Hawaii Becomes First U.S. State to Implement Climate Impact Fee for Visitors

In a groundbreaking move to bolster environmental sustainability and climate resilience, the State of Hawaii has enacted Act 96, making it the first U.S. state to implement a climate impact fee on visitors. The legislation, signed into law on May 27, introduces a 0.75% surcharge on Hawaii’s existing 11% Transient Accommodations Tax (TAT), effective January 1, 2026.

The fee will apply to all transient accommodations, including hotels, short-term rentals, and cruise ships—the latter of which were previously exempt. State officials estimate the measure will generate $100 million annually, with funds earmarked for sustainability initiatives, disaster preparedness, and natural resource protection.

“For a traveler paying $300 per night for lodging, this translates to an additional $2.25 per night,” explained state officials.

Governor Josh Green emphasized the urgency of the initiative in light of Hawaii’s vulnerability to climate change. “As an island chain, Hawaii cannot afford to wait,” said Governor Green. “The devastation of the 2023 Maui wildfires—the deadliest in U.S. history—was a wake-up call that we must act now to safeguard our communities and ecosystems.”

The new law is designed to ensure that visitors contribute to the costs of preserving Hawaii’s natural beauty, rather than placing the full burden on local residents. The inclusion of cruise ship passengers addresses long-standing concerns about equity within the tourism sector.

Chris Benjamin, Chair of Hawaii’s Climate Advisory Team, called the surcharge a “historic investment” in the protection of both the land (ʻāina) and its people. The advisory team was formed following the Maui wildfires to help guide the state’s climate resilience strategy.

Hawaii joins a growing list of global destinations—such as Bali, Greece, and the Galápagos Islands—that have introduced or expanded visitor levies to combat the environmental impact of tourism. Advocates hope Hawaii’s leadership will inspire similar efforts across the United States to promote sustainable travel.