Hawaii is set to make history by becoming the first American state to introduce a novel tourism tax aimed squarely at combating the impacts of climate change.
A First-of-its-Kind Climate Levy
From 1 January 2026, visitors to the Pacific island chain will pay an additional charge dubbed the "Green Fee." This new policy imposes an extra 0.75% daily tax on room rates for accommodations including hotels and vacation rentals, as well as on cruise ship berths.
The move, signed into law by Democratic Governor Josh Green, will raise the total tax rate on tourist lodgings to 11%. State officials project the innovative fee will generate close to $100 million annually, creating a dedicated revenue stream for environmental protection.
Funding Resilience Against Future Disasters
The substantial funds are earmarked for critical projects designed to bolster Hawaii's defences against a warming planet. As an island chain, Hawaii is uniquely vulnerable to climate effects, a point Governor Green emphasised when highlighting the urgent need for resilience.
Key initiatives to be financed include replenishing eroding beaches and removing invasive grasses. The latter is a direct response to the catastrophic Maui wildfires, where such vegetation acted as a primary fuel source for the deadly blazes.
Implications for the Tourism Industry
This landmark legislation places the financial onus of environmental stewardship partly on the millions of tourists who visit Hawaii each year. The state is pioneering a model where the tourism industry, a major economic driver, directly contributes to mitigating its own environmental footprint and the broader climate challenges facing the islands.
The "Green Fee" represents a significant shift in policy, setting a precedent that other tourist-dependent regions grappling with climate change may well follow. It underscores a growing trend of destinations seeking sustainable funding solutions to preserve their natural assets for future generations.
