Hawaii’s hotel taxes are already notoriously among the highest in the United States, totaling nearly 18%. This staggering rate combines state and county-imposed taxes, leaving travelers footing a hefty tax bill for their stay. With a new visitor “green fee” on the table, those costs could rise even higher, sparking debates about Hawaii’s future as a travel destination.
Hawaii currently leads the nation in hotel tax rates, followed closely by other high-tax destinations such as Chicago, Houston, and Anaheim. As competition from more affordable destinations like Mexico, the Caribbean, and even French Polynesia intensifies, the potential impact of yet another fee causes concerns that ripple across the Hawaii travel industry.
Hawaii’s current accommodations tax landscape.
Visitors to Hawaii pay a 10.25% state Transient Accommodations Tax (TAT), a 4.712% General Excise Tax (GET), and additional county surcharges—that adds another 3%. These combined rates mean a hotel stay costing $400 per night generates nearly $72 in taxes per night. Critics have argued that this high tax burden creates a barrier for potential visitors, particularly as alternative tropical destinations continue to position themselves as more affordable.
What the green fee proposal may entail.
Governor Josh Green has made one thing perfectly clear: a visitor impact fee, often called the “green fee,” is a top legislative priority for 2025. While Green has yet to reveal specifics, the “coconut wireless” suggests one of the most likely forms is an increase to the existing accommodation tax.
This Green Fee is designed to fund climate resilience and environmental conservation. Previous versions of the proposal included park entry fees or annual passes. Still, the latest discussions point to directly integrating the green fee into Hawaii’s hotel and vacation rental taxes.
Exactly how any fee would be implemented remains unclear. Governor Green recently hinted at having multiple options ready for the January legislative session, expressing confidence that one of them will finally gain approval. After being spurned on prior attempts, we have little doubt that he means business.
The urgency of addressing climate change—such as fortifying coastlines and combating wildfires—is central to Green’s argument for the green fee. Any proposal’s success will depend on navigating opposition from the hospitality industry and addressing concerns from travelers wary of escalating costs.
Industry push-back and resident concerns.
The green fee proposal has drawn mixed reactions. Many residents, already frustrated with the pressures of over-tourism, see the fee as a way to make visitors contribute to environmental upkeep. A reader on Beat of Hawaii remarked, “I fully support the green fee. Our beaches and trails are overcrowded, and we need funds to maintain them.”
However, skepticism remains high. “I’m not opposed to the fee,” another reader shared, “but will the money actually go to conservation or just into the state’s general fund?” Similar sentiments have been echoed across the tourism sector, where doubts persist about whether the funds will be earmarked for environmental purposes.
While acknowledging the importance of sustainability, the hospitality industry remains wary of any fee’s potential to deter travelers. Any additional surcharge could make Hawaii less competitive, particularly for budget-conscious travelers.
Legal and logistical challenges.
Implementing a green fee in Hawaii has its own legal hurdles. Constitutional constraints likely prevent charging fees exclusively to out-of-state visitors. As a result, any new fee would likely need to apply equally to residents and visitors to avoid legal challenges. This complicates the equation further, raising questions about balancing fairness with the fee’s intended purpose of funding climate and environmental initiatives.
The green fee’s path forward.
Governor Green has promised transparency and accountability, vowing that any funds generated by a green fee will be dedicated to environmental projects. The Hawaii Legislature is expected to deliberate on the measure as soon as next month, with lawmakers likely to face debates about balancing affordability with sustainability.
The potential addition of a green fee may result in travelers reconsidering vacation budgets. For the state, it represents a pivotal opportunity to demonstrate how sustainable tourism can coexist with our travel economy’s growth. If enacted, this fee could set a precedent for other destinations grappling with similar challenges.
Whatever the outcome, the green fee debate will leave a lasting mark on Hawaii’s tourism landscape for years to come.
Please chime in with your suggestions and concerns.
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The concern here should also focus on visitors who currently go to hawaii and have not tried other places. A lot of people find a beautiful place and do not try other places, they come back year after year. If these taxes start getting people to look at other places then they may find another destination to visit year after year and hawaii looses that revenue. If there are too many visitors and hawaii needs to reduce that number for some reason then sure increase the cost to visit. But unless they are at capacity now I would rethink raising prices untkl.they get there
IMO if tourist pay the green fee and tourism don’t drop then some other taxes will develop like hotel electricity tax, water use fee, toilet paper surcharge and the list will go on. Nothing is different about Las Vegas in which they are surrounded by desert not the Pacific Ocean. Instead of gambling Hawaii will just nickel and dime the tourist to death.
