Hawaii's New Hotel Add-On Green Fee Has Nothing To Do With Golf

It's a catch-22: Some of the most stunning places on Earth are victims of their own popularity. Locals rely on tourism dollars to support their economy, but tourism takes a toll on the environment. Case in point, the islands of Hawaii. About 10 million visitors arrive in Hawaii annually to explore its natural wonders, coral reefs, rainforests, cascading waterfalls (including Waipoo Falls, one of the coolest hidden waterfalls in the world) and, of course, some of the planet's most gorgeous beaches. But that traffic can negatively impact the very sites that draw tourists to the Aloha State in the first place. 

In 2024, tourism spending contributed approximately $19 billion to the state's economy, so clearly, banning tourism outright really isn't an option. There's got to be a way to protect the state's treasures without jeopardizing the tourist spend that supports the local economy. And there is, but it comes in the form of an add-on tax some potential visitors may find off-putting.

Effective Jan. 1, 2026, Hawaii will begin tacking an additional .75% tax onto the daily room rate for stays at hotels, vacation rentals, and other short-term accommodations. Dubbed a "green fee," proceeds from the tax will support programs created to mitigate the impact of climate change while protecting the state's natural resources. In a press statement issued by his office, Hawaii Governor Josh Green said of the tax, "It is foundational to our ability to provide a safe and secure Hawai'i for our children, our residents, our visitors and the environment." With an average per-night room rate of $364 exclusive of taxes and fees, Hawaii is already the most expensive hotel market in the United States. The new green fee will add about $2.73 per day to the average room rate.

While Hawaii's designated green fee is a first of its kind in the U.S., other countries around the world have implemented similar fees. In Canada, individual municipalities collect tourist fees and earmark the proceeds for things like tourism promotion and visitor experience. A few cities, including Vancouver and Victoria (an underrated Canadian city you should visit at least once), designate fees to hotel and public transportation sustainability initiatives. In Brazil, Rio de Janeiro and São Paulo designate tourism fees for environmental projects and tourism development. An eco-tourist's dream-come-true, the Brazilian archipelago Fernando de Noronha — the perfect destination during cold weather months — directs tourism fees to conservation efforts created to protect its delicately balanced marine biodiversity and coral ecosystem.

Some tourism pundits believe Hawaii's new green fee will trigger similar initiatives in other high-traffic tourism destinations throughout the U.S. In Hawaii, the green fee is expected to bring in about $100 million a year in funds specifically marked for sustainable tourism initiatives and protective measures. It's a admirable goal, but it's also risky bet, especially in an already-expensive destination like Hawaii where existing hospitality fees, known as the Transient Accommodation Tax, already amount to 10.25% per day. Time will tell how this bold initiative fares.