Let's Dive into Hawaii's New Green Fee!
Tourists visiting Hawaii will soon be obligated to pay a tax influenced by climate change. - Visitors in Hawaii will soon be required to contribute to a climate levy.
Hawaii is readying to impose a new "Green Fee" on tourists from 2026, making it the first U.S. state to do so. This tax, aimed at funding eco-friendly projects, has got locals in a spot. The fee, however, is a response to environmental calamities like the devastating wildfires on Maui that took more than 100 lives and nearly wiped out Lahaina.
Here's a lowdown on the tax:
- Rising Rates: The tax hikes the existing accommodation tax on tourists by 0.75%, pushing it from 10.25% to 11%.
- Cruise Control: For the first time, stays on cruise ships will also be taxed at 11%.
Visitors can expect to cough up an extra $2.25 to $3 per night on average, depending on room rates. With these additional taxes, Hawaii's tourist-focused businesses worry that it might become an expensive getaway.
But fear not, according to Carl Bonham, a researcher at the University of Hawaii, "a slight tax hike on hotel stays may not sway tourists away from the Hawaiian paradise." However, it could lead to tourists cutting down on costs elsewhere, like restaurants or activities.
In 2023, about 10 million tourists flocked to this tropical paradise. The revenue collected from the tax will help fund various environmental projects, including coral reef preservation, invasive vegetation clearing, and trail maintenance.
- Hawaiian Haps: Hawaii, Maui, tourist paradise, Hawaii Governor Josh Green, Honolulu.
- Enrichment Insights:
- Revenue Generation: The tax is expected to garner close to $100 million annually.
- County-Specific Taxes: Counties in Hawaii can add an additional 3% lodging tax, potentially making it a 14% tax for accommodations.
- General Excise Tax: A general excise tax of 4% to 4.5% applies to all goods and services in Hawaii.
The Commission has also been asked to submit a proposal for a directive on the protection of the environment, considering tourists might cut down on costs elsewhere to accommodate the increased accommodation tax in Hawaii, known for its ecological crises and tourist-focused businesses. This lifestyle adjustment, coupled with potential travel expenses due to the tax, could influence their travel decisions, especially when planning a future trip to Hawaii's vibrant tourist destinations such as Honolulu or Maui.
