A new Hawaii visitor tax could raise some travelers’ tax costs by 75%—and it’s already heading to a legal showdown that could reshape tourism policy far beyond the islands.
A new Hawaii law adds an 11% tax on overnight accommodations aboard docked ships, marking the first time the state has formally taxed vessel-based lodging. Supporters call it another “green fee,” with all proceeds dedicated to protecting Hawaii’s environment. Governor Josh Green championed the law as a win for both conservation and fairness.
“The impact of travel to Hawaii will cover our needs as we deal with climate change and superstorms,” Governor Green said. “This is a true legacy moment.” But cruise operators see this very differently, and a legal challenge now appears set to unfold.
Legal threats emerge fast.
Even before the bill passed, the Cruise Lines International Association warned lawmakers that the proposal likely violates the U.S. Constitution. In a letter to the House Finance Committee, the group cited three main legal concerns: the Tonnage Clause, which bars states from taxing a ship’s capacity without federal approval; the Commerce Clause, which limits states from burdening interstate or international trade; and a separate federal law that restricts non-federal entities from taxing vessels in U.S. waters.
Legal experts say Hawaii’s law crosses into federal jurisdiction. Traditionally, only the federal government has had the authority to regulate and tax maritime vessels—and that’s likely to become a central issue in the fight ahead.
What the tax could mean for cruise travelers.
The industry estimates this new law will raise per-passenger taxes and fees from around $200 to as much as $350—a 75% spike unlikely to go unnoticed by travelers.
That added cost will likely be passed on to guests and could influence cruise lines’ decisions about continuing or expanding their Hawaii itineraries.
While some believe demand will hold steady, others say higher costs and legal uncertainty could make Hawaii cruises a tougher sell, especially compared to other Pacific destinations.
Where the money goes.
The state says the funds will be used for environmental restoration, climate-resilient infrastructure, park and beach management, and efforts to reduce tourism’s environmental impact.
Whether those promises turn into results is another matter. Hawaii has made similar pledges before, often without clear follow-through. Still, the intent fits into a broader push to make visitors help pay for the infrastructure and environmental repair their presence requires.
Why this matters beyond Hawaii.
Some experts believe this could be just the beginning. If Hawaii pulls this off, other destinations—California, Alaska, and even parts of Europe—may soon explore similar approaches.
As visitor impacts grow worldwide, governments are looking for new ways to make tourism pay its way. Hawaii may be setting the template, whether intentionally or not.
Are more fees coming?
This latest tax follows other recent Hawaii legislation targeting the visitor industry, including a bill that would use hotel tax revenue to fund sewer infrastructure, a proposal to allocate limited park tickets to tour operators, and growing calls to expand the green fee model to air travelers and day visitors.
Some see this as Hawaii rethinking its entire relationship with tourism. Others see it as another reason to question whether the islands are becoming too expensive and too regulated for vacationers.
This signals a shift for travelers: Hawaii is no longer just adjusting prices—it’s fundamentally rethinking who should pay for paradise.
What do you think?
We want to hear from you. Does this feel like a wise investment in the islands, or is it one fee too much?
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On the mainland and for even any property owner mowing the lawn and cleaning the bathrooms is a low cost, easy budget item but not for the state of Hawaii? Just another state tax that residents will never see any benefits or results from its implementation.
The more you tax the visitors, the less visitors you will see coming to Hawaii. It’s already happening!
The geniuses here in Hawaii strike again.
Have any of these people ever studied economics? “Economic slowdown coming”. “Tourism slows”.
Well that’s not good…what should we do???🤔
“Hey I have a great idea to stir the economy”….”Let’s raise taxes”.
Really? 😡
My family will not be visiting Hawaii. 😒
As the Cruise Ship Assoc stated, this is unconstitutional on several levels. And its a grift by the state to get more money that will get spent on stuff that has nothing to do with the environment. The dems will get money any way they can. Just look at Ca.
The new proposal to tax cruise ship passengers is insane. Is this another way that tourism, the golden goose of the Hawaii ecomony is going to strangle itself?
Not fair. If you charge for a tax for passengers on a cruise ship then one must charge for people who work and dock at Hawaii such as container ships, oil ships, new military personnel etc. This is a tax associated with what type of activity one is associated with. IMO therefore discriminatory. If you tax one group you have to tax them all. Good luck Hawaii in winning this battle.
As a former Kamaaina these taxes are killing tourist and former residents from visiting Hawaii.
We won’t consider visiting Hawaii anymore.
