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WAILUKU, Hawaii -- Maui's long-established bed-and-breakfast industry has faltered since county officials cracked down on illegal vacation rentals, leaving the island with fewer accommodations for its many visitors, according to the Honolulu Star-Bulletin.

Maui County officials told more than 50 operators of vacation rentals in July that they couldn't continue operating without permits. Many family-run vacation renters and small businesses have suffered, said David Dantes, president of the Maui Vacation Rentals Association. Those with pending permits were allowed to honor reservations through 2007. Others were ordered to cease operations immediately.

Maui planners decided this year it was necessary to enforce permitting requirements because the bed and breakfast operations can bring noise and heavy traffic into neighborhoods. Other critics blame the illegal vacation rentals for contributing to rising real estate prices that have made owning a home in Hawaii too expensive for many residents.

The county planning department is working on a bill that will restrict vacation rentals to resort areas and business districts, and help bed and breakfasts get their permits in six to eight months, Hunt said.

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