Hawaii’s Bold Move: New Hotel Tax Proposal to Combat Climate Change and Support Sustainable Tourism

Hawaii’s New Tax on Travelers: Aiming for a Greener Future

Hawaii is about to implement a new tax on travelers staying in hotels and vacation rentals. This tax will help fund projects aimed at protecting the environment amidst climate change.

State leaders plan to use the funds for critical issues like restoring eroding beaches, assisting homeowners with hurricane-proofing, and eliminating invasive grasses that pose fire hazards, particularly after the devastating wildfires in Lahaina two years ago.

Starting January 1, a proposed bill will increase the daily room tax by 0.75%. Given the Democratic majority in the state legislature, this bill is likely to pass. Governor Josh Green has pledged to sign it into law. Experts project that the tax increase will generate around $100 million annually.

In an interview, Green stressed the importance of these funds, referencing the $13 billion impact of the Maui wildfires and the tragic loss of lives. “These dollars will help us prevent the next disaster,” he said.

Hawaii’s existing lodging tax of 10.25% will rise to approximately 11%. On top of that, counties usually charge an additional 3%, plus a combined general excise tax of about 4.712%. This brings Hawaii’s total lodging tax close to 19%, one of the highest in the U.S.

In comparison, only a couple of large U.S. cities—Omaha and Cincinnati—have higher cumulative lodging tax rates. Governor Green argues that the influx of around 10 million annual visitors can contribute to the upkeep of Hawaii’s natural beauty. After the recent wildfires, many people expressed a desire to help, and this tax provides a way for them to do so.

The hotel industry has mixed feelings about the tax. Jerry Gibson, president of the Hawaii Hotel Alliance, welcomed that the proposed increase was not more substantial. He emphasized, “No one in tourism wants to see more taxes, yet our state needs funding.” Gibson noted that as long as the revenue helps beautify Hawaii, it could be worth it.

Hawaii has long faced challenges in funding various environmental needs. From protecting coral reefs to maintaining trails, the costs are significant. Recent estimates show a $561 million gap between Hawaii’s conservation funding requirements and what is currently being spent. While the new tax won’t cover this gap entirely, Governor Green plans to issue bonds to support long-term projects, leveraging the tax revenue effectively.

Kāwika Riley from the governor’s Climate Advisory Team highlighted a Hawaiian saying, “A stranger only for a day.” This reflects the idea that visitors should help care for the environment after they arrive. “It’s important to be part of the solution,” he said.

In summary, Hawaii’s new tax on lodging is more than just an additional fee. It signifies a commitment to environmental responsibility and a collaborative effort between residents and visitors. It’s a step toward not only preserving Hawaii’s natural beauty but also ensuring a safer, more sustainable future.

For in-depth insights on this development, you can refer to reports from the Tax Foundation and explore studies related to conservation funding needs in Hawaii.

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Jerry Gibson,Josh Green,Business,U.S. news,Climate,environment,Andrey Yushkov