Things are marching right along for Hawaii’s economy, with growth in numerous sectors, the most impressive of which is the visitor industry. Visitors from Canada and Japan are slowing down, which is evidence of the increasing value of the dollar. Meanwhile, arrivals from the U.S. West and East are more than compensating for those foreign declines. To top it off, a recent report from the state Department of Taxation has revealed that tax revenues for the first two months of the current fiscal year have jumped no less than 17 percent, compared to the same period last year.
In the current economic climate, it isn’t surprising that Maui real estate sellers are getting multiple competitive offers. If you’re a buyer, it’s important to get pre-approved for a loan, if you need one. Also, the more realistic your offer, the better likelihood of its acceptance. Now more than ever, it will help to get assistance from Maui real estate experts, so please contact us if you want the best guidance through the nuances of our market.
The aforementioned growing tax revenue has been attributed to an 8.4 percent increase in the general excise and use taxes, along with a 5.6 percent increase in the hotel room tax. The Department of Taxation also pointed to the end of allocations from the G.E.T to the Hawaiian Hurricane Relief Fund as of the fiscal year that ended in June 30th. The important take away about the increasing G.E.T. and hotel room taxes is that businesses and hotels earned more in those two months year-over-year.
The spike in Maui accommodations reveals opportunities to earn extra cash on your investment if you want to use your property as a vacation rental. Maui hotels are notoriously expensive, but that isn’t stopping growth in visitor arrival and spending on our island. As for Hawaii’s performance as a whole, the state collected $77 million in transient accommodation tax during the first two months of the fiscal year, compared to $73 million in the same period last year.
If the recession taught the business world anything, it’s caution, but we’ve seen a lot of progress since then and are hoping for more of the same.