Overview

• Governor Josh Green signed the bill this week, making Hawaii the first US state to enact a dedicated climate levy on overnight visitors.
• Beginning January 1, 2026, the surcharge will raise the transient accommodations tax from 9.25 percent to 10 percent for hotels and vacation rentals.
• Cruise ship passengers will face the same 11 percent rate on their accommodations starting July 2026.
• The fee is projected to generate nearly $100 million annually for shoreline restoration, wildfire mitigation and infrastructure upgrades.
• Tourism leaders warn the higher rate could drive visitors to cheaper destinations, while economists expect arrivals to hold steady but spending on local services to decline.