This week’s roundup highlights a pivotal vote on Maui’s proposed vacation rental phase-out, evolving policy debates in Evanston, IL, and late summer beach travel trends. Let's dive in.
In continued coverage of Maui County’s proposed vacation rental phase-out, previously reported in Industry News on June 6, June 13, and July 4, the Housing and Land Use Committee has voted 6 to 3 to recommend passage of Bill 9. Introduced by Mayor Richard Bissen, the bill would phase out around 7,000 vacation rentals in apartment-zoned areas as part of the county’s effort to address its ongoing housing crisis. As amended, the phase-out would begin in 2028 in West Maui, which lost thousands of homes in the August 2023 wildfires, and in 2030 for the rest of the county. Legal concerns over property rights and economic impacts continue to surround the bill. After weeks of stalled action, long meetings, and divided testimony, the committee advanced the bill to the full Council, where a final vote will determine whether Maui’s vacation market is reshaped for years to come.
According to a recent consumer poll by Panterra, nearly half of all travelers named the beach as their next getaway. In line with this survey, Airbnb has released its list of the top ten trending beach destinations worldwide for late summer travel. In the number two spot is New Shoreham, Rhode Island, where searches have surged nearly 160 percent compared to last summer, making Block Island a standout destination in the Northeast. The list also features popular coastal spots like Port Aransas, TX, Portland, ME, and international favorites such as Saquarema, Brazil, and Palermo, Italy.
Skift recently reported on an Airbnb job listing that signals plans for a major upgrade to its search engine using generative AI. Although this change is likely a way off, the job description hints at a new search system that lets travelers search with natural language queries. For example, a guest could search for “a pet-friendly place on the coast with fast WiFi and a peaceful setting,” moving beyond traditional filters. This development could eventually change how travelers search and book on Airbnb.
Evanston’s City Council is continuing to weigh how vacation rentals fit into the city’s long-term housing plans. Four license applications are currently under review, including one previously delayed after pushback from neighbors. The Planning and Development Committee has faced criticism in recent weeks over inconsistent rulings, and city council members are now considering a broader pause on new applications. A possible moratorium will be discussed at the committee’s August 25th meeting, as the city works to balance tourism demand with concerns about housing availability, a theme seen worldwide this summer.
In an interesting opinion piece this week, Matthew Yglesias argues that cities should tax tourists more heavily to ease housing pressure and support local services. He recommends raising occupancy and sales taxes on tourists, including the idea of seasonally varying sales taxes, to reduce demand and generate revenue in tourism-heavy areas. Yglesias stresses that the ultimate goal is not just to shift the tax burden onto visitors but to ensure that spending by non-residents drives a coherent growth strategy for each state. He also calls for stronger state-level action on housing as well as regulating hotels and cruise ship tourism, which place a burden on communities without contributing to long-term affordability.
As the vacation rental landscape continues to shift, expect more updates on policy debates, travel trends, and housing pressures. Check back next week for the latest industry news!