Dubbed the "green fee," the measure adds a 0.75% surcharge to existing taxes on hotels, timeshares, vacation rentals and cruise ship stays. Once signed by Governor Josh Green — who has already pledged his support — it is expected to raise nearly $100m annually for climate adaptation efforts.

"This is a generational commitment to protect our ʻāina," Green said in a statement, referring to the Hawaiian word for land. "Hawai‘i is truly setting a new standard to address the climate crisis."

Funding a frontline fight

Hawaii, long seen as paradise, is increasingly on the frontlines of the climate emergency. The bill's funds will go toward protecting vulnerable shorelines, replacing eroding sand at Waikiki Beach, securing rooftops against intensifying hurricanes, and removing invasive grasses — like those blamed for fueling last year's catastrophic Lahaina wildfire.

State leaders say the modest tax hike — which will push the total accommodation tax burden to 18.712% — is a fair price for tourists to pay in exchange for enjoying the islands' natural beauty. "The more you invest in protecting our lived space, the more you cultivate lifelong visitors," said Green.

Balancing economy and ecology

The bill passed with overwhelming support in Hawaii's Democrat-controlled legislature. Lawmakers revised the original proposal to reduce the scale of the increase, seeking to balance the state's economic reliance on tourism with urgent environmental needs.

"We need to protect the environment without driving visitors away," said Vice Speaker Linda Ichiyama. "This legislation finds that balance."

Industry voices have expressed both support and concern. "Everyone agrees the money's going to a good cause," said John Pele of the Maui Hotel and Lodging Association. "But we don't yet know if higher costs will discourage visitors."

A test case for climate finance

While some travelers may balk at the price tag, others say transparency will be key. "If it's clear the funds are going to meaningful climate action, people will support it," said Zane Edleman, a visitor from Chicago. "But the state has to show results."

Governor Green has until 9 July to formally sign the bill — a move that could establish a national precedent as states seek creative ways to finance climate resilience.