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Hawaii institutes first-in-nation ‘Green Fee’ on visitors to fund climate projects

The new tax signed by Governor Josh Green on May 28 will generate about $100 million annually beginning January 2026

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)
People gather on Kaanapali Beach, a popular tourist destination, on August 5, 2024 near Lahaina, Hawaii.
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Overview

  • The law adds 0.75% to daily lodging taxes and introduces an 11% levy on cruise ship bills to align visitor fees on land and sea
  • Hawaii’s combined accommodation rate will climb to nearly 19%, one of the highest in the United States
  • Officials estimate the Green Fee will raise roughly $100 million per year to bolster climate resilience
  • Revenues will enter the state general fund for Legislature-approved projects such as beach restoration, hurricane preparedness and wildfire mitigation
  • Hawaii’s hotel industry supported the measure as a long-term investment in visitor experience and environmental protection following the 2023 Maui wildfires