Hawaii Governor Josh Green signed landmark legislation on Tuesday that raises taxes on hotel rooms and vacation rentals to fund climate resilience efforts across the state. The move makes Hawaii the first in the U.S. to directly link tourism taxes to climate change mitigation.
The new law adds a 0.75% surcharge to the state’s existing 10.25% hotel room tax, bringing the total to 11%. With additional state and county fees, visitors will now pay nearly 19% in accommodation taxes—among the highest rates in the country. The legislation also introduces a new 11% tax on cruise ship passenger bills starting July 2026, prorated by the number of days ships spend in Hawaii ports.
Officials estimate the measure will generate nearly $100 million annually. Funds will go toward projects such as replenishing sand on Waikiki’s eroding beaches, clearing invasive grasses linked to wildfire risk, and installing hurricane clips on roofs to increase storm resilience. It will also support new positions, including a state fire marshal to lead wildfire prevention efforts.
The bill comes in the wake of the devastating Lahaina wildfire on Maui, which killed 102 people and nearly destroyed the town in 2023. “There will be no way to deal with these crises without some forward-thinking mechanism,” said Governor Green during the bill signing ceremony.
Initially, Green had proposed that the new revenue flow into a dedicated climate fund. Lawmakers instead opted to channel the funds into the state’s general fund, with the governor required to request allocations for climate-related projects. The measure prioritizes protecting native ecosystems, enhancing climate resilience, and managing tourism’s environmental impact.
Despite initial hesitations, Hawaii’s hotel industry ultimately supported the bill. Governor Green praised their willingness to “look at the greater good” for both tourism and the planet.
State Representative Adrian Tam, chair of the House tourism committee, emphasized the need for transparency and urgency. “The visitor industry will struggle if we do not take action now,” he said. “There will be nothing left to showcase if our beaches erode, wildfires consume our towns, and our trails are left unmanaged.”
