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Hawaii, a tropical island paradise frequented by over 9.6 million tourists annually, is set to impose a new 'green tax' on all visitors in an effort to mitigate the environmental

impact of tourism. The island state, nestled in the Pacific Ocean, has become the first in the US to introduce a 'green tax' for tourists staying in hotels, holiday rentals, and

other short-term lodgings. On May 27, Hawaiian Governor Josh Green enacted a senate bill that introduces the USA's inaugural climate impact fee, or "Green Fee," expected to

rake in £75 million ($100 million) in fresh revenue each year, according to officials. Slated to take effect from 1 January, 2026, the legislation will hike the transient accommodations tax

(TAT) rate by 0.75% from 2026 and, for the first time, apply the TAT to cruise ships docking in Hawaii. For a $300 hotel stay, this would mean an additional $2.25 per night. In the past,

cruise ship guests were exempt from the TAT, but the new statute aims to foster "equity across the tourism industry" by ensuring every visitor contributes towards the preservation

of Hawaii's economic and environmental treasures, reports the Express. New legislation has been introduced in response to the increasing frequency of natural disasters, worsened by

climate change. This comes specifically after the 2023 Maui wildfires, which have since been labelled as the deadliest wildfire in over a century, decimating the Lahaina community. In mere

hours, over 100 people lost their lives and homes, businesses, and cultural sites were reduced to ashes. Governor Green stated: "As an island chain, Hawaii cannot wait for the next

disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future." Estimates

suggest that the state's existing 10.25% tax on daily room rates would rise to 11%. Furthermore, each of Hawaii's counties adds its own 3% surcharge, and the state and counties

impose a combined 4.712% general excise tax on goods and services, including hotel rooms. This would result in a total tax rate of approximately 19%. Despite predictions that this will

generate more revenue for the state, many have argued the increased tax could deter visitors from choosing Hawaii for their next holiday. One individual expressed their concern on X,

writing: "This definitely makes me not want to travel to Hawaii again. It's already expensive." Another person commented: "I will laugh my ass off when it's reported

that Hawaii's Tourist Revenue actually went down. The kicker is it will be reported as 'unexpectedly' went down." While some were critical of Hawaii's new tax,

others lauded the state for its initiative. A supporter enthused: "Hawaii's climate action sets a strong example! Investing in the environment through tourism is wise. Proud to see

communities protect natural beauty for future generations. "Ever looked at a hotel bill in Hawaii? Not like they don't already tax travelers about 40% anyway. What's that

money used for? What's another .75%," counters another, questioning the use of the existing high taxation on travellers.