Tourists say they'll 'stop going' to holiday hotspot after 'green tax' introduced

A tropical island paradise visited by over 9.6million every year is due to introduce a new '' on all .

, an island state located in the Pacific ocean, has become the first US state to establish a staying in hotels, vacation rentals and other short-term accommodations.

On May 27, Hawaiian governor Josh Green signed that established the first ever climate impact fee, or "Green Fee," within the . This fee would reportedly generate £75million ($100million) in new revenue annually, have said.

The bill, which will come into effect on 1 January, 2026, is said to be increasing the transient accommodations tax (TAT) rate by 0.75% beginning in 2026 and levies, for the first time, the TAT on cruise ships that port in the state. For a hotel costing $300, that would equate to $2.25 each night.

Previously, cruise ship passengers had been exempt from the TAT, but the new law seeks to promote "equity across the tourism industry" by ensuring all travelers contribute to protecting the islands' economic and natural resources.

This new legislation comes following to the growing frequency of natural disasters exacerbated by climate change, specifically the , which has since been named the deadliest wildfire in the country in over a century that destroyed the community of Lahaina. In just hours, over 100 people were killed with homes, businesses and cultural sites burnt to ashes.

"As an island chain, Hawaii cannot wait for the next disaster to hit before taking action," Governor Green said in a . "We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future."

According to the estimates, the state's existing 10.25% tax on daily room rates would climb to 11%.

In addition, Hawaii's counties each add their own 3% surcharge, and the state and counties impose a combined 4.712% general excise tax on goods and services, including hotel rooms. It will come to a tax rate of around 19%.

Despite the estimates saying this will bring more income to the state, many people have claimed the increased tax will lead to visitors boycotting Hawaii for their next holiday.

Taking to X, one person wrote: "This definitely makes me not want to travel to Hawaii again. It's already expensive."

"I will laugh my ass off when it's reported that Hawaii's Tourist Revenue actually went down. The kicker is it will be reported as 'unexpectedly' went down," another person said.

However, several others also praised the state for the new tax, with one person saying: "Hawaii's climate action sets a strong example! Investing in the environment through tourism is wise. Proud to see communities protect natural beauty for future generations."

"Ever looked at a hotel bill in Hawaii? Not like they don't already tax travelers about 40% anyway. What's that money used for? What's another .75%," another person argued.