Faced with an $800 million state budget deficit, Hawaii Governor Neil Abercrombie, in a recent speech, suggested that diverting tourism marketing funds and raising timeshare taxes may be a way to close the gap.
This comment caused some concerns from the Hawaii Tourism Authority who appeared to disagree with the proposal to redirect some of the funds that HTA spends on marketing.
Mike McCartney, the HTA president and CEO commented: “We need to continue developing and strengthening Hawaii’s brand marketing and will be asking that our budget remain intact so we can continue to help lead the recovery and grow Hawaii’s economy.”
Abercrombie stated: “We need to support travel and tourism in a way that is beneficial for everyone, starting with us, starting with Hawaii.” He went on to say he wants to be supportive of Hawaii’s No. 1 industry but suggested the aim of his proposals is to look out for all of Hawaii’s interests.
The Governor is looking to capture at least $10 million from HTA’s marketing budget according to his spokeswoman, Donalyn Dela Cruz.
Abercrombie went on to say he wants to raise the current 7.25% tax that Hawaii timeshare occupants now pay to the same level charged to hotel customers which is 9.25%. Dela Cruz commented that change would raise almost $30 million a year.
Advantage Vacation will keep you updated on this issue and how the Hawaiian timeshare industry as a whole may be affected by any increase in the timeshare occupancy tax. Timeshare owners have benefited from a lower occupancy tax rate than hotel customers for many years. This may be the opportunity for the Governor to bring the timeshare occupancy tax more in line with the hotel occupancy tax and in turn, benefit the overall state budget deficit.
At Advantage Vacation our goal is to educate the public on the timeshare industry and timeshare resales. If you are interested in purchasing a timeshare resale or selling a time share, the licensed real estate professionals at Advantage Vacation would be happy to assist you, answer your questions and be with you every step of the way – even after the transaction is completed.
Advantage Vacation offers the best buys on the timeshare resale market! We never charge an upfront fee and only receive a commission, paid from escrow, when the transaction is closed.
We are committed to keeping you informed and updated through our educational platform – wetalktimeshare which will give you the latest timeshare news, timeshare trends and answer your timeshare FAQ’s (frequently asked questions).
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