Lawmakers in Hawaii have plans afoot to change things up. By earmarking tourist taxes for large environmental projects, and also demoting the Hawaii Tourism Authority, it’s clear lawmakers think the state should manage tourism instead of HTA. The current annual budget is set at $62 million.

Also, Hawaii may become the first state to levy a tourist fee—aimed at hotels, vacation rentals, and cruise ship cabins while in port—specifically to mitigate the impact of climate change. Speaking about the “Green Fee,” Hawaii Governor Josh Green said, “This is the money we’ve been waiting for to deal with climate change. I’m grateful that the legislature, after working through this for two years, has given me a bill, which I will sign.”

A bill scheduled for House and Senate votes would add an additional 0.75% to the daily room rate starting January 1, 2026, with the existing 10.25% tax on daily room rates climbing to 11%. In addition, Hawaii’s counties each add their own 3% surcharge and the state and counties imposed a combined 4.712% general excise tax on goods and services including hotel rooms. Together, that will make for a tax rate of nearly 19%. Officials estimate the increase would generate $100 million in new revenue annually. Officials estimate the increase would generate $100 million in new revenue annually.