From Hanauma Bay’s aquamarine waters to the misty cliffs of Waipi‘o Valley, Hawai‘i’s striking beauty is truly iconic—and, sadly, also increasingly under pressure from climate change (as the 2023 wildfires in Maui made glaringly apparent). But the Aloha State is taking steps to better protect its cherished natural resources.
Hawai‘i just became the first U.S. state to pass a statewide visitor-impact fee dedicated solely to environmental conservation. Known as the “Green Fee,” the new law will increase the tax on tourists’ hotel rooms to support programs that manage climate-related threats and protect the island’s delicate ecosystems.
“As an island chain, Hawai‘i cannot wait for the next disaster to hit before taking action,” Governor Josh Green said in a statement announcing the fee. “We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”
The Green Fee, which is slated to go into effect on January 1, 2026, will raise the state’s current hotel tax by 0.75 percent, from 10.25 to 11 percent. The fee will apply to all visitors staying in hotels, timeshares, and short-term vacation rentals. For context, a hotel with a daily rate of $500 would cost an additional $3.75 per night.
But considering the state sees nearly 10 million visitors annually, the funds will add up. The fee is expected to amass $100 million each year, according to the state of Hawai‘i. The money will be used for projects focused on “environmental stewardship, climate and hazard resiliency, and sustainable tourism,” per the press release; however, what those projects will be (and how they’ll be announced or how success will be monitored) hasn’t yet been determined.
Previously, cruise ship passengers were exempt from the hotel tax; however, for the first time, the fee will apply to them. The law states that this is to promote “equity across the tourism industry, ensuring that all visitors to Hawai‘i contribute to the islands’ long-term resilience and well-being.” The cruise tax will also be 11 percent, prorated for the number of days the ships are in Hawai‘i ports.
Officials have previously floated using the money to target coastal erosion and for the removal of flammable invasive grasses, like those that played a part in the devastating 2023 wildfires on Maui, which destroyed the community of Lahaina (causing $5.5 billion in damage) and killed more than 100 people. In fact, the bill was introduced at the recommendation of the state’s Climate Advisory Team (CAT), which the governor formed to develop strategies to prevent climate disasters following the Maui fires. One of CAT’s recommendations was to “establish a dedicated source of funding for climate change mitigation and disaster resilience,” per the governor’s press release.
The new initiative emerged from recommendations that were made in the aftermath of the catastrophic fire in Lahaina on the island of Maui.
Courtesy of the Office of Hawai‘i Governor Josh Green
“The Green Fee bill marks a historic investment in climate disaster resilience and environmental protection,” Chris Benjamin, who led CAT, stated in a press release, adding that using the fee “ensures that the financial burden of safeguarding our ʻāina (land) and people doesn’t fall upon residents alone.”
In addition to the soon-to-be 11 percent tax on hotel and short-term rental stays, visitors to Hawai‘i also pay a separate 3 percent lodging tax and a 4.712 percent general excise tax, which applies to most goods and services. Thus, the total tax when you check out of your accommodations will be 18.712 percent in 2026, making it one of the highest taxes on travel in the country. Whether that makes it too costly for visitors to come to Hawai‘i remains to be seen. (The bill’s first draft called for a larger increase but was pared back.) According to the state’s Department of Business, Economic Development, and Tourism, the average nightly rate of a hotel room in Hawai‘i in 2024 was $364 before taxes and fees. For comparison, the J.D. Power “2024 North America Hotel Guest Satisfaction Index Study” found the average U.S. hotel room cost last year was $158 per night.
Jeff Wagoner, CEO of Outrigger Hospitality Group, which operates eight hotels across four of Hawai‘i’s islands, said he fully supports the decision and that it’s an important step toward preserving the island’s natural and cultural resources.
“While the added cost to travelers is small, we believe this initiative has a big impact, enabling visitors to play a direct role in protecting public beach access, restoring shorelines, and supporting critical climate efforts,” Wagoner told Afar. “These priorities reflect the values we hold as a brand and the values shared by many of our guests who care deeply about the ʻāina. Responsible travel is about connection, stewardship, and leaving a positive impact.”
