A First in the Nation: Hawaii Passes Climate Tax on Visitors
Hawaii has made history by becoming the first U.S. state to enact a climate change tax on tourists, a move officials say will help the island address the growing environmental costs of tourism and climate-related impacts.
On Tuesday, Governor Josh Green signed into law a new “green fee” that places a 0.75% tax on visitors staying in hotels and short-term rentals. The surcharge, which goes into effect on January 1, will be added to Hawaii’s existing Transient Accommodations Tax (TAT).
Lawmakers Say Tourists Should Pay Their Fair Share
The fee is designed to make tourists contribute to the maintenance and protection of Hawaii’s natural environment, which is under increasing stress from shoreline erosion, sea level rise, and climate displacement.
“Where we have shoreline erosion near hotels, we’re able to protect these incredible assets,” Governor Green stated at the signing ceremony. “Where we have people being displaced, we’re able to help them. Where we see sea level rise coming up, we can adapt.”
Green emphasized that funds from the new fee will support climate resilience projects, disaster mitigation, and environmental restoration efforts across the state. In addition to direct revenue, the law authorizes the use of bonds to fund large-scale initiatives as approved by the legislature.
Fee Also Applies to Cruise Ship Passengers
The law doesn’t stop at hotel guests. Cruise ship passengers will also be taxed based on the number of days their vessel is docked at Hawaii ports, ensuring that all forms of tourism contribute proportionately to environmental maintenance.
Environmental Groups Hail the Law as a Model for Other States
Supporters are calling the legislation a landmark step that other coastal and tourism-heavy states could adopt to confront the economic challenges of climate change.
Environmental advocates praised the fee as a critical policy innovation that aligns economic activity with ecological accountability.
