Hawaii lawmakers have enacted pioneering legislation to increase the state's lodging tax, aiming to generate funds for environmental protection and climate change resilience. This new measure introduces a 0.75% levy on short-term accommodations and an 11% tax on cruise ship bills, expected to raise nearly $100 million annually for projects like beach replenishment and wildfire prevention. Governor Josh Green supports the initiative, believing that tourists will appreciate the focus on environmental sustainability. Despite concerns about potentially deterring tourists due to higher costs, officials emphasize the environmental benefits as a significant draw. The legislation reflects a balance between sustaining Hawaii's tourism industry and addressing pressing environmental needs.

The new legislation passed by Hawaii lawmakers imposes a 0.75% increase on the state's lodging tax and an 11% tax on cruise ship bills, specifically aimed at funding environmental protection and climate change resilience projects.

Expected to generate nearly $100 million annually, the funds will support initiatives like replenishing eroded beaches, promoting hurricane-resistant roofs, and clearing invasive grasses that contribute to wildfires.

Governor Josh Green, who supports the bill, believes that tourists visiting Hawaii will favor the commitment to environmental conservation, as many come to enjoy the natural beauty of the islands.

Concerns have been raised about the potential impact on tourism due to increased costs, with some speculating that visitors might choose alternative destinations like Florida if the additional charges become too burdensome.

The legislation was adjusted from its initial draft to address concerns about maintaining the tourism industry's viability while securing resources for environmental sustainability, reflecting a careful balance of interests.

Hawaii's lodging tax, which will now include the new levy and cruise ship tax, is among the highest in the nation, with the cumulative tax at checkout reaching 18.712%.

There is a consensus that the funds raised through this tax increase will positively impact the environment, although some industry leaders worry about the long-term effects on Hawaii's appeal as a tourist destination.