Hawaii’s Green Fee: A New Tax on Tourism

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May 30, 2025

Hawaii's new Green Fee taxes tourists for their carbon footprint, sparking debate. Will it protect paradise or burden visitors? Read on to find out.

Financial market analysis from 30/05/2025. Market conditions may have changed since publication.

Have you ever dreamed of escaping to the sun-kissed shores of Hawaii, only to wonder what it costs—not just in dollars, but to the planet? I’ve always been captivated by the idea of paradise, but a recent change in Hawaii’s tourism policy caught my attention. Starting January 1, 2026, the Aloha State will become the first in the U.S. to charge visitors a climate impact fee, a bold move that’s stirring up conversations about sustainability, fairness, and the future of travel. This new tax, dubbed the Green Fee, aims to protect Hawaii’s natural beauty but raises questions about who really pays the price.

Why Hawaii’s Green Fee Matters

Hawaii’s decision to implement a climate impact fee isn’t just a policy shift; it’s a statement about the state’s commitment to preserving its breathtaking landscapes. The Green Fee adds a 0.75% surcharge to the existing 10.25% transient accommodations tax, bringing the total to 11% on nightly lodging rates. For a $300 hotel room, that’s an extra $2.25 per night. It might not sound like much, but with millions of visitors flocking to Hawaii each year, officials estimate this could generate $100 million annually for climate resiliency projects.

Protecting our natural resources is crucial for sustaining Hawaii’s ecological, cultural, and economic health.

– State official

The funds are earmarked for initiatives like wildfire prevention, coastal restoration, and renewable energy projects. After the devastating 2023 Maui wildfires, which caused billions in damages, it’s hard to argue against the need for proactive measures. But here’s where it gets tricky: is this fee a genuine step toward sustainability, or just another way to fill government coffers?


Who Pays the Green Fee?

The Green Fee applies to anyone staying in hotels, short-term vacation rentals, or even cruise ships docking in Hawaii. Whether you’re a tourist sipping mai tais on Waikiki Beach or a local treating yourself to a staycation, you’ll feel the pinch. For visitors, it’s an extra cost to an already pricey destination. For residents, it’s a reminder that even paradise comes with a tax bill.

  • Hotels: A $300 nightly rate now includes an additional $2.25 tax.
  • Vacation rentals: Platforms like Airbnb are subject to the same fee.
  • Cruise ships: A new inclusion, impacting thousands of passengers.

I can’t help but wonder how this will affect Hawaii’s tourism industry, which accounts for nearly a quarter of the state’s economy. Will budget-conscious travelers think twice before booking? Or will the fee blend into the background, just another line item on a vacation invoice?

The Bigger Picture: Carbon Taxes and Climate Goals

Hawaii’s Green Fee is just the tip of the iceberg. The state has ambitious plans to cut carbon emissions by 70% by 2030 and achieve zero emissions by 2045. To get there, officials are rolling out a phased-in system, with a proposed carbon tax rate of $80 per ton by the end of the decade. This could mean taxes on everything from car rentals to luaus—anything with a carbon footprint.

YearCarbon Tax GoalImpact Area
2026Green Fee on lodgingTourism
2030$80 per ton carbon taxAll industries
2045Zero emissionsStatewide

The idea sounds noble, but I’m skeptical. Carbon taxes often feel like a catch-all solution, applied without clear evidence tying emissions to specific climate issues. Hawaii’s plan assumes carbon dioxide is the villain, yet the science isn’t as clear-cut as policymakers suggest.

Does Carbon Really Cause Climate Change?

Here’s where things get controversial. The narrative around climate change often hinges on carbon emissions as the primary driver. But when you dig into the data, the story gets murkier. Climate models frequently cited by researchers rely on a narrow dataset—typically from the 1880s onward. That’s a mere blip in Earth’s climatic history.

Modern civilization exists in one of the coldest periods in Earth’s history, not the warmest.

– Environmental researcher

Looking at millions of years of temperature records, warming periods have occurred without human activity. Carbon levels in the atmosphere don’t always correlate with temperature spikes. So, why tax carbon so heavily? In my view, it’s less about science and more about control—and revenue. Governments and organizations have poured billions into climate research that supports the global warming narrative, creating a self-sustaining cycle of funding and policy.

The Impact on Locals and Visitors

Hawaii already has one of the highest tax burdens in the U.S., and residents aren’t exempt from the Green Fee. If you’re a local splurging on a resort stay, you’ll pay the same surcharge as tourists. Some lawmakers have floated the idea of a tax “kickback” for residents, but don’t hold your breath. Once a tax is in place, it tends to spread like wildfire.

  1. Tourism costs rise: Visitors face higher expenses, potentially deterring budget travelers.
  2. Local burden: Residents paying for staycations or business travel get hit too.
  3. Economic ripple: Higher costs could reduce tourism revenue, affecting local businesses.

I’ve always believed travel should be accessible, not punitive. While I admire Hawaii’s commitment to its environment, I worry this fee sets a precedent for other states to follow. Imagine every popular destination slapping on a climate tax—what’s next, a surcharge for breathing?

Is the Green Fee Fair?

Fairness is subjective, but let’s break it down. On one hand, tourists benefit from Hawaii’s pristine beaches and rainforests, so contributing to their preservation makes sense. On the other, the fee feels like a blanket tax that doesn’t account for individual behavior. A family staying in an eco-friendly resort pays the same as someone in a gas-guzzling tour van. Where’s the incentive for sustainable choices?

Green Fee Breakdown:
- Base: 0.75% on lodging
- Applies to: Hotels, rentals, cruises
- Annual revenue: ~$100 million
- Purpose: Climate resiliency projects

Perhaps the most frustrating part is the lack of transparency. How will the $100 million be spent? Will it truly protect Hawaii’s ecosystems, or just fund bureaucratic pet projects? I’d love to see a clear plan, but history suggests governments aren’t always great at follow-through.

What’s Next for Hawaii and Beyond?

Hawaii’s Green Fee is a test case. If it succeeds, expect other states or countries to jump on the bandwagon. California, with its own aggressive climate goals, could be next. Globally, destinations like New Zealand or Costa Rica, known for eco-tourism, might adopt similar measures. But success depends on execution—will the funds make a tangible difference, or just disappear into a black hole of “resiliency projects”?

For travelers, the Green Fee is a reminder that vacations come with hidden costs. It’s not just about booking flights or snagging a hotel deal; it’s about navigating a web of taxes and regulations. Personally, I think Hawaii’s heart is in the right place, but I’m not convinced this is the best way to protect paradise.


So, what do you think? Is the Green Fee a fair price to pay for preserving Hawaii’s beauty, or a slippery slope toward over-taxation? As someone who loves travel, I’m torn. I want to support sustainable practices, but I also crave clarity and fairness. One thing’s certain: this tax is just the beginning, and it’s up to us to keep an eye on where the money goes.

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