🎯 STRisker: Bulletin - Hawaii
Hawai‘i to Add “Green Fee” on Hotels and Vacation Rentals in 2026
Hawaii’s Green Fee: Small Surcharge, Big Questions
Starting January 2026, every night you spend in a Hawaii hotel or vacation rental is going to cost a little more. Lawmakers have approved a new “Green Fee” — a 0.75% bump on the state’s Transient Accommodations Tax — with promises that the extra money will go directly toward preserving Hawaii’s natural beauty.
On paper, it sounds simple enough: the fee should generate around $100 million every year, earmarked for projects like reef restoration, trail repairs, and shoreline protection. That’s no small change, and for the first time, Hawaii is carving out tourism tax dollars specifically for conservation instead of letting them disappear into the state’s general fund.
But here’s where it gets sticky. Locals and travelers alike have seen this playbook before. Hawaii’s visitor taxes have a long history of starting small and creeping higher. The original TAT was a few percentage points lower than it is today, but over decades it’s ballooned into nearly 19% when you factor in county surcharges and excise taxes. Understandably, residents worry this 0.75% won’t stay small for long.
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The Green Fee also raises questions about accountability. Governor Green has set up a 14-member advisory council to recommend how the money should be spent. Conservation advocates see it as a golden opportunity to finally fund overdue projects like invasive species control and cultural resource protection. Skeptics, however, warn that Hawaii’s advisory boards often lack transparency and results, and the funds could drift away from their original purpose.
For vacation rental owners and guests, the change means slightly higher bills. On a $500-per-night rental, the fee adds just under $4 a night — about $26 more for a weeklong stay. That might not break a trip, but when stacked on top of already sky-high lodging prices, it’s another nudge upward in Hawaii’s rising cost of travel.
Visitors aren’t the only ones watching closely. The cruise industry, which will also be subject to the fee for the first time, could challenge the move legally. Meanwhile, residents hope that by asking tourists to pay a little more, the state can finally deliver cleaner beaches, safer trails, and healthier reefs.
The first test is already here. On September 24, the Green Fee Advisory Council held its first virtual public meeting to hear feedback from both locals and travelers. More hearings are expected in the coming months, and whether people see progress on the ground by 2026 will make or break trust in the program.
So, is this fee a brilliant way to tie tourism directly to conservation — or just another line item that chips away at Hawaii’s affordability? The answer will depend on what that $100 million actually buys.
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