Hawaii Implements Landmark Tourist Tax to Fund Climate Initiatives; Kilauea Volcano Erupts Dramatically

Hawaii has enacted the nation’s first “green fee” tourist tax, targeting hotel rooms, vacation rentals, and—for the first time—cruise ship stays, in a sweeping move to address the mounting impacts of climate change. The new tax, signed into law by Governor Josh Green, raises the state’s transient accommodations tax (TAT) by 0.75%, bringing it to 11% on nightly lodging rates starting January 1, 2026. With additional county surcharges, the total levy on accommodations will approach 19%, making it one of the highest in the U.S.

The initiative, known as Act 96, is expected to generate $100 million annually. These funds will be directed toward a range of climate resilience and ecological protection projects, including restoring eroding beaches, reducing wildfire risks, installing hurricane clips for roof security, and removing invasive vegetation that has contributed to devastating wildfires in recent years. The law also establishes formal oversight by a Climate Advisory Team and requires annual budget reviews to ensure accountability and effective allocation of resources.

Governor Green emphasized the urgency of the measure, stating, “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.” The tax will apply to all visitors and residents staying in hotels or short-term rentals, with a $300 per night hotel room incurring an extra $2.25 nightly charge.

While supporters hail the move as groundbreaking, some critics argue it could deter tourism spending and question whether the funds will be used effectively. Nevertheless, Hawaii’s government maintains that those enjoying the state’s natural beauty should contribute to its preservation.

The legislative milestone comes as Hawaii’s dynamic environment again captured global attention: on May 26, Kilauea Volcano erupted spectacularly, sending lava fountains more than 1,000 feet into the air, according to the U.S. Geological Survey. Dramatic footage, including a GoPro camera surviving a direct lava flow, has highlighted both the islands’ natural wonders and the urgent need for climate resilience.

With nearly 10 million annual visitors, Hawaii’s new green fee sets a precedent in the U.S., aiming to balance the economic benefits of tourism with the urgent need to protect its fragile ecosystems for future generations.