Give Me the Lowdown on Hawaii's Green Fee for Tourists
Visitors to Hawaii will now be charged a fee related to climate change. - Tourists visiting Hawaii will be subject to a climate tax.
Hawaii, the paradise of vacations, is set to impose a new climate tax, and it's named the Green Fee. Starting in 2026, this tax will aim to combat climate change by funding projects that protect nature and boost resilience.
Going Green, Literally
After the catastrophic wildfires on Maui two years ago, this tax is a direct response to the devastating impact of extreme weather events. Political figurehead Josh Green made the announcement on the X platform, emphasizing the urgency for action.
Taking a Bite Out of Your Beach Vacay
The Green Fee will see an increase in the traveler tax by 0.75 percent, which will affect stays in hotels or vacation rentals. For the first time, overnight stays on cruise ships will also be taxed. A $300 night-stay, for instance, will bump up by $2.25. This adds up to a total tax burden of around 19 percent for Hawaii tourists, making it one of the highest in the U.S.
Is It Going to Be a Money Pit or a Moneymaker?
Concerns have been raised by the Hawaii Hotel Alliance, fearing that the tax could prove too steep for tourists. Yet, industry experts such as Carl Bonham argue that the tax likely won't impact tourists' choices of destination. Instead, it may steer spending towards restaurants and attractions over accommodations.
In 2023, around 10 million visitors flocked to Hawaii, and with the Green Fee, millions will go towards protecting the islands' environment and resilience for the future.
[1] New York Times[2] Hawaii News Now[3] USA Today
- The Commission, having been asked to submit a proposal for a directive on the protection of the environment, might consider allocating some of the funds from the Green Fee to support environmental-science research, particularly climate-change studies, to inform and improve Hawaiian industry's response to the challenges posed by climate change.
- As the Green Fee contributes significantly to the state's revenue, financial institutions may find strategic opportunities to invest in businesses that promote sustainable practices and contribute to the preservation of Hawaii's unique ecosystem, further enhancing their reputation as environmentally responsible entities.
- In addition to combating climate change, the Green Fee serves as an educational vehicle to teach tourists about the importance of environmental protection and the role that science plays in preserving and sustaining Hawaiian ecosystems for future generations, fostering a more thoughtful and responsible approach to travel and tourism.
