Hawaii just became the first US state to implement a specific climate impact fee on visiting tourists.
It will be used to fund climate change projects and environmental stewardship.
The ‘Green Fee’ is being added to Hawaii’s current transient accommodations tax, as a 0.75% increase.
That takes the per night lodging tax to 11%.
It becomes effective January 1, 2026.
It is payable for guests staying in hotels and short-term vacation rentals and now for the first time, on cruise ships.
“As an island chain, Hawaii cannot wait for the next disaster to hit before taking action,” Governor Josh Green said.
“We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”
The fee could generate up to $100 million annually.
Specific projects funded by the Green Fee revenues will be announced will be announced during the next legislative session.
They are expected to cover sustainable tourism initiatives, environmental stewardship, and climate resiliency.
Cruise ship guests were added to the transient accommodation tax to ensure ‘equity across the tourism industry’.
