Maui cracks down on vacation rentals

WAILUKU, Hawaii — Maui's long-established bed and breakfast industry has faltered since county officials cracked down on illegal vacation rentals, leaving the island with fewer accommodations for its many visitors.

Maui County officials told more than 50 operators of vacation rentals in July that they couldn't continue operating without permits.

Many family-run vacation renters and small businesses have suffered, said David Dantes, president of the Maui Vacation Rentals Association, which represents more than 100 vacation rental owners.

"I would describe the impact as a crisis," said Dantes, who is considering legal action against the county. "People employed by these small businesses have lost their jobs. Some owners feel that they will be forced to sell their homes."

Maui officials decided it was necessary to enforce permitting requirements because the bed and breakfast operations can bring noise and heavy traffic into neighborhoods. The number of illegal vacation rentals on Maui is estimated to have grown to 1,200, Hunt said, up 14 percent a year between 2000 and 2005.

Claudia Ledesma, owner of Hale Mauka Makai, said her business has dried up since the county told her to stop taking reservations. "I don't get any inquiries any more at all," said Ledesma, whose family depends on room revenues to subsidize operations at their palm tree farm.

Maui has required permits for years, but a lengthy application process and a lack of enforcement created a proliferation of unlicensed operators.

Those with pending permits were allowed to honor reservations until the end of the year. Others were ordered to cease operations immediately.

"The county council saw this as an opportunity to take a fresh look at an existing problem," said Jeff Hunt, director of planning for Maui County. The county planning department is working on a bill that will restrict vacation rentals to resort areas and business districts, and help bed and breakfasts get their permits in six to eight months, Hunt said.

But business has noticeably declined since Maui County began enforcing laws requiring permits, said Donna Stafford, owner of Chameleon Travel LLC.

"I used to have over 60 or 70 accommodations on the North Shore that I used to send people to, but now I'm down to about eight," she said.