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Discussion on the Fairness of Kama'aina Rates

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Old Oct 23, 2007, 11:52 pm
  #1  
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Discussion on the Fairness of Kama'aina Rates

Not to hijack the thread, but just a question. As a foreigner who has been to Hawaii, I've noticed the Kama'aina rates for hotels, as well as discounts for Kama'aina's at grocery stores etc. For example a box of cornflakes costs me $8.00 while local people pay $3.00

One question I have is, is this legal in your country? In Canada I would be hauled before a human rights tribunal if my business tried to discriminate against someone on the basis of nationality. No difference to my thinking from discriminating because someone is gay, or black, or female.

The other question is, is this really good business? It leaves a sour taste in my mouth to know I am being gouged because I am a foreigner. Not a good way to make a nice impression on tourists when they know they are paying up to twice as much as local people for the same goods and services.
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Old Oct 23, 2007, 11:59 pm
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Originally Posted by trilinearmipmap
Not to hijack the thread, but just a question. As a foreigner who has been to Hawaii, I've noticed the Kama'aina rates for hotels, as well as discounts for Kama'aina's at grocery stores etc. For example a box of cornflakes costs me $8.00 while local people pay $3.00
What grocery store were you shopping at? There are no kama'aina rates at grocery stores that I know of. Perhaps you saw a sale that required membership in the supermarket's loyalty program (e.g., Safeway Club, Foodland Maika'i program)?
Originally Posted by trilinearmipmap
One question I have is, is this legal in your country? In Canada I would be hauled before a human rights tribunal if my business tried to discriminate against someone on the basis of nationality. No difference to my thinking from discriminating because someone is gay, or black, or female.
This form of economic discrimination is legal in the United States. Discrimination based on wealth or economics is subject to the lowest standard of scrutiny (e.g., rational basis scrutiny; and all that takes is for a single person to think the classification is rational). This is not discrimination based on nationality since those who are not a US citizen, but reside in Hawaii can receive a State ID to qualify for kama'aina discounts at hotels.
Originally Posted by trilinearmipmap
The other question is, is this really good business? It leaves a sour taste in my mouth to know I am being gouged because I am a foreigner. Not a good way to make a nice impression on tourists when they know they are paying up to twice as much as local people for the same goods and services.
I knew I was paying twice as much as anyone in London this past summer since I had to exchange my USDs into Euros.

That aside, it is incredible business. Do you realize how much business hotels receive from locals? We pay the price of paradise on a daily basis. You pay the price of paradise a trip every year, perhaps? Drawing in locals to fill the empty hotel rooms (remember, rooms are subject to availability) seems the most economical to me.

So per your argument, should we do away with AARP rates as well? I don't qualify for AARP rates, and I suppose it should leave a bitter taste in my mouth knowing that those who are in the AARP age range are paying a cheaper price?

Last edited by slippahs; Oct 24, 2007 at 12:06 am
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Old Oct 24, 2007, 12:02 am
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Just a note that I've split your post off to an independent thread so that the Master Kama'aina rate thread is solely that. Thanks for your understanding.

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Old Oct 24, 2007, 12:14 am
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Originally Posted by slippahs
Just a note that I've split your post off to an independent thread so that the Master Kama'aina rate thread is solely that. Thanks for your understanding.

slippahs
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I'm glad you explained that. I was scratching my head trying to figure out why the OP was concerned about hijacking the thread started by...the OP.
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Old Oct 24, 2007, 8:02 pm
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Because Hawaii's is a tourist economy and many, many of us work either directly or indirectly in the service industries that support tourists, the kama'aina rates allow us to receive what is something like an "employee discount". Hawaii's tourism brings a lot of big money and big spenders into the State, and of course, some people just like us (not such big spenders). Tourism constantly pushes the demand upward and the prices, out-of-reach for many of us. Kama'aina rates allow us to afford stay in the hotels in which we or our families work. I don't think there are many who would like to see a two-class society here composed of the Served (the tourists) and the Servants (the locals)!

There are some people in Hawaii who would just as soon see tourism go away. I am not one of those people because the economic consequences would be devastating. But I do see kama'aina rates as a way to help balance for local people the cost-push, the negative impacts and inconveniences caused by tourism.

You also need to know that Kama'aina rates are often very selectively applied to specific seasons or hotels-- and during off-peak periods at that. There are certainly not across-the-board Kama'aina rates. I also agree with Slippah's statement that there are no grocery store Kama'aina rates, just loyalty programs that are open to anyone who signs up.

