The state of Hawaii’s research arm, UHERO, based at the University of Hawaii, has just come out swinging as it advises “against a fee” that targets only tourists.
To begin, while it may be politically popular, we advise against a “fee” that targets only tourists. Protecting Oahu’s (and the state’s) natural resources benefits both residents and tourists, so both should pay. A visitors-only fee may also be illegal.
As you recall, Honolulu’s Oahu Destination Management Plan from the Hawaii Tourism Authority has proposed establishing a “Regenerative Tourism Fee” to support natural resources and conservation. That green fee would be charged to tourists and not residents.
It is noteworthy, as mentioned by UHERO, that “None of the other islands’ action plans have proposed such a fee, so the RTF would only apply to visitors to Oahu.” Also, it isn’t clear how it could be done legally, or if it is even possible.
UHERO goes further to question “whether a new fee or tax is even necessary.”
Green fee “may run afoul of the U.S. Constitution and federal laws.”
UHERO advises “To begin, while it may be politically popular, we advise against a “fee” that targets only tourists. A visitors-only fee may also be illegal. Lt. Gov. Josh Green’s proposal to levy a $50 visitor fee (i.e. a head tax) on visitors to Hawaii… may run afoul of the U.S. Constitution and federal laws.
Sales tax or property tax increase alternative.
Even if it is legal, UHERO says that it would be a “nightmare to administer.” UHERO said that should an additional fee be needed, it needs to be on everyone and not only on visitors. It suggests that property tax or excise (sales tax) increases are sensible alternatives.
Last weeks vote has confirmed current Lt. Gov. Josh Green as Hawaii’s next governor. His proposal to institute a $50 “impact fee” for visitors on arrival was a core part of his election campaign.
According to Green’s website, this fee would “generate up to $350 million in annual revenue to invest in protecting our environment, addressing climate change and building affordable housing, while reducing the total number of tourists.”
The Hawaii green fee – dead or alive?
This summer, Hawaii’s long-term prior marketing arm, HVCB, said the universal visitor fee is “dead on arrival,” per the state legislature. That’s the group that would theoretically be charged with implementing any fee such fee. Now, however, since they’ve been removed, it would be the responsibility of the Council for Native Hawaiian Advancement (CNHA).
The green fee, now opposed by UHERO, is to be charged to Hawaii visitors on arrival. Green proffered that would add $500+ million to the state’s coffers each year and that it would help mitigate environmental issues resulting from tourism.
More unaccountable Hawaii taxes and fees.
Something that both visitors and residents can agree on is that we just don’t know where the money that Hawaii collects goes. You need look no further than the airports, roads, and beach parks to make you shake your head in question and disgust. The 18% tax visitors are already accessed for all accommodations is going exactly where?
Perhaps there is another way to do this, but that path is unclear.
Honolulu previously had a proposal on the table for a $20 per guest fee added to accommodations. Keep in mind that when Hawaii residents stay at accommodations here, we pay the same taxes as visitors.
Do you concur with UHERO’s assessment?
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Kepols says
How does Hawai’i mitigate environmental issues caused by locally?
Phyllis C. says
Hawaii will always be home to me. My burial plot is in Honolulu so because I now live on the mainland everytime I return to the islands I will now have to pay a tourist fee?
George F says
I’m a retired lawyer of 45 years. I’ve always believed that many of the things that Hawaii proposes to do is a violation of the Privileges and Immunities Clause of the Constitution. I wonder if the leaders ever run this stuff by a good lawyer before Yacking about it.
Patricia H says
We are so over-taxed, over fee’s, over the made-up charges that impacts locals and tourists alike. Hawaii makes up all kinds of fees and added charges? And like we all know, the monies that were intended to fix or upkeep or protect, doesn’t seem to be making a dent in anything? And so, you know, as a local, when you rent a car or book a neighbor island hotel, there are no breaks from all these added charges, you pay the same as the tourist! Now you have restaurants adding made up fees also! It’s insane! We are so expensive even the locals are going to have to leave their homes for a more affordable place to live, because it isn’t Hawaii that’s for sure. I think the people that are in charge of Tourism should step down, they are off course!
Frank P. says
This is the other reason not to charge any fee to only visitors. It is the same as the talk of a visitor-only parking fee on Maui. We don’t need another reason to create/perpetuate/exacerbate the us vs. them atmosphere. Even if we only pay a nominal amount, $30/year or something, we should pay, too.
MBP says
This whole ‘green’ environmental official concern seems insincere when HI remains 35 years behind in basic home waste recycling. Also as a lifelong HI resident, excluding the related traffic, I appreciate the visitors. They bring a dynamism and energy to the islands that I find invigorating. Id also love to see a study comparing the negative environmental impact of residents vs visitors. Guaranteed the residents with their car dumping habitual litterbug lifestyle has an equal if not more damaging impact. And this is without mentioning the Military impact!
