Hawaii Imposes the Nation’s First Climate Change Tax for Tourists

Legislators in Hawaii are implementing a hefty tax on tourism that they believe will help the state government take action against climate change.

According to the Associated Press and USA Today, Hawaii Gov. Josh Green signed a bill on Tuesday, May 27, that increased a tax on hotel room, vacation rentals and cruise ships to raise money to be used for issues such as eroding shorelines, wildfires and more.

Known as the first ever “Green Fee” in the country, Hawaii’s Act 96 will raise the state’s current transient accommodations tax (TAT) by 0.75%, making the taxes on nightly lodging rates 11%. The tax will go into effect on Jan. 1, 2026, according to a press release from Green’s office.

According to USA Today, travelers will have to pay a fee based on the nightly rate of their travel accommodations. For example, travelers staying in a hotel room that costs $300 per night will have to pay a $2.25 fee.

“Once again, Hawai’i is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawai’i,” Green said in a statement. “As an island chain, Hawai’i cannot wait for the next disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”

Cruise ships were previously able to bypass this fee, according to the outlets, but the new bill hopes to promote “equity across the tourism industry, ensuring that all visitors to Hawai‘i contribute to the islands’ long-term resilience and well-being,” per the press release.

Officials estimate that the signing of this bill, which comes nearly two years after the Maui wildfire that more than 100 people and wiped out almost an entire town, will generate nearly $100 million annually. The money will then be used for civic projects such as replenishing sand on eroding beaches in Waikiki, implementing hurricane clips to secure roofs, and clearing flammable brush that contributed to the 2023 wildfire, according to the AP.

Green added that other projects will include building more firebreaks and paying a soon-to-be-hired fire marshal — a new position created after the 2023 fire, per the AP.

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The governor also said that hotels in Hawaii were largely supportive of the tax.

“I mahalo the tourism industry for stepping up and collaborating on this initiative, which will preserve Hawaiʻi for kamaʻāina and visitors alike,” Green explained. “The fee will restore and remediate our beaches and shorelines and harden infrastructure critical to the health and safety of all who call Hawaiʻi home, whether for a few days or a lifetime.”

Hawaii State Senator Lynn DeCoite said that it was “common sense and responsibility” to implement this tax.

“I think it’s really about our kuleana, to the state, to the people of Hawai’i. Climate change is here and has been a super-huge challenge for all of us,” she added in the release. “…The bill shares the responsibility of caring for our home with those who come to visit, to ensure that our natural resources are cared for, for future generations.”