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Hawaii enacts new tourism tax to fund climate resilience

The first statewide tourism tax will raise about $100 million annually to fund climate resilience projects.

FILE - People swim in the lagoon in front of the Hilton Hawaiian Village resort in Honolulu on Saturday, Sept. 4, 2021. (AP Photo/Caleb Jones, File)
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Overview

  • The law adds a 0.75% surcharge on daily room rates from Jan. 1 and an 11% levy on cruise ship bills starting July 2026
  • Combined with existing state and county fees, the total levy on short-term accommodations will approach 19%, among the highest in the US
  • Hawaii’s hotel industry endorsed the measure, citing benefits to visitor experience and long-term sustainability of tourism
  • Rather than a dedicated climate fund, revenue will flow into the general fund with allocations to be requested by Governor Josh Green
  • Officials say proceeds will support projects including Waikiki shoreline restoration, hurricane clip installations, invasive grass removal and hiring a fire marshal