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Hawaii Adds 'Green Fee' to Hotel Stays to Combat Climate Change


Skift Take

The new climate tax model shifts part of the climate change burden onto the travel sector, particularly hotels, vacation rentals, and cruise operators.

Hawaii has enacted a new “green fee” aimed at addressing the growing impacts of climate change. Signed into law on Tuesday, the measure adds a 0.75% surcharge to the state’s existing accommodations tax, raising it from 10.25% to 11% on hotel room rates.

Starting in January, the fee will also apply to cruise ship cabins when vessels dock in Hawaii for the first time. State officials say the added revenue will support disaster preparedness and environmental protection efforts across the islands.

The state estimates it could raise around $100 million annually.

The funds will go toward projects such as shoreline protection, wildfire prevention, and maintaining the natural ecosystems that draw millions of tourists each year.

“Once again, Hawaii is at the forefront of protecting our natural resources,” said Governor Josh Green at the signing ceremony. “As an island chain, we cannot wait for the next disaster to hit. We must build resiliency now.”

Lawmakers from both tourism-heavy and climate-vulnerable areas backed the bill. Senator Lynn DeCoite called it a matter of “kuleana,” a Hawaiian concept referring to responsibility.

“Climate change is here,” she said. “The bill shares the responsibility of caring for our home with those who come to visit.”

Representative Adrian Tam, whose district includes Waikīkī, said the fee is a “win-win” that balances tourism and environmental protection.

Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.