Tourists exploring Hawaii, known as The Aloha State, will encounter a new addition to their hotel bills, as lawmakers propose a fee aimed at preserving and safeguarding this cherished island destination.
The suggested Climate Health and Environmental Action Special Fund, Transient Accommodations Tax, will levy a $25 surcharge, aiming to establish an additional revenue stream for Hawaii, heavily reliant on tourist spending.
Democratic Governor Josh Green introduced the bill last month, seeking to generate an extra $68 million for the state treasury, with the funds earmarked for preventing a recurrence of the devastating Lahaina wildfires witnessed last year.
“It’s a very small price to pay to preserve paradise,” Green remarked to The Wall Street Journal, noting that the new tax would finance initiatives such as a state fire marshal, construction of new fire breaks to shield vulnerable communities, and investment in disaster insurance.
While Hawaii boasts 1.5 million residents and annually attracts nearly ten times that number in visitors, the state has observed a decline in tourism following the wildfires. Advocates of the bill argue it’s necessary to address the environmental impact caused by tourists, while opponents express concerns that the tax could further deter visitors.
In 2022, Green had proposed a $50 entry fee for all tourists entering the state, but the measure failed to gain traction in the state legislature.
