Dreaming of a tropical escape to Hawaii? You’re not alone. Millions of tourists flock to this stunning American state every year, drawn by its stunning beaches, lush rainforests, and vibrant culture.
But if you’re planning a trip soon, there’s a new cost to factor into your holiday budget, and it has officially come into force.
Hawaii’s brand-new ‘Green Fee’ tourist tax has officially come into force, with the aim of protecting the state’s stunning natural beauty for generations to come.
But what does this mean for travellers? Let’s break it down.
The Story Behind Hawaii’s ‘Green Fee’
Hawaii has long been a bucket-list destination, and it’s especially a favourite for Australians seeking sun, surf, and a bit of island magic. In 2025 alone, the islands welcomed over 7 million visitors in just the first nine months, with numbers expected to climb as travel rebounds post-pandemic.
But paradise comes at a price. The islands’ delicate ecosystems are under increasing pressure from the sheer volume of visitors. Add to that the devastating wildfires that swept through Maui in 2023, destroying much of Lahaina and tragically claiming over a hundred lives, and it’s clear that Hawaii faces some serious environmental challenges.
The disaster also highlighted just how vulnerable Hawaii is to the impacts of climate change, from rising sea levels to more frequent and intense natural disasters.
In response, Governor Josh Green signed legislation introducing a new tourist tax, designed to help the state address the impacts of climate change and fund vital environmental projects. The goal? To raise funds for climate resilience, environmental restoration, and disaster preparedness.
In a previous interview, he shared: ‘The implementation of this Green Fee ensures that visitors who come to Hawai’i are making an investment in Hawai’i’s future and become our partners in regenerative tourism.’
How Much Will the New Tax Cost You?
The new Green Fee adds $0.75 (about $1.10 AUD) per night to every hotel room or vacation rental. For a $500 hotel room, that’s an extra $4 or so for your stay. While not a huge amount, it adds up when you consider the millions of visitors each year. The state expects to raise around $100 million annually from this fee.
But that’s not all. If you’re arriving by cruise ship, there’s now an 11 per cent tax on your cruise bill, prorated for the number of days your ship is docked in Hawaii’s ports. This move has sparked controversy, with cruise lines challenging the law in court, arguing it could hurt tourism and even violate the US Constitution.
However, a federal judge has given the tax the green light, so cruise passengers will also be contributing to Hawaii’s environmental efforts.
Where Will the Money Go?
Hawaii’s Green Fee is earmarked for specific, much-needed projects. The funds will be used to:
- Replenish eroding beaches
- Build firebreaks to prevent future wildfires
- Restore damaged ecosystems
- Support erosion mitigation and environmental stewardship
- Stabilise the insurance market after the Maui wildfires
In a press release announcing the legislation, Governor Green shared that ‘as an island chain, Hawai’i 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.’
A Win-Win for Locals and Visitors?
Supporters of the tax, including local politicians like Representative Adrian Tam and Senator Lynn DeCoite, argue that it’s a win-win: tourists help pay for the upkeep of the very landscapes they come to enjoy, while locals benefit from a healthier environment and a more resilient economy.
Meanwhile, Senator Lynn DeCoite summed it up: ‘Supporters of the tax, including local politicians like Representative Adrian Tam and Senator Lynn DeCoite, argue that it’s a win-win: tourists help pay for the upkeep of the very landscapes they come to enjoy, while locals benefit from a healthier environment and a more resilient economy.’
What Does It Mean For Travellers?
If you’re planning a Hawaiian getaway, the new tax is unlikely to break the bank, but it’s a good reminder to check the fine print when booking accommodation or cruises. Plus, it’s a great opportunity to reflect on how we can all be more responsible travellers, whether that’s by supporting local businesses, respecting the environment, or simply being mindful of our impact.
Key Takeaways:
- Hawaii has introduced a new ‘Green Fee’ tourist tax, adding $0.75 to daily hotel and holiday rental room rates and an 11 per cent levy on cruise ship bills, aimed at raising funds to tackle climate change and bolster environmental resilience after the devastating 2023 Maui wildfires.
- The new tax measures are expected to generate an estimated $100 million each year, with funds earmarked for projects such as beach replenishment, firebreak construction, and erosion mitigation.
- While the cruise industry challenged the 11 per cent cruise ship tax in court, arguing it would negatively impact tourism and was unconstitutional, a federal judge has allowed the law to take effect.
- Hawaiian officials say these measures will help protect natural resources, share stewardship with visitors, support the economy, and reduce taxpayer burden by investing in long-term environmental sustainability.
Have you visited Hawaii recently, or are you planning a trip? Do you think the new Green Fee is fair, or will it make you think twice about booking a holiday there? Have you seen similar taxes in other destinations?
We’d love to hear your thoughts and experiences! Share your comments below and let’s chat about how we can all be responsible travellers, while still enjoying the best the world has to offer.
