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Hawai‘i Increases Hotel Tax to Help State Cope with Climate Change
May 6, 2025

Projects mentioned in this story:
Care for ʻĀina Now

From ABC News:

Hawai‘i has passed legislation to increase taxes for people staying at hotels to help the islands cope with the increasing pressures from climate change.

The bill, SB1396, adds a 0.75% levy to existing taxes on tourist lodging within the state -- including hotels rooms, timeshares and vacation rentals starting Jan. 1, 2026. It also imposes an 11% tax on cruise ship bills for each night the ship is in a Hawaiian port.

The new legislation is expected to raise nearly $100 million a year, and will be used for environmental protection and defenses against natural disasters amplified by climate change, including rising sea levels, coastal erosion and shifts in rainfall patterns. The state sees up to 10 million visitors per year, according to the Hawai‘i Tourism Authority.

Among the projects needed on the island are coral reef protections and clearing invasive grasses that can fuel wildfires.

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