.

Council Member Tamara Paltin repeatedly asked vacation rental owners if they were aware their properties were in apartment-zoned areas. While most said they were told vacation rentals were legal, none were willing to name their real estate agent.

Council Chair Alice Lee suggested she was open to a compromise, asking one testifier, “If you can think of a reasonable compromise, please let me know.”

What’s Next?

The Housing and Land Use Committee will reconvene to continue public testimony at 9 a.m. on Wednesday, June 18, on the eighth floor of the Kalana O Maui Building.

As Maui struggles to recover from disaster, the question of who gets to live—and thrive—on the island remains painfully unresolved. Bill 9 has become more than a housing policy; it’s a litmus test for Maui’s future: Will the island continue to serve tourists, or finally turn toward its residents?

Disclaimer from The Smith Team

We recognize the serious housing challenges Maui faces and fully support solutions that prioritize local residents. However, we oppose the complete phase-out of legal short-term vacation rentals under Bill 9.

Such action could unintentionally harm local families, workers, and small businesses that depend on tourism. Instead, we advocate for balanced, data-driven policies that protect housing and support Maui’s economy.

Maui’s future should be shaped with transparency, fairness, and aloha.

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