Before you start feeling as if you were treated unfairly, please consider that when you go home to an economy that only charges you $3 for a box of cornflakes, we will still be here paying $6.
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Old Oct 25, 2007, 11:31 am
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I really don't think this is a question about discrimination of nationality. Mainland U.S. citizens do not get the kama'aina rates. Furthermore, these rates are not typically for everyday goods like groceries, but for touristy attractions such as hotels and golf. As previous posters stated, this boosts off-season business by attracting the locals and gives locals assistance since they may not be able to afford the activity under normal circumstances.
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Old Oct 25, 2007, 2:08 pm
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Originally Posted by slippahs
I knew I was paying twice as much as anyone in London this past summer since I had to exchange my USDs into Euros.
Let's compare apples and apples. When the dollar is strong everyone else gets less bang for their foreign currency here. This has no relation to Kama'aina rates. This has to do with strong economies.


Originally Posted by slippahs

That aside, it is incredible business. Do you realize how much business hotels receive from locals? We pay the price of paradise on a daily basis. You pay the price of paradise a trip every year, perhaps? Drawing in locals to fill the empty hotel rooms (remember, rooms are subject to availability) seems the most economical to me.
You can argue that if the rates were lower overall that more people would come out and stay in HI and they wouldn't need lower rates.

Originally Posted by slippahs
So per your argument, should we do away with AARP rates as well? I don't qualify for AARP rates, and I suppose it should leave a bitter taste in my mouth knowing that those who are in the AARP age range are paying a cheaper price?
No, his arguement had nothing to do with the power of large purchases. AARP uses their membership size/purchasing power to barter for discounts. This is the same thing a large company would do, the same thing conventions do for their guests, the same thing wedding parties do for their guests, etc...

Originally Posted by slippahs
This is not discrimination based on nationality since those who are not a US citizen, but reside in Hawaii can receive a State ID to qualify for kama'aina discounts at hotels.
I have seen people on Maui rejected from receiving a kama'aina discount with only a state ID. No HI driver's license = no discount.
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Old Oct 25, 2007, 2:17 pm
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Originally Posted by HiIslands
Because Hawaii's is a tourist economy and many, many of us work either directly or indirectly in the service industries that support tourists, the kama'aina rates allow us to receive what is something like an "employee discount". Hawaii's tourism brings a lot of big money and big spenders into the State, and of course, some people just like us (not such big spenders). Tourism constantly pushes the demand upward and the prices, out-of-reach for many of us. Kama'aina rates allow us to afford stay in the hotels in which we or our families work. I don't think there are many who would like to see a two-class society here composed of the Served (the tourists) and the Servants (the locals)!
FYI: Hilton, Marriott, etc... already provide discounts for their employees already, so by that reasoning there would be no need for the locals discount.

Originally Posted by bigjoc
I really don't think this is a question about discrimination of nationality. Mainland U.S. citizens do not get the kama'aina rates. Furthermore, these rates are not typically for everyday goods like groceries, but for touristy attractions such as hotels and golf. As previous posters stated, this boosts off-season business by attracting the locals and gives locals assistance since they may not be able to afford the activity under normal circumstances.
There are also Kama'aina rates for rental cars, restaurants, tours, cultural centers, etc....

FYI: I live in HI and receive the discount. I am just acting as the devil's advocate.

You could argue that residents of DC, NYC, Boston, LA, Orlando, Chicago, Las Vegas, etc.... do not receive a discount on "touristy" things there but the rates are still sky high.
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Old Oct 25, 2007, 2:29 pm
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Originally Posted by mrblueeyes
Let's compare apples and apples. When the dollar is strong everyone else gets less bang for their foreign currency here. This has no relation to Kama'aina rates. This has to do with strong economies.
Fair enough.
Originally Posted by mrblueeyes
You can argue that if the rates were lower overall that more people would come out and stay in HI and they wouldn't need lower rates.
Not necessarily true. You're making the assumption that people would choose to come out to Hawaii if the rates were lower. Airfares can be dirt cheap during certain parts of the year and hotel rates do get cheaper, but that doesn't fill the hotels. There's enough HVCB data on this to show that cheaper rates during off-peak does not increase the occupancy rate.
Originally Posted by mrblueeyes
No, his arguement had nothing to do with the power of large purchases. AARP uses their membership size/purchasing power to barter for discounts. This is the same thing a large company would do, the same thing conventions do for their guests, the same thing wedding parties do for their guests, etc...
Fair enough. Strike my AARP analogy.
Originally Posted by mrblueeyes
I have seen people on Maui rejected from receiving a kama'aina discount with only a state ID. No HI driver's license = no discount.
So? That means they were barred from receiving a kama'aina discount on that one occasion. Doesn't mean that there is across the board discrimination of non-citizens who can still receive kama'aina discounts based on State identification.

