Staying in a hotel is often the first step in experiencing the beauty of Hawaii. From stunning beaches to lush forests, the Aloha State’s natural wonders attract millions of tourists each year. But with climate change presenting new challenges, Hawaii’s lawmakers are enacting changes that impact hotels and their guests.
Recently, Hawaii has decided to raise its hotel tax rates to address urgent environmental needs. This new tax aims to generate crucial funds for climate change mitigation and adaptation projects. Governor Josh Green has championed these measures, stating, "This is the money that we’ve been waiting for to deal with climate change."
According to Hawaii News Now, hotel and vacation rental taxes will rise from 9.25% to 10%. Cruise ship cabins will also face an 11% tax when docked in Hawaiian ports. Lawmakers believe that these increases could bring in $85–$100 million a year.
What does this mean for travelers booking a Hawaii hotel? In addition to the state’s elevated 10.25% tax, counties add their own 3% surcharge, plus a 4.712% general excise tax. All together, the tax on hotel stays in Hawaii will reach nearly 19%, making it one of the highest rates in the U.S. Only Omaha and Cincinnati have slightly higher lodging taxes.
Despite these higher rates, local officials believe tourists will continue to visit. The added revenue is intended to help restore beaches, strengthen infrastructure, and manage natural resources. For many visitors, knowing their hotel tax dollars support environmental initiatives could add value to their trip.
For more details on how this change compares nationwide and what the revenue will fund, visit NPR’s coverage of Hawaii’s hotel tax policy.
The hotel industry in Hawaii has expressed mixed feelings. While no one wants to see taxes increase, there’s an understanding that the funds are necessary for the state’s environmental future. Jerry Gibson, president of the Hawaii Hotel Alliance, noted that while larger increases would have hurt the industry, ensuring funds beautify the islands could make the change worthwhile.
Hotel operators are also finding ways to inform guests about how their stay contributes to these new initiatives. This transparency encourages a sense of shared responsibility between visitors and residents.
Sustaining Hawaii’s beauty for future generations means making difficult choices today. The new hotel tax serves as a model for other destinations facing environmental threats. Tourists can take pride in knowing their hotel stay supports projects like replenishing sand on eroding beaches, removing invasive species, and preparing communities for extreme weather.
With responsible hotel tourism and the right investments, Hawaii hopes to remain a paradise for years to come. For more background and ongoing updates, you can refer to Hawaii News Now’s full report on the bill and NPR’s analysis.
Hawaii’s hotels are at the center of a new movement to balance tourism with environmental responsibility. As these changes take effect, travelers should understand how their choices impact the islands’ long-term resilience. Booking your next hotel stay in Hawaii isn’t just about enjoying paradise—it’s about contributing to its preservation.