Hawaii Enacts First-Ever Climate Impact Fee for Tourists
Tourists visiting Hawaii will now face a "green fee" to generate approximately $100 million per year, which will be allocated towards climate and ecology protection efforts.
In a bid to combat the environmental and economic challenges posed by climate change, Hawaii Governor Josh Green has signed into law the "Green Fee" bill, marking a pioneering moment as the United States' first climate impact fee. The new measure aims to raise approximately $100 million annually to finance projects focused on climate resilience and environmental protection.
Effective January 1, 2026, Hawaii's transient accommodations tax (TAT) will rise from the current 10.25% to 11%, increasing the cost of nightly hotel rooms, vacation rentals, and other short-term stays by 0.75%. For the first time, this tax will also apply to cruise ship passengers docking at Hawaiian ports, leading to a more equitable contribution from all sectors of the tourist industry.
Climate-related initiatives set to benefit from the additional revenue include coral reef restoration, beach sand replenishment, wildfire risk reduction, and hurricane preparation, amongst others. The funds will also be allocated to a "green jobs youth corps," addressing areas of environmental concern and promoting sustainability.
Governor Green underscored the bill's significance, stating, "Hawaii is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural, and economic health of Hawaiʻi." He further emphasized that the fee would restore and remediate Hawaii's beaches and shorelines, as well as harden critical infrastructure to ensure the safety of residents and visitors alike.
While the increased TAT may result in a modest rise in tourist accommodation costs, state officials maintain that the measure is essential to safeguard Hawaii's environment and economy from the escalating impacts of climate change. By ensuring visitors contribute to the preservation and resilience of the natural ecosystems they visit, this fee supports sustainable tourism practices.
With nearly 9.6 million tourists traveling to Hawaii in 2023, as reported by the Hawaii Tourism Authority, the Green Fee is projected to generate a substantial financial resource for the state's environmental and infrastructural projects. Existing 3% surcharges added by Hawaii's counties on top of the state's tax will continue to be levied on short-term rentals.
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- Hawaii's new "Green Fee" aims to allocate funds towards environmental protection, climate resilience, and sustainable tourism practices, addressing concerns in both the health of the environment and the economy.
- The influx of funds raised from the "Green Fee" will contribute to projects such as coral reef restoration, wildfire risk reduction, and beach sand replenishment, making a significant impact on environmental science and the welfare of Hawaii's ecosystems.
- With the enactment of the "Green Fee," Hawaii is emphasizing the importance of maintaining a strong connection between the economic benefits of travel and the environmental health of the islands, transforming tourism for a more sustainable future.