Typical BS from a liberal. If it moves, tax it! They never have enough of your money, they always want more. Some day they’ll even raise the taxes high enough that a visitor to paradise will pay more in taxes than they will for a room. Will that be enough? I doubt it, they’ll find more ways to waste it.
As a resident of 35 years, I think its safe to say the “Green” tax would only promote more government waste and useless jobs where no one is held accountable, like most of the state agencies already in place. Just look at the Rail.🙃
You voted for this clod!!!
We have spent 3 weeks on Maui in April for 16 or 17 years and already have this coming April booked. But sad to say we are going to have to rethink this trip after April. There comes a time when you have to say enough is enough! We will miss it very much but the 8 or 10 small locally owned restaurants that we frequent while there are the ones I feel sorry for, because I guarantee you that they are going to be the ones that suffer. We consider alot of these people as friends but I doubt that many of the people staying in Wailua frequent these same establishments.
We’ve been to Hawaii 7 times. There will not be an 8th time. The condo rentals, car rentals, and entertainment have gone out of sight.
If the high cost and taxes continues, we won’t be the only ones leaving to never return.
Please, let’s stop with the hand-wringing. We (my wife and I) complain about the cost of everything (room rates, resort fees, taxes, and now a possible visitors fee) but we keep going to Hawaii. We figure it out. Over 40 years instead of ocean front hotel rooms we took partial ocean views, then STR’s. We found ways to save on car rentals. We eat out less often, drink less. All sorts of ways to claw back the increases and, for smart people, save even more. Editors, someday maybe a thread on how readers save.
The point isn’t how to save money almost anyone can figure that out but the issue is tourists are being gouged and are finally at their breaking point. There are so many other beautiful destinations that you can travel to for a lot longer and spend less. And visitors are welcomed and not looked at as a open wallets. Hawaii is making it clear they want the tourist dollars but not the tourist.
I wonder if you guys and Gov Green will ever figure out that the so-called “net zero” or global warming/climate change narrative is a scam?
All trace gases (e.g., CO2, CH4, N2O) are in dynamic equilibrium with all liquids. The equilibrium (i.e., amount of all trace gases in air vs in liquids) varies with the temperature at air/liquid interface, which is dominantly the air/ocean surface surface which is ~71% of earth’s surface. This is multiple laws of physics and chemistry, primarily Henry’s Law which derives from the Ideal Gas Law.
In other words, human additions or subtractions of any trace gas (CO2, CH4/methane/natural gas, N2O, etc.) do not change the concentration or partial pressure of these gases in air. Humans cannot warm or cool of earth by adding or subtracting so-called “greenhouse gases.”
Efforts by Gov Green, Hawaii laws, Hawaii’s Supreme Court, councils of the several islands, U.S. EPA, UN, etc. to reduce CO2 are futile and wasteful.
As much as I have loved my trips to Hawaii and after reading the articles on BOH, I have to say Aloha to your beautiful state and people.
Airbnb’s and Vrbo’s charge a 3-5 percent booking fee and most of these have a non-refundable cleaning fee of 200-400 bucks. This charge can also be taxed by 18% because it is part of the stay charge.
No front desk and if there is a problem you are at the mercy of someone answering their cellphone. Good luck
I am currently in Hawaii on my 35th trip and definitely my last. Not only are we being over taxed remember there is also the nightly resort fee which makes the hotels way overpriced for what you get. Hotels that were $125 per night pre covid are now 400 to 500 for the same accommodations with less services. Hawaii is now overcrowded much less friendly and less safe with so many homeless everywhere. The list is long for not returning so I will be spending my money in places where tourist are welcomed and not gouged. Why come to a place where they want your money but not the person.
I use to count the days until my return I am now counting the days for my departure
When the State took all of the TAT tax for themselves and stopped sharing it with the counties, where did all that extra money go?
Now, the Counties charge an additional 3% tax on their own. This should also reduce the monitary pressure to the State from the Counties.
There is just so much waste, inefficiencies and ineptitude here. It makes me crazy!
This crap again? I love Hawai’i. I lived there, was stationed there, married a Hawai’ian lady. Respect it to know better
than to take pork over the Pali.
Hawai’i gets appx 10 million visitors per year.
California gets appx. 50 million.
Talk about environmental impact!
Enough governor. Just raise the tax to 50% like you really want and quit playing games.
I’ll be in a tent on the beach. Aloha.
One more nail in the Golden Goose’s coffin. We won’t learn until we completely kill it.
