April 7, 2026, 1:30 p.m.
Hawai‘i County Council Chambers in Hilo
To: Hawai‘i County Council Policy Committee on Planning, Land Use and Economic Development
Ashley Kierkiewicz, Chair
Michelle Galimba, Vice Chair
From: Grassroot Institute of Hawaii
Jonathan Helton, Policy Analyst
RE: Bill 147 (2026) — RELATING TO TRANSIENT ACCOMODATIONS
Aloha Chair Kierkiewicz, Vice Chair Galimba and other members of the Committee,
The Grassroot Institute of Hawaii supports Bill 147 (2026), which would adjust zoning rules for bed-and-breakfast establishments and short-term vacation rentals.
In particular, the legislation would allow bed-and-breakfast establishments in the single-family residential zoning district without a use permit and in the residential and agricultural, family agricultural and agricultural zoning districts without a use permit so long as the zones are within the state’s designated land use urban or rural districts.
The bill would also update where short-term vacation rentals are legal. It would allow them in the multiple-family residential, neighborhood commercial and Downtown Hilo commercial districts, as well as in any residential or commercial district within a resort or a resort node and in some areas adjacent to them.
Grassroot believes these changes could allow more island residents to participate in the state’s biggest economic engine: tourism.
A 2025 report by Hunden Partners for Hawai‘i County found that more than 40% of island visitors stayed in STRs. These visitors helped support 12,000 full-time and 30,000 part-time jobs and $3 to $5 million in county transient accommodation taxes.[1]
Moreover, 24% of visitors reported they would not have come to the island if an STR had not been available.
For many families, renting a room to a visitor can help supplement mortgage payments or family income. The Hunden survey found that more than 75% of STR owners own just one unit.[2]
Lastly, Grassroot would encourage the committee to listen to bed-and-breakfast and short-term vacation rental owners as to whether the operational standards proposed in the bill make sense.
Thank you for the opportunity to testify.
Jonathan Helton
Policy Analyst
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org
[1] “Economic Impact Study on Short-Term Vacation Rentals,” Hunden Partners for Hawai‘i County, June 2025, p. 10.
[2] Ibid, p. 11.
