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Hawaii's 'Green Fee' to Raise Hotel, Cruise Ship Charges in January

  • On Tuesday in Honolulu, Governor Josh Green enacted Senate Bill 1396, establishing Hawaii's inaugural "Green Fee" on accommodations such as hotels, cruise ships, and short-term rentals, set to take effect January 1, 2026.
  • The fee increases the Transient Accommodations Tax by 0.75%, a move driven by the urgent need to fund climate change responses exacerbated by the 2023 Maui wildfires that devastated Lahaina and the tourism industry.
  • The additional revenue, projected at $90 to $100 million annually, will support projects like beach restoration, wildfire prevention, coral reef recovery, flood mitigation, and invasive species removal through grants available to nonprofits and state agencies.
  • Governor Green highlighted the need to ease the tax burden on local residents and explained that visitors would contribute just under a 1% increase in fees, aiming to fund the preservation of Hawaii’s natural environment and encourage repeat tourism.
  • This pioneering law marks Hawaii as the first U.S. State to enact such a green fee, aiming to balance environmental protection with economic growth while serving as a potential national model for other tourist destinations.
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Civil Beat broke the news in Honolulu, United States on Tuesday, May 27, 2025.
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