Hawaii to Charge Visitors a Climate Tax—Here's What Travelers Need to Know
Officials estimate the tax increase will generate $100 million in new revenue annually.
The proceeds will be used to help the islands mitigate the impacts of climate change.
Lawmakers in Hawaii passed legislation that will increase the taxes on hotels, vacation rentals, and other short-term accommodations. This lodging tax has also been nicknamed 'the green fee,' because the money will be used to help the islands cope with climate change and related natural disasters.
'This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our 'āina. Hawai'i is truly setting a new standard to address the climate crisis,' Governor Joshua Green said in a release obtained by Travel + Leisure.
Starting on Jan. 1, 2026, this bill will add 0.75 percent to the daily room rate, bringing the lodging tax up to 11 percent. The bill also imposes a new 11 percent tax on cruise ship passengers, prorated for the number of days their vessel spends in a Hawaiian port.
Hawaii welcomes roughly 10 million visitors each year, and its popularity with tourist has a large impact on its islands. Funds are needed to restore frequently visited coral reefs, protect wildlife like the Hawaiian monk seals from harassment, and maintain hiking trails that are popular with travelers.
Officials estimate that this tax increase will generate $100 million in new revenue annually. Hawaii leaders say the money will be used for both short-term and long-term projects, including helping locals install hurricane clips to secure roofs during powerful storms, replenishing sand on the eroding beaches of Waikiki, and removing invasive plants such as the ones that fed the deadly Lahaina wildfire in 2023.
'Given the devastation we saw on Maui in August of 2023, this measure is crucial because it will help us to deal with wildfire risk resulting from the climate change crisis," Green said. "It is foundational to our ability to provide a safe and secure Hawai'i for our children, our residents, our visitors and the environment.'
Related | How to Visit Maui Responsibly After the Devastating Wildfires | Learn More
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