From the aquamarine waters of Hanauma Bay to the misty cliffs of Waipio Valley, Hawaii’s impressive beauty is truly iconic and sadly under pressure from climate change (as Maui’s 2023 wildfires became more clear). However, Aloha state is taking steps to better protect its precious natural resources.
Hawaii has become the first US state to pass a statewide visitor impact fee dedicated solely to conservation. The new law, known as “green fees,” will raise taxes on tourist hotel rooms to support programs that manage climate-related threats and protect the island’s sensitive ecosystems.
“As an island chain, Hawaii cannot wait for the next disaster to occur before taking action,” Gov. Josh Green said in a statement announcing the fees. “We have to build resilience now. Green Fees provide the necessary funding to ensure that our resources are available for our future.”
Green rates, scheduled to take effect on January 1, 2026, will increase the state’s current hotel tax by 0.75% to 0.25-11%. This rate applies to all visitors staying in hotels, timeshares and short-term vacation rentals. In context, a hotel that costs $500 a day will cost $3.75 per night.
But considering that the state sees nearly 10 million visitors each year, the funds are added. The fee is expected to accumulate $100 million each year, according to the state of Hawaii. The funding will be used for projects focused on “environmental management, climate and hazard resilience and sustainable tourism,” according to the press release. However, what these projects are (and how they will be announced or how their success will be monitored) has not yet been determined.
Previously, cruise ship passengers were exempt from hotel tax. However, for the first time, the fee applies to them. The law says this is to “promote equity throughout the tourism industry and ensure that all visitors to Hawaii contribute to the island’s long-term resilience and well-being.” The cruise tax will also be 11%, and the number of days the ships are in Hawaii Port will be compared.
Authorities had previously floated to target coastal erosion with money and remove flammable invasive weeds. In fact, the bill was introduced in a recommendation from the state’s Climate Advisory Team (CAT). The governor has established it to develop strategies to prevent climate disasters after the Maui fire. One of the CAT recommendations was to “establish a dedicated source of funding for climate change mitigation and disaster resilience,” according to a press release from the governor.
“The Green Fee Bill shows historic investment in climate disaster resilience and environmental protection,” CAT leader Chris Benjamin said in a press release, adding that using fees “will guarantee the financial burden of our protection.” land (Land) And people do not fall into the inhabitants alone. ”
In addition to an 11% tax on hotels and short-term rental stays, visitors to Hawaii also pay another 3% accommodation tax and a general excise tax of 4.712%, which applies to most products and services. Therefore, the total tax when checking out accommodations will be 18.712% in 2026, making it one of the highest taxes for domestic travel. It is still unclear whether it would cost too much for visitors to come to Hawaii. (The first draft of the bill called for a bigger increase, but was cut.) According to the state’s Economic Development, Tourism Bureau, the average nightly tax rate for Hawaii hotel rooms in 2024 was $364.29 before taxes and fees. For comparison, the JD Power 2024 North America Hotel Guest Satisfaction Index Survey showed that the average US hotel room cost $158.45 per night last year.
Jeff Wagoner, CEO of Autorigger Hospitality Group, which operates eight hotels on four Hawaiian islands, fully supports the decision and said it is an important step in maintaining the island’s natural and cultural resources.
“While there is little additional cost to travelers, we believe this initiative will have a major impact, and we believe visitors can play a direct role in protecting public beach access, restoring coastlines and supporting critical climate efforts,” Wagoner told Afar. “These priorities reflect the values we hold as a brand and the values that many guests share. land. Responsible travel is about connecting, stewardship and leaving behind positive impacts. ”
