Lawmakers in Hawaii have passed new legislation increasing holiday accommodation taxes, in a bid to raise funds to tackle the effects of climate change and tourism on the destination’s shores and landscapes.
For visitors, the measure means paying out an extra 0.75% on daily rates for hotel rooms and holiday rentals from 1 January 2026. Cruise arrivals too will pay a new 11% levy starting July 2026, depending on how long ships spend in the state’s ports.
Democrat Governor of Hawaii, Josh Green, has officially signed the first climate change tax in the U.S. into law.
— Shadow of Ezra (@ShadowofEzra) May 29, 2025
Labeled a “green fee,” the tax will target tourists on Hawaii Island, requiring them to contribute for their carbon footprint.
Cruise ship passengers will also be… pic.twitter.com/wpX2pTN60Q
The duties are expected to add up to a total of approximately $100 million (€88 million) every year. Originally destined for a ring-fenced fund, amendments to the bill mean the money will be subsumed into the state budget. The proceeds are intended to go towards projects such as sand replenishment on beaches, hurricane clips on roofing, and work to rid landscapes of non-native grass species that were once used for livestock pastures but have become a wildfire hazard. State Representative Adrian Tam, chair of the House tourism committee, said transparency in how the pot is spent is crucial to public trust in the move.
As an island chain, Hawaiʻi 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. pic.twitter.com/lYytUzKw4e
— Governor Josh Green (@GovJoshGreenMD) May 28, 2025
He also pointed out that Hawaii’s travel and tourism sector industry “will struggle if we do not take action now,” warning that without that the destination risks having “nothing left for them to showcase to the rest of the world if our beaches are decimated, wildfires have taken over our towns and hikes left unmanaged.”
Sustainable tourism has become a hot topic in Hawaii following the 2023 Lahaina wildfire that killed over 100 people and devastated areas of Maui, in what State Governor Josh Green called the “worst natural disaster” in the history of Hawaii. The deadliest wildfire in the US for over a century, it sparked questions over the relationship between tourists, local communities, and the hospitality industry, with the Hawaii Tourism Authority asking all visitors on Maui for non-essential travel to leave so that resources could be focused on recovery.
Historic! It looks like Hawai‘i will pass the nation’s first-ever green fee — a small increase on hotel stays that will make a huge impact for our islands. pic.twitter.com/j5xaT3DdNw
— Governor Josh Green (@GovJoshGreenMD) April 29, 2025
As the first US state to put a so-called “Green Bill” into place after years of negotiations, the governor said it would improve the “balance between industry and environment”. Signing the new bill, he said firebreaks and fire marshal recruitment would be priorities and noted the “forward-thinking” required in destinations around the world to “deal with these crises.” He hailed the initiative as working for “the greater good” saying it “is going to be the way to go forward to protect your people, to protect your states, to protect your economy.”
