Hawaii’s Green Fee Overcomes Legal Hurdle, Set to Commence January 1
In a significant development for Hawaii tourism, a federal judge has declined to block the state’s controversial Green Fee from taking effect on January 1, 2026. Despite fierce legal opposition, including federal lawyers labeling the fee as “illegal extortion,” the ruling paves the way for its immediate implementation. This change will inevitably affect the visitor costs for travelers planning 2026 trips to the islands.
The Green Fee is an extension of Hawaii’s Transient Accommodations Tax (TAT), traditionally levied on hotels, but now includes cruise ship passengers. The tax increases from 10.25% to 11% statewide, with the additional revenue projected to generate approximately $100 million annually. These funds are earmarked for climate change initiatives, conservation efforts, and infrastructure improvements across the Hawaiian Islands.
Norwegian Cruise Line has been forthright with passengers, issuing notifications that the company disagrees with the tax expansion and is collaborating with the Cruise Lines International Association (CLIA) to review its constitutionality. The CLIA argues that the tax could negatively impact tourism, stating that “cruise tourism generates nearly $1 billion in total economic impact for Hawaii and supports thousands of local jobs.” However, many travelers perceive the 0.75% increase as minimal, viewing it as a necessary step towards preserving Hawaii’s natural resources. The fee is an addition to the rising accommodation taxes that now near 19%, along with resort fees, parking charges, and state park access costs that have increased throughout 2025.
Source: Beat of Hawaii