A proposal that has been years in the making is now on the verge of becoming law in Hawaii. The state’s so-called “green fee,” aimed at protecting Hawaii’s fragile environment, successfully passed out of the conference committee Friday at the last possible moment. It now awaits final floor votes next week, after which Governor Josh Green, a vocal supporter since first running for governor, is expected to sign it into law quickly.
The legislation, centered on SB1396, adds a 0.75% surcharge to the existing transient accommodations tax (TAT) paid by hotel and vacation rental guests. It also brings Hawaii cruise ship passengers into the island tax net for the first time. If approved, the new charges could generate about $100 million annually, earmarked for environmental protection and climate resilience projects.
This represents a major milestone after years of failed attempts, revisions, and heated debates over whether visitors should shoulder more of the cost of preserving Hawaii’s natural beauty.
Why Hawaii is doing this now.
Supporters of the green fee argue that Hawaii can no longer afford to delay action. The devastating Lahaina fire of 2023 served as a wake-up call about the islands’ vulnerability. Erosion at Waikiki Beach, record-breaking heat, coral bleaching, and rising sea levels are all said to paint a picture of urgency.
In recent years, lawmakers floated ideas ranging from a $50 per-person airport arrival fee to smartphone-based park access fees. Each proposal has faced innumerable legal hurdles and logistical complications. Ultimately, tying the green fee directly to the TAT was seen as the cleanest, most enforceable option.
In that way, it will be charged equally across both visitors and residents, although clearly, hotel accommodations are used more by Hawaii travelers.
Proponents insist that visitors who enjoy Hawaii’s beaches, reefs, and trails should contribute toward preserving them for future generations. Without dedicated funding, proponents argue that vital programs, such as reef restoration at Hanauma Bay and wildfire mitigation efforts, could be left unfunded.
Resident support and skepticism.
Many residents have expressed support for the green fee in theory, but skepticism about how the money will actually be used remains high. Hawaii’s history with major public projects, from the troubled Honolulu rail system to the long-delayed airport modernization, has fueled distrust.
As Beat of Hawaii reader Bob K. put it, “The green fee will disappear into the General Fund, never to be seen again, and with nothing to show for it. Do we taxpayers of Hawaii ever wonder how the state can bring in tourism tax revenue of $2 billion per year with little ever getting done?”
Past experiences with funds being redirected or poorly managed leave open questions about transparency, despite promises that this time, a special fund will track green fee revenues separately.
What Hawaii visitors are saying.
Visitor reactions have been wide-ranging, from support to frustration. Becky M., a regular BOH commenter, voiced concern: “The green fee sounds like a good idea in theory, but I’m not sure how it will be enforced or if the funds will help the environment at all. Hawaii seems like a bottomless pit for visitors’ cash.”
Meanwhile, some visitors view the fee as another burden on top of already high travel costs. Sarah T. shared, “I’m worried about the ever-rising costs of visiting Hawaii. Between airfare, hotels, and now possibly a green fee and fewer vacation rentals, it’s getting harder for me to justify the cost of a trip.”
Comments like these reflect a growing tension between Hawaii’s desire to fund conservation and the financial pressures visitors already feel in tenuous economic circumstances.
How the green fee will work.
Under the new structure, the green fee will be embedded within the tax on accommodations (TAT), currently at 10.25%, plus county surcharges that already increase hotel taxes to around 18%. With the added 0.75%, visitors should expect to now pay close to 19% tax on accommodations.
Unlike previous ideas for flat fees per person, this percentage-based fee means visitors staying at luxury properties will pay substantially more. In contrast, budget travelers will pay less in absolute terms.
Cruise ship passengers, who previously avoided Hawaii’s TAT, would now contribute too. It is expected that this change alone will help generate significant new state revenue, given the amount of cruise tourism to the islands.
Industry leaders are cautious but resigned.
While some in the Hawaii visitor industry opposed earlier versions of the green fee, resistance has softened markedly. Rising resident support for environmental protection, the relatively modest amount of this final tax increase, and Hawaii’s ongoing desire to fund climate resilience projects have all changed the conversation.
Still, concerns persist. One Beat of Hawaii reader, macprohawaii, noted, “Any and all tax increases are bad. This ‘Green Fee,’ come on people… it is ‘Green Tax’ is just another added burden placed upon tourists. Many can barely afford to stay in Hawaii, especially at the overpriced Waikiki and other resort areas.”
Industry watchers remain wary that continued cost layering—green fees today, perhaps followed by future additions or entirely new fees tomorrow—could erode Hawaii’s competitiveness against other destinations, such as Mexico, the Caribbean, French Polynesia, and Florida.
Comparative insight: how other visitor destinations do it.
