Washington, D.C. – March 18, 2015 – Yesterday, the Supreme Court of Hawai’i issued its opinion on a case brought by the State of Hawai’i against online travel agencies for a failure to pay taxes dating back to 2000. The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the 1.8 million-employee lodging industry, and the Hawaii Lodging Tourism Association issued this joint statement regarding the decision:

“The travel and tourism industry, of which lodging is a significant component, is a key driver of the economy in Hawai’i. With every new job and every new hotel room, our industry is making a further investment in the people of Hawai’i. That is why we believe that our partners in this industry, the online travel agencies, must also do their part.

“Although we are pleased that the Supreme Court ruled that online travel agencies must pay general excise taxes, the decision appears to put the question of transient occupancy tax collection back in the Legislature’s court. We believe this is a lost opportunity to ensure fair and equal application of the law by the state’s highest court. The future of Hawaii’s hotel industry is very promising, and hotels are continuing to drive job creation and economic growth in the state. To continue this positive momentum, however, it is important that the hotel and lodging industry have the assurance that they will be operating on a level playing field. Unfortunately, the opinion issued today does not provide that assurance.”