Our government appears to believe that the pricing elasticity for a Hawaiian vacation is infinite. Any time we need revenue for some project their knee-jerk reaction is to implement new taxes and fees on tourists. Tourism numbers are still down from pre-covid levels and the economy is suffering as a result.
The problem with financing the state on the backs of tourists, is that you need tourists to come. What do we do when this model breaks?
BOH isn’t this 18% combined tax imposed also on all the hotel resort fees. They have also increased a few bucks in your latest article. The GET is imposed on all food, trinkets, and most everything else. Thanks.
I live on the big island as a hosted Vacation Rental, the 18% hotel tax or Airbnb tax from what I understand. The majority goes to funding the rail system on Oahu, meanwhile lacking money for infrastructure on the Neighbor Islands, this is not fair. they have plenty of money from the Trans Tax, to impose a green fee would probably be the final straw for Budget tourists able to travel to Hawaii, Josh Green all you are is a money grab governor with the hotel owners having you in their back pocket along with the HTA you’re not making it easier for locals or tourist, stop being so greedy. A lot of tourist are now going to the Greek islands Mexico, the Caribbean is that not enough of a hint for you to stop gouging everyone in Hawaii or coming to Hawaii. Very Poor decisions in this state administration.
Stop with this NI pays for rail. If your county assesses the 1/2% on top of the regular state GET it goes to them (at least for now).
Been to Kauai once, Oahu 4 times, Maui 3 times, and Big Island 4 times including my daughter’s wedding which brought a total of 38 people. We are not rich but we spend money on our vacations. We love Hawaii but we won’t be back. Caribbean, Europe, and tropical far east are way better for my non elite budget. Oh and none of those high end hotel dwellers spend money with the local population. Aloha Hawaii.
I have been to Hawaii several times while I was in the U.S. Navy back in the late 80’s and early 90’s.
I finally took my wife this past year but with all of the travler fees we will not return, $75 a person just to step off of the plane, then the high tax to rent a car, oh plus the green fee tax just to stay at a hotel plus to so called daily resort fees for what should be no charge, towels, in room coffee. Never again no big loss our other 10 families will island surf elsewhere
Gee, what a shock that the government wants to add another tax. As if almost 18% is not enough. Why? BOH has already reported on the NYT piece about the corruption in the Hawaiian Government, yet the residents of Hawaii keep voting these corrupt politicians into office so they do more stuff like raise taxes for their pet projects and pet companies. This issue the residents fault for keeping these people in office because it’s been going on so long and nothing has been done to change it. The economy is in the toilet, tourists can’t afford to go to Hawaii anymore and the “tax and spend” government makes it worse. You’ve allowed it, live with it or change it.
West coast Canadian here.
For many winters we took a winter break from 2 to 4 weeks in Hawaii.
That stopped about 8 years ago.
Hawaii is now priced out of range for many people.
We now spend our winter vacation in Mexico or Costa Rica.
Both are about 1/2 the price of a comparable Hawaiian vacation.
I dont know what is happening to your tourist numbers but I suspect it is trending down.
Aloha.
If they were to reduce some of the fees and taxes to implement the green fee then it might be more palatable. Would they do that…not a chance.
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, where lower tiered hotels and accommodations are harder to find.
And guess what? Whenever a local person wants to take a short “staycation” on island or even a weekend trip to a neighbor island, subjects us to all the same, high taxes.
Green’s infatuation with this tax must end. If it doesn’t remember in November 2026 and vote him out of office. That means you travel industry and general public. Tourist taxes hurt the industry.
Green – One & Done
Pass it. Don’t pass it.
Given Hawaii’s condo rental bans and restrictions, ridiculous hotel and car rental prices, highest-in-the-nation taxes/fees on both, the bogus “resort” fees, and continued visitor disdain: we’re out.
What Hawaii costs in a week, you can comfortably reside in sunny, desirable locales for several weeks, or even a month in some southwest and certainly overseas locations. This is neither exaggeration nor hyperbole. As I type this, we’re doing a monthlong, one block from the water, Airbnb condo stay for a fraction of Hawaii’s onerous cost structure. A fraction of the cost, meaning many thousands less for everything: lodging, transportation, food, activities, and Hawaii government fees & taxes on all of it. Thousands and thousands less. Truth.
Too many fees and small taxes. It’s ridiculous. It’s not just Hawaii either. It’s your phone bill, your cable bill, your local school district, etc., etc. People are sick of it.
After 4 trips last year to various Islands; we are done. Over the last 40 years at least 9 dozen trips, Hawaii has become unaffordable. So many add ons at the hotels and mediocre hospitality. Been there..done that.