Hawaii’s Plan to Increase Accommodation Tax: Funding Climate Action and Environmental Sustainability

Hawaii is planning to raise taxes on hotel accommodations to fund climate action efforts. On May 9, 2025, lawmakers will vote on a proposal to increase the daily room levy by 0.75%. If passed, this will bring the total tax rate to 11%.

With about 10 million tourists visiting Hawaii each year, this increase could generate around $100 million annually. The state aims to allocate these funds specifically for environmental protection and combating climate change. Experts believe Hawaii may be the first U.S. state to implement such a tax strategy.

Governor Josh Green emphasized the urgency of this initiative, especially in light of the devastating 2023 Maui wildfires that resulted in over 100 lives lost and costs nearing $13 billion. “These funds will help us prevent the next disaster,” he said.

Historic! It looks like Hawai‘i will pass the nation’s first-ever green fee — a small increase on hotel stays that will make a huge impact for our islands. pic.twitter.com/j5xaT3DdNw

— Governor Josh Green (@GovJoshGreenMD) April 29, 2025

This new tax comes on top of existing tourism taxes, including a 3% levy from various counties and nearly 5% on goods and services. Together, these could push the tax burden close to 19%. Despite some concerns over these high rates, Governor Green believes tourists are willing to contribute to keep Hawaii beautiful.

With more than 10 million visitors a year, we need resources to protect our beaches, create fire breaks, fix parks and bathrooms, and keep our islands safe and beautiful.

— Governor Josh Green (@GovJoshGreenMD) April 29, 2025

However, not everyone agrees with the tax increase. Jerry Gibson, president of the Hawaii Hotel Alliance, expressed concerns about the impact on tourism businesses. He said, “No one in the industry wants to see more taxes, but our state needs funds.” Additionally, the conservation campaign group Care for Aina Now estimates a funding shortfall of $561 million for environmental projects, suggesting that even this new tax may not fully meet the islands’ needs.

The green fee will bring in over $100 million every year — giving us the power to restore what we love, respond quickly to climate disasters, and safeguard our future.

— Governor Josh Green (@GovJoshGreenMD) April 29, 2025

Other regions have approached conservation differently. For instance, Fiji’s “Loloma Hour” initiative encourages tourists to spend an hour on environmental projects. In Hawaii, there’s potential to adopt the local saying “A stranger only for a day” to inspire visitors to actively engage in preserving the islands’ natural beauty.

This tax initiative highlights a growing trend among destinations that prioritize sustainability. According to recent surveys, over 70% of travelers express willingness to pay extra fees if they know the funds benefit local conservation efforts. This shift could mark a turning point in how tourism interacts with environmental stewardship.

For more information on Hawaii’s climate action plan and other environmental initiatives, you can check resources from reputable sources like the EPA or local conservation groups.

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