A POPULAR tourist hotspot in the US is making it even harder for travelers to visit the state.
Due to its popularity, lawmakers are considering increasing fees for tourists staying in hotels, vacation homes, or other short-term rentals.
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The state is one of the top five most visited places in the country and is now one of the most expensive places to visit in the world, according to a 2023 survey.
Those visiting the state of Hawaii may need to pay an additional 0.75% to their daily room rate starting January 1, 2026, NBC affiliate WFLA reported.
The bill is designed to help preserve the state’s delicate ecosystem and raise funds to address climate change.
Leaders said the funds would be used to replenish sand on eroding beaches, repair damages from the wildfires that ripped through Maui in 2023, and assist homemakers in installing hurricane clips for their roofs.
The bill is scheduled to be voted on by the House and Senate on April 30.
Lawmakers believe the new tax will generate $100 million for the state.
“We had a $13 billion tragedy in Maui and we lost 102 people,” Governor Josh Green said in an interview.
“These kind of dollars will help us prevent that next disaster.”
Green, who supports the raise, said Hawaii would be the first state to impose taxes solely for environmental restoration.
The state already charges visitors 10.25% daily tax on room rates.
The new bill would bring the rate up to 11% tax.
Additionally, each of Hawaii’s counties adds a 3% surcharge, and a combined 4.712% general excise tax on goods and services.
Altogether, that comes out to 19% tax tourists pay to stay at a hotel during their trip.
Green argues that the 10 million tourists visiting the islands every year should help its 1.4 million residents battle climate change.
“All I want to do, honestly, is to make travelers accountable and have the capacity to help pay for the impact that they have,” Green previously told the Associated Press in 2023.
Collecting tax money to help the environment will allow famous tourist attractions like the Road to Hana in Maui to stay open.
Fees to visit Hawaii
Currently, visitors to Hawaii need to pay:
- 10.25% Transient Accommodations Tax (TAT)
- 3% county surcharge
- 4.712% General Excise Tax (GET)
If the new bill is approved, there will be an additional 0.75% added as a climate tax.
Green previously said he wanted to charge travelers $50 to visit the state, but the plan was deemed unconstitutional.
Jerry Gibson, president of the Hawaii Hotel Alliance, was happy to hear the government didn’t propose a higher fee than the one initially proposed.
“I don’t think that there’s anybody in the tourism industry that says, ‘Well, let’s go out and tax more.’ No one wants to see that,” Gibson said.
“But our state, at the same time, needs money.”
Gibson said that as long as the new tax goes towards preserving the environment, it would be worth it.