Hawaii’s Cruise Industry Challenges New Tourism Tax Increase
Hawaii is currently embroiled in a significant lawsuit from the cruise industry. The dispute arises from the recently enacted Green Fee, a new 0.75% surcharge added to the state’s transient accommodations tax. The Cruise Lines International Association, along with local businesses, initiated the lawsuit on August 30, 2025.
The plaintiffs argue that the surcharge is illegal and will negatively impact tourism by making cruises more expensive. For the first time, the tax, which increases the total accommodations tax to 11%, applies to cruise ships. The intention behind this tax is to fund environmental and climate projects.
Industry representatives contend that cruise tourists contribute almost 300,000 visitors annually and generate over $600 million for local economies. They caution that the additional costs could reach approximately $1,400 for families, potentially making Hawaii cruises less attractive compared to other destinations.
The funds generated by the Green Fee will bolster Hawaii’s Environmental Legacy Fund. This fund targets beach protection, climate resilience, and sustainable tourism initiatives.
Source: Travel and Tour World