Starting in 2026, travelers to Hawaii will notice a small but significant increase in the cost of their stay, and it’s all in the name of protecting paradise.
On Tuesday, Hawaii became the first U.S. state to implement a climate impact fee, a move designed to support environmental conservation and climate resiliency efforts across the islands. Known as Act 96, the new law adds a 0.75% surcharge to the state’s existing transient accommodations tax (TAT), bringing the total to 11% on nightly lodging rates beginning January 1, 2026.
The fee applies not only to hotels and short-term rentals but also, marking a historic first, to cruise ship passengers, who previously were exempt from the tax. The state says this change promotes fairness across the tourism industry while ensuring that all visitors help shoulder the cost of preserving Hawaii’s fragile ecosystems and local communities.
“Today Hawaiʻi ushers in the first Green Fee in the nation. Once again, Hawaiʻi is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawaiʻi. As an island chain, Hawaiʻi 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,” said Governor Josh Green in a statement.
What will the money be used for?
The new climate fee is projected to generate an estimated $100 million each year, though exactly how the funds will be allocated is still being finalized. Specific projects are expected to be confirmed during the next legislative session.
What is clear, however, is the motivation behind the move: a growing urgency to address the rising toll of climate change on Hawaii’s environment and communities. The bill was introduced in the wake of the devastating 2023 Maui wildfires, which underscored the islands’ vulnerability to climate-fueled disasters and the need for sustained investment in resiliency and environmental stewardship.
“I mahalo the tourism industry for stepping up and collaborating on this initiative, which will preserve Hawaiʻi for kamaʻāina and visitors alike,” said Governor Green. “The fee will restore and remediate our beaches and shorelines and harden infrastructure critical to the health and safety of all who call Hawaiʻi home, whether for a few days or a lifetime.”