And this is coming from a 1st language pidgin speaking local resident thats lived worked on all open islands excluding Lanai with plenty Kanaka nephews nieces.
Brad F says
The 5th and 14th amendment might challenge the State of Hawaii to charge an entrance fee.
SD says
This is just another way to funnel money through the government to their political special interest groups. CA has horrible roads, high homelessness, high crime, bottom 10th in education out of all the states, more fires than ever before, always in a drought, and much more and there are taxes, grants and fees claiming to go directly towards these issues “would raise millions to help combat ”…yet it’s become increasingly worse in the last 5 years, and there is zero transparency on the money collected and used. Don’t fall for it Hawaii, locals can barely afford anything now!
Kahuna B says
How would Hawaiians feel if Las Vegas charged them more simply for being Hawaiian? Hmm…
Eldo R. says
Legalize gambling in HI and let’s start building casinos! Then all of our kama’aina will get their gambling fix on island (instead of flying to Vegas) and contribute more to the local economy!
Randy says
Call it a Green fee, excise tax, sales tax, sunshine tax, whatever, it’s still another tax on the people who keep Hawaii functioning. State and county governments have done nothing to earn the right to another tax dollar to nowhere.
SALVADORE J says
fees should be charged to help with the cost of maintaining the parks. residents may be paying for these parks through property taxes. if so, maybe they shouldn’t pay the fee also. tourists and residents that don’t pay for the parks through property taxes (if this is happening) should pay a fee. if residents don’t pay for the parks through property taxes, should pay the fee.
Teri says
Should Hawaii residents have to pay $50/person when they visit another state? It would stand to reason, because every state needs money to protect their natural resources. Let’s be honest, any money Hawaii collects, will be spent on nothing that benefits the citizens. It will go into the pockets of the politicians, either directly or indirectly.
andy m says
If the state wants to charge visitors and not locals, just require ID to park or access parks and attractions. give locals the kama’aina discount and non locals can pay a fee. problem solved.
Susan L says
Ok yes if that is what has to be paid most visitors are quite willing to pay, but the tourist are going elsewhere going to places they are made feel welcome……. when you come to Hawaii all they want is your money but not us now they want even more and not even in the top ten places to visit for this reason pull your socks up Hawaii
Eldo R. says
Only one way to find out: test it in the courts. Pass it into law and wait for the inevitable lawsuit. Let the judges decide.
Honestly, all of this uproar shows how outmoded reliance on tourism as the main source of State of Hawai income has become. We’re beating a long- dead horse. Time to reinvent ourselves and envision alternate local economies. Agriculture? Solar? Tech?
Tina says
Don’t kill the goose which lays golden eggs
Don K. says
Hopefully the “Green” machine will not ignore this but considering how much he screwed up Hawaii during the scamdemic I’m sure that he’ll try something else to get around this recommendation.
Ken F. says
I agree with NOT placing a fee on visitors. However one of the suggestions that I heard was raising the sales tax, which in Hawaii is really the GET, General Excise Tax. I favor doing that by a number of percentage points while Eliminting The Get On Unprepared Food. (Food that you buy at a supermarkets, Costco, Sam’s, Walmart, Target etc.) Restauant prepared food would still be taxed by the higher GET tax, and that is the kind of food most tourists buy and buy more of than local people.
Roxy says
Sales tax increase to protect the island is good and keep in mind we visitors are charged and extra charge even when using our timeshares. It is something new to me, however over the years I have seen the many changes to oahu more than the other islands.
KayperD says
As long as Hawaii is a state, it will be considered a state, like Indiana or Georgia.
Rude tourists are destroying every state.
Kelly says
I am all for visitor fees. Anything that will help keep parks clean and open.
As a homeowner here on the Big Island who pays $17k per year in property taxes, why should I also have to pay fees. I am paying more than 99% of the rest of the people on the islands.
Why should only my tax dollars be spent when tourist use local facilities?
Many areas on the mainland charge for people out of a city limits recreational fees to use pools and gyms. Why should it be different here?
The issue of transparency is a whole different question.
Mahalo, Gentleman
Andy m says
If you are paying $17,000 in property taxes you can obviously afford any additional fees. With the real tax rate on residents being 0.28% and with a minimum of an $80,000 homeowners exemption, you have a property that is assessed at about $6 million.
Paul L says
Andy, are you going to be the arbitrator of who can and cannot afford the fee? How much his house is worth is not the point. It’s about equality of the tax in question.