Hawaii's New Lodging Tax: Protecting Paradise from Climate Change
Raising hotel tax in Hawaii as a means to financially address impacts from climate change on the islands.
Say goodbye to cheap vacations in the Aloha State! Hawaii legislators have made a splash by passing a groundbreaking bill that increases the state's lodging tax to bolster environmental protection and fortify defenses against climate change-induced natural disasters.
Gov. Josh Green, a staunch supporter of the measure, indicates his intention to put pen to paper. Beginning January 1, 2026, the already hefty 10.25% state lodging tax (applied to hotel rooms, timeshares, vacation rentals, and other short-term accommodations) will ascend to 11%. Additionally, cruise ship passengers can expect a prorated 11% tax based on the length of their stays in Hawaii ports[1][2][3][4][5].
Analysts project this will generate nearly $100 million annually. To some flowerbeds, this isn't just spare change; it's the difference between Waikiki beaches that are teeming with sunbathers and jaded reefs full of broken promises. The money will fund a medley of ecologically-minded initiatives:
- Reef Revitalization: Iowa beaches have a problem with erosion, and Waikiki is no exception. The tax influx will help combat this issue by replenishing the sand lost to the waves.
- Hurricane-Proof Homes: The legislature is pushing for the use of hurricane clips (fancy zipties, essentially) to secure roofs during heavy storms. A little extra strength in the winds could make a big difference.
- Wildfire Suppression: We all love a good HI-5 (hula hoop) session. Too bad invasive grasses like the ones that fan the flames of wildfires also love a good hula hoop. By clearing these plant species, Hawaii aims to stymie their ability to spark deadly wildfires.
Hawaii's House and Senate, both controlled by hefty Democrat majorities, voted in favor of this measure on the same day. How's that for teamwork?
This marks the first state to levitate lodging taxes for the environment and climate change mitigation. It's no longer just business as usual; it's business with a purpose[1][4].
And what better reason to ditch the sandy beaches of Florida than supporting fledgling hawksbills and inspiring memories that won't fade like the sunset? "The more we cultivate responsible environmental policy, and the more we invest in enhancing our habitat, the more likely it is we'll charm travelers to Hawaii for a lifetime," proclaimed Gov. Green in an interview[1].
Rest assured, the additional tax revenue won't be misused. Funds raised exclusively by the 0.75% hike and the new cruise ship tax will focus solely on resources and climate change. Meanwhile, revenue from existing state lodging taxes will continue to sway to the general fund and offset the construction of Honolulu's rail line[1].
But the Maui Hotel and Lodging Association's executive director, John Pele, is questioning the repercussions. "Will we tax tourists out of wanting to come here?" he mused. Time will tell.
What started as a larger increase was whittled down after (tourism-related) concerns were raised. As Democratic Rep. Linda Ichiyama, vice speaker of the House, summarized, "It was a balance."
Would you shell out the extra dough for the chance to save a piece of paradise from the encroachment of climate change? An Illinoisan visitor, Zane Edleman, voiced his support. "If the state can demonstrably prove that this money is going towards saving the climate and showing tangible results, I think people could get on board," he confided[1].
After all, it takes a village, along with a hefty tax bill, to save the planet.
[1] https://www.nytimes.com/2025/06/25/us/hawaii-lodging-tax-climate.html[2] https://www.hawaiinewsnow.com/2025/06/25/hawaii-legislature-approves-400-million-green-infrastructure-bill/[3] https://www.cnn.com/2025/06/25/us/hawaii-lodging-tax-hurricane-preparedness/index.html[4] https://www.staradvertiser.com/2025/06/25/breaking-news/hawaii-lodging-tax-climate-change-funding/[5] https://www.reuters.com/article/us-hawaii-tax-climate-idUSKCN2HK0RT
- Aiming to combat climate change and fortify defenses against natural disasters, Hawaii has raised its lodging tax, with Gov. Josh Green set to sign the bill starting January 1, 2026.
- The increased tax, from 10.25% to 11%, will generate approximately $100 million annually, funding initiatives like reef revitalization, hurricane-proof homes, and wildfire suppression.
- In the realm of environmental science and policy-and-legislation, this marks the first state to levy lodging taxes for environmental protection and climate change mitigation.
- Hawaii's Democratic majorities in the House and Senate supported the measure, aiming to balance the environment's needs with tourism-related concerns.
- Zane Edleman, an Illinoisan visitor, expressed his support for the tax, believing that tangible results in climate-change efforts could sway tourists to continue visiting Hawaii.
- The influx of tax revenue from this measure will not be misused, focusing solely on resources and climate change, while existing state lodging taxes still support infrastructure projects like Honolulu's rail line.
