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Hawaii Car Renters To Pay More

A Rental Fee Charge Likely Hiked 400 Percent

POSTED: 5:31 pm HST March 10, 2010
UPDATED: 7:48 pm HST March 10, 2010

Lawmakers appear poised by the end of the legislative session in April to approve a bill to increase the "facility charge" all customers have to pay on their car rental bills from the current $1 a day to $4.50 a day.

Supporters say the 400 percent facility fee hike is needed to improve car rental locations in Hawaii.

Jim Stone is the government affairs specialist for Catrala-Hawaii, a U-Drive membership association.

"This will provide needed facilities that are long overdue in bringing our airport up to speed," said Stone.

He said 100 airports across the country charge similar car rental facility fees to pay to improve their car rental locations.

Stone said car rental companies in Hawaii pay the state $30 million a year in airport concession fees but have received nothing back to improve the out-of-date and deteriorating a car rental locations at state airports.

Car rental companies say nobody has to pay the $4.50 a day facility charge because residents and visitors can avoid it by renting their car from a company with offices outside of the airport.

Companies such as Alamo operate outside Honolulu Airport.

The fee hike would raise up to $500 million for improvements including a $200 million new car rental facility for Honolulu Airport.

Stone said, "The timing is great because in Hawaii's construction industry thousands of workers have been on the bench. This would provide needed jobs for them as well as for our economy."

But tourists renting cars at Honolulu Airport Wednesday were stunned by the proposed increase from $1 to $4.50 a day.

Chris Hendershot of St. George, Utah said, "Wow. I would like to have a piece of that money. I mean they are going to have a Taj Mahal for car rental places. It is discouraging."

Hendershot's wife, Brenda, said, "Nobody likes to hear of an increase of any kind."

It is not just tourists who will feel the financial pinch. The rental industry said about 15 percent to 20 percent of cars are rented to Hawaii residents.

Car renters said they are already stuck paying many fees including a $3-a-day rental surcharge and the Hawaii state excise tax.

Gail Makuakane-Lundin travels once a month from Hawaii Island to Honolulu.

"Right now, we are already paying a lot on car rents so any additional fee is going to matter to me as well as others who travel frequently from the neighbor islands," said Makuakane-Lundin.

The facility fee increase is expected to kick in Sept. 1.

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