Holidaymakers vow to 'stop visiting' popular island after new tax announced - Birmingham Live

Holidaymakers vow to 'stop visiting' popular island after new tax announcedThe new tax has brought in following devastating wildfires that killed more than 100 people and ripped apart

communitiesCommentsTravelAlice Sjoberg and Jamie Brassington Senior reporter14:26, 02 Jun 2025Tourists have vowed they won't visit the island following new tax(Image: Getty Images) A

tropical island paradise visited by more than 9.6million holidaymakers every year is set to introduce a ‘green tax’ on all visitors as a way to fight the climate impact of tourism.

Hawaii has become the first US state to establish a ‘green tax’ on all tourists based in hotels, vacation rentals and other short-term accommodations, reports Express.co.uk.

‌ On May 27, Hawaiian governor Josh Green signed a new senate bill that established the first climate impact fee, or “Green Fee,” in the country.

‌ READ MORE: Foreign Office updates travel advice to Turkey with tourists urged to 'be aware'

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It will reportedly generate £75million, 100 million dollars, in new revenue annually, authorities said.

Article continues below The bill, which will come into effect on 1 January, 2026, will increase the transient accommodations tax (TAT) rate by 0.75 per cent and levies - for the first time -

the TAT on cruise ships that port in the state.

For a hotel costing 300 dollars, that would work out to 2.25 dollars each night.

Previously, cruise ship passengers had been exempt from the TAT, but the new law seeks to promote "equity across the tourism industry" by ensuring all travellers contribute to protecting the

islands' economic and natural resources.

‌ The new legislation follows the growing frequency of natural disasters exacerbated by climate change.

"As an island chain, Hawaii cannot wait for the next disaster to hit before taking action," Mr Green said in a statement. "We must build resiliency now, and the Green Fee will provide the

necessary financing to ensure resources are available for our future."

According to the estimates, the state's existing 10.25 per cent tax on daily room rates would climb to 11 per cent.

‌ In addition, Hawaii's counties each add their own three per cent surcharge, and the state and counties impose a combined 4.712 per cent general excise tax on goods and services, including

hotel rooms. It will come to a tax rate of around 19 per cent.

Despite the estimates saying this will bring more income to the state, many people claimed the increased tax would lead to visitors boycotting Hawaii for their next holiday.

Taking to X, one person wrote: "This definitely makes me not want to travel to Hawaii again. It's already expensive."

Article continues below "I will laugh my *** off when it's reported that Hawaii's Tourist Revenue actually went down. The kicker is it will be reported as 'unexpectedly' went down," another

person said.

However, several others praised the state for the new tax, with one person saying: "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 travellers about 40 per cent anyway. What’s that money used for? What’s another .75 per cent," another person argued.