Hawaii Increases Hotel Tax to Combat Climate Change: How This Affects Visitors and Locals

HONOLULU (AP) — Hawaii lawmakers have just passed a unique law that increases the state’s lodging tax. This new measure aims to generate funds for environmental protection and better defense against climate change-related disasters.

Governor Josh Green backs the bill and plans to sign it. The law adds a 0.75% fee to the existing tax on hotels, vacation rentals, and other short-term stays. It also introduces an 11% tax on cruise ship bills that will depend on how many days the ships dock in Hawaii.

Officials estimate this tax will generate around $100 million each year. The money will be used for various projects, like replenishing sand on Waikiki’s eroding beaches and promoting the use of hurricane clips to secure roofs during storms. This investment addresses critical issues, particularly in the wake of devastating wildfires in Lahaina last year.

This initiative is noteworthy as it’s the first state lodging tax in the U.S. specifically aimed at environmental sustainability. Currently, Hawaii already has a 10.25% tax on short-term rentals, which will rise to 11% on January 1. Including county taxes, travelers will face a total of 18.712% in taxes, one of the highest in the country.

Many supporters of the bill believe visitors won’t mind the small increase. "People come here for the environment," Governor Green said. He believes that investing in the state’s natural beauty may encourage more visitors in the long run.

Only the funds from the new tax will go directly to environmental causes. Existing tax revenues will still support the state’s general budget, including projects like Honolulu’s rail line.

However, some travelers are concerned. Zane Edleman from Chicago mentioned that the additional cost might make some people consider other destinations, like Florida. "If the state can show the impact of these funds, then travelers might see the bigger picture," he remarked.

The bill’s progression is noteworthy. Some lawmakers initially proposed a larger increase but scaled it back after hearing concerns about tourism sustainability. “We need to balance our tourism industry with environmental needs,” said Rep. Linda Ichiyama, who played a key role in the discussions.

John Pele, head of the Maui Hotel and Lodging Association, expressed cautious optimism. While he agrees many will support the environmental cause, he wonders if higher costs could deter visitors in the long run. “Are we taxing tourists too much?” he asked.

In summary, this legislative move may set a precedent for other states to follow. As climate change becomes an ever-pressing issue, innovative funding solutions like this could become more common.

For more information on climate change initiatives, visit NASA’s Climate Change page.

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