Hawaii Introduces Climate Impact Fee for Tourists

New ‘Green Fee’ aims to fund climate resilience, sustainable tourism, and protect natural resources

Hawaii Sets a Precedent with Green Tourism Tax

Hawaii has become the first US state to implement a climate impact fee on tourists, setting a bold global precedent. The newly introduced ‘Green Fee’ adds 0.75% to the state’s existing 10.25% transient accommodations tax (TAT), raising it to 11% per night.

This fee will apply to hotels, vacation rentals, and— for the first time ever—cruise ships docking in Hawaiian ports.

Climate Resilience Now a Tourism Priority

Hawaiian Governor Josh Green signed the bill into law on May 27, 2025, with the tax becoming effective January 1, 2026. He said the state “cannot wait for the next disaster to hit before taking action” following recent extreme weather events.

The 2023 Maui wildfires, the deadliest in over a century, accelerated efforts to fund climate mitigation projects. The Green Fee is expected to generate up to $100 million annually for climate resilience and environmental initiatives.

Cruise Ship Passengers Now Included

In a move to promote “equity across the tourism industry,” cruise ship guests will now pay the TAT for the first time. Previously exempt, these visitors will contribute to the upkeep and protection of Hawaii’s fragile ecosystems.

For context, a $300 hotel night will incur an additional $2.25 with the Green Fee in place.

Projects to Be Announced in 2026

The revenue will support sustainable tourism, climate hazard readiness, and environmental stewardship projects, to be confirmed next year. Hawaii’s Climate Advisory Team (CAT), formed after the wildfires, was instrumental in shaping the policy.

Chris Benjamin of CAT called it a “historic investment in climate disaster resilience” that eases the burden on local residents.

Will the Green Fee Deter Visitors?

With combined state, county, and general excise taxes, tourists now face nearly 19% in total lodging taxes. While some worry that higher costs could discourage future visitors, others view the increase as a vital move toward sustainability. Moreover, destinations like Greece, Bali, and the Galápagos have already introduced similar fees to address overtourism and environmental degradation.

A Model for Other Destinations?

As climate change intensifies, more regions are likely to follow Hawaii’s lead by linking tourism to environmental responsibility. While the Green Fee’s impact is still uncertain, it signals a decisive shift in global travel policy.

For now, Hawaii is balancing tourism with long-term protection of its land, culture, and people—one night at a time.