Cruise Sector and U.S. Government Block Hawaii’s Climate Tax on Cruise Ships

Key Points

• Hawaii's new climate tax on cruise ships was blocked in court after challenges by the cruise industry and the U.S. government.
• The tax, already in effect for hotels and vacation rentals, aimed to generate nearly $100 million annually for climate protection.
• The cruise ship tax is temporarily frozen pending a court decision, which is unlikely before late 2026.

Summary

A new Hawaiian climate and tourism tax, which extended an existing accommodation surcharge to cruise ships, was blocked following legal challenges from the cruise industry and the U.S. government. While the tax is now in effect for hotels and vacation rentals to support environmental efforts, its application to cruise ships is on hold pending a court case that may not be resolved before late 2026. The state had aimed to raise nearly $100 million a year from the cruise ship tax, but enforcement is frozen until a final judicial decision.