In a groundbreaking move, Hawaiʻi has become the first U.S. state to introduce a “green fee” aimed at preserving its fragile environment and addressing the growing effects of climate change. Governor Josh Green signed the new legislation into law this week, marking a significant shift in how states fund climate resilience and environmental conservation.
Starting next year, tourists visiting Hawaiʻi will see a 0.75% increase in the transient accommodations tax (TAT), bringing the total state tax on hotel rooms and short-term rentals to 11%. With additional county taxes, visitors will pay about $3 more per night on a $400 room stay.
State officials estimate the new fee could generate up to $100 million annually. A portion of this funding will help Hawaiʻi respond to natural disasters, like the devastating Lahaina wildfire in 2023, and support long-term conservation projects.
“This is a necessary step forward,” Governor Green said. “Hawaiʻi is doing what other states and countries will eventually need to do — create sustainable ways to protect people, places, and the economy in the face of climate challenges.”
Supporting Nature and Local Communities
The revenue will go toward restoring beaches, removing invasive species, and strengthening natural areas like reefs, mountains, and trails against climate-related threats such as stronger storms and prolonged droughts. It also aims to ease the burden on local residents, who have long shouldered the financial cost of environmental degradation caused by tourism.
Jerry Gibson, president of the Hawaiʻi Hotel Alliance, acknowledged the industry’s initial resistance but emphasized the urgency of action: “We need the money to restore those beaches, to take care of invasive plants. We’ve come full circle in supporting this initiative.”
Tourism executives, including leaders from Outrigger Hotels and Resorts, said they’re now confident the funds will be used for the intended environmental projects after productive discussions with the governor.
‘Green Fee’ Implementation Still in Progress
While the bill has passed, key decisions still need to be made about how exactly the funds will be allocated. The fee revenue will go into the state’s general fund — not a dedicated environmental fund — which raised concerns about transparency and accountability. However, Green assured the public that a committee of state officials, agency heads, and the newly appointed fire marshal will guide spending priorities.
In addition, local conservation groups welcomed the measure, citing a severe funding gap for environmental efforts. A study released earlier this year by the Care For ʻĀina Now coalition estimates Hawaiʻi needs at least $560 million annually for effective conservation, with worst-case projections reaching $1.69 billion.
Building a Climate-Resilient Future
The idea of a green fee has circulated for years, with past proposals including arrival taxes, park access fees, and phone-based visitor passes. These options were ultimately dismissed due to legal and logistical concerns. Lawmakers concluded that adjusting the TAT was the most straightforward and enforceable path.
The law’s passage was aided by a Climate Advisory Team (CAT), formed by Green after previous legislative failures. The team conducted interviews with more than 60 stakeholders — from nonprofits to local businesses — to assess Hawaiʻi’s climate vulnerabilities and design a workable strategy.
“Our mission wasn’t just about slowing climate change,” said Chris Benjamin, chair of the CAT. “It was about recognizing Hawaiʻi’s vulnerability and finding ways to make our communities more resilient.”
As Hawaiʻi sets a precedent for other states and global destinations, the success of this initiative could redefine how tourism contributes to environmental protection in the face of a warming planet.