How Hawaii’s Innovative Tourism Tax Aims to Tackle Climate Change Challenges

As Hawaii approaches the second anniversary of the Maui wildfires, it’s introducing a notable change to help combat climate change. Starting January 1, 2026, the state will implement a new “green fee” for tourists. This will raise the tourism tax from 10.25% to 11%. The aim? To generate about $100 million each year for environmental restoration projects, like coral reef rehabilitation and fire-prevention measures.

Governor Josh Green is behind this initiative, making it the first dedicated climate fee on tourism in the U.S. The recent wildfires, which caused more than $5.5 billion in damages, spurred public support for this bill. “Those fires profoundly awakened our state,” Green noted, emphasizing the need for a system to manage climate risks.

What sets Hawaii’s approach apart is that the new fee focuses on sustainability rather than just funding infrastructure or marketing. This has become a global trend, with other destinations, such as Venice and Bhutan, using tourism taxes to support conservation efforts.

Green also plans to phase out the Hawaii Tourism Authority. A new nonprofit, the Destination Stewardship Organization, will emerge to focus on local values and community engagement instead of just promoting mass tourism.

While some tourists have resisted this “surf tax,” many in Hawaii’s hospitality sector back it wholeheartedly. Economist Carl Bonham from the University of Hawaii stated, “The visitor industry relies on Hawaii’s natural environment, and we aren’t doing enough to protect it.” This bill received strong support from hotels since the funds will go toward protecting the very ecosystems that attract visitors.

However, there are concerns. Critics point out that adding new fees on top of existing ones may reduce local spending, a challenge faced by many popular tourist spots like Paris and London, where regulations have sometimes failed to solve overtourism issues.

Despite these concerns, Governor Green believes Hawaii’s green fee can serve as a model for other states facing similar climatic challenges. He said, “It’s probably different for everyone, but I expect other places… to do some version of this.” If Hawaii can truly connect tourism to environmental care, it could set a new standard for responsible travel in an era of climate urgency.



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Bloomberg, Josh Green, Hawaii, Hawaii, tourism tax, Robb Report