Testimony of. Mufi Hannemann President & CEO Hawai i Lodging & Tourism Association. Committee on Ways and Means April 4, 2018

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Testimony of Mufi Hannemann President & CEO Hawai i Lodging & Tourism Association Committee on Ways and Means April 4, 2018 House Bill 2012 HD2, SD1, Relating to the Transient Accommodations Tax Chair Dela Cruz, Vice Chair Keith-Agaran and members of the committee: Mahalo for the opportunity to testify. On behalf of the nearly 700 members of the Hawai i Lodging & Tourism Association, the state s largest private-sector visitor industry organization, we strongly support House Bill 2012 HD2 SD1 which allocates funds, from TAT revenues if it is matched by the private sector for homelessness solutions. Specifically, we strongly support that the bill requires that HTA working in conjunction with HLTA seek to implement initiatives to address homelessness in tourist and resort impacted areas throughout the state. Homelessness is particularly acute in Waikiki but is prevalent throughout popular public parks, beaches and facilities used by residents and visitors alike in Hawai i. It has a direct impact on the visitor experience, is a source of frustration for local residents, and poses a very difficult and often dangerous existence for the homeless. The hospitality industry, through our association and member hotels and businesses, has donated well over $2 million during the last four years to the Institute for Human Services (IHS) and other social service agencies on our largest islands, specifically for homelessness outreach and service. These funds have come from a collaborative effort put forth by the hospitality industry which include monies from our charity walks on Oahu, Hawai i Island, Kaua i, and Maui as well as funds raised from the Hilton Hawaiian Village s Hawai i for Hawai i Benefit Concert. Agencies and charitable non-profits that have had direct impact from these donations include Helping Hands Hawai i, Honolulu Community Action Program, Waikiki Health, Catholic Charities Hawai i, and Mental Health Kokua. Specifically speaking, we have developed a very productive partnership with the IHS, which helps the homeless in Waikiki, including outreach efforts, repatriation and van transportation so they can access vital services. As a result of our firm belief that homelessness is not just a Honolulu-centric challenge, we also gave grants to non-profits on each of the neighbor island counties. Last year we contributed $10,000 to HOPE Services Hawai i Inc. and $15,000 to Hawai i Rise Foundation to help fund homelessness programs on Hawai i Island. In 2016 we awarded Kaua i Economic Opportunity $25,000, and Maui Family Life Center $25,000 the year before to help make repatriating homeless back to their families or caregivers on the mainland an objective.

But despite the best efforts of the hospitality industry and the tremendous fund-raising success of the Charity Walk, the needs of this growing population continue to outweigh the resources. And we believe it is only reasonable and fair for state government, through the TAT, to allocate funds for this tourism related purpose. The members of the Hawai i Lodging & Tourism Association will continue to fund-raise and donate money through our Visitor Industry Charity Walk and other endeavors to help the homeless population. We are hopeful that other businesses and organizations will also step forward and take advantage of the match that the state government will provide as a direct participant in what would be an emerging and important public-private partnership. Mahalo. Sincerely, For these reasons we respectfully ask the committee to usher through HB 2012 HD2 SD1. Mufi Hannemann President & CEO Gregg Nelson Chairman of the Board Glenn Vergara Chairperson Elect Michael Jokovich Vice Chairperson Bonnie Kiyabu Oahu Chapter Chairperson Angela Nolan Maui Chapter Chairperson Steve Yannarell Hawai i Island Chapter Chairperson Jim Braman Kaua i Chapter Chairperson

The following is a list of hotels represented by the Hawai i Lodging & Tourism Association: Aqua-Aston Hospitality, LLC Castle Resorts & Hotels Colony Capital, LLC Halekulani Corporation Hawaiian Hotels & Resorts, LLC Highgate Hotels Hilton Grand Vacations InterContinental Hotels Group Ko Olina Resort Kyo-ya Company LLC Kyo-ya Management Company, Ltd. Lucky Hotels U.S.A. Co., Ltd. Marriott International, Inc. Outrigger Enterprises Group Prince Resorts Hawaii, Inc. Pulama Lana`i Sasada International, LLC Aina Nalu Lahaina by Outrigger Airport Honolulu Hotel Ala Moana Hotel Alohilani Resort Waikiki Beach Ambassador Hotel Waikiki Andaz Maui at Wailea Resort Aqua Aloha Surf Waikiki Aqua Bamboo & Spa Aqua Kauai Beach Resort Aqua Oasis Aqua Pacific Monarch Aqua Palms Waikiki Aqua Park Shore Waikiki Aqua Skyline at Island Colony Aqua White Sands Hotel Aston at Papakea Resort Aston at Poipu Kai Aston at the Executive Centre Hotel Aston at the Maui Banyan Aston at the Waikiki Banyan Aston at The Whaler on Kaanapali Beach Aston Islander on the Beach Aston Kaanapali Shores Aston Kona by the Sea Aston Mahana at Kaanapali Aston Maui Hill Aston Maui Kaanapali Villas Aston Shores at Waikoloa Aston Waikiki Beach Hotel Aston Waikiki Beach Tower Aston Waikiki Beachside Hotel Aston Waikiki Circle Hotel Aston Waikiki Sunset Aston Waikoloa Colony Villas Aulani, a Disney Resort & Spa Best Western Pioneer Inn Best Western The Plaza Hotel Breakers Hotel Coconut Waikiki Hotel Courtyard by Marriott Kaua'i at Coconut Beach Courtyard by Marriott King Kamehameha's Kona Beach Courtyard by Marriott Waikiki Beach Courtyard Oahu North Shore Doubletree by Hilton Alana Waikiki Hotel Embassy Suites by Hilton Oahu Kapolei Embassy Suites Hotel - Waikiki Beach Walk Ewa Hotel Waikiki - A Lite Hotel Fairmont Orchid Hawaii Four Seasons Resort Lana`i Four Seasons Resort Maui Four Seasons Resort O'ahu at Ko Olina

