Lawmakers pass sweeping new tax that will impact anyone visiting Hawai'i: 'The visitor industry will struggle if we do not take action now'

Your next trip to one of the United States' most popular tourist destinations may cost a few dollars more. But for conservationists, climate scientists, or others who care about our planet's future, that's excellent news.

In late May, The Guardian reported that Hawai'i Gov. Josh Green signed Senate Bill 1396, which establishes the country's first "Green Fee." The proceeds will be used to combat changes happening across the state because of a shifting, warming climate.

The fee is actually a 0.75% increase to the tax charge on hotel rooms and vacation rentals — about $3 extra on a $400 per night stay. The tax will also, for the first time, apply to cruise ships that dock in Hawai'i.

Both changes take effect next year, and officials expect the fee to generate roughly $100 million per year.

"As an island chain, Hawai'i cannot wait for the next disaster to hit before taking action," Green said in a release. "We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future."

Hawai'i made frequent headlines in 2023 for the deadly wildfires that devastated much of Maui, and less than a year later, another fire put hundreds of homes at risk in Kauai.

Supporters of the new tax say the Green Fee will put Hawai'i in a better position to deal with any extreme weather events that happen in the future.

But the money is also expected to be used toward projects such as protecting native plants, forests, and wildlife, replenishing sand on eroding beaches, and enhancing the state's climate resilience.

As an example of the impact of climate inaction, University of Hawai'i researchers have said that the sea level in Honolulu's Waikiki neighborhood is expected to rise by nearly 6 feet by 2100 without mitigation efforts.

Several hotel and tourism groups in Hawai'i supported the bill, saying these improvements will also make vacations better for the millions of tourists who visit each year.

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"The visitor industry will struggle if we do not take action now," said state Rep. Adrian Tam, D-Waikiki, the chair of the House tourism committee. "There will be nothing left for them to showcase to the rest of the world if our beaches are decimated, wildfires have taken over our towns, and hikes left unmanaged."

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