Every year , thousands of Hawaiian tourists choose the small residential town of Kailua over the hustle and bustle of larger resort towns . Even President Barack Obama and his family have made it their yearly holiday vacation destination . Located off the southeast coast of Hawaii , Kailua boasts beachfront properties overlooking pristine white sand beaches . But residents are now asking Hawaii 's Tourism Authority to stop promoting the town as an overnight destination . `` We have a city ordinance that does not permit these short terms tourist rentals in residential areas , '' said Kailua Neighborhood Board Chairman , Chuck Prentiss . He cited a Honolulu County land use ordinance approved in the 1980s . `` We are not against having tourists in the community . It is a nice community for them to come and see . It has a nice beach and everything , but it is not proper to have a residential community used for overnight accommodations , '' Prentiss said . A move to slow tourism . In September , the Kailua Neighborhood Board approved a motion asking the Tourism Authority `` to respect the zoning and quality of life of our residential neighborhoods , and immediately stop promoting Kailua as a tourist destination and an alternative to Waikiki . '' Waikiki , on the south of the island , is home to several high-end hotels and a lively night scene . The board 's resolution was a response to a page on the Tourism Authority 's website promoting Kailua 's short-term rentals for families and large groups . `` We want them to take it off their website , '' Prentiss said . The problem , he said , is that most of these short terms rentals are illegal . In October , Hawaii 's Tourism Authority 's President Mike McCartney sent a letter to Prentiss in response to the board 's request . `` Ultimately , the decision of what is appropriate land use policy must be determined by the county itself . However , the HTA does not encourage or promote illegal vacation rentals that are not properly licensed , '' the letter read . Prentiss did not consider that a `` satisfactory response . '' McCartney estimates Kailua visitors have an economic impact of $ 103 million a year in revenue for the town . `` It 's about our collective existence and how we live and work in our island home to find the right balance , '' McCartney said . Prentiss response : `` they seem to be fixed on increasing tourism at any cost . '' Tourism is her livelihood . But for Bonnie Madigan , the cost would be her livelihood . She is the owner of Under a Hula Moon , a boutique in Kailua that sells furnishings with beach appeal . She said 80 % of her business comes from tourists . `` Take the tourist away and I 'm gone , '' said Madigan , who is also a resident of Kailua . `` They do n't understand the reality . '' `` I 'm pro-tourism and I 'm pro change . Change is part of life , '' she said . `` We are a beautiful place , it is a jewel . Why should we hoard it for ourselves , I think that is wrong . '' The battle goes on . A quick web search for short terms rental properties in Kailua returned over 250 properties . Of these , Prentiss said , only 65 are legal -- properties that were grandfathered after the zoning ordinance was passed . `` We have a general plan for the island that designates the tourist sites and residential areas , '' Prentiss said . `` We have people trying to live their lives in residential communities without being thrust into tourist areas . '' Prentiss said the lack of oversight has resulted in other problems for Kailua residents such as increased property taxes , a rise in criminal activity and noise complaints . `` Tourists are on a different schedule than residents , it is incompatible with residential living , '' Prentiss said . The Kailua Neighborhood Board has brought up the issue of illegal short term rentals to the city and the county of Honolulu , but due to the lack of staffing , it has been difficult to enforce the ordinance , Prentiss said . The board plans to re-take the issue in its next meeting in January .
It boasts many hotels and pristine white sand beaches . Even the Obamas have made it their yearly holiday vacation spot . City says it does not permit short terms tourist rentals in residential areas . Most of these short term hotels are illegal , official says .