Hawaii plans to increase hotel tax to help it cope with climate change

npr.orgPublished: 4/30/2025

Summary

Hawaii plans to increase hotel tax to help it cope with climate changetoggle caption Jennifer Sinco Kelleher/APHONOLULU — In a first-of-its kind move, Hawaii lawmakers are ready to hike a tax imposed on travelers staying in hotels, vacation rentals and other short-term accommodations and earmark the new money for programs to cope with a warming planet. Adding to an already hefty taxThe increase will add to what is already a relatively large duty on short-term stays. The governor has long said the 10 million visitors who come to Hawaii each year should help the state's 1.4 million residents protect the environment. Hotel industry has mixed feelingsJerry Gibson, president of the Hawaii Hotel Alliance, which represents the state's hotel operators, said the industry was pleased lawmakers didn't adopt a higher increase that was initially proposed. Green acknowledged the revenue from the tax increase falls short of this, but said the state would issue bonds to leverage the money it raises.