So this additional tax is going to repair sewers? I have done several city budgets and infrastructure repairs were always included. I don’t get it, unless the government ignored such work and spent the money on pet projects. (Your rail comes to mind) Sadly, the only fix to your inept government is via the ballot box. But unfortunately, we have seen that the voters either are grossly uninformed or just don’t care because “I always vote for him.” Good luck. I give it less than 10 years before you are bankrupt.
Classic strategy: “Don’t tax you, don’t tax me, tax the man behind the tree.” -US Senator Russell Long.
Aside from being all kinds of unconstitutional and illegal, what’s the issue? If a couple hundred dollars is a deal/no deal for your cruise, maybe you should rethink the whole idea. I’m no fan of taxes, but if cruise ships aren’t paying their fair share – or anything, maybe they should start.
Per article-
The industry estimates this new law will raise per-passenger taxes and fees from around $200 to as much as $350—a 75% spike unlikely to go unnoticed by travelers.
That’s hardly them not paying anything or even their fair share.
As a former Kamaaina these taxes are killing tourist and former residents from visiting Hawaii.
We won’t consider visiting Hawaii anymore.
Yea let’s cut off the nose to spite the face. Look deeper than the surface. How much money do you think gets spent from these tourists? Big bucks no doubt. Who reaps the benefits? Hawaii. Let’s see. Goods or services sold. GET Tax all day long. Besides more cash into the local economy that gets taxed again and again.
I was considering Hawaii for my next vacation. But I think Puerto Rico or the Philippines might be a better option for me personally.
I have been going to Hawaii for a month for the last 35 years. If this tax goes into effect, I will stop going to Hawaii. Greedy politicians. Hawaii will suffer as tourists find more friendly destinations.
As a off Island owner of 23 years, the legislature is way off base. You need to reassess spending in the state. Remember you have no natural resources other than sun,surf, and swaying palms. The rest of the experience of visiting the State is for no other reason exception being Pearl Harbor and maybe a Polynesian experience.
“Sooner or later you run out of other people’s money”
Lady Margaret Thatcher
Green Fees, how descriptive. We need Hdoge before we ride this scam into a depression.
I guess no one in the Hawaii gvt looked at the fact the every day a cruise ship is in a port, the cruise line and their guests spend a ton of $ (here in San Diego, it is said that every ship brings in $2M a day to the local economy) without putting a stain on the infrastructure (they have their own sewage, make electricity etc). The cruise lines can eliminate port calls and visits and the local economy will suffer. This is another idea that will hurt rather than help anyone.
Why not just increase current, legal tourist taxes fractionally? Other countries do that!
I have to laugh, somewhat sardonically, that when the state wants to stick it the tourist, they call it “green fees”. The ‘green’ is the free bucks they will rake in at little to no cost to the gov’t. Drop it in the general fund, and it’s happy time for the pols again. But I would ask them, exactly what kind, and how much of a footprint the cruise ship pax have in relation to the environment? Most don’t go far from the city, they spend their money (not unsubstantial) there and if they take a tour, it’s usually on a bus. How much environmental and infrastructure damage could they cause? Let’s be honest, Governor Green (what an appropriate name!), this is money grab dressed as an environmental concern. Shame on you!
Taxing visitors to pay for infrastructure, environmental projects, and to combat issues due to climate change will open the door to a Pandora’s box.
Every State has these issues. I imagine these taxes passes and survive court challenges then every State in the US will adopt similar tax laws. Then those from Hawaii travelling to other states will incur these same costs. Get ready to pay a lot more when you travel to California, Las Vegas, etc .
Hawaii has never met a tax they didn’t like!
Why limit that remark to Hawaii? It’s every bit as bad in the state of Washington.
My wife and I love visiting Hawaii, especially Maui. Tourism has always caused controversy over outsiders which I do my best to understand and empathize with.
We try to be respectful when we’re there. We honor sacred grounds. We avoid walking where we shouldn’t. We have paid visitor fees for beaches and other tourist spots too. The question is when does it become excessive?
We pay visitor’s taxes on airfare, hotel and Airbnb stays, and visits to beaches and tourist attractions. If they’re not careful, they will drive away tourism for good. While that might please some, it will hurt many more residents than it helps.
I think the goal ought to be striking a balance between helping preserve the environment and offsetting the costs of using infrastructure without driving people away for good. And by all means, spend the taxes and fees only on that which is directly related to what tourists impact and not the general revenue account.
Well….they’ll just tax us residents more. When the tourists stop coming. I guess they enjoyed all the black windows during covid..it’s pathetic….and these yahoos keep getting elected.
