Hawaii has introduced a first-of-its-kind tourism levy aimed at funding climate resilience and environmental protection, with visitors required to pay an additional “Green Fee” from January 1, 2026.
The new measure adds a 0.75% daily room tax, taking the overall tax rate on hotels, holiday rentals and cruise accommodation to 11%. The levy is expected to raise close to $100 million a year.
Signed into law under Act 96 by Democratic Governor Josh Green in May 2025, the policy is designed to help the island chain address the growing impacts of climate change and tourism pressure. Revenues will be directed towards environmental and climate-related projects, including restoring eroding beaches, removing invasive grasses linked to wildfire risk, water conservation, ecosystem restoration and climate adaptation infrastructure.
Under the new structure, taxes on hotel stays and vacation rentals will rise from 9.25% to 10%, while cruise passengers will be taxed for the first time, with an 11% levy applied to cabin fares. State officials said the move ensures that cruise tourism, which has a significant environmental footprint, contributes directly to conservation and resilience efforts.
The funds will also support cultural preservation initiatives, including programmes to protect native Hawaiian heritage, historic sites and cultural education, with the aim of enhancing authentic visitor experiences.
Governor Josh Green said the legislation reflects the urgent need for Hawaii to build long-term resilience as climate risks intensify, particularly following recent wildfires and extreme weather events.
State authorities said the Green Fee aligns tourism growth with climate and sustainability goals, tying visitor numbers more closely to the maintenance of natural and cultural assets. Officials added that the approach could serve as a model for other tourism-dependent regions seeking to balance economic benefits with environmental protection.
Over the longer term, the levy is expected to support adaptation measures such as flood prevention, coastal protection and infrastructure upgrades, while positioning Hawaii as a leading destination for sustainable and responsible tourism.
