Hawaii’s Democratic leadership unveils yet another tourist tax grab while using “climate change” as cover for policies that will drive up costs for visitors and kill tourism jobs.
Key Takeaways
- Hawaii has implemented a “Green Fee” tax of 0.75% on tourists, increasing the total transient accommodations tax to 11% starting January 2026
- Cruise ships will be subject to an additional 11% tax beginning July 2026, marking the first time they’re included in Hawaii’s accommodation taxes
- Democratic Governor Josh Green claims the tax will generate $100 million annually for “climate change resilience” projects following the 2023 Maui wildfires
- This represents another example of liberal states using environmental concerns to justify extracting more money from visitors while potentially harming their tourism economy
Another Tax Grab Disguised as Environmental Stewardship
Hawaii’s Democrat-controlled government has found a new way to extract money from tourists by implementing what they’re calling a “Green Fee” – a 0.75% increase to the state’s transient accommodations tax (TAT). This brings the total tax on nightly lodging rates to a whopping 11%, effective January 1, 2026. Not satisfied with targeting just hotel guests and vacation rentals, the state has expanded its tax reach to cruise ships for the first time, adding an 11% tax on cruise bills beginning July 2026, prorated for days spent in Hawaiian ports. This continues the predictable pattern of blue states implementing taxes under the guise of environmental protection while burdening visitors who already contribute billions to the local economy.
The initiative, championed by Hawaii’s Democratic administration, claims the tax will generate approximately $100 million annually for projects related to “environmental stewardship,” “climate and hazard resiliency,” and “sustainable tourism.” Governor Josh Green signed the legislation after the Climate Advisory Team (CAT) developed the recommendation. This follows the devastating 2023 Maui wildfires, which the left quickly attributed to climate change rather than examining potential failures in forest management and emergency response systems that might have revealed government incompetence.
Governor’s Climate Agenda Takes Priority Over Economic Concerns
Democratic Governor Josh Green has made it clear that implementing climate change taxes is more important than considering the economic impact on Hawaii’s vital tourism industry. The governor has framed the tax as a way to make visitors “partners in regenerative tourism” – a fancy way of saying tourists should pay more for the privilege of visiting the islands. This neglects the reality that tourists already support the Hawaiian economy through significant spending, and this additional tax burden could deter visitors at a time when many Americans are struggling with inflation and seeking affordable vacation options.
“As an island chain, Hawaii cannot wait for the next disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future,” said Governor Josh Green.
Green has explicitly stated his intention to use the money to “pay for all the climate impact of receiving 10 million visitors a year,” ignoring the fact that tourism contributes $2.36 trillion to the U.S. GDP in 2023. Rather than focusing on policies that would encourage more visitors to experience Hawaii’s natural beauty while keeping costs reasonable, the state has chosen to implement another tax that will make vacationing in Hawaii even more expensive than it already is. This follows the familiar Democratic playbook of taxing first and asking questions about economic impact later.
Vague Spending Plans Raise Red Flags
The language around how the estimated $100 million in annual tax revenue will be spent remains troublingly vague. The state claims it will fund climate change mitigation efforts, such as building firebreaks and hiring a fire marshal. However, the bill’s broad spending categories leave ample room for misappropriation and the funding of pet projects under the umbrella of “environmental stewardship” and “sustainable tourism.” Hawaii already collects substantial tax revenue from its tourism industry, yet infrastructure problems persist across the islands, raising legitimate questions about whether this new money will actually be spent effectively.
“We need these dollars to help replenish our beaches, build firebreaks and more. The mitigation efforts it will fund will have a stabilizing effect on the insurance market after the Maui wildfires, and it will generate $100 million for us every year,” said Josh Green, Hawaii Governor.
This latest tax exemplifies how the climate agenda has become a convenient justification for expanding government revenue streams without clear accountability measures. While legitimate environmental conservation efforts deserve support, Hawaii’s approach appears to be another example of Democratic leadership using climate concerns as political cover for increasing taxation. Instead of implementing market-based incentives or leveraging private-sector innovation to address environmental challenges, Hawaii has chosen the typical big-government approach of raising taxes first and figuring out effective solutions later.
Global Tax Trend Threatens Tourism Economies
Hawaii’s new tourist tax follows a concerning global trend where left-leaning governments in tourist destinations like Greece, Bali, and the Galápagos Islands are implementing similar measures. While sold as efforts to address “overtourism” and climate change, these taxes often fail to deliver their promised benefits while making travel less affordable for middle-class families. The effectiveness of such taxes is widely debated, with outcomes varying dramatically by location and implementation. What remains consistent is that these policies reflect progressive governments’ preference for taxation over innovation when addressing environmental challenges.
“The Green Fee bill marks a historic investment in climate disaster resilience and environmental protection. Using the TAT to fund resiliency projects ensures that the financial burden of safeguarding our Aian (island) and people doesn’t fall upon residents alone. We thank the legislature, industry and countless community groups and individuals who advocated tirelessly for this bill,” said Chris Benjamin.
As President Trump continues to champion American economic growth and opportunities for middle-class families, Hawaii’s new tax represents the opposite approach – increasing costs, potentially reducing tourism jobs, and implementing policy based on climate alarmism rather than balanced economic and environmental stewardship. The true test will be whether Hawaii’s environment actually benefits from this new revenue stream, or if these funds will disappear into the state’s general budget with minimal accountability and oversight.
