Hawaii introduces climate-driven tourist tax

Hawaii – Hawaii is making climate history with a landmark bill that raises tourist taxes to fund environmental protection and climate resilience projects.

Backed by Governor Josh Green, the legislation introduces a 0.75% increase to the existing 10.25% lodging tax on hotels, timeshares and holiday rentals, alongside a new 11% tax on cruise ship stays, prorata-ed by port days. Officials predict the initiative will generate nearly £75.4m ($100m, €89.6m) annually, funding projects such as Waikiki beach replenishment, wildfire prevention and hurricane defences.

As rising visitor numbers put a strain on fragile eco-systems, we are entering a new era of purpose-led tourism governance – one increasingly shaped by community-led activism, regulatory shifts and travellers’ appetite for responsible experiences, a topic explored in our Anti-tourism Market. By implementing this new bill, Hawaii joins the ranks of businesses and organisations using legalities and governance to protect the environment and even electing nature as a stakeholder.