Hawaii is not alone. Destinations like the Galapagos Islands have successfully implemented conservation fees to help manage overtourism and protect their natural resources. Bhutan famously charges visitors hundreds of dollars per day to limit environmental impact. However, Hawaii’s approach—attaching a relatively small fee to existing accommodation taxes—remains gentler by comparison.
Venice, for example, began charging day-trippers a new entrance fee in 2024 to control visitor numbers and fund preservation efforts. And that fee just doubled this month.
The key difference will be accountability. Without visible, tangible environmental improvements, even a modest fee could spark significant backlash.
Will the green fee truly help?
One of the most pointed observations came from Beat of Hawaii reader Patrick, who asked, “The funds from this fee could go a long way in maintaining our natural resources and ensuring they are here for future generations. But will the money be used for any of that?”
That is the fundamental question Hawaii will now have to answer in a way that it hasn’t successfully in the past. The green fee’s value will not be measured by how much money is collected, but by how well that money is spent, and how visitors and residents demonstrably see the results.
If projects like restoring coral reefs, repairing parks, improving infrastructure, and safeguarding watersheds move forward visibly and successfully, the green fee could become a model for other tourism-reliant destinations facing similar challenges.
What comes next.
The green fee legislation is scheduled for final floor votes next week in both the House and Senate. Given the broad conference committee agreement and Governor Green’s whole-hearted support, passage is highly likely.
Once signed, the new fee structure could take effect as early as January 1, 2026, giving the state time to prepare infrastructure for collection and fund administration.
Beat of Hawaii readers like Don have voiced what many are wondering: “If tourists pay the green fee and tourism doesn’t drop, then some other taxes will develop…Nothing is different about Las Vegas, which is surrounded by desert, not the Pacific Ocean. Instead of gambling, Hawaii will just nickel and dime the tourist to death.”
Final thoughts on the Hawaii Green Fee.
Hawaii now stands at a critical crossroads. The visitor green fee, once considered an impossible moonshot, appears about to become a reality. It reflects both the growing cost of funding tourism infrastructure and a growing tension between paradise and practicality.
Do you support Hawaii’s green fee as a way to protect the islands? Or do you see it as just another burden on already struggling Island visitors? Let us know what you think.
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Can somebody explain why the Bill and the press report the current HI TAT is 9.25% while we have been paying 10.25% for several years? Thank you BOH for reporting this correctly.
If this passes it will have a horrible effect on tourism. Many visitors are already complaining about the high taxes and fees. They are going to other places that are more reasonable since they are tired of being taken advantage of. Hopefully, this won’t happen.
Hold onto your hats, gang. As our economy continues to tank, due to you-know-who, our visitor industry, which affects us all, like it or not, will fizzle. I only hope that when those all over the US who voted for you-know-who realize they can no longer afford Any vacation, they will stand up and revolt against the madness…
While you-know-who lives rent-free in many people’s heads, it’s worth pointing out what this excellent article is actually about – incompetent, corrupt Hawai’i politicians who are virtually entirely members of you-know-which party, solely responsible for the disarray in Hawai’i economy, infrastructure and an ongoing mass exodus of the population that’s been taking place for many years.
Hawaii government, now and for far too many years is and has been one of the most crooked organizations in America. Money goes in but to never be seen again. With all the tourist tax and tourist related activity taxes, one would expect Hawaii to be the most organized place on earth, but instead all you hear is how bad everything is and how the state needs money to correct it. But correction never comes..
Money is actually “seen again” in the form of ill-conceived, ill-executed public projects, unjustified level of salaries for the public servants and handouts to their faithful voters who thus have zero incentive to change anything, no matter how bad.
And with all this extra cash they probably still won’t demonstrate the political will to deal with the coconut rhinoceros beetle.
Round numbers 2024, 10 million visitors staying on average 8.5 days. The state has roughly 1.4 million residents and let’s assume in state conservatively 300 days in the year. That’s 85 million visitor-days versus 420 million resident-days in the state in 2024. If this tax is meant as a resource consumption fee it is targeting only the much smaller user. What I suspect is going on is like the visitor-only parking fees going up all over the place is another differentiator between locals and those nasty tourists further instilling distrust and animosity between the groups. We all know this “green” tax wouldn’t pass if the burden was split equitably among resource consumers. It’s just another money grab that will be wasted, as it always is.
As a property owner in Honolulu, a former resident and a frequent visitor, how is this tax going to effect me and my family! I’m already paying a ridiculous property tax coupled with all other taxes associated with my property, travel expenses and other expenses to include inflated frequent travels costs,
mostly business related! I’m not alone and am afraid this new Tax will cause me to think twice about my love for the islands and my investments in Honolulu! Help!!!
While the percentage amount for this fee is not high (0.75%), combined with the past TAT increases, the total amount is large. Tourists will start looking elsewhere.