Grand Hyatt Kauai Resort & Spa Grand Naniloa Hotel Grand Wailea Hale Koa Hotel Halekulani Hampton Inn & Suites, Kapolei Hapuna Beach Prince Hotel Hilton Garden Inn Kauai Wailua Bay Hilton Garden Inn Waikiki Beach Hilton Grand Vacations at Waikoloa Beach Resort Hilton Grand Vacations Club Hilton Hawaiian Village Waikiki Beach Resort Hilton Waikiki Beach Hilton Waikoloa Village Resort & Spa Hokulani Waikiki by Hilton Grand Vacations Club Holiday Inn Express Waikiki Holiday Inn Waikiki Beachcomber Resort Honua Kai Resort & Spa Hotel Coral Reef Resort Hotel Renew by Aston Hotel Wailea Maui Hyatt Centric Waikiki Beach Hyatt Place Waikiki Beach Hyatt Regency Maui Resort & Spa Hyatt Regency Waikiki Beach Resort & Spa Ilikai Hotel and Luxury Suites Ilima Hotel Ka`anapali Beach Club Ka`anapali Beach Hotel Kahana Falls Kauai Marriott Resort & Beach Club Kiahuna Plantation Resort by Castle Resorts Ko`a Kea Hotel & Resort Kona Coast Resort Lawai Beach Resort Lotus Honolulu at Diamond Head Luana Waikiki Hotel and Suites Marriott's Kauai Lagoons, Kalanipu'u Marriott's Ko Olina Beach Club Marriott's Maui Ocean Club Marriott's Waiohai Beach Club Maui Beach Hotel Maui Coast Hotel Maui Condo & Home, LLC Maui Eldorado Kaanapali by Outrigger Mauna Kea Resort Mauna Lani Resort Mauna Loa Village IOA Moana Surfrider, A Westin Resort & Spa Montage Kapalua Bay Napili Kai Beach Resort OHANA Waikiki East by Outrigger OHANA Waikiki Malia Ohia Waikiki Hotel Outrigger Kiahuna Plantation Outrigger Napili Shores Outrigger Palms at Wailea Outrigger Reef Waikiki Beach Resort Outrigger Regency on Beachwalk Outrigger Royal Sea Cliff Outrigger Waikiki Beach Resort Pacific Marina Inn Pagoda Hotel Pearl Hotel Waikiki Plantation Hale Suites Prince Waikiki Queen Kapiolani Raintree - Kona Reef Raintree Vacation Club Ramada Plaza Waikiki Royal Grove Hotel Royal Kahana Maui by Outrigger Royal Kona Resort Royal Lahaina Resort Sheraton Kauai Resort Sheraton Kona Resort & Spa at Keauhou Bay Sheraton Maui Resort and Spa Sheraton Princess Kaiulani Sheraton Waikiki Resort

Shoreline Hotel Waikiki St. Regis Princeville Resort Stay Hotel Waikiki The Cliffs at Princeville The Club at Kukui`ula The Fairmont Kea Lani, Maui The Imperial Hawaii Resort At Waikiki The Kahala Hotel & Resort The Laylow, Autograph Collection The MODERN Honolulu The New Otani Kaimana Beach Hotel The Point at Poipu, Diamond Resorts International The Ritz-Carlton Residences, Waikiki Beach The Ritz-Carlton, Kapalua The Royal Hawaiian, A Luxury Collection Resort The Surfjack Hotel & Swim Club The Westin Maui Resort & Spa The Westin Princeville Ocean Resort Villas Travaasa Hana Trump International Hotel Waikiki Turtle Bay Resort Vive Hotel Waikiki Waikiki Beach Marriott Resort & Spa Waikiki Grand Hotel Waikiki Parc Hotel Waikiki Resort Hotel Waikiki Sand Villa Hotel Waikiki Shore Waikoloa Beach Marriott Resort & Spa Wailea Beach Marriott Resort & Spa Waipouli Beach Resort & Spa by Outrigger Westin Ka'anapali Ocean Resort Villas Wyndham at Waikiki Beach Walk Wyndham Vacation Resorts Royal Garden at Waikiki