What's happened
Hawaii's governor has signed legislation imposing a new tax on hotel stays and cruise ships to fund climate resilience projects. The tax, effective January 1, 2026, aims to generate nearly $100 million annually for initiatives like beach replenishment and wildfire prevention, marking a significant step in addressing climate change impacts.
What's behind the headline?
Key Points of the Legislation
- Tax Structure: An additional 0.75% tax on hotel room rates and an 11% tax on cruise ship bills will be introduced. This raises the total accommodation tax to nearly 19%, one of the highest in the U.S.
- Funding Allocation: The estimated $100 million generated annually will support projects aimed at enhancing climate resilience, including beach restoration and invasive species management.
- Industry Support: Hawaii's hotel industry has backed the tax, viewing it as a means to improve the visitor experience and protect the environment that attracts tourists.
Implications
- Tourism Impact: While the tax increase is relatively small, it could influence tourist perceptions and spending. Governor Green believes that many visitors will support funding for environmental protection.
- Political Context: This move positions Hawaii as a leader in climate policy, potentially influencing other states to adopt similar measures. Green's call for collective action against climate change underscores the urgency of the issue.
What the papers say
According to The Guardian, Governor Josh Green stated, "There will be no way to deal with these crises without some forward-thinking mechanism." This sentiment is echoed in The Independent, which highlights the necessity of building firebreaks and hiring a fire marshal following the Lahaina disaster. AP News reinforces the urgency of the situation, noting that the tax is a response to the devastating wildfires that have impacted the state. Each source emphasizes the importance of proactive measures to safeguard Hawaii's environment and tourism economy.
How we got here
The legislation follows devastating wildfires in Maui that killed 102 people and destroyed much of Lahaina. Governor Josh Green emphasized the need for proactive measures to combat climate-related disasters, making Hawaii the first U.S. state to implement such a tax.
Go deeper
- What specific projects will the tax fund?
- How will tourists react to the increased taxes?
- What other states are considering similar measures?
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Joshua B. Green is an American politician and physician serving as the 14th Lieutenant Governor of Hawaii since 2018. A member of the Democratic Party, he was the Hawaii State Senator from the 3rd district from 2009 to 2018 and Hawaii State Representative
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Hawaii is a state of the United States of America located in the Pacific Ocean. It is the only U.S. state located outside North America, the only island state, and the only state in the tropics.
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