I wonder why this is being passed to tourists? Wouldn’t it be more equitable to levey a tax on both tourists and the local community? Or do those living in Hawaii only care about the environment and climate change if they don’t have to pay for it?
Perhaps other States should start emulating this tax. California has a lot of natural disasters. Every State faces climate changes. Perhaps reciprocal taxes should be applied to those coming from Hawaii when they visit other states
(Of course my last paragraph is not what I want … but that is what Hawaii will be inviting should this type of one-way tax on visitors.)
I haven’t seen any improvement in the facilities at any park in Kauai in years. We came back from our 31st visit to the islands in February, so it’s not like we are newcomers to Hawaii. This, in all probability, is just more money that will disappear in the state government, never to reappear as any improvement to anything.
Hawaii’s TAT started out in 1986 as a temporary tax at 5% to help fund the Hawaii Convention Center. Its original purpose has long disappeared, but we still have the tax, and it has only continued to increase through the years. Adding to the tax, just increase what was supposed to be a temporary one, thus ensuring that it will never go down, much less disappear.
Google “Why is Vegas Dead”, and it is a perfect parallel to what is happening to Hawaii. Overpriced, underwhelming, ultra-ultra entitled residents and greedy, overzealous governments.
Sorry but I just canceled my vacation trip to Hawaii. I love Hawaii but when I went to book the room and had to add the per night resort fee, taxes and fees it added about 6 hundred additional cost. After thinking about it I cancelled it. I love Hawaii but it’s not worth the cost for a 5 night stay. And now I read your adding additional taxes. Soon you want have to worry, no one will go there.
I have been coming to the islands sometimes three times a year since 1985. I will not be returning. It breaks my heart. No one remembers or speaks of the money pit for the light rail. How far in debt are they on that? That was a big slush fund, still is.
Between the Hawaiian Alaska merger and the ever increasing fees it looks like my October trip is going to be my last visit for a Long time, and I’m mainly just visiting to connect onwards to American Samoa
Aloha,
How pathetic…” If approved, the new charges could generate about $100 million annually, earmarked for environmental protection and climate resilience projects.” This reminds me of the Looney Tunes cartoon franchise with Porky Pig and the Tasmanian Devil…snort, drool, burp…a hundred million a year…shudda done this long ago…yeeehaaa…
I’m tired of saying good luck…you’re on your own…
Mahalo
Will the proposed new 0.75% TAT tax eliminate the the state park fees, such as the fee at Hapuna Beach State Park ($10 per car plus $5 per occupant)?
Fat chance.
Adding more tax on the TAT is just making it more difficult for Airbnb hosts to even get bookings, for example, I’ve only had one booking for three days in April, three bedroom two bath house with Oceanview’s beautiful yard 219 a night but once you add on the Trans Tax the GE Tax, the County Tax it works out to like 289 a night now another .75%, Josh Green you are destroying our local livelihood as a hosted Vacation Rental, as a local I’m going to be forced to sell my home because this government is getting too greedy on the backs of the tourism!!
This added tax really has no impact on us. We just returned from spending almost a month in Hawaii visiting Oahu, the Big Island and Maui. This trip was a swan song because we knew we would never return. And to add a short review of our trip. Oahu is becoming LA with the traffic. Gridlock everywhere to the point of frustration. The Big Island is great as always probably because of the size of the island. Easy to escape the crowds. Maui seems to be slowly turning into LA like Oahu with the traffic. And Maui’s dumping of tires, cars and worn out appliances is getting a lot worse. I wish tourists would stop bringing their old washing machines to the island to dump in the weeds. On the good side, we found locals as friendly as ever. Treat people the way you want to be treated is as true as ever before. Don’t believe the nonsense locals are mean, can’t be trusted and will rob you blind. If you experience this, you may want to examine how you treat others.
Out of curiosity, how ill taxes on cruise ship passengers be assessed
.
If someone pays $3000 for a cruise, Is all that taxable at 17.962%?
Or how is the accommodation part of the cruise assessed? Surely those on a cruise should not be taxes for meals and other services…
Hmmm.
I have no doubt the cruise companies will take Hawaiian cruises off of their schedule. I remember Mexico tried to add a “fee” on cruisers and after the cruise companies told them they would no longer offer cruises to that country, the Mexican government quickly came to the conclusion it wasn’t a good idea after all.
Green Fee (aka another tax on tourists) is going to make people think twice about traveling 6 hours+ to visit a beautiful state. With Trump pissing off the Canadians and European tourists where are the visitors going to come from? There are too many options at a more reasonable price than Hawaii. Small businesses that depend on tourists and their employees are really going to be hurting.
One of the requirements to run for an office should be an ability to prove you can balance your checkbook. Majority of these Hawai’i politicians would fail that test. Their incompetence and mismanagement “talents” are truly mind-boggling. You can hate the Wall St sharks all you want, but one good hedge fund manager as a HI Governor could fix the state budgeting and spending in no time.
