Hawaii raises tourist tax for the climate

Hawaii, an iconic Pacific archipelago, is facing growing environmental challenges, including coastal erosion, forest fires and biodiversity loss. Faced with these challenges, the state has decided to adopt an innovative fiscal measure: increasing the tourism tax to fund climate resilience initiatives. This decision marks a turning point in the way tourist destinations approach the issue of climate change.

From January 1, 2026, visitors staying in Hawaii will see their lodging taxes increase by 0.75%, bringing the total rate to 11%. The increase applies to hotels, vacation rentals and, for the first time, cruises calling on the archipelago. Local counties have the option of adding a further 3% surcharge, bringing the total to 14%. Expected revenues, estimated at nearly $100 million a year, will be allocated to projects to protect the environment and combat climate change.

Hawaii’s environmental context

Hawaii is particularly vulnerable to the impacts of climate change. Beach erosion, rising sea levels and forest fires are real threats to the archipelago. In 2023, the island of Maui was devastated by a major fire, underlining the urgent need for action.

Tourism, a key sector of the Hawaiian economy, accounts for between 21 and 24% of the state’s GDP. This economic dependence makes preserving the environment all the more crucial, as degradation of natural resources could harm the destination’s attractiveness.

The Hawaiian authorities have therefore decided to integrate the climate issue into their tourism strategy, by imposing a tax dedicated to environmental resilience. This initiative aims to secure stable funding for environmental protection projects and strengthen the sustainability of the tourism sector.

Details of the new tax

The law, signed by Governor Josh Green in May 2025, calls for a 0.75% increase in the tax on temporary accommodations, bringing the total rate to 11%. The measure applies to hotels, vacation rentals and cruises calling on Hawaii. Local counties can add a 3% surtax, bringing the total to 14%. Expected revenues, estimated at nearly $100 million a year, will be allocated to projects to protect the environment and combat climate change.

Funds raised will be used for initiatives such as re-sanding Waikiki’s beaches, promoting the use of hurricane clips to secure roofs during severe storms, and eliminating invasive and flammable grasses.

This tax is the first of its kind in the US, explicitly aimed at funding climate resilience efforts. It reflects a global trend where tourist destinations are adopting similar measures to fund environmental protection.

Reactions and implications for the tourism sector

The Cruise Lines International Association has challenged the tax in court, arguing that it violates the US Constitution by imposing a tax on cruise ships when they enter Hawaiian ports. It also argues that it would increase the cost of cruising.

Despite these challenges, a federal judge validated the law, allowing it to be implemented in 2026. Hawaiian authorities believe the tax is essential to ensure that cruise operators contribute fairly to the state’s climate resilience efforts.

Tourism industry professionals are concerned about the potential impact of this tax on tourist numbers. However, local authorities believe that travelers will accept the increase, as it will enable Hawaii to preserve its beaches and natural sites, strengthening its appeal as a sustainable destination.

Comparison with other tourist destinations

Hawaii joins other island destinations, such as the Maldives, Seychelles and French Polynesia, which have also implemented measures to fund environmental protection in the face of the impacts of climate change. These initiatives reflect a global trend where tourist destinations are seeking to integrate environmental sustainability into their business models.

These measures underline the importance of reconciling tourism development and environmental preservation. By investing in climate resilience, these destinations aim to ensure their sustainability and offer visitors an authentic, nature-friendly experience.

Future prospects for Hawaii

The introduction of this tax represents Hawaii’s strong commitment to environmental sustainability. The funds raised will finance concrete projects to combat the impacts of climate change, such as beach restoration, marine ecosystem protection and forest fire prevention.

This initiative could also inspire other tourist destinations to adopt similar measures, contributing to a global awareness of the importance of sustainability in the tourism sector. By integrating the climate issue into their strategy, these destinations are showing that environmental protection is compatible with economic development and the well-being of local communities.

In conclusion, the increase in Hawaii’s tourism tax to fund climate resilience initiatives is an innovative measure that reflects a growing awareness of environmental issues. It illustrates the need to integrate sustainability into the economic model of tourist destinations to ensure their long-term survival and offer visitors a nature-friendly experience.

This initiative could serve as a model for other destinations facing similar challenges, underlining the importance of a proactive approach to climate change. By investing in environmental protection, Hawaii is leading the way towards more sustainable and responsible tourism.