Are you planning on visiting Hawaii soon? According to reports, travelers are going to have to pay more to spend the night, and cruise ships will also be subject to a new tax. A new fee specifically targeted at tourists is part of a set of laws that go into effect on January 1, 2026.
Act 96, which Governor Josh Green signed on May 27, was created to direct funds toward environmental initiatives. It includes a new “Green Fee” that increases taxes on hotels, vacation rentals, and cruise passengers.
Hawaii green fee 2026: Higher hotel taxes and new cruise charges
2026 starts off with many challenges for tourists to Hawaii but exciting initiatives for locals.
The “Green Fee” was added to Hawaii’s Transient Accommodations Tax system to help in financing efforts to adapt to climate change. It increases the tax on short-term stays from 9.25% to 10% as of January 1, 2026.
Supporters are happy with the news, they claim the funding will be used for initiatives like wildfire mitigation, shoreline protection, and other environmental stewardship projects that support the island infrastructure—that depends on tourism. It should also assist the islands in coping with climate change’s effects.
Additionally, cruise ship operators will pay an 11% tax on cabin fares for the first time.
According to court documents, the fee is applicable to cruise fares and could be prorated according to the number of days a ship spends in Hawaiian ports. In addition, counties have the right to impose additional surcharges.
However, the cruise industry has filed a legal challenge to the cruise provision. Early in January 2026, the Associated Press and Hawaii News Now reported that a federal appeals court had temporarily prohibited Hawaii from collecting the new cruise-related tax while legal proceedings were ongoing, despite the hotel and vacation-rental tax increase.
Hawaii also tightens traffic laws with higher fines and stricter parking rules
But the new regulations affect more than just tourists. Another modification targets uninsured drivers and toughens penalties for repeat offenders.
Act 138, which went into effect on July 1, 2024, increases the minimum fine for driving without insurance from $1,500 to $2,000.
The same law doubles Hawaii’s required minimum liability coverage for bodily injury from $20,000/$40,000 to $40,000/$80,000.
The minimum coverage for property damage will also rise from $10,000 to $20,000. Lawmakers claim that the update is meant to address insurance limits that haven’t changed in nearly 25 years and record-breaking traffic fatalities.
A different new regulation will make it more difficult for drivers to leave their vehicles close to intersections and crosswalks.
Even if there are no signs or sidewalk markings, Act 171 forbids parking within 20 feet of crosswalks and intersections. According to the law, “the legislature finds that illegal parking near crosswalks and intersections creates dangerous conditions for pedestrians, particularly children walking to school.”
There is a $50 fine for each day that a car is parked illegally. Emergency and official government vehicles on duty, vehicles assisting emergency vehicles, and drivers yielding to them are all exempt.
Could Hawaii’s green fee affect tourism numbers in 2026?
Will Hawaii’s visitor numbers drop as a consequence of the new green fee? Surveys show that visitors are ready to give more “as long as the money is going to the right place”:
According to Booking.com’s 2024 Sustainable Travel Report, 75% of tourists want to travel environmentally conscious.
Research from Euromonitor shows that almost 80% of travelers are willing to spend more on sustainable travel.
However, many agree with Maho Tanaka, a Tokyo-based Japanese advertising professional who plans to travel to Hawaii shortly.
According to her, “It depends on how much it is.” “If it were too expensive, especially with the weak yen, it might discourage me. But if it’s just 0.75%, like an extra $3 on a $400 stay, then that seems fine.“
