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Monday, 2 June 2025

Hawaii to impose environmental tax on tourists



Hawaii, a group of islands of outstanding natural beauty, is to become the first US state to impose a climate impact fee on visiting tourists.

Funds raised will be used to fund climate change projects and environmental stewardship, travel media outlet Travel Mole reports.

The ‘Green Fee’ is being added to Hawaii’s current transient accommodations tax, as a 0.75% increase. That will take the per night lodging tax imposed on visitors to 11%.

The new tax becomes effective January 1, 2026.

It is payable for guests staying in hotels and short-term vacation rentals and those arriving on cruise ships.

“As an island chain, Hawaii cannot wait for the next disaster to hit before taking action,” Hawaii governor Josh Green said.

“We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”

The fee could generate up to $100 million annually - let's hope it is put to good use and not absorbed in consolidated revenue.

Specific projects funded by the Green Fee revenues will be announced will be announced during the next legislative session.

They are expected to cover sustainable tourism initiatives, environmental stewardship, and climate resiliency.

Cruise ship guests were added to the transient accommodation tax to ensure "equity across the tourism industry".

Image: Kauia, Hawaii Tours

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