Cool, innovative, and novel environmental governance: Hawai'i is charging tourists to save the environtment.
Hawai'i has become the first state to pass a law to charge tourists and visitors a “green fee” as an additional charge to hotel room stays and other short-term visits to raise additional funds to help protect the environment and the impacts of climate change. What a fantastic idea! A single-purpose source of funding specifically allocated to concerns about Hawai'i’s magnificent environment! Something had to be done, and this is huge. And theoretically, when funds are specifically allocated for a given matter, it may be easier to track the dollars to confirm the money has been applied and used as intended. But that’s another matter entirely. Of course, there were pushbacks from business owners fearing visitors would go elsewhere and they might lose business, but hotel owners seemed to have given their full support.
The new law is scheduled to take effect sometime in 2026 and could raise $100 million every year. Some of those funds will be specifically allocated toward improved responses to disasters like the 2023 Lahaina wildfire. “Specifically, the revenue will come from a .75% increase on the tax Hawai’i visitors pay on their nightly hotel and short-term stays. The uptick raises the state’s transient accommodations tax, or TAT, to 11 percent. Visitors already pay an additional 3 percent TAT on their stays to the counties.” The net increase effect will be $3 extra on a $400 room stay, which really shouldn’t dissuade many people from coming to one of the most beautiful places on earth. “Overall, the move aims to make Hawai’i’s reefs, beaches, trails, mountains, and other unique yet vulnerable environments more resilient to heavier storms, more severe droughts, and other challenges linked to the changing climate.” Now you tell me – who can argue with that? “It also seeks to avoid making locals pay the entire price of that damage.”
I hope the world is watching, because this model, especially for the beautiful areas around the world that will be most vulnerable and negatively impacted by climate change and pollution, should be closely monitoring Hawai'i’s is seriously considering adopting this forward-thinking model for the future impacts of climate change. Touché Hawaii, and all the best!
Sources:
https://www.civilbeat.org/2025/05/hawaii-becomes-first-state-to-charge-tourists-to-protect-the-environment/
Photo credits: David Croxford/Civil Beat/2025
