Overview

• Hawaii became the first U.S. state to adopt a climate impact fee after Gov. Josh Green signed the legislation on May 27, 2025.
• The law adds 0.75% to the transient accommodations tax on hotel rooms and vacation rentals effective January 1, 2026, and imposes an 11% cruise ship levy starting July 2026.
• Officials estimate the new fee will raise nearly $100 million per year for projects such as beach replenishment, wildfire prevention infrastructure and removal of invasive grasses.
• Revenue will flow into the state general fund, with the governor poised to request legislative appropriations for native forest protection, climate resilience and mitigating tourism’s environmental impacts.
• Key supporters including the Hawaii Tourism Authority and state hotels backed the measure on the grounds that preserving natural assets will sustain the visitor experience and local economy