Hawaii’s legislature has passed a landmark law soon to be signed by the governor, marking a significant shift in the state’s battle against the climate crisis. The "green fee" introduces a 0.75 per cent increase to the state’s existing tax on short-term lodging including hotels, vacation rentals and timeshares.   

The new legislation also imposes an 11 per cent tax on cruise ship bills, which will be prorated based on the number of days ships spend in Hawaiian ports. Together, these measures are expected to generate around $155 million annually for climate and disaster preparedness projects. 

The legislation primarily aims to strengthen the state's defences against natural disasters such as wildfires and hurricanes, which are exacerbated by climate change. The funds will support vital initiatives such as replenishing eroding beaches, installing hurricane-resistant roof clips to protect homes and removing invasive, fire-prone grasses that fuelled the 2023 Lahaina wildfire disaster.  

Though the tax increase will bring the total lodging and rental tax to 18.712 per cent, one of the highest in the US, Governor Josh Green believes travellers will support the increase if they see the funds being used to protect Hawaii's unique environment. 

“This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our ‘āina [land],” Governor Josh Green said in a statement.   

“Hawaii is truly setting a new standard to address the climate crisis.”  

With the new green fee in place, Hawaii is setting an important example of how tourism taxes can directly support initiatives to protect the planet and safeguard communities from the growing threats of climate change.

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