| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$154.20 |
22 |
|
Percentage of total item cost: |
15.51% |
27 |
|
Overall tax index: |
177 |
49 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Honolulu. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show
how Honolulu compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Honolulu currently has an
overall Tax Barometer index of 177,
indicating a 77% increase in
travel-related taxes since June 15, 1994.
This increase can be attributed
to higher taxes in the car rental, lodging, and air
passenger sectors; the tax rate in the restaurant sector has remained
at its base index level. For a five-day, four-night trip to
Honolulu, travelers
can expect to pay approximately $154.00 in tourism-related taxes, a
total that ranks as the 31st highest among all
52 surveyed destinations.
|
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$183.48 |
- |
|
State sales tax: |
4.166% |
- |
|
Airport access fee: |
11.11% |
- |
|
Hawaii state rental vehicle surcharge
(per day): |
$3.00 |
- |
|
Vehicle license and registration fee (per day): |
$0.30 |
- |
|
Total charges for 4-day rental with taxes: |
$225.25 |
- |
|
Total tax $ for 4-day rental: |
$41.77 |
26 |
|
Percentage of total car rental cost: |
18.54% |
26 |
|
Car rental tax index: |
261 |
48 |
|
Summary:
Car rental taxes in Honolulu have increased by 161% since 1994,
the fifth largest increase among all surveyed destinations. The
base index includes the state sales tax (4.166%) and a state rental
surcharge of $2.00 per day. While the sales tax has remained the
same, the rental surcharge was increased in 1999 to $3.00 per day.
That same year, an airport access fee of 10.0% was introduced.
The vehicle licensing and registration fee was introduced in 1998 at a
rate of $0.24 per day and
was increased to $0.30 per day in 2001 . The airport access fee was
also increased to 11.11% in 2001. Despite these increases, the overall amount of taxes paid on a
four-day,
mid-sized car rental still rank as the 26th lowest among all surveyed
destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$448.00 |
- |
|
State sales tax: |
4.166% |
- |
| Local
lodging/occupancy tax: |
7.25% |
- |
| Total
charges for 4-nights lodging with taxes: |
$499.14 |
- |
|
Total tax $ for four-nights: |
$51.14 |
23 |
|
Percentage of total hotel room cost: |
10.25% |
26 |
|
Hotel
tax index: |
127 |
44 |
Summary:
Hotel taxes have
increased 27% in Honolulu since 1994, the ninth largest increase
overall and the third highest among surveyed destinations in North
America. This change can be attributed to an increase in the
local hotel occupancy tax, which raised it from 5.0% to 7.25%, and to
a fractional increase in the state sales tax. Visitors spending
four nights in Honolulu can expect to pay approximately $51.00 in
lodging taxes, the 23rd lowest among all surveyed destinations and the
second lowest among destinations in North America. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$259.00 |
- |
|
State sales tax: |
4.166% |
- |
|
Total charges for 12 meals with taxes: |
$269.79 |
- |
|
Total tax $ for 12 meals: |
$10.79 |
6 |
|
Percentage of total restaurant meals cost: |
4.00% |
4 |
|
Restaurant tax index: |
100 |
5 |
Summary: Taxes on restaurant meals in Honolulu have
generally remained steady since 1994. Although the state sales
tax was increased in 1995, the increase was too small to move the
meals index. Meal taxes are very low in comparison to other cities;
the approximately $10.00 in taxes collected on 12 meals ranks as the sixth lowest
among all survey destinations. |
 |
Rank |
|
International transportation tax: |
$26.40 |
 |
|
Passenger facility charge: |
$6.00 |
- |
|
Immigration user fee: |
$6.00 |
- |
|
Customs user fee: |
$5.00 |
- |
|
APHIS user fee: |
$3.10 |
- |
|
Passenger Civil Aviation Security Services Fee: |
$10.00 |
|
|
Total tax $ for international arrival and departure: |
$50.50 |
45 |
|
Percentage of total trip cost: |
5.08% |
47 |
|
Air passenger tax index: |
253 |
47 |
| (
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
Taxes on international airline passengers have risen 153% in Honolulu
since 1994, the sixth largest increase among all surveyed destinations.
The $50.50 in total applicable taxes ranks as the eighth highest among
all surveyed destinations, but is still less than the other six
American cities included in the Tax Barometer. Honolulu's base
index includes a total of $25.95 in tax charges, many of which are
still in effect but at different rates. Two tax increases
occurred in 2002: a new $10.00 civil aviation security services fee
was introduced to fund increased security measures, and the
international transportation tax was increased from $25.60 to $26.40. |
 |
|
Barometer No. 1:
The state of Hawaii
increased its hotel occupancy tax one percentage point to 6.0% and
introduced a fractional increase in the state sales tax.
Barometer No. 5:
The United States
increased several of its taxes on international passengers that affect
all US cities. Those changes are to the APHIS (agricultural
inspection) fee on passengers from US$ 1.45 to US$ 2.00; a US$ 6.00
increase to transportation tax (US$ 12.00 total); a new US$ 12.00
arrival tax; and the lowering of the customs user fee from US$ 6.50 to
US$ 5.00.
Barometer No. 7:
A US$ 0.24 vehicle licensing fee was added to all car rentals.
Barometer No. 8:
An airport access
fee of 10.0% of the base rate plus time and mileage was introduced for
car rentals, and the state vehicle rental surcharge was increased from
US$ 2.00 to US$ 3.00. Additionally, a correction was made for the
hotel tax rate previously reported (10.7%). The new rate (11.416%)
includes the state sales tax of 4.166% and a hotel occupancy tax of
7.25%. Lastly, the United States increased both its international
transportation tax and international arrival tax to US$ 12.20, and
increased the APHIS fee on passengers to US$ 2.05.
Barometer No. 9:
The vehicle
licensing and registration fee was increased to $0.30 per day.
Barometer No. 10:
There were several changes in the airline sector. A US$ 6.00
immigration user fee was included for the first time, the APHIS fee
was increased to US$ 3.10, and the international arrival and
international transportation taxes were combined to produce a new US$
25.60 fee. Also, the airport access fee on car rentals was increased
to 11.11%.
Barometer No.
11: The international
transportation tax levied on airline passengers was increased from US$
25.60 to US$ 26.40. The United States also introduced the civil
aviation security service fee. This $10.00 fee was introduced to
offset the costs of enhanced security measures at U.S. airports.
|
|
