Authorities in Hawaii are set to impose higher taxes on hotel accommodation in a move designed to raise funds for climate actions. In a vote due Friday 9 May 2025, members of the House and Senate will decide whether to raise daily room levies by 0.75 per cent. The proposal has widespread support and is predicted to pass, taking the overall rate to 11%.
With around 10 million tourists a year visiting Hawaii, the additional tax is expected to boost government revenues by approximately $100 million (€88.4 million) each year. The plan is to ringfence the funds to protect the environment and address the causes and impacts of climate change.
“Help us prevent the next disaster”
Hawaii is believed by experts to be the first US state to undertake such action. Projects that could be supported include mitigating coastal erosion through bringing new sand to beaches, anti-hurricane defences for homes, and the removal of invasive plant species, such as the grasses that are thought to have contributed to the spread of the wildfire that caused a national tragedy in 2023.
“We had a $13 billion (€11.5 billion) tragedy in Maui and we lost 102 people. These kind of dollars will help us prevent that next disaster,” Governor Josh Green has told press.
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
Hawaii already imposes what some believe are high taxes on the hospitality sector and short-term stays. On top of the new rate of 11%, various Hawaii counties add a three per cent tax. There is also a combined rate of nearly five per cent on goods and services, making a total duty of nearly 19%.
Despite there being few other US cities or regions that charge such high levies, the governor has described receiving so many offers of assistance from those who love Hawaii that he is convinced visitors are prepared to make the contribution in order to maintain pristine beaches and preserve beauty spots.
With more than 10 million visitors a year, we need resources to protect our beaches, create fire breaks, fix parks and bathrooms and keep our islands safe and beautiful.
— Governor Josh Green (@GovJoshGreenMD) April 29, 2025
Stakeholder concern
But some industry stakeholders are concerned about the rising taxes and their effect on business. Jerry Gibson, president of the Hawaii Hotel Alliance, reported by Euro News, said: “I don’t think that there’s anybody in the tourism industry that says, ‘Well, let’s go out and tax more.’ No one wants to see that,” Gibson said. “But our state, at the same time, needs money.”
Campaign group Care for Aina Now puts the deficit in funding for conservation at $561 million (€496 million), meaning the income from the Aloha archipelago’s proposed new tax would still not meet the islands’ needs.
The green fee will bring in over $100 million every year — giving us the power to restore what we love, respond quickly to climate disasters and safeguard our future.
— Governor Josh Green (@GovJoshGreenMD) April 29, 2025
Mahalo to the Legislature for getting it done — this is leadership that matches Hawai‘i’s values.
Other approaches to island conservation seen around the world include Fiji’s “Loloma Hour” initiative, which asks visitors to give an hour of their time to environmental projects. Similar concepts have been mooted on Hawaii, where the state’s Climate Advisory Team, has highlighted the local idiom, “A stranger only for a day,” which could be leveraged to encourage visitors to be an active part of the solution to the destination’s challenges.
