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Hawaii Invites Plans to Spend $100M Annual Tourism Green Fee

Legislators will review proposals from local communities, businesses, environmental groups ahead of the fund’s first disbursement in January.

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Overview

  • Starting January 1, 2026, the green fee will boost the transient accommodations tax by 0.75 percentage points to 11% and impose an 11% levy on cruise-ship visitors to generate about $100 million each year.
  • A stakeholder-driven process launched in July will gather annual input from local communities, tourism businesses and environmental organizations to guide the allocation of green-fee revenues.
  • Supporters say dedicated funding is vital to close Hawaii’s $560 million conservation shortfall and back projects like invasive grass control, coral reef rehabilitation and wildfire mitigation.
  • Critics warn that raising visitor fees risks deterring tourists and could strain Hawaii’s economy by increasing travel costs.
  • Inspired by Hawaii’s law, legislators in Oregon and other states are debating similar tourism levies to fill budget gaps for environmental restoration and hazard mitigation.