Aerial view of the Na Pali Coast of Kauai, Hawaii
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Hawai’i to add tourist ‘green fee’ to help mitigate impact of climate change Hawai’i to add tourist ‘green fee’ to help mitigate impact of climate change

The tax increase will apply to all rooms, apartments and other short-term accommodation in the US state
08 May 2025
Aerial view of the Na Pali Coast of Kauai, Hawaii (Shutterstock)

Hawai’i is increasing its hotel taxes with the addition of a new ‘green fee’ that will help mitigate the impact of climate change on the state.

 

From 1 January 2026, the state will increase its Transient Accommodation Tax (TAT), which applies to all rooms, apartments, beach houses and other accommodation rented out for less than 180 consecutive days, from 10.25% to 11%. The counties within the state will charge an extra 3% in tax from this date, too, and the general excise tax will also apply.

 

It is believed the fee increase will raise $100 million (£75 million) annually to provide disaster mitigation and to help the islands cope with the effects of welcoming more than 10 million visitors each year.

 

Read next: The call to mālama ‘āina: How Indigenous Hawaiian tour guides are connecting travellers with the land

 

In a statement, Governor Josh Green said, “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. Hawai‘i is truly setting a new standard to address the climate crisis, and I want to thank lawmakers for their unrelenting work these past two years in bringing this to fruition.”

He added, “Given the devastation we saw on Maui in August of 2023, this measure is crucial because it will help us to deal with wildfire risk resulting from the climate change crisis. It is foundational to our ability to provide a safe and secure Hawai‘i for our children, our residents, our visitors and the environment.”

 

More than 100 people died in the August 2023 wildfires, with $5.5 billion (£4.1 billion) worth of damage. Much of the Lahaina Historic District was caught up in the flames, including landmarks such as the Waiola Church, the Nā ʻAikāne Cultural Center and the Lahaina Heritage Museum.

 

Small islands across the globe are feeling the effects of climate change through rising sea levels. In the 1970s, the islands experienced an average of two days of high tide flooding per year, but that number now stands at 40 days.

 

Rising temperatures in Hawai’i are leading to an increased number of wildfires, killing off coral reefs, and causing irregular weather patterns that damage infrastructure – all of which this increased tax aims to mitigate.

 

More information: climate.hawaii.gov

 

Read next: Embracing aloha: 6 top tips for exploring Hawai‘i respectfully

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