Hawaii’s first-ever tourist-focused “Green Fee” tax has officially come into effect, aiming to generate funds to address the long-term impacts of climate change following the devastating 2023 Maui wildfires. The tax, levied on hotel rooms, vacation rentals, and cruise ships, marks a major step in the state’s effort to build resiliency on an island chain uniquely vulnerable to natural disasters and rising global temperatures.
Background
Tourism drives Hawaii’s economy, with an estimated 9–10 million visitors annually. In the first nine months of 2025 alone, 7.19 million tourists visited, including 6.01 million domestic and 1.18 million international travelers. The 2023 Maui wildfires killed over 100 people and destroyed up to 80% of Lahaina, exposing the fragility of local infrastructure and prompting calls for preventative funding measures.
Governor Josh Green signed legislation introducing the Green Fee, emphasizing the need for visitors to contribute to the preservation of Hawaii’s ecological, cultural, and economic assets.
The Details
- Hotel and vacation rental tax: Adds $0.75 per night per room, roughly $4 on a $500 stay
- Cruise ship tax: 11% of bills while in Hawaii ports, prorated per day
Proceeds are earmarked for:
- Beach replenishment
- Firebreak construction and disaster preparedness
- Environmental restoration and erosion mitigation
Federal courts upheld the cruise ship tax after challenges from Cruise Lines International, rejecting claims it violated the Constitution or would cripple tourism.
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What People Are Saying
Governor Green:
“The Green Fee ensures visitors invest in Hawaii’s future and become partners in regenerative tourism. It will generate $100 million annually to protect our islands before the next disaster hits.”
Representative Adrian Tam:
“This legislation will fund environmental stewardship and prevent long-term economic harm. Preventive measures today will save taxpayer dollars tomorrow.”
Senator Lynn DeCoite:
“Climate change is real, and this bill ensures those who visit help care for our home and preserve natural resources for generations to come.”
Strategic Implications
- Funding resiliency: $100 million annually provides a substantial budget for mitigation projects
- Tourism impact: Small per-visitor fees may influence cost-conscious travelers, but Hawaii’s appeal remains strong
- Environmental leadership: Hawaii positions itself as a first-mover in “visitor-funded climate resilience,” setting a precedent for other regions facing climate-related challenges
The Green Fee reflects a broader trend of linking tourism with climate responsibility, signaling the rising costs of natural disasters and the urgent need for proactive policies.
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Conclusion
Hawaii’s Green Fee represents more than a tax: it is an investment in survival and sustainability. While small in cost to tourists, the revenue will bolster emergency preparedness, environmental recovery, and long-term resilience. In a warming world, Hawaii is demanding that those who visit its paradise share in the responsibility to protect it.
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