Hawaii has enacted a groundbreaking new law that makes it the first state in the nation to impose a “green fee” on tourists, a measure aimed at safeguarding the islands’ environment and bolstering climate resilience. Governor Josh Green signed the bill into law this week, establishing a 0.75% increase to the state’s transient accommodations tax (TAT), which is applied to hotel rooms and short-term lodging. The fee, scheduled to take effect next year, is projected to generate approximately $100 million annually to support climate adaptation, environmental restoration, and disaster preparedness.
Visitors will now pay 11% in state TAT, in addition to a separate 3% county surcharge. On a $400 room, the green fee amounts to roughly $3. Governor Green emphasized the urgent need for proactive solutions in the face of intensifying natural disasters and the state’s ongoing recovery from the 2023 Lahaina wildfire. “There will be no way to deal with these crises without some forward-thinking mechanism,” Green said, highlighting the model as a necessary balance between environmental protection and economic sustainability.
Revenue from the green fee is expected to fund restoration of beaches, removal of invasive species, and maintenance of trails, coral reefs, and other natural assets that draw nearly 10 million tourists to Hawaiʻi each year. State officials argue that this influx of visitors places significant strain on the environment, and the fee helps ensure that those who benefit from the islands also contribute to their preservation.
Support from the hospitality industry has grown following consultations with the governor’s office. Leaders from organizations such as the Hawaiʻi Hotel Alliance and Outrigger Hotels and Resorts attended the signing ceremony, acknowledging that ecological degradation could threaten the very tourism that sustains the state’s economy. “We need the money to restore those beaches, to reconstruct them, to take care of invasive plants,” said Jerry Gibson, president of the Hawaiʻi Hotel Alliance.
Although some concerns persist about potential impacts on tourism, many industry representatives now agree that action is necessary to preserve the long-term appeal of Hawaiʻi as a destination. The process to allocate funds will begin in the fall, with the first revenue expected in January. Unlike traditional special funds, the green fee revenue will flow into the state’s general fund, with oversight from agency leaders and the state’s new fire marshal to determine spending priorities.
The law follows years of legislative gridlock on the issue. After previous efforts failed, Governor Green formed a Climate Advisory Team (CAT) to engage stakeholders across government, business, and nonprofits. That group’s research emphasized Hawaiʻi’s vulnerability to climate risks and the pressing need for sustained investment in mitigation strategies.
Proposals considered in earlier years ranged from airport arrival charges to one-time park access fees, but these raised logistical and legal questions. Lawmakers ultimately decided that raising the TAT provided the simplest and most effective path forward. The fee mirrors similar initiatives adopted by environmentally conscious destinations such as New Zealand and Palau.
Environmental organizations have long called for consistent funding to address conservation challenges across the islands. A recent study from the coalition Care For ʻĀina Now estimated a conservation funding shortfall of at least $560 million annually, possibly as high as $1.69 billion under more severe projections. Governor Green noted that green fee revenues may also be used to back bonds for larger infrastructure and environmental protection projects in the future.
