Hawaiʻi Leads the Way: First State to Implement Tourist Fee for Environmental Protection

Hawaii has made a significant move—it’s now the first state in the U.S. to introduce a "green fee." This charge will be added to hotel stays and short visits to help protect the environment and tackle climate change.

Governor Josh Green signed this law recently. It is expected to launch next year and could generate around $100 million each year. Some funds will go towards disaster responses, like those needed after the 2023 Lāhainā wildfire. "Hawaii is setting an example for others," Green stated. He emphasized that balancing industry and the environment is critical for the state’s future.

The green fee is a 0.75% increase on the existing tax on temporary accommodations. This raises the total transient accommodations tax (TAT) to 11%. For visitors staying in a $400 hotel room, this means about an extra $3.

The intention behind this fee is to strengthen Hawaii’s beautiful yet vulnerable natural spaces, making them more resilient against severe weather and environmental challenges. The state sees a direct connection between its nearly 10 million annual visitors and ongoing climate issues.

While some local rental owners and hotel operators were worried that the fee could deter tourists, a number of industry leaders showed their support at the signing. They agree that the need for environmental restoration—like rebuilding eroding beaches and managing invasive species—is urgent to keep tourists coming back.

Jerry Gibson, the president of the Hawaii Hotel Alliance, stated, "We need this funding to tackle these pressing issues." Jeff Wagoner, president of Outrigger Hotels, also noted that discussions about how the funds would be used helped ease industry concerns.

Details on how the funds will actually be spent are still being discussed. The process for determining project allocations will start in the fall, just before collections begin in January. Importantly, the fee revenue will go into the general fund rather than a separate conservation fund, which could lead to it being used for purposes other than environmental projects. Governor Green assured that there would be collaborative discussions on spending decisions.

Local conservation groups have long called for financial support to address environmental concerns. A study from Care For ʻĀina Now revealed an annual funding gap of at least $560 million for Hawaii’s conservation needs—potentially growing to $1.69 billion under worse conditions. Green believes the green fee can help address this gap and even finance larger projects through bonds.

After earlier proposals for alternative funding methods failed, including fees upon arrival at the airport or park usage fees, lawmakers settled on the increased TAT. This approach has drawn inspiration from similar fees in other tourist destinations like Palau and New Zealand.

Overall, the introduction of the green fee represents not just an immediate response to climate challenges, but also a longer-term strategy to enhance Hawaii’s resilience against environmental threats. As the first state to adopt such a measure, Hawaii is paving the way for sustainable tourism practices nationwide.

For more insights on climate policies and their implications, you can explore resources from Hawaii’s Department of Land and Natural Resources.

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