Hawaii's New Tourism Tax Is Meant to Combat Climate Change Costs

Yahoo

2 hours ago

As Hawaii nears the second anniversary of the devastating Maui wildfires, it's rolling out an unprecedented measure to offset climate change costs—and it's targeting tourists' wallets.
Starting January 1, 2026, the Aloha State's 10 million annual visitors will face a slightly higher price tag: a new 'green fee,' raising Hawaii's tourism tax from 10.25 percent to 11 percent, Bloomberg reported. The extra charge—averaging about $2 per visitor per day—is expected to generate $100 million annually, all of which will be funneled directly into environmental restoration and climate mitigation efforts, from coral reef rehabilitation to fire-prevention projects.
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The bill, championed by Governor Josh Green, marks the first dedicated climate fee on tourism in the United States. Its passage follows years of stalled attempts in the legislature, but the 2023 fires, which caused over $5.5 billion in damages, ignited public support.
'Those fires profoundly awakened our state,' Green said, according to Bloomberg. 'The reality [is] that we have to have a mechanism to mitigate risk and prepare for future potential disasters.'
Hawaii's approach contrasts with typical tourist taxes that often fund infrastructure or marketing. Instead, the new levy places sustainability at the center of travel economics, part of a growing global trend that includes destinations like Venice and Bhutan, where tourism fees are increasingly used as tools for conservation and crowd control.
Green's plan also includes phasing out the Hawaii Tourism Authority, replacing it with a nonprofit Destination Stewardship Organization aimed at prioritizing local values, sustainability, and community engagement over mass-market promotion.
While some tourists have resisted what they're calling a 'surf tax,' the move has received widespread support from Hawaii's hospitality sector.
'The visitor industry relies on Hawaii's natural environment, and we aren't doing enough to protect it,' University of Hawaii economist Carl Bonham told Bloomberg. 'This bill had significant support from the hotel industry, because the money is being reinvested in something that's going to protect the tourism industry.'
Yet, concerns remain. Critics worry that layering new fees atop existing permits and reservations could erode local spending, a broader issue echoed in other destinations responding to rising overtourism through taxes and regulation. In certain tourist hot spots like Paris, Barcelona, and London, it's unclear if travel regulations are even accomplishing their intended goals.
Still, Governor Green believes Hawaii's green fee may offer a roadmap for other U.S. states facing escalating climate costs.
'It's probably different for everyone,' he told Bloomberg, 'but I expect other places . . . to do some version of this.'
If Hawaii succeeds in tying tourism to long-term environmental stewardship, it may set a new gold standard for responsible travel in the climate age.
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