Concerns over cruise Green Fee
By Angela Cifone
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HONOLULU (KITV) — Visitors could be cruising into more taxes.
Hawaiʻi’s first-ever environmental Green Fee took effect at the beginning of the year, and increases the state’s Transient Accommodations Tax.
The fee is an additional 0.75%, bringing the statewide total to 11%.
The new fee also adds an additional 3% charged by the counties for short-term stays.
Carmela Resuma, the Deputy Administrator at Kilohaha, Hawaiian Council, said, “We’re working to make tourism better for the community. The coalition that helped to pass the green fee last legislative session.”
For supporters, the goal is simple: to protect what makes Hawaiʻi special—its environment.
“We live in Hawaiʻi, a place so many people love to visit. How do we make sure our spaces are protected and visitors are educated on how to be respectful of the place and the people?” said Resuma.
While the fee applies to hotels and short-term rentals, courts have temporarily blocked the tax on cruise ships, following a lawsuit from the cruise industry.
A shipping expert we spoke to said the lawsuit could be stuck in federal court for a while.
Some argue that the fee is unconstitutional.
The Cruise Lines International Association released a statement saying:
“This case involves important questions about how federal and state laws interact in regulating maritime commerce.”
Without cruise participation, supporters say funding could take a hit.
“It wouldn’t eliminate the Green Fee, but it would diminish its impact—meaning less funding for community conservation and hazard resilience,” said Resuma.
State officials estimate the Green Fee could generate about $100 million annually, supporting efforts to mitigate overtourism, wildfire prevention and disaster recovery.
“Our community, our ʻāina is in desperate need of this kind of funding,” said Resuma.
Still, critics worry that higher costs could discourage visitors from making the trip to the islands.
Maxime Aymonod, CEO of Honolulu Ship Supply, said, “Cruises in Hawaiʻi are already pretty expensive, and so we think that is going to be a big deterrent for people to come to Hawaii and enjoy it with the cruise line.”
Supporters argue protecting Hawaiʻi now ensures its future.
“It takes a collective effort, and the Green Fee is part of making sure Hawaiʻi remains Hawaiʻi for generations to come,” said Resuma.
The lawsuit continues in federal court. A scheduling conference is set for Jan. 26.
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