Just another reason to no longer vacation in Hawaii. There are now endless fees and nearly-impossible online access availability to make reservations for so many places that were once free to visit in Hawaii. The money train keeps chugging along for Hawaii’s politically-connected, with their view of tourists as an endless piggy bank. RIP to Hawaii’s Aloha Spririt in the 21st century.
Hawaii is the equivalent of a star athlete getting his first big contract and never learning a single thing about money management. We run around and buy a bunch of gold chains, sports cars, fancy houses and then we end up losing it all cuz we don’t know how to manage it. So here we are trying to get a bigger contract, never solving the problem in the first place. If they were ever going to pass a bill, it would be that they need to account for every dollar spent with a subsequent punishment for abuse or mishandling. The best part is we’ll just continue to tax, tax, tax tourism trapping us in the one funnel income, while defying common sense and logic by not diversifying revenue streams such as the proposed sports betting bill. Ironically, we’ll have the stance that it’s taboo, but will act like a bunch of addicts and ship $700m a Las Vegas every year.
You can ask HPD chief, all this underground gambling and crime already exists!
This is a scam. We shouldn’t ask other people to clean up all the junk the locals dump everywhere. We shouldn’t ask other people to stop beach erosion when the State now blocks all measures of beach erosion control and nourishment. Coral decline? So, immediately shut down local’s cesspools.The Governor, legislature and Maui mayor hate tourism, but contradict by tapping the tourist resources. Climate urgency? What’s that?
Aloha. Always reading about taxes and fees going up to keep the state in good shape. I’m curious what the hotels and attractions on Waikiki Beach think about that plan since your other article seems to indicate some infighting on whether to renourish the beach there. Be interesting to hear how all those collected taxes are working out for them.
So the “green fee” is really just a plain old tax increase. This fee is needed because “Erosion at Waikiki Beach, record-breaking heat, coral bleaching, and rising sea levels are all said to paint a picture of urgency”. If existing taxes are not competently administered, I fail to see how a tax increase is going to help any of the above. To me this is more of the same tax and spend philosophy.
Passing a new tax to line politicians and their stakeholders pockets with a new stream of income, we all know that’s all this is.
I love your quote “attaching a relatively small fee to existing accommodation taxes-remains gentler by comparison”. Gentler small fee increases at sporadic time intervals will go unnoticed to ignorant tourists I guess. What’s the difference if TAT is 18%, 19% or 25%. They will still come. You are on the right road to cooking your golden goose.
This will give the hawaiian government more money that will be unaccounted for with nothing to show for the extra taxation. im looking forward to my vacation to Mexico in June
Hope not, but Hawaii deserves to suffer to make the point that taxing and doing nothing with the money you collect but giving it to those “in the system” is not good policy. Voting blue only works as long as you have enough of “other people’s money”. Hawaii is running out of options for that.
“…earmarked for environmental protection and climate resilience projects…” Riiiggghhhttt.
It will disappear into the black hole of the general fund.
First they will study.
Then they will hire “experts”.
Then they will choose the most expensive, least efficient methods.
Standard operating procedure for all government.
As BOH indicates, the value of the added fee will be seen only in its results- erosion and wildfire mitigation, restoration of coral reefs, forest management, sea life and wildlife protection. Unfortunately, it will take years to raise the money specifically targeted for these efforts, and even more years to see results. And does Hawaii have the manpower and expertise to conduct the specialized work these efforts will entail? Time will tell.
Really? More money for a government that collects millions in taxes on tourists and either squanders them or pockets them?
Every cruise line should band together and enact a global Hawaii boycott.
> The devastating Lahaina fire of 2023 served as a wake-up call about the islands’ vulnerability.
That wake-up call was received a decade ago. In 2014, a wildfire-protection plan for Lahaina was written by Hawaii’s Wildfire Management Organization, a nonprofit that works with government agencies, according to the Wall Street Journal.
The 2014 report warned Lahaina was Maui’s most fire-prone area due to steep terrain, frequent winds, and parched grasslands. That 2014 plan also had multiple mitigation measures, to help slow and shield Lahaina from a massive wildfire.
But many of the mitigation measures were never implemented. Ten years later, the prediction came true.
The wake-up call was made. Maui government decided to ignore it.
What about a tax on the local residents to help pay for the environmental clean up of all of the abandoned cars, refrigerators, washing machines, matress, old tires that are all over the island? They are not dumped there by the tourists. No environmental accountability of the residents. Over taxing the tourists is driving them away along with the revenue they bring to the island.
True dat. With the exception of the disposal of vehicles, you can take anything to a disposal station for free on the Big Island. So there really no reason to have junk hanging around.
My property taxes on an annual basis are right around $8000. So you would need to vacation here for decades to have that kind of tax burden.