The issue is whether this is fair. Sounds fair to me. But sounds like you're arguing that it's not fair. So then, as a resident of Hawaii, would you rather see these discounts go away? It's a hard life in paradise when I could be making 2x the salary as here in Hawaii. It's merely the price of paradise to live here in Hawaii. And, I applaud the hotel industry for helping out kama'aina when can, while receiving the benefit of our business.
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Old Oct 25, 2007, 2:57 pm
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Kama'aina rates at hotels don't bother me at all - hotels that offer kama'aina rates generally offer AARP, AAA, Entertainment Book, Internet discounts, etc, so paying full price is rarely necessary. Hotels have so many pricing options (not to mention the booking sites that have their own discounts) all that is required to get a good rate is a little shopping around.

But I am bothered by kama'aina rates at restaurants and shops. We spend 6 - 8 weeks in HI (we're in the middle of a 4 week stay on Maui right now) and if I see a restaurant that has kama'aina specials (generally advertised in local newspapers) I see it as a place that doesn't want my tourist dollars. There are certainly lots of discount coupons published in all the touristy brochures but they are available to locals, too.

Right now Hilo Hattie's is offering a 30% discount to kama'aina (with HI DL). Do any locals ever shop at Hilo Hattie's?
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Old Oct 25, 2007, 3:14 pm
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Originally Posted by Travlynn
Right now Hilo Hattie's is offering a 30% discount to kama'aina (with HI DL). Do any locals ever shop at Hilo Hattie's?
No, I've never shopped at Hilo Hatties. There are a lot more places that offer the goods Hilo Hatties offer at a lower price (read: tourist trap, IMHO).

As for restaurants, have you considered getting a Hawaii State ID?

As to the OP (a thought that I figured I should point out and refrained from doing so earlier): no disrespect meant, but you did realize that Hawaii was part of the US? It can't be discrimination on the basis of nationality because others who live outside the State, but are still American (of the nationality), do not qualify for such discounts.
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Old Oct 25, 2007, 4:47 pm
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Just had lunch with a friend in Hawaii. She's lived there about five years now and really can't wait to leave. Why? Because she feels gouged for every little thing. She ordered a wig for a costume - a cheap wig that could fit in a Priority Mail envelope. It was $5 to ship to the mainland, but $33 to ship to Hawaii. She had it shipped to a friend in the mainland who then put it in an envelope and paid another $3 or so to send it to her. This is certainly not an isolated case. Look in any mail order catalog and those in Hawaii get taken time and time again ...and this is but one area.

A good many of the residents are in service industries and don't have high incomes. If there were no kama'aina rates they'd never be able to enjoy the restaurants, golf courses, activities and hotels and, who knows, perhaps the rest of us couldn't either as they leave the tourist industry for better-paying jobs.

Hawaii is hardly unique in offering discounts to residents. Think the Thai, Malaysian, Laotian, Cambodian <enter Asian country of choice here> pays the same thing you do for everything there? No.
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Old Oct 25, 2007, 5:02 pm
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Spot on. ^
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Old Oct 25, 2007, 5:05 pm
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Do you know that Las Vegas does the same thing? Yes they do. There are plenty of discounts offered to "Nevada residents only" in Las Vegas! They are marked as "Locals Only. Must have Nevada I.D." What do you think about that? I bet you didn't even know. Yup. Las Vegas locals get discounts and coupons on gambling, food, shows, and free gifts. They even get special mailers sent to Nevada adresses only for these "Locals Only" deals. Anybody got a problem with that? We don't, and we go Vegas once a month. That's how come I know about it. Being envious of others' perq.s is silly. Oh, BTW, we LOVE our Kama'aina Discounts!!!!!
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Old Oct 25, 2007, 5:54 pm
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Originally Posted by kaukau
Do you know that Las Vegas does the same thing?
Florida residents also get discounts at DisneyWorld hotels and on park passes so forth. Same for those in Southern California. And various areas offer resident discounts on season ski passes.
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