It really doesn’t make any difference whether you raise a tax on hotels, cruises, etc. The fact that the mainstay of Hawai’i’s economy is tourism. It is ultimately the tourisists that will end up paying in the end. If you taxed the residents, you will only add to the problem of making to cost of living unaffortable which will drive away the work force that is necessary to support tourism.
In the not to far past, during Covid, Hawai’i saw what happens when tourists disappear. People still came, but not enough to keep many employed. For some reason, this started or exaserbated the anti tourist movement. Green and his cronies just want the uber rich to come in and buy up Hawai’i. Other than property taxes, are they jumping in and donating some of the millions of dollars needed for infrastructure? The Hawaiian “government” is killing the goose that layes the golden egg by making Paradise too expensive.
I get that taxes are needed for upkeep and tourist impact, as it is in any city.
But HI should be charging the companies. The very small handful of megacorps that make 80% of the profit from tourists. If Marriott pays their c-suite 100mil a year in salaries, HI should get a percentage straight off their salaries. Or maybe stock payouts. Or a percent of their total profit every year.
Take Most of it from the megacorps, not directly scrapping cents off every tourist that stays here. And if the megacorps pass it along to the tourists, then it’s still fine, but they should feel it directly. They profit from doing business in HI, they are the ones that should be paying HI.
Please educate me – what besides tourism brings dollars to Hawaii – you are killing the Golden Goose – Hawaii doesn’t have anything that can’t be found in the rest of the world – stop tourism and eventually every dollar in Hawaii will be sent to the mainland to pay for all the things we import
Keep taxing your way on tourists, and soon you will have none, then what?
Grifting off the tourists appears to have replaced surfing as the Hawaiian state sport.
While they say it is dedicated to environmental things, it just means they can shift more general fund monies away from those and to their personal toy projects.
Money is fungible.
Tax grab.
He can’t tax residents anymore cause they’re broke, so he’s taxing visitors.
And since visitors cant vote, he doesn’t care if they complain.
Well, they can, in a very effective way. They stop coming to Hawaii and spend their money elsewhere.
Hawaii-The Islands of Irony. A place, that in recent years has expressed its displeasure with tourism, and blames visitors for all their mismanaged state issues. i.e. affordable housing, infrastructure etc. But if they need some extra funds for whatever, (sewers, climate change, fire prevention)it seems like tourism is their best friend, Add a new fee, raise their outrageous TAT tax and welcome them in with open arms.
Paradise is long gone. Made the mistake of going to maui and instead of the beautiful paradise it use to be, there were few places where you could even see the ocean because of what appeared to be thousands of condos that now cover the island. There is hardly a view of the ocean from anywhere, not even at our 5 star hotel because of all the wood shacks they built along the ocean that block ocean view and cost almost as much to rent for an afternoon as the nightly room cost. They looked like something you would store firewood in to me. Instead of 2 lane roads there are congested freeways, the towns are packed. The beautiful views and slow pace that we use to enjoy on Maui (and kauai) which is why we went to Hawaii are gone. I guess the state thought they’d make lots of money by allowing this construction but instead they ruined paradise for both locals and visitors.
What Maui were you on. Did you look out your plane window at our island? You must have stayed in the town you booked instead of exploring the island. Sorry you missed it. Maui doesn’t have any freeways. Perhaps you stayed in your 5 star resort and are referring to private bungalows. We are truly sorry that you missed one of the most beautiful places on the planet. Enjoy staying elsewhere. We welcome visitors that see, appreciate and empathize with what is happening here. Best of luck fining a perfect cheap paradise.
Dude,
Any island is just as pretty. St. Thomas comes to mind, and better beaches.
Hawaii is just lucky it’s a State with no passport required.
I feel like this is something they are rushing quickly and its going to result in significant damage to the local economy because of that.
Aloha. There have been a lot of added taxes and fees added to cover keeping Hawai’i beautiful and pristine. As these funds flow in, I’m sure someone is counting it. Perhaps an outside accounting firm should be brought in from the mainland to determine where it’s being dispersed, and any discrepancies can be found and traced. It seems every new fee is for the same thing, yet those upgrades are never done so the coffers should be overflowing by now. The people of Hawai’i should be demanding this, since ultimately they are the ones impacted. Mahalo.
To say “new ways to make tourism pay its way” is absolutely asinine. Tourism pays for Hawaii period.
But most of all these “tourism pay your way” taxes only line the pockets of the bureaucracy.