Hawaii is set to increase the tax on travelers staying in hotels and vacation rentals to help fund environmental protection efforts. This new tax will be part of a bill that is expected to pass easily in the state legislature, where Democrats hold a strong majority. Governor Josh Green has expressed his support and plans to sign the bill into law.
Starting January 1, the daily room rate tax will rise by 0.75%, bringing the total tax rate on hotel stays to nearly 19%. This increase is expected to generate around $100 million each year. Lawmakers aim to use this money for various projects, including replenishing sand on eroding beaches, installing hurricane clips on homes, and removing invasive plants that contributed to the devastating wildfires in Lahaina two years ago.
Governor Green emphasized the need for this funding, especially after the tragic loss of lives and property in Maui. He believes that the millions of visitors to Hawaii should contribute to protecting the state’s natural beauty. Many travelers have expressed a desire to help the islands recover from disasters, and this tax increase is seen as a way for them to do so.
The hotel industry has mixed feelings about the tax hike. While some hotel operators are relieved that the increase is not higher than initially proposed, there is still concern about adding to the financial burden on tourists. Jerry Gibson, president of the Hawaii Hotel Alliance, acknowledged the need for funding but noted that no one in the tourism sector wants to see taxes go up.
Hawaii has faced challenges in funding its environmental needs, which include protecting coral reefs, managing invasive species, and maintaining popular hiking trails. The new tax is viewed as a compromise solution following previous proposals that would have required tourists to pay fees for park access.
Despite the expected revenue, there is still a significant funding gap for conservation efforts in Hawaii. An advocacy group recently estimated that the state needs $561 million annually to meet its conservation funding needs. Governor Green has said that while the new tax will not close this gap entirely, the state plans to issue bonds to help support long-term infrastructure projects.
The message from state officials is clear: visitors to Hawaii should help care for the environment that they enjoy. As one member of the governor’s Climate Advisory Team put it, everyone should be part of the solution